Finding The Right Agent
You want to find the right home, in the right location, at the right price, and you want to do it quickly, with minimum hassle. The best way to do that is to work with a professional Realtor who listens to you, understands your wants and needs, your time frame and your financial boundaries.
Why work with an agent? - You'll save time. The right agent can pinpoint homes that fit your needs and dismiss those that don't.
- You'll get the right information. The right agent knows the neighbourhood and can give you accurate information on local real estate values, taxes, utility costs, services and amenities.
- You can always count on great advice. Because the right agent is familiar with the entire home purchasing process, they can advise you of your legal and financial options, and recommend appraisal, home inspection and contracting services.
- You benefit from an experienced negotiator. The right agent will manage your offers and counter-offers, ensuring that you get the best possible price for your home.
Choose an agent who understands your needs
Here are a few questions to ask to help you determine if an agent is right for you: - Can you be contacted at any time?
- Will you be representing my interests?
- Do you know the neighbourhood I want to buy in?
- Do you have access to MLS information?
- Will you provide market evidence to support the price?
- Will you look after closing and possession details?
Working with an agent
An agent's job is to: - Search for the right properties for you, according to your wants and needs and your price range.
- Provide information on the property and the area.
- Negotiate a price and terms that are agreeable to both buyer and
- seller.
- Help arrange a source of financing.
- Help arrange a home inspection.
- Be there for you up to and including the closing process.
- Ensure that once you move in, everything is in order and you are happy in your new home.
Determining What You Can Afford
The best first step is to obtain a mortgage pre-approval. See our Resources page for information on mortgage financing.
Buying a home involves both one-time costs and more regular monthly expenses. It's important that you take both into account when you're figuring out how much you can spend on a home.
The largest one-time cost is the down payment, which usually represents up to 25% of the total price of the property. Then, in addition to the actual purchase price, there are a number of other expenses that you may be expected to pay.
Typical One-Time Expenses - Mortgage application and appraisal fee (paid at time of application)
- Home inspection (paid for at time of inspection)
- Legal fees and disbursements (paid at closing)
- Deed and/or mortgage registration (paid at closing)
- Property survey, if required (sometimes provided by seller) (paid at time of survey)
- Land Transfer Tax (paid at closing)
- Mortgage interest adjustment and take over fee (if applicable) (paid at closing)
- Adjustments for fuel, taxes, etc. (paid at closing)
- Mortgage insurance (and application fee if applicable) (paid at closing)
- Home and property insurance (paid at closing and on-going)
- Connection charges for utilities such as gas, water and electricity (paid on date of move)
- Moving expenses (paid on date of move)
Typical monthly costs include mortgage payments, maintenance, insurance, condo fees, property taxes and utilities.
The Elements Of An Offer
Here's a quick reference to everything you need to know about making an on offer on a property:
Price
Depends on the market and the buyers. The right agent will show you properties in your price range and negotiate a price that you are comfortable with.
Deposit
Shows the buyer's good faith and will be applied against the purchase price of the home when the sale closes. The right agent can advise you on a suitable amount to offer.
Terms
Includes the total price the buyer is offering as well as the financing details. The buyer may be arranging his/her own financing or may ask to assume your existing mortgage if you have an attractive rate.
Conditions
These might include "subject to home inspection" or "subject to the buyer obtaining financing". The right agent will guide you in determining the right conditions to include in an offer.
Inclusions and exclusions
These may include appliances and certain fixtures or decorative items, such as window coverings or light fixtures.
Closing or possession date
Generally, the day the title of the property is transferred to the buyer and funds are received by the seller, unless otherwise specified.
Negotiating Offers
When it comes time to make an offer, the right agent will provide current market information and draft a suitable offer. They will then communicate the offer to the seller or the seller's representative on your behalf. Strong negotiating skills and experience are key and the right agent will be able to obtain the best possible deal for you. Sometimes there may be more than one offer on a property. The right agent will guide you through this process and protect your best interests.
An Offer to Purchase
An Offer to Purchase is a legal document which specifies the terms and conditions of your offer to purchase the home. The offer can be firm or conditional.
Firm Offer to Purchase:
preferable to the seller because it means you are prepared to purchase the home without any conditions. If the offer is accepted, the home is yours.
Conditional Offer to Purchase:
means that you have placed one or more conditions on the purchase, such as "subject to home inspection" or "subject to financing". The home is not sold until all the conditions have been met.
Acceptance of the Offer
Your Offer to Purchase will be presented as soon as possible. The seller may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, the closing date, or any number of variables. The offers can go back and forth until both parties have agreed or one of you ends the negotiations.
Buying Tips
When you fall in love with a home, the things you like about it can overshadow possible issues. The right agent will bring objectivity to the process and be on the lookout for any problems, but here are some top tips to keep in mind when you tour a property.
Things to look for when you buy:
Take a look at general upkeep. Is it clean? Are lawns left uncut? Do walls need paint? If the small stuff hasn't been taken care of, there's a good chance that bigger issues have been ignored as well.
Test it. Try out lights, faucets, toilets, air conditioning and major appliances.
Check for water damage. Look at ceilings and drywall for stains and bulges. Water that works its way in through a leaky roof or a cracked foundation can rot wood, create mildew and destroy possessions.
Watch for "spongy" floors. Take note of soft, springy sections, squeaky or uneven areas - these can be a sign that costly floor repairs are needed.
Check doors and windows. Make sure they fit snugly in their jambs and operate smoothly. Feel for drafts. Look for flaked paint and loose caulking - if wood isn't protected from moisture, it will rot.
Look at the foundation. If you see deep cracks or loose mortar and bricks, there may be a significant structural problem. Soggy areas near the foundation are also a warning sign.
Make sure there's enough storage space. If you are moving from a home with large closets and a shed, make sure your new home is able to store the amount of belongings you will be bringing with you.
Measure. Make sure your furniture will fit into your new home. | |
