Home Buyers Guide

BUYING A HOME?

Fantastic - but whether you are buying your first home or fifth home one thing remains the same - It is a big job involving a great deal of time, effort and money.

Every Buyer has unique needs but the basic questions they ask are very similar:

How much can I really afford?

Do I need a Real Estate Agent or Can I Go It Alone?

What area best suits my needs and lifestyle?

How Do I Negotiate and Protect Myself?

You need to be need to be informed and prepared regarding your financial capabilities and then focus on what type of housing may best suit your needs at this time.

STEP 1
GET PRE-APPROVED FOR A MORTGAGE

If you are a first time home buyer or someone whose time has come to upsize their home, then the first step should be to find out exactly what your financial capabilities are at this time. There is no sense looking at $800k homes if you only qualify for up to $600k. Keep in mind future life changes and how this may affect your future cash flow. In a period of rising interest rates most Pre-Approvals lock in your rate for up to 90 days and this could put thousands of dollars in your pocket for years to come

STEP 2 -
DECIDING WHAT YOU WANT - AGENT OR NO AGENT

Start looking at homes within your budget and determine what you are looking for in a new home. This is where a great Realtor can be of valuable assistance as they know your local market and can listen to your wish list and get you out there looking at multiple homes to ensure you are on the right path for your home purchase. A Realtor is also very helpful in setting up real time searches that keep you current with new listings and changing market conditions and give you the best chances of finding and locking down that perfect new home for yourself. If you go without a Realtor then just know you are behind the 8 ball on new MLS listings (couple day delay in listings hitting the public system), and you won’t have enough information about recent sales to ensure you are paying the right price for a home.

Top 6 Reasons Why Most Homebuyers Choose to Work With an Agent:

1. Most of the time it is free. Commission has traditionally been paid by the Seller but be aware that a For Sale By Owner may require the Buyer to pay or in some situations the Buyer may have to make up a balance of commission if the commission paid is less than your agent charges.

2. A good agent can Save You Time Looking for Active Listings that fit your criteria via automated searches.

3. A good agent will have the information to make sure you Avoid Overpaying for a home by providing you market knowledge on the pricing of recently sold competitive properties and insight on the current state of the market.

4. A good agent will Represent and Protect Your Interests as a Buyer – having a Buyer Agency Agreement in writing solidifies your agency relationship and the duties and benefits that a Fiduciary Agent provides to you. This agreement holds your Fiduciary Agent accountable to find you the best house at the best possible price including all the Fiduciary duties.
A Fiduciary Agent (FA) is a person required to act for the benefit of another (the principal) with the duties of good faith, trust, confidence, reasonable care and diligence, loyalty, disclosure, accounting, and candor. This duty obligates the FA to act in the best interest of the principal.

5. A good agent is skilled at Negotiating the best price and terms of your most valuable asset

6. Your Agent will Manage All the Details and Paperwork – ensuring things go smoothly and help avoid hassles and complications.

STEP 3
START SEARCHING

Now the fun begins! Most searches begin online with over 95% of buyers starting their home search via the internet. The most comprehensive website for property searches is Realtor.ca which is a Canada wide database of all active properties for sale. There are countless other sights promoting active listings as well as For Sale By Owner websites and in your search for a new home all avenues of the search should be considered.

Now keep in mind that the internet is a very helpful tool for you to get a sense of what’s available but keep in mind it is not a complete picture of the market or all properties available. Here is what you cannot see online that a Realtor can help you with:

Hot new listings as soon as they hit the marketplace. In a hot market a hot home will be sold before it makes it to the public domain. Only by having a Realtor set up a real time search will you be on the pulse of the new listings meeting your criteria as soon as they hit the market.

Finding possible homes of interest from expired listings in your target area.

Better search parameters and functions vs the public sites to best refine your search and truly capture the properties that are of specific interest to you.

Your agent can book you through multiple homes and truly get you up to speed for what you can get in different neighborhoods for your budget ensuring you get on the right track right away for the right home in the right neighborhood based on your budget and lifestyle needs.

STEP 4
MAKE A SMART OFFER AND NEGOTIATE

You have found a house you love which is Fantastic! Now comes the time to put an offer together and how the process typically works:

1. Decide on your offer price, completion date and relevant conditions to be included for your protection such as a home/well/septic inspection, finance or conditional on sale of your current home etc

2. Prepare the offer creating a legal document that will protect you, follows your instructions and matches your schedule and needs.

3. Review and Sign the offer making sure you have covered all the bases going into the presentation situation.

4. Present the Offer and Negotiation of Price, Close and Terms of the offer.

What happens next? One of three things:

1. The Seller accepts your offer in its entirety. current home etc

2. The Seller rejects your offer in its entirety.

3. The Seller Counters your offer changing some of the terms such as price, conditions or completion date. You then will review the offer with your agent and see what kind of terms can be agreed upon or if you are too far apart then perhaps advise you to step back and give the process some space. A great Realtor will know just how hard to push and when to pull away if the Seller is being unreasonable in your opinion. Many a deal comes together with a bit of time and space and being on the Seller’s radar with a fair offer is a huge step forward in getting an eventual deal together. Sometimes both parties need a little time to walk themselves to the Reality of the situation.

STEP 5
DUE DILIGENCE & CONDITION REMOVAL

Okay, congrats are in order you have got a deal together and now comes the time to do your due diligence and make sure the property has no surprises and you will be able to secure a mortgage for your purchase.
One of the most important Buyer Conditions is that of the Home Inspection.

Some useful Home Inspection Tips:

Choose a qualified professional Home Inspector

Ensure the inspector checks for visible issues with Plumbing, Electrical, Roof, Insulation, Walls and Ceilings, Flooring, Doors and Windows, the condition of the foundation, Furnace and temperature permittable the Air Conditioner and grading around the home.

Ensure to be on sight so the Inspector can review the home and point out features and/or the deficiencies of the home to you first hand.

Ensure you get a detailed report including pictures documenting the state of the home at the time of the inspection summarizing the conditions of the home in its current state.

Other Common Conditions

Financing – your mortgage professional will require a copy of the deal and the MLS listing to get the property approved for financing.

Well/Septic Inspections – more detailed inspections of these facets for rural properties.

Status Certificate – required for the sale of a condo corporation unit. Cost is a $100 and is ordered from the condo corporation and given to your lawyer for review.

STEP 6
PREPARE FOR CLOSING DAY

Typically you will have anywhere from 60 to 90 days until you complete the purchase of your home. Be prepared and take care of the details and have monies put aside for closing costs such as the Balance of your Down Payment, Land Transfer Tax and Moving Expenses etc. Contact local utilities to have your name placed on the property as of the completion date. Inform your children’s old and new schools about the move and arrange any necessary record transfers. Make sure you have insurance in place for the new home and you are able to provide the insurance company as much information as possible about the new home.

Make sure your lawyer and Mortgage companies have connected to make all the necessary arrangements for closing day. You won’t get the keys to your new home until your financial obligations are satisfied