"Home buying can be a daunting and complex process, which is why you should always have the help of a Realtor at your side. Remember, a Realtor works for you and is there to look after your best interests. Take a few minutes and learn all the ways I can help you succeed with the biggest purchase of your life."
1. MAKE SURE YOU'RE READY TO BUY
If you're thinking of buying a home, you've come to the right place. My website can fully prepare you for the home-buying process. Before we jump right in, you have to make sure that it's the right time for you to buy. Once you know that, I can help take care of the rest.
Are you ready? Be sure.
Few joys can match the pride of owning a home, but the responsibility can also come with sacrifices – from the financial commitment to the required care and maintenance. You’ll want to be sure both fit within your current or preferred lifestyle.
Is your bank account ready? Check it twice.
Your first home will be the biggest financial obligation you've ever faced, so do it right with the help of a REALTOR® and avoid regretting taking on more than you should. It is ideal to have saved up some money and manage any ongoing debts. In a couple steps, you can determine how much you can afford.
Is right now a good time to buy?
Markets go up, markets go down and even the most informed experts can’t accurately predict when a market will peak or bottom out. If you’re buying a home as a long-term investment (and for long-term enjoyment), you should be protected from short-term changes in the market. Instead, focus on picking a home that meets your and your family’s needs.
2. DECIDE WHAT YOU WANT TO BUY
Nowadays, there are many different types of homes to choose from. Without the help of a REALTOR®, you may end up in a neighborhood that doesn't suit your needs. Take a minute to reflect on your lifestyle, and based on that, decide what best fits you. To help, I've broken down the most popular housing options here.
First, decide where you want to live
Next, decide what type of home you want
By now, you probably have a good idea of what type of home is right for you. To familiarise yourself with the terminology, here's a quick overview:
The condo alternative
3. SELL YOUR CURRENT HOME
Not very many people can hold onto two homes at the same time, so you'll probably need to sell the one you have now. Be sure to check our incredibly helpful Selling section. In the meantime, here's a quick overview.
When should you sell?
Buy first or sell first? The eternal question
Many people are able to time their sale and purchase so they happen on the same "closing date". As a buyer, you can make your offer "conditional" on the sale of your existing home, so you're not paying for the upkeep of two homes. Or when selling, you can try to extend the "closing period" to give yourself more time to find your next home.
Sell with a REALTOR®, or go it alone?
In the same way that many people decide not to fix their own cars or do their own dental work, it's wise to enlist a professional when selling your most valuable asset. Real estate transactions are complex, time consuming and involve a lot of legal documentation. As a REALTOR® I am knowledgeable and highly motivated to help you get the most for your home. Before flying solo, truly know what a REALTOR® like myself can offer.
4. FIGURE OUT HOW MUCH YOU CAN AFFORD
Buying a home is a big deal! It’s probably the largest purchase you’ll ever make. Being prepared means also understanding that expenses go beyond purchase price.
Cost of buying a home = one time costs + monthly costs:
One Time Costs:
To secure your new home, you’ll likely need to arrange for a mortgage but before you do, take a look at how much you can afford each month. Based on your income and expenses, our affordability calculator can help you estimate your maximum affordable mortgage payments.
The first step in determining how much a bank will lend you is to understand how much you can afford each month. This is determined using two lending principals.
Gross Debt Service Ratio (GDSR) calculation
This lending principle simply states that your monthly housing cost should not exceed 32% of your gross monthly family income.
Total Debt Service Ratio (TDSR) calculation
This lending principle summarizes that your monthly housing cost and payments on all other debts (like loans, credit cards and lease payments) should not exceed 40% of your gross monthly income.
Once you have used the affordability calculator to estimate your maximum monthly total, you can compare this number to the mortgage payments for specific loan amounts. Enter the loan amount in our mortgage calculator and the monthly principal and interest will be calculated for you.
5. ARRANGE A MORTGAGE
Money makes the world go round, and a mortgage gives you the power to buy a home. Since you may not have hundreds of thousands of dollars at your immediate disposal, a mortgage is a loan that can help you cover the cost of buying a home. This isn't the most fun step in buying a home, but it's vital!
Who do you talk to?
There are hundreds of banks, credit unions and other lenders out there who would love your monthly mortgage payments. So talk to everybody and don’t be money-shy! A REALTOR® can be very knowledgeable about the different types of mortgages and can offer advice based on your needs and comfort level.
Call a mortgage broker:
Mortgage brokers are another great resource. They find low rates for a living, and they usually don't get paid unless you sign a mortgage through them, so they're highly motivated to get you the best deal.
Your best mortgage might be the seller's mortgage:
Often, you can take over or 'assume' the seller's mortgage. This is a great idea if the seller is locked into a lower interest rate than you can get right now. Contact me for additional information.
Mortgage terminology
Mortgage term:
Refers to how long the bank has agreed to lend you the money – typically from six months to five years. At the end of the term, you usually renegotiate a new term.
Amortization:
Amortization refers to the length of time it will take to pay off the whole mortgage, often as long as 25 years. The longer your amortization, the lower your monthly payments, but the more you pay in interest over time.
Down Payment:
Refers to the initial up-front portion you pay against your home purchase. A larger down payment means a smaller mortgage (and less debt).
Interest rates: Interest is the cost of borrowing money, and the interest rate tells you exactly how much. Using our mortgage calculator, check out the difference between borrowing $100,000 at 6% versus 9% at the same amortization. Keep in mind you can also choose between a fixed or variable rate. A fixed rate will remain unchanged for the entire term whereas a variable rate will fluctuate as rates increase or decrease throughout your term.
Lock into an interest rate? For how long?
It's a tough question. What if you 'lock in' for five years and the rate goes into a period of decline? That could mean you're stuck paying more than you had to for a long time. But if rates were to steadily climb over the next five years, locking in for five years now would be a great move. Your REALTOR® can provide great advice in every situation so you don't have to second-guess yourself.
Tip: If you’re a first-time homebuyer with money in a Registered Retirement Savings Plan (RRSP), you can withdraw up to $25,000 without paying income tax through the Home Buyers’ Plan. If your spouse or partner is also eligible, that’s a possible $50,000 you can use towards your down payment. Contact me for further details.
Applying for a Mortgage
Don't forget these extra costs
6. AM I THE REALTOR® WHO IS RIGHT FOR YOU?
REALTORS® aren't just people who help find you a home. They're an invaluable resource for knowledge, contacts and advice that help turn buying a piece of property into a home. Here we explain what you can expect when you enlist the help of a REALTOR®. There are a number of different kinds of relationships that you can develop with your REALTOR®. However, they all fall primarily under two categories - agency relationships and non-agency relationships.
Agency
Non-Agency
It is possible for a REALTOR® to work with you without being your agent. In this case, the REALTOR® can give you information, but cannot provide you with advice. There is a big difference between these two concepts. Nothing you say to a "non-agent" is confidential, so you have to be careful what you confide. As a buyer you will likely want your REALTOR® to act as your agent, but that decision is up to you.
Remember, the REALTOR® Code requires REALTORS® to disclose the nature of the relationship they have with you, and the duties and obligations associated with that relationship. Make sure you have this discussion with your REALTOR®.
HOW I CAN HELP BUYERS LIKE YOU:
As a REALTOR®, I can review your list of wants and needs to help you determine your price range, as well as answer questions about the markets you're interested in and help you compare homes and neighbourhoods.
Search the local real estate Board's MLS® System with COLLAB:
I can give you access to COLLAB, which gives you exclusive features of an MLS® System that the public is not privy to. Preview properties with COLLAB to ensure you're only shown homes that meet your needs and budget. I can also make appointments and walk you through potential homes, answer all your questions, and give up-to-the-minute information on financing. I can help explain your mortgage options, negotiate with the seller, smooth out any potential conflicts, and draw up a legally binding contract. If you take on more than you should, you may overlook important steps. Work with a REALTOR® like myself and get the best possible outcome.
Stick with your REALTOR®
When you hire me as your REALTOR®, I will become an expert on your specific needs and tastes. Scattering your time and energy amongst multiple REALTORS® will work against your goal of finding your best home. And because most REALTORS® have equal access to the same property listings, there's no real advantage to having multiple REALTORS®.
Canada's money laundering reporting requirements
No matter which REALTOR® you select, he or she will advise you of reporting requirements by FINTRAC, the federal agency responsible for administering Canada's Money Laundering and Terrorist Financing legislation and regulations. Your REALTOR® is required by federal law to complete a client identification form, and must ask you as a client (buyer) for verified ID such as a driver's license or passport. You can find out more on the FINTRAC web site at http://www.fintrac-canafe.gc.ca.
7. SEE WHAT'S OUT THERE
Now's the time to pound the pavement and see what's available. This step can be either incredibly fun or incredibly exhausting. But with me by your side, you'll be able to land on your dream home much more effectively.
Read and see all about it.
Start reading real estate ads in local papers. I can take you to areas you're considering to get a feel for them. Make note of surrounding schools, shopping, and recreational areas. Keep an eye out for not-so-great things like large industrial areas, railway tracks and airports. Visit during the day and at night.
Open Houses, come on in!
'Open Houses' are a great way to see inside the homes of your potential neighborhood. If a REALTOR® is hosting the open house, he or she probably knows the local market inside and out, and will be happy to answer your questions – don't be afraid to ask! Also, if you are working with a REALTOR®, dont forget to let the REALTOR® hosting the open house know.
Tip: Walking through a potential home is a thrill but try not to lose your head. Don’t let a giant kitchen island or swanky hot tub distract you from your real goal: finding a home that meets all your needs and fits your budget. Arm yourself with this house hunting checklist and bring it with you to homes you’re serious about buying. Good luck and happy hunting!
8. MAKE AN OFFER
You’ve found the perfect home? Congratulations! Now, if you actually want to make it yours, you have to make a successful offer, one the seller will accept. I can prepare the offer for you. Here are some terms you’ll see:
Tip: As your REALTOR®, I can help ensure no details are overlooked in your offer.
Submitting the offer
You've signed on the dotted line and your REALTOR® has provided your offer to the seller.
9. FIND A HOME INSPECTOR
When you’re buying a home, you’ll want to scrutinize every last detail. Hiring a professional to visually inspect your home for defects and overall condition – or, a home inspection – typically costs a few hundred dollars and can save you from unpleasant surprises and long-lasting regrets.
Many home buyers arrange a home inspection as a condition of their purchase. That way, should the inspector uncover any issues, you have the option to back out of or renegotiate the offer accordingly.
As your REALTOR®, I can help recommend home inspection companies for you to choose from. I also make sure your inspector is a member of a recognized professional organization. It helps provide some assurance they have the training and experience for the job. An inspection generally lasts a few hours and, when complete, you’ll get a written report summarizing the condition of your home.
What Does An Inspector Look At?
Tip: A newly-built home does not mean it’s perfect. In fact, construction quality can vary greatly from builder to builder. It’s at your discretion whether or not to opt for an inspection. In some provinces, repairs and corrections in new homes may be covered by a government or industry-sponsored warranty program. Bad news doesn’t necessarily mean it will have to cost you.
10. CHOOSE A LAWYER
Buying a home involves piles of legal documents. You need someone to translate the ”legalese” and ensure your best interests are protected.
Finding a Lawyer
There are many experienced real estate lawyers out there. Like choosing any other professional, ask your friends, family and co-workers for their recommendations. I can also give you the name(s) of experienced real estate lawyers in your area.
How will your lawyer help?
There are many legal steps to transferring ownership of land from one person to another. Even if pitfalls like fraud, government legislation, zoning issues or unpaid taxes don’t come up, your lawyer will help make the legal transfer of the home as smooth as possible. A typical transfer of title will require two weeks to complete.
Tip: Be sure to ask your lawyer how they structure their fees and get an estimate of the costs you can expect. And remember, your lawyer is here to help you. Ask questions if you don’t understand anything. Explaining legal jargon in plain language is a big part of their job.
11. CLOSE THE PURCHASE
Your offer has been accepted and you can’t wait to move in… don’t break out the bubbly just yet! You still have to close the deal. Your lawyer and I will do most of the closing work, but here’s a checklist to follow:
12. MOVE IN!
Moving day will come sooner than you think, so get planning ASAP.
Closing date and moving date aren't synonymous.
On closing, it’s likely you won’t get the keys to your new home until late in the day so it might make more sense to schedule the actual move for a day or so after closing.
Get Packing.
Whether you’re getting the help of friends and family to move or hiring a professional, nobody will take the same care you will. Start early and spread it out over many days. Label all your boxes by room (and especially if the boxes carry anything fragile) so the movers know where to put them and how to treat the boxes.
All moved in!
The boxes are mostly unpacked and you’re settling in nicely. You will now feel a strange urge to begin making changes and improvements right away. Sure, that old carpet has to go and a bigger deck would be great for entertaining but slow down! Take the time to get a feel for your new home and, more importantly, your new budget. Take a deep breath and enjoy what you have: your new home!
Tip: If you intend to move at the end of the month, contact a moving company or truck rental company well in advance. If you can move mid-week or mid-month, your moving company might cut you a deal.Bonus Tip: Moving into a new home is a chance to start fresh. Take the opportunity to purge by either hosting a garage sale or donating items you no longer use or need to charity.
If you're thinking of buying a home, you've come to the right place. My website can fully prepare you for the home-buying process. Before we jump right in, you have to make sure that it's the right time for you to buy. Once you know that, I can help take care of the rest.
Are you ready? Be sure.
Few joys can match the pride of owning a home, but the responsibility can also come with sacrifices – from the financial commitment to the required care and maintenance. You’ll want to be sure both fit within your current or preferred lifestyle.
Is your bank account ready? Check it twice.
Your first home will be the biggest financial obligation you've ever faced, so do it right with the help of a REALTOR® and avoid regretting taking on more than you should. It is ideal to have saved up some money and manage any ongoing debts. In a couple steps, you can determine how much you can afford.
Is right now a good time to buy?
Markets go up, markets go down and even the most informed experts can’t accurately predict when a market will peak or bottom out. If you’re buying a home as a long-term investment (and for long-term enjoyment), you should be protected from short-term changes in the market. Instead, focus on picking a home that meets your and your family’s needs.
2. DECIDE WHAT YOU WANT TO BUY
Nowadays, there are many different types of homes to choose from. Without the help of a REALTOR®, you may end up in a neighborhood that doesn't suit your needs. Take a minute to reflect on your lifestyle, and based on that, decide what best fits you. To help, I've broken down the most popular housing options here.
First, decide where you want to live
- Urban: If you're leaning towards the big city, a REALTOR® can help you consider each factor. Sure the prices are generally higher, but you can walk to a restaurant, maybe even to work. You'll also have the widest range of housing options.
- Suburban: Newer schools, modern shopping centers, bigger yards, and bigger homes are just a few of the reasons why so many people love the suburbs.
- Smaller Cities and Towns: Smaller cities and towns in Canada are dotted with thousands of wonderful self-contained communities, and compared to the big city, you can save a bundle.
- Rural: Live rural if you're partial to the idea of owning land. How nice would it be to own a few acres all to yourself? Seclusion is not for everybody, but for some, it's heaven!
Next, decide what type of home you want
By now, you probably have a good idea of what type of home is right for you. To familiarise yourself with the terminology, here's a quick overview:
- Single-family detached: As the name implies, the home is not attached to the home next door. Styles range from a single-story suburban bungalow, to a three-story Victorian.
- Semi-detached or linked: Two houses that share a common wall. Usually less money than a fully detached home.
- Duplex: A building zoned for two families.
- Town house: Also known as terrace or row housing. Several homes with a common style and joined in a row. They usually share walls on both sides.
The condo alternative
- How Condos are owned: You'll own 100% of your unit, and a share of the common areas. Common areas include the necessary plumbing, electrical systems, hallways and elevators. They may also include lots of fun stuff like a private gym or party room.
- Condo fees. Membership has privileges — and costs: On top of your mortgage and property taxes, condo owners also pay a monthly fee to operate and maintain the common areas. Be sure to look into condo fees, and how well they're managed, before signing anything.
- Resale: Previously-loved: Nothing can match the charm and character of an older home. As a bonus, the previous owner may have made improvements and upgrades and you get them with the house, usually for less than the cost of putting them in yourself. However, some may have a little too much 'character', like a leaky roof. Know what you're getting into.
- New: If you're having a new home built from the bottom up, carefully examine the property, the blueprints and visit other homes built by the same company. Have your REALTOR® and/or lawyer review everything before you sign. While your home is being built, stay on top of the process. And remember, you have a legal right to make a full inspection of the house before you accept it as complete.
Tip: You know what you want, but let's talk needs!
Are you getting out of a two bedroom apartment because you need more space for the family? Then your new home should have at least three bedrooms and probably a second bathroom. REALTORS® call these must-have features “needs.” Features you’d like to have are called “wants.” Your strategy should be to find a home within your price range that fulfills all or most of your “needs” and as many of your “wants” as possible.
3. SELL YOUR CURRENT HOME
Not very many people can hold onto two homes at the same time, so you'll probably need to sell the one you have now. Be sure to check our incredibly helpful Selling section. In the meantime, here's a quick overview.
When should you sell?
- Buyer's and seller's markets explained: When there are lots of people looking for homes but not many for sale, it's called a 'seller's market'. When there are lots of homes for sale and not many people buying them, it's called a 'buyer's market'.
- Wait for the market to improve?: If you're selling one home and buying another, you don't really have to worry about playing the market. If you sell your existing home for a 'low' price, you're probably also buying at a low price.
- Seasonality. Do home sales get frostbite?It's true. Winter sales tend to be slower, and spring sales are brisker. If you need to sell fast, ask me for help in establishing a price and making your home look attractive without making you look desperate.
- If you need to sell fast: Ask a REALTOR® for help establishing a price and for making your home look attractive, without making you look desperate.
Buy first or sell first? The eternal question
Many people are able to time their sale and purchase so they happen on the same "closing date". As a buyer, you can make your offer "conditional" on the sale of your existing home, so you're not paying for the upkeep of two homes. Or when selling, you can try to extend the "closing period" to give yourself more time to find your next home.
Sell with a REALTOR®, or go it alone?
In the same way that many people decide not to fix their own cars or do their own dental work, it's wise to enlist a professional when selling your most valuable asset. Real estate transactions are complex, time consuming and involve a lot of legal documentation. As a REALTOR® I am knowledgeable and highly motivated to help you get the most for your home. Before flying solo, truly know what a REALTOR® like myself can offer.
4. FIGURE OUT HOW MUCH YOU CAN AFFORD
Buying a home is a big deal! It’s probably the largest purchase you’ll ever make. Being prepared means also understanding that expenses go beyond purchase price.
Cost of buying a home = one time costs + monthly costs:
One Time Costs:
- Down payment
- Legal fees
- Title insurance
- Inspection fees
- Property Transfer
- Taxes
- Mortgage
- Utilities
- Maintenance
- Insurance
- Property taxes
To secure your new home, you’ll likely need to arrange for a mortgage but before you do, take a look at how much you can afford each month. Based on your income and expenses, our affordability calculator can help you estimate your maximum affordable mortgage payments.
The first step in determining how much a bank will lend you is to understand how much you can afford each month. This is determined using two lending principals.
Gross Debt Service Ratio (GDSR) calculation
This lending principle simply states that your monthly housing cost should not exceed 32% of your gross monthly family income.
Total Debt Service Ratio (TDSR) calculation
This lending principle summarizes that your monthly housing cost and payments on all other debts (like loans, credit cards and lease payments) should not exceed 40% of your gross monthly income.
Once you have used the affordability calculator to estimate your maximum monthly total, you can compare this number to the mortgage payments for specific loan amounts. Enter the loan amount in our mortgage calculator and the monthly principal and interest will be calculated for you.
5. ARRANGE A MORTGAGE
Money makes the world go round, and a mortgage gives you the power to buy a home. Since you may not have hundreds of thousands of dollars at your immediate disposal, a mortgage is a loan that can help you cover the cost of buying a home. This isn't the most fun step in buying a home, but it's vital!
Who do you talk to?
There are hundreds of banks, credit unions and other lenders out there who would love your monthly mortgage payments. So talk to everybody and don’t be money-shy! A REALTOR® can be very knowledgeable about the different types of mortgages and can offer advice based on your needs and comfort level.
Call a mortgage broker:
Mortgage brokers are another great resource. They find low rates for a living, and they usually don't get paid unless you sign a mortgage through them, so they're highly motivated to get you the best deal.
Your best mortgage might be the seller's mortgage:
Often, you can take over or 'assume' the seller's mortgage. This is a great idea if the seller is locked into a lower interest rate than you can get right now. Contact me for additional information.
Mortgage terminology
Mortgage term:
Refers to how long the bank has agreed to lend you the money – typically from six months to five years. At the end of the term, you usually renegotiate a new term.
Amortization:
Amortization refers to the length of time it will take to pay off the whole mortgage, often as long as 25 years. The longer your amortization, the lower your monthly payments, but the more you pay in interest over time.
Down Payment:
Refers to the initial up-front portion you pay against your home purchase. A larger down payment means a smaller mortgage (and less debt).
Interest rates: Interest is the cost of borrowing money, and the interest rate tells you exactly how much. Using our mortgage calculator, check out the difference between borrowing $100,000 at 6% versus 9% at the same amortization. Keep in mind you can also choose between a fixed or variable rate. A fixed rate will remain unchanged for the entire term whereas a variable rate will fluctuate as rates increase or decrease throughout your term.
Lock into an interest rate? For how long?
It's a tough question. What if you 'lock in' for five years and the rate goes into a period of decline? That could mean you're stuck paying more than you had to for a long time. But if rates were to steadily climb over the next five years, locking in for five years now would be a great move. Your REALTOR® can provide great advice in every situation so you don't have to second-guess yourself.
Tip: If you’re a first-time homebuyer with money in a Registered Retirement Savings Plan (RRSP), you can withdraw up to $25,000 without paying income tax through the Home Buyers’ Plan. If your spouse or partner is also eligible, that’s a possible $50,000 you can use towards your down payment. Contact me for further details.
Applying for a Mortgage
- Letter of employment confirmation: (include your position, your pay and how many years you've been with the company)
- List your assets: (your car, stocks, bonds, GICs, etc)
- List your liabilities: (car payments, student loans, credit card debt, etc)
- Social Insurance Number
- Your chequing account number
- Your lawyer's contact information
- Information about the house you want to buy
Don't forget these extra costs
- Application fee: Some mortgage lenders charge a fee to process your application. But ask to see if you can get it waived.
- Appraisal fee: Your mortgage lender may need to have your new home appraised by a professional, and they often pass the bill on to you. Sometimes your lender will also waive this fee.
- Mortgage broker's fee: Your mortgage broker may charge a fee that's payable on your closing date. Ask your broker to avoid surprises.
- Land survey fee: Lenders may require a survey of your property, even if it's an existing survey. Get your lawyer on the case.
- Home inspection fee: A home inspection is so important, I've devoted an entire step to it. Avoid surprises and protect yourself... this is money well spent.
- Home Insurance: Mortgage lenders require you to carry fire and extended-coverage insurance because your home is the security deposit on the mortgage. Often you can have these payments added to your monthly mortgage payments. Shop around.
- Title insurance: While not mandatory, it protects you from fraud and potential errors surrounding the title to your land. Ask your lawyer for details.
- Legal fees: You'll pay your lawyer for their invaluable time and "disbursements" which are the costs involved in title searches, drawing up the title deed, and preparing your mortgage.
- Adjustments: The previous owner may have paid property tax or utilities in advance, and they want to be credited for those payments. Ask your REALTOR® and lawyer what might come up on the closing date.
- Maintenance and utility costs: Remember, you'll now have more regular monthly payments in the form of property tax and utilities.
- Property Transfer Tax: The amount of this tax varies from province to province.
- The GST/HST and new homes: Resale homes don't involve GST/HST, but new homes do. If you intend to live in your new home (instead of renting it out) there is some relief. Consult your REALTOR® and/or lawyer for more information.
- REALTOR® Commissions or fees? REALTOR® commissions or fees are subject to GST/HST.
6. AM I THE REALTOR® WHO IS RIGHT FOR YOU?
REALTORS® aren't just people who help find you a home. They're an invaluable resource for knowledge, contacts and advice that help turn buying a piece of property into a home. Here we explain what you can expect when you enlist the help of a REALTOR®. There are a number of different kinds of relationships that you can develop with your REALTOR®. However, they all fall primarily under two categories - agency relationships and non-agency relationships.
Agency
- Single Agency: An agency relationship is one where the REALTOR® represents you exclusively. In that respect, the REALTOR®'s primary obligation is to you, and they are required to act only in your best interests. Anything you tell your REALTOR® agent is strictly confidential, and the REALTOR® has an obligation to disclose to you any information he or she has that is related to the transaction.
- Dual agency: Dual agency refers to the situation where the REALTOR® represents both the buyer and the seller as agent at the same time. In this case, both parties are required to sign a dual agency contract setting out the obligations of the REALTOR® to both parties, and obtaining the consent of the parties to this type of representation.
Non-Agency
It is possible for a REALTOR® to work with you without being your agent. In this case, the REALTOR® can give you information, but cannot provide you with advice. There is a big difference between these two concepts. Nothing you say to a "non-agent" is confidential, so you have to be careful what you confide. As a buyer you will likely want your REALTOR® to act as your agent, but that decision is up to you.
Remember, the REALTOR® Code requires REALTORS® to disclose the nature of the relationship they have with you, and the duties and obligations associated with that relationship. Make sure you have this discussion with your REALTOR®.
HOW I CAN HELP BUYERS LIKE YOU:
As a REALTOR®, I can review your list of wants and needs to help you determine your price range, as well as answer questions about the markets you're interested in and help you compare homes and neighbourhoods.
Search the local real estate Board's MLS® System with COLLAB:
I can give you access to COLLAB, which gives you exclusive features of an MLS® System that the public is not privy to. Preview properties with COLLAB to ensure you're only shown homes that meet your needs and budget. I can also make appointments and walk you through potential homes, answer all your questions, and give up-to-the-minute information on financing. I can help explain your mortgage options, negotiate with the seller, smooth out any potential conflicts, and draw up a legally binding contract. If you take on more than you should, you may overlook important steps. Work with a REALTOR® like myself and get the best possible outcome.
Stick with your REALTOR®
When you hire me as your REALTOR®, I will become an expert on your specific needs and tastes. Scattering your time and energy amongst multiple REALTORS® will work against your goal of finding your best home. And because most REALTORS® have equal access to the same property listings, there's no real advantage to having multiple REALTORS®.
Canada's money laundering reporting requirements
No matter which REALTOR® you select, he or she will advise you of reporting requirements by FINTRAC, the federal agency responsible for administering Canada's Money Laundering and Terrorist Financing legislation and regulations. Your REALTOR® is required by federal law to complete a client identification form, and must ask you as a client (buyer) for verified ID such as a driver's license or passport. You can find out more on the FINTRAC web site at http://www.fintrac-canafe.gc.ca.
7. SEE WHAT'S OUT THERE
Now's the time to pound the pavement and see what's available. This step can be either incredibly fun or incredibly exhausting. But with me by your side, you'll be able to land on your dream home much more effectively.
Read and see all about it.
Start reading real estate ads in local papers. I can take you to areas you're considering to get a feel for them. Make note of surrounding schools, shopping, and recreational areas. Keep an eye out for not-so-great things like large industrial areas, railway tracks and airports. Visit during the day and at night.
Open Houses, come on in!
'Open Houses' are a great way to see inside the homes of your potential neighborhood. If a REALTOR® is hosting the open house, he or she probably knows the local market inside and out, and will be happy to answer your questions – don't be afraid to ask! Also, if you are working with a REALTOR®, dont forget to let the REALTOR® hosting the open house know.
Tip: Walking through a potential home is a thrill but try not to lose your head. Don’t let a giant kitchen island or swanky hot tub distract you from your real goal: finding a home that meets all your needs and fits your budget. Arm yourself with this house hunting checklist and bring it with you to homes you’re serious about buying. Good luck and happy hunting!
8. MAKE AN OFFER
You’ve found the perfect home? Congratulations! Now, if you actually want to make it yours, you have to make a successful offer, one the seller will accept. I can prepare the offer for you. Here are some terms you’ll see:
- Buyer: That's you.
- Seller: The present owners.
- Purchase Price: The most important number: what you’re willing to pay for the home. Let’s hope the seller goes for it.
- Deposit: A cheque (usually certified) you write to the seller or the seller's broker. This is your way of saying 'my offer is serious'. The amount of the deposit is up to you.
- Chattels and fixtures: Be sure you know what is included with the house. If you’re expecting the seller to leave behind the appliances, draperies or light fixtures, be sure to include that in your offer. Don’t leave anything to chance.
- Irrevocability of the offer: The length of time you give the seller to consider your offer. Usually less than 48 hours.
- Completion date: The glorious day you take possession!
- Clauses particular to this agreement: Every transaction is unique and you may want to add conditions that are important to you, such as a home inspection.
Tip: As your REALTOR®, I can help ensure no details are overlooked in your offer.
Submitting the offer
You've signed on the dotted line and your REALTOR® has provided your offer to the seller.
- The seller can accept your offer: Fantastic, when do you move in?
- The seller can reject your offer: It’s not common for an offer to be completely rejected. If it was, your REALTOR® can investigate why and see if there was a misunderstanding.
- The seller "signed back" or "countered" your offer: The seller wants to alter some part of your offer (most likely the price). The seller will cross out the price on your offer and write a higher number, or delete or alter some conditions. Now it's your turn to sign back with any additional changes or your acceptance of the counter offer. Good luck!
9. FIND A HOME INSPECTOR
When you’re buying a home, you’ll want to scrutinize every last detail. Hiring a professional to visually inspect your home for defects and overall condition – or, a home inspection – typically costs a few hundred dollars and can save you from unpleasant surprises and long-lasting regrets.
Many home buyers arrange a home inspection as a condition of their purchase. That way, should the inspector uncover any issues, you have the option to back out of or renegotiate the offer accordingly.
As your REALTOR®, I can help recommend home inspection companies for you to choose from. I also make sure your inspector is a member of a recognized professional organization. It helps provide some assurance they have the training and experience for the job. An inspection generally lasts a few hours and, when complete, you’ll get a written report summarizing the condition of your home.
What Does An Inspector Look At?
- Plumbing and electrical systems
- Heating, ventilation, air conditioning (HVAC) units
- Roofing
- Visible insulation
- Walls and ceilings
- Floors and windows
- Integrity of the foundation
- Presence of lead paint, asbestos, mould or pests (termites or mice)
- Out-dated or dangerous wiring
Tip: A newly-built home does not mean it’s perfect. In fact, construction quality can vary greatly from builder to builder. It’s at your discretion whether or not to opt for an inspection. In some provinces, repairs and corrections in new homes may be covered by a government or industry-sponsored warranty program. Bad news doesn’t necessarily mean it will have to cost you.
10. CHOOSE A LAWYER
Buying a home involves piles of legal documents. You need someone to translate the ”legalese” and ensure your best interests are protected.
Finding a Lawyer
There are many experienced real estate lawyers out there. Like choosing any other professional, ask your friends, family and co-workers for their recommendations. I can also give you the name(s) of experienced real estate lawyers in your area.
How will your lawyer help?
There are many legal steps to transferring ownership of land from one person to another. Even if pitfalls like fraud, government legislation, zoning issues or unpaid taxes don’t come up, your lawyer will help make the legal transfer of the home as smooth as possible. A typical transfer of title will require two weeks to complete.
Tip: Be sure to ask your lawyer how they structure their fees and get an estimate of the costs you can expect. And remember, your lawyer is here to help you. Ask questions if you don’t understand anything. Explaining legal jargon in plain language is a big part of their job.
11. CLOSE THE PURCHASE
Your offer has been accepted and you can’t wait to move in… don’t break out the bubbly just yet! You still have to close the deal. Your lawyer and I will do most of the closing work, but here’s a checklist to follow:
- Immediately begin satisfying any conditions of the agreement that require action on your part. I can fill out the documents confirming the conditions have been satisfied.
- Ask your lawyer to begin searching title to the property. This can take a while, so make sure you allow ample time.
- Well before closing, arrange your homeowner’s insurance to kick in on your closing date. Your insurance broker will give you a “binder letter” certifying that you’re covered. You can’t get a mortgage without this letter.
- Contact your lender and have them finalize your mortgage documents. Make sure your lawyer reviews them before you sign.
- Your lawyer will transfer essential utilities like hydro and water but you’ll have to make sure telephone and cable companies switch their services to your new address.
- If you rent, be sure to give the required notice to your landlord or sublease your apartment.
- Begin planning your big move. Where are those cardboard boxes?
- Send out your change of address information and fill out a card at the post office. Contact the appropriate provincial agencies about changing your other identification cards.
- Walk through your new home one more time with your REALTOR®. Don’t forget the measuring tape to start planning your furniture arrangement.
- A day or two before closing, you’ll meet with your lawyer to sign the closing documents. Your lawyer will tell you in advance what certified cheque(s) you’ll need to seal the deal.
12. MOVE IN!
Moving day will come sooner than you think, so get planning ASAP.
Closing date and moving date aren't synonymous.
On closing, it’s likely you won’t get the keys to your new home until late in the day so it might make more sense to schedule the actual move for a day or so after closing.
Get Packing.
Whether you’re getting the help of friends and family to move or hiring a professional, nobody will take the same care you will. Start early and spread it out over many days. Label all your boxes by room (and especially if the boxes carry anything fragile) so the movers know where to put them and how to treat the boxes.
All moved in!
The boxes are mostly unpacked and you’re settling in nicely. You will now feel a strange urge to begin making changes and improvements right away. Sure, that old carpet has to go and a bigger deck would be great for entertaining but slow down! Take the time to get a feel for your new home and, more importantly, your new budget. Take a deep breath and enjoy what you have: your new home!
Tip: If you intend to move at the end of the month, contact a moving company or truck rental company well in advance. If you can move mid-week or mid-month, your moving company might cut you a deal.Bonus Tip: Moving into a new home is a chance to start fresh. Take the opportunity to purge by either hosting a garage sale or donating items you no longer use or need to charity.
