Buying A Home
Since 1995 home buyers have been entitled to the same professional representation as sellers. Through out our life time, we seek assistance from various types of professionals, the process o buying a home is no exception.
Home Buying Basic… the Process
Select a Realtor you can trust.
Discuss your requirements with your representative.
Sign a Buyer Agency Agreement.
Meet with a lender to get mortgage pre-approval.
Identify Search Criteria.
Select & Schedule Homes to View.
Prepare & Present Offer.
Negotiate & Accept Terms.
Perform a Home Inspection.
Prepare for closing.
Why do I Need a Realtor?
To provide valuable insight into the market.
To save you time, money and frustration.
To ensure your needs and interests are professionally and legally represented.
To benefit from specialized, personal service, guidance and advice at no cost to you.
To gain access to expanded search capabilities, neighborhood knowledge and experience.
To benefit from expert negotiation and financial advise.
To provide peace of mind!
Why a Buyer Agency Agreement
To ensure mutual agreement and understanding.
To ensure I receive compensation for my time and efforts.
Real Estate brokers and their salespersons are required to disclose the type of working relationship they have with the buyers in a real estate transaction. There are several types of relationships that are available to you. You should understand these at the time a broker provides specific assistance to you in buying real estate.
Buyer’s Agent and Seller’s Agent relationships are commonly referred to as “agency” relationship and carry with them legal duties and responsibilities for the broker as well as for the buyer and seller.
Buyer’s Agent Relationship
As you agent I act solely on you behalf and owe duties which include the utmost good faith, loyalty, and fidelity.
I will negotiate and advocate on your behalf. You in turn, are responsible for my actions while I am acting within the scope of the agency.
As your agent, I must disclose to sellers all adverse material facts concerning your financial ability to perform the terms of the transaction and whether you intend to occupy the property.
A written buyer’s agreement is required that sets out our mutual duties and obligations.
How do I get paid?
I am compensated via the Seller’s Agent.
Signing a Buyer Agency Agreement simply means that you agree that I should be compensated for my services in guiding you through the buying process.
Most importantly, by doing a great job for you!
First Things First
An important initial step is to meet with a mortgage representative to determine your purchasing limit and attain a pre-approval certificate.
This pre-qualification ensures from the onset that both you and I are clear on your price range prior to starting your home search and beginning offer negotiations.
Pre-approval also ensures your are ready and prepared to make an offer, this may save you from losing out on the perfect home to competing offer.
Arranging a Mortgage
There are different types of lending options i.e. banks, trust companies and mortgage brokers. Lender services include:
Determining lending limit.
Identifying hidden fees, providing lending advice and options.
Research and preparation of financial documents i.e. credit reports, property appraisal, etc.
Before you start your search.
Consider Time Frame
Your Wish List
When would you like to take possession of your new home; consider the time it may take to locate the right home.
Keep in mind the standard 30-90 day closing period.
If considering a newly built home this time frame may be longer.
What down payment amount is available to you?
How much can you comfortably afford in monthly payments, taking into account other financial obligations?
Be sure to factor in closing costs.
Are you considering home Improvements in the short term?
Is CMHC insurance required?
Your Wish List
Identify & prioritize Requirements
What are your MUST, SHOULD and NICE to have requirements?
Following are some key areas to consider:
2. Type or style of home
3. Space requirements
4. Additional Features
5. Re-sales considerations
This pre-work will aid tremendously in a focused search!
Choosing the right neighborhood is as important as choosing the right house. Consider.
Accessibility to transit and major routes
Proximity to amenities, schools & recreational facilities.
Activity or noise levels
Viewing Homes and Making Offers
Once we have nailed down your “wish list”, I will have a good understanding for your specific requirements. This details is the input to your search criteria and will assist in filtering through the local home inventory. The more specific we are, the more focused the search.
In a manner we agree is convenient, I will provide a list of available homes matching your criteria, and will set up appointments to view your selections.
My accompanying you on home viewings, will provide additional insight into your specific likes and dislikes.
Making an Offer
This step is initiated by your instructions to me that you are interested and ready to make an Offer to Purchase.
Am offer is prepared in writing on a standard form and presented to the selling party, accompanied by a deposit.
An offer includes the following details: ( may not be needed?)
1. Legal names of Buyers & Sellers.
2. Legal Description of the property.
3. Offer price.
4. Deposit amount.
5. List of conditions.
6. List of requested fixture inclusions.
7. Closing/occupancy date.
Upon receipt of an offer the seller has 3 options – to accept, reject or counter offer.
Once the buyer and seller agree on all terms, have waived conditions and provided the necessary signature, an agreement is in place.
Condition of property.
Current market conditions.
Determine your “fair” price.
Closing Checklists and Roles
Final home walkthrough.
Ensure banking details are in order.
Make an appointment with your lawyer.
Book a moving company.
Coordinate transfer of utilities to your name.
Purchase property insurance
Role of a Home Inspector
To ensure home’s structure and vital systems are checked and free of defects.
Provides a formal report on findings, highlighting any deficiencies.
Reviews Vendor Property Information Sheet provided by the Seller.
May recommend additional inspection requirements for water, soil, etc. depending on home location.
Role of Lawyer
Available to discuss and advise on any legal concerns, including finance options, title insurance, survey considerations, etc.
Review provisions of the Agreement of Purchase and Sales highlighting areas for consideration.
Upon receipt of a signed offer, prepares detailed cost summary prior to closing.
Conducts searches to ensure legal title and property free of legal problems.
Reviews purchase and mortgage documents ensuring your understanding, satisfaction and sign off is attained.
Collects all documents from financial institution, seller and yourself, making appropriate final adjustments and disbursements.
Ensures home is property transferred, deed is received and keys are available on closing.
Prepares a final detailed summary of the transaction, including all legal documents.
Costs Along the Way
Remaining Down payment
Land Transfer Tax
Utilities hook ups
Finance Administration Fees
Property Survey ( if not provided by seller)