Working with an agent
Let your real estate agent do the searching for you.
The best buys aren't in the newspaper ads; most great
opportunities are on "hot sheets" that are available
every morning to salespeople with access to MLS
information.
An agent's job is to: 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
As a homebuyer, you must work with your agent to find
the home that's right for you. Communication is key -
tell your agent what you want, and be specific. Offer a
detailed description of your property needs and wants.
If you will absolutely not consider a house without a
hardwood floor, say so. And if air conditioning is a
"nice to have" rather than a "must have," communicate
that, too. Be specific about where you want to live. If
you refuse to live outside a certain area, it might take
longer to find you a home, but your agent will know not
to waste your time with anything not in your chosen
neighbourhood. Tell your agent what you can afford. He
or she can help you get a pre-approved mortgage so you
know for sure what your price range will be. Communicate
your likes and dislikes for each property you see. It
will help your agent narrow down the possibilities.
Commit to one salesperson. Respect and perform the terms
of the purchase agreement. Keep an open mind. Agents
know about those charming little areas that you've never
even heard of. You might find your dream home in a
completely unexpected place.
The elements of an offer
Here's a quick reference to everything you need to
know about making an on offer on a property.
| 1. Price Depends on the market
and the buyers, but generally, the price offered
is different from the asking price.
2. Deposit Shows the buyer's good faith and
will be applied against the purchase price of the
home when the sale closes. Your agent can advise
you on a suitable amount to offer.
3. 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.
4. Conditions These might include "subject to
home inspection," "subject to the buyer obtaining
financing," or "subject to the sale of the
purchaser's property."
5. Inclusions and exclusions These may include
appliances and certain fixtures or decorative
items, such as window coverings or light fixtures.
6. 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 (except in Manitoba and
Quebec). |
Qualifying for a mortgage
Your Royal LePage agent can arrange to have you
pre-qualified for a mortgage before you start shopping
for a home. It's easy, and you'll avoid possible
disappointments down the road if you fall in love with a
place, then find out you can't afford it. Plus, once you
do find the perfect home, it will mean you can make an
offer immediately.
Here's how mortgage approval works: the amount of
money you qualify for, plus the amount of cash you can
put down equals the amount you can afford to spend on a
home. Most lending institutions won't allow more than
about 30% of your income to support a mortgage. If you
have other debts, they usually won't allow your debts
and your mortgage to exceed 40% of your income.
Finalizing your mortgage
Once you've found the home you want to buy, you'll need
to finalize your financing. You'll need to provide your
lender with the following documents:
1. A copy of the real estate
listing of the property. If the home is still to
be built, the mortgage lender will need to see the
architect's or builder's plans and details on lot
size and location.
2. A copy of the offer to purchase or the building
contract, if this document has been prepared.
3. Documents to confirm employment, income and
source of pre-approval.
4. If you have a pre-approved mortgage, it's a
simple matter of finalizing a few details with
your mortgage specialist. |
Choosing a neighbourhood
You're not just buying a home - you're buying a
location. And even the most perfect house won't feel
right if you're in the wrong neighbourhood. Educate
yourself about the area so you'll choose wisely - and
end up being happy with your decision.
- Are you close to shopping and recreation? Being
close to stores, parks, recreational facilities, a post
office and dry cleaners will save you time.
- Do people in the area take care of their homes?
Explore the neighbourhood, keeping an eye out for signs
of neglect (overgrown lawns, houses in need of paint,
trash and junked appliances littering yards). A run-down
neighbourhood can drive down your property value.
- Are there schools nearby? If you have children, the
proximity and quality of schools is key. Some schools
will provide data (i.e. average test scores) that can
determine quality. Talking to neighbours with children
can be helpful, too.
- Is there good access to transportation? Living near
public transport and/or major highways can mean an
easier commute to work.
- Is it safe? Check with the local police department
- they may be able to provide statistics about break-ins
or other crimes.
- Will the home increase in value over time? Homes in
some neighbourhoods appreciate faster than others.
Research the selling prices of homes in over the past
decade or so to predict future trends. Your agent may be
able to provide helpful data.
-Is it quiet? Listen for traffic noise, barking
dogs, airplanes and any other noises that might bother
you. Return to the neighbourhood at different times of
the day to get an accurate impression.
Protect yourself with a home inspection
That gorgeous house on the corner lot may look
great, but it could be hiding all sorts of expensive,
annoying problems, from a leaky roof to faulty wiring to
a mouldy basement.
Make sure your home is solid and secure inside and
out before you buy it. A home inspector will determine
structural and mechanical soundness, identify problem
areas, provide cost estimates for any work required, and
generate a report. It's a great way to avoid headaches
and costly problems that can turn a dream home into a
money pit.
If you decide to go ahead and buy a home with issues
that have been flagged by your inspector, you can base
your offer on how much potential repairs and upgrades
may cost.
Home inspection costs range according to size, age
and location of the home. Your Royal LePage sales
representative can recommend a reputable home inspection
service or arrange for an inspector to visit your
property. |
