When it comes to buying or selling a home, it’s hard to know where to start. There are so many questions, and a lot of your hard-earned money on the line. The following steps will help prepare you for what lies ahead and guide you through the process.
Whether you’re buying or selling a property, you need to be ready to take the plunge. Real estate is the longest financial commitment you will ever make, and the return on investment can be the largest capital gain you will receive in your lifetime.
As a first-time home buyer, you probably have a lot of questions on your mind. Can I afford it? Have I saved enough money? How can I build a down payment? Is now the right time to buy? My job as a Real Estate Agent is to answer your questions, help you define your current needs and future goals, and, most importantly, find the home that matches both your dreams and financial reality.
Once you’ve decided to enter the housing market, your next step is to determine what you can afford. Your bank, mortgage broker or affiliate can help you figure out your current financial situation, and what you can afford to spend on a home. They can also help you explore the options available for building a down payment, and identify your total real estate investment power.
Most banks will let you lock in at the current interest rate for up to 6 months before your actual purchase. Plus, getting a pre-approved mortgage amount from your bank will make it easier for you to land that dream home.
Be prepared for additional costs when buying or selling your home. Home Buyers are required to pay land transfer tax, legal fees, insurance, property taxes, and maintenance costs. While, as a Seller, you may be penalized for paying off your mortgage before the amortization period has expired.
With so many Realtors to choose from, who do you call and why? The hardest part isn’t finding a Realtor, but deciding which one to work with. Ask your friends and family for their recommendations, and don’t be afraid to meet a few different agents before signing an agreement.
If you’re thinking of selling your home on your own, remember that it is a full-time job. Realtors work the housing market every day, gaining valuable knowledge and relationships that are not accessible to DIY sellers. Plus, be prepared to spend all your free time answering calls and marketing your home.
The best part of my job is giving you the opportunity to look inside a whole new world—a new place to call home. Together, we will investigate the current marketplace, determine the areas that match your priorities and budget, and explore your options.
The hardest part to selling your house is getting it ready to show to prospective buyers. The key is to de-clutter, de-clutter, de-clutter! No one wants to see that you don’t have enough storage space, and neither will they if they buy your home. Prepare your house by packing at least half of your belongings into moving boxes, and removing all personal pictures and keepsakes. Providing prospective buyers with a “blank slate” will help them to picture themselves in your home—an important precursor to them making you an offer!
You’ve made your decision and you’re ready to take the plunge. The paperwork is in front of you. Now, you begin to panic and second-guess everything. Relax, this is normal for first-time buyers and sellers. The experience is exciting and nerve-racking all rolled into one. Luckily for you, negotiating the best deal for my clients is where I excel. Once an offer is made, three things can happen: the offer can be accepted; rejected; or countered. You can generally expect a few rounds of back-and-forth negotiations before a deal is done.
You and the other party have finally agreed on an offer, the purchase price, and any inclusions/exclusions. The deposit cheque has been issued from the buyer’s to the seller's respective agents or lawyers, and the home is conditionally sold.
Normally, an offer has conditions such as financing and home inspections that need to be completed and approved of before the sale is considered final. When purchasing a condo, your lawyer may also need to review its Status Certificate prior to firming up the deal. The Status Certificate details the history and financial standing of the condominium and its corporation.
Both sellers and buyers need lawyers to represent them during closing arrangements, title search and other legal matters. It is important that you choose a lawyer who is experienced in real estate and/or condominium law, and genuinely interested in providing legal advice.
Make a point to review the lawyer’s fee structure beforehand to ensure you know what you’re getting into. Some lawyers charge a flat fee, while others work on an hourly basis. I am happy to refer you to a selection of legal contacts that I have worked with in the past.
Getting your potential new home inspected is the most crucial part of the real estate transaction. You need to ensure that you are making a sound investment and that there are no surprises about the property that were not disclosed or unforeseen.
A home inspection can cost up to $500, out of the buyer’s pocket, and take up to 6 hours to complete, but it’s well worth the time and money. The inspection may uncover a problem that the seller didn’t know existed and will now have to pay to get fixed. The buyer may have to decide whether or not to continue with the transaction. For these reasons, it’s important to get a licensed home inspector. I am happy to provide you with names of reputable home inspectors, and help answer your questions on home warranties and the benefit of title insurance.
The conditions have been signed off by both parties and the sale is now firm. It’s time to celebrate! While you’re packing your belongings, your lawyer and mortgage representative will be collecting all of the required information and preparing the paperwork required for securing the title, and settling the finances, taxes and closing costs. You have successfully completed a real estate transaction! At this point, my job as your Realtor is done, until you’re ready for your next home.
As a proud new home owner, you can now enjoy the fruits of your labour. All that’s left to do is to explore your new neighbourhood, and continue to build your equity by paying your mortgage payment every month. Being a home owner is a wonderful feeling. I hope one day to assist you in your pursuit.