Needless to say, shopping for a property or a home is a big economic commitment, and so, it is crucial to be well-prepared before you make the purchase. Being prepared includes –
- Assessing your annual household budget and income;
- Knowing your credit score rating;
- Being pre-approved for a mortgage;
- Understanding all the one-time expenses (such as down payment, legal fees, title insurance, inspection fees, property transfer, and taxes); and
- Being conscious of routine month-to-month charges (such as loan payments, utilities, maintenance, insurance plan premiums, and property taxes).
Find an experienced, qualified mortgage agent through Next Stop Toronto by filling out the contact form on our homepage!
Find a realtor/real estate agent
While house hunting, most people opt for a realtor or a real estate agent to locate a suitable place. While deciding on a realtor, it’s necessary to determine a good fit – find an agent you can trust. Choose a person who will be your advocate, private advisor, consultant, and negotiator. With that said, note that having a realtor represent you is not mandatory, and you can also choose to find a home without the use of one.
Here are a few parameters to think about whilst evaluating realtors: Whether they are licensed in the province, their experience, background, approach, self assurance whilst answering questions, services offered, whether or not they work solo or in a team, communication style, references, and primary neighbourhoods they work in.
Advantages of using a realtor:
No need to pay commissions to the realtor; commissions are paid through the seller – not the buyer. Note that the fee is listed on the buy cost.
Realtors can provide a wealth of know-how and experience from working in the field. They are conscious of local trends, market values, legal clauses, and other crucial facts and thus, are able to guide you in the proper direction. Some realtors are able to flag viable problems with a home.
Realtors can supply coaching on all documentation and deal with the buying process from start to end. They can negotiate the purchase price and contract terms, such as date of possession, required repairs, included furnishings or equipment.
Realtors can help evaluate if you are eligible for government homeownership incentive programs.
Get access to real and genuine listings; which leads to less chance of getting scammed. That will save you time and stress.
Find an experienced, qualified real estate agent through Next Stop Toronto by filling out the contact form on our homepage!
Visit a variety of residences to locate one that you want to buy
Now that you’ve decided on the type of house, the neighbourhood(s), got your finances in order and teamed up with a realtor, it’s time to select some residences that match your criteria.
When attending a showing, look into the property thoroughly and ask questions. A few matters you might also want to take a look at are: storage space, water pressure and plumbing, mould, ventilation, potential water damage or cracks on walls or ceilings, and the general condition of the property.
Make an offer
Found a property you like? The next step is to make an offer.
An offer is a formal, legal agreement to buy a home and is legally binding once accepted by the seller. Offers can be conditional and depend on factors such as financing or a home inspection. If any of the prerequisites are not met, you can walk away, even if the seller has already accepted it. Alternatively, you can also make a firm offer with no prerequisites attached.
What goes into an offer on a house?
A formal offer normally includes:
Your legal name, the title of the seller and the address of the property;
The amount you’re offering to pay (the purchase price);
A cheque with the deposit amount (the quantity varies based on the home’s purchase price and the market);
Any extra items you want included in the purchase (for example, window coverings);
The date you prefer to take possession (closing day);
A request for a current land survey;
The date the offer expires (usually much less than forty eight hours); and
Any other conditions that must be met earlier than the contract is finalized (for example, a satisfactory home inspection).
Depending on the property you wish to buy, there ought to be room for negotiation. It’s worthwhile to recognize that negotiations aren’t just limited to the buy price but can also extend to more favourable terms as part of your purchase agreement, such as repairs, inclusions, and a longer or shorter closing date.
On the flip side, if the property you’re eyeing is located in a prime area or has other involved buyers, it could result in a bidding war with every buyer making an attempt to raise their offer over the asking price.
Hiring a domestic inspector
Before you formally close the purchase, you’ll want to hire an inspector to investigate your home for defects and overall condition. As you choose a home inspector, make certain your inspector is a member of a recognized professional organization.
An inspector will provide a written document summarizing the condition of your home pertaining to –
Plumbing and electrical systems;
Heating, ventilation, and air conditioning units;
Roofing;
Visible insulation;
Walls and ceilings;
Floors and windows;
Integrity of the foundation;
Presence of lead paint, asbestos, mold, or pests (termites or mice); and
Any outdated or hazardous wiring.
Close the purchase and move in
Once you acquire the document from the inspector and decide to proceed with the purchase, you’ll want a real estate lawyer to protect your best interests. The attorney will help review the contract and assist with the title transfer.
Your realtor and attorney will complete most of the closing formalities and outline some action items for you. These may include finalizing the loan documents, making sure your homeowner’s insurance is positive on your closing date, transfer of utilities, providing necessary cheques to seal the deal, and signing all the closing documents.
Upon completion of all formalities, it’s time for you to move in!
Finding your dream home can be a very exhausting process. One of the things that can help you stay at ease is having a clear concept of your desires and needs. There are hundreds and thousands of houses all throughout Canada. With assist from your realtor, bank, home inspector, and lawyer, you will be in a position to discover one that’s right for you.
