Congratulations, you have made the decision to buy a new home! Whether this is the first or tenth time that you have bought a property, the process can be daunting. There are many financial and market considerations, forms, legal reviews, and offer conditions which help protect you as the Buyer.
It may seem like a lot, but we are here to help. We cover everything from determining your budget to closing & moving in! This is also probably the biggest investment you’ve ever made, so the more you know, the better off you’ll be.
Chinese Proverb
Buying a home is one of the most complex and important transactions that most of us will ever undertake. As a homebuyer, you get to choose who will represent you throughout the process. When choosing to work with a Real Estate Agent, you expect a professional who has experience in both the market and the type of housing you are looking for.
But not all real estate agents are created equal. There are factors you must consider when searching for the right agent for you.
Before you fall in love with your dream home, make sure you know the mortgage amount you may qualify for. Obtaining a pre-approval from your bank or a mortgage broker will give you the peace of mind you need to start your home search.
When you’re shopping for a mortgage, you can compare options offered by different lenders.
Mortgage lenders have a process which may allow you to:
Pre-approval establishes the mortgage amount you may qualify for. It also guarantees the interest rate for up to 120 days from the date of the certificate. A mortgage pre-approval certificate is free with no obligation.
Changes to your credit history — such as a new car loan or paying off a student loan — between the time you're pre-approved and apply for your final approval could impact the mortgage amount you can afford.
Don’t forget, once you find your dream home, you need to complete a full application to be approved for and obtain the mortgage.
Contact us for information on how to connect with a Mortgage Broker who can assist you with obtaining pre-approval and help you to understand your budget.
Now that you are pre-qualified for a mortgage, narrowed down your search and picked a great REALTOR® to represent you, it’s time to start looking at listings and properties.
To ensure you find the perfect home, we take the time to understand your wants and needs. This will include any specific desires around location, number of bedrooms, style of house, and more.
As a licensed REALTOR®, we have access to all available properties in Ontario, along with detailed historical information, land registry documentation and market factors. To ensure you are receiving the most current information on available listings, we set you up on an automatic email campaign to share listings as they are released or changed (including price updates).
To complement this search, we encourage you to review listing websites, such as Zillow or Redfin and share any listings which you have an interest in. We can then review these against the official database and include them in your list of homes to view.
They say the three most important things to think about when buying a home are location, location, location. You can change almost everything else, but you can't change your home's location. So when you go house hunting, consider proximity to your work, how the home is situated on the lot, ease of access, noise from neighbors, and traffic.
Beyond location, look at the site of the home. If the home is on a hill, does it have a view, a walkout basement, or lots of stairs to climb? Do neighbors' windows look directly into the home? Is the yard suitable for kids, pets, gardening, or other uses? Try and imagine yourself living in the home. Can you visualize cooking dinner or watching TV? Can you envision your furniture in the space?
When viewing a property, remember that it is ok to be nosy, rest assured that the sellers have had ample notice to straighten up those spaces in anticipation of your poking around. So, don't hesitate to look in drawers and closets. I have had clients miss whole rooms and large storage areas by not opening a door they assumed went to a closet
Try to keep your comments limited while inside the property. You never know if a Seller is listening to your feedback and some comments could impact your ability to negotiate.
Finally, don't think you can offend your REALTOR®. I always remind my clients that the house I'm showing them is not my house. So, if you like it, that's great. But if you hate anything about it, don't hesitate to say so. Doing so can result in you seeing more of the same and end up taking longer to find your dream home.
When you’re ready to put an offer on a house, your agent will review market conditions and comparable sales to help you arrive at a suitable offer price. They will also prepare and explain all of the legal forms and terms so you are comfortable with the information. You should expect to negotiate back and forth.
Your negotiating power will depend on a number of factors. The current market conditions will dictate whether you can make a lowball offer – a likely scenario in a buyer’s market – or perhaps an offer that’s higher than the asking price, which has happened over the last two years in the record-breaking seller’s market brought on by the pandemic. Different market situations will result in a different approach when placing an offer, which your agent will help you navigate.
An offer made without any conditions is called a firm offer and used in a bidding war situation. Conversely, a conditional offer requires terms to be satisfied for the offer to be valid. These conditions protect the buyer; common conditions include:
With a conditional offer, the Buyer has an option to walk away from the deal if they are not satisfied with the results of the conditions. Our team will advise you on what you can realistically negotiate, depending on the market conditions.
Once conditions are satisfied, the offer becomes firm and the deposit cheque is delivered to the Listing Brokerage to hold in trust. This deposit is applied to the down payment amount, as a part of the closing process.
The most important reason to conduct a home inspection is to avoid a costly mistake by purchasing a property in need of major repairs.
A pre-purchase home inspection gives you a chance to determine the true value and condition of the house. This includes structural soundness, the condition of mechanical systems, and more. Any problems the house has will be brought to the attention of everyone involved before closing on a sale.
A comprehensive inspection includes a visual examination of the home from top to bottom, including the heating, air conditioning systems, the interior plumbing and electrical systems, the roof and visible insulation, walls, ceilings, floors, windows and doors, the foundation, basement and visible structure.
Following the examination, the inspector will provide a report that not only points out possible defects or areas of concerns, but also the positive aspects of the structure and the type of maintenance that will be necessary to keep the home in good shape.
Even the most experienced homeowners lack the knowledge and expertise of a professional home inspector. For example, watermarks in the basement may indicate a chronic seepage problem, or simply may be a result of a single incident.
A professional assessment will provide complete information about the condition of the property and will help avoid any unpleasant surprises after the sale.
Once your offer is accepted, you will forward all paperwork to your lawyer to complete a title search and prepare for closing. Your lawyer will coordinate with your bank and the Sellers lawyer in the preparation of the mortgage, land transfer and title documents associated with the sale.
As a part of the lawyers due diligence, they will conduct a title search. This search provides all records and documents that are relevant to the property. The documents are then scrutinized to make sure there are no deficiencies, liens against the property, or other issues that cannot be rectified by the lawyer. If there are no issues, you’ll be free to continue with the deal. Title search is usually completed two weeks in advance of the closing date.
Next your real estate lawyer will begin to prepare closing documents that will include a transfer of land. The lawyer will review mortgage documents, sales agreement, proof of title search, and proof of homeowner’s insurance for full replacement cost. You will be required to give photo identification that includes your full legal name to complete your purchase.
Your real estate lawyer will meet you 2 to 3 days before the purchase closing date to sign your purchase and mortgage documents. The lawyer will review them with you to confirm your understanding prior to signing.
On the day of closing, your lawyer will monitor the transaction to ensure the funds have transferred correctly and once complete, release the keys to you.
First thing’s first: before you move, familiarize yourself with all of your current utility service providers. Utilities usually include cable and internet, water and sewer, gas, electricity, satellite, security system, trash and phone. If you’re planning on changing providers when you move, be sure to write down any new contact information.
Moving to a new city or area of the country often requires using a different utility company altogether. Before you move, research the utility service providers in your area. In many cases, you may not have an option – as there’s only one utility service provider for certain utilities in many cities.
Once you’ve organized all of your utility information, you’ll need to start contacting each provider separately to let them know you’re moving. We recommend contacting most providers at least two to three weeks in advance. For utility services that require an installation appointment, it’s a good idea to call a month in advance.
When it comes to water and sewer services, these will most likely be handled through your new city or town. Arrange for the service to begin on closing day (or moving day, if renting) by contacting your city’s public utilities office a few weeks beforehand.
If moving to a condo complex, confirm whether your maintenance fees cover basic utilities, including water and sewer, gas and trash pickup. Paying one monthly bill to the condo corporation instead of five separate bills to various utility companies will certainly make paying monthly bills an easier and more seamless process.
There are several different options when it comes to moving. To decide which option is best for you, consider the following questions. How far away is your new home? How much stuff do you need to move? Are there many heavy, family heirloom type pieces that you need to move or mostly small, apartment-sized furniture?
You can take the DIY route and pack and move everything yourself, in which case you need to budget for packing and possibly rental moving vehicle expenses. If you'd rather not do that, you can either pack up your home yourself and hire a professional moving company to do the moving portion for you, or hire a company that will do both the packing and moving for you.
It is important on the day you move into your new home to do a full walk through of the property and ensure everything is working as expected. Check all appliance and validate that the heating and hot water are functioning.
After years of helping people find and move to their dream homes, I encourage you to take the time to enjoy your new home and savor every moment.
Copyright © 2022 Kimberly Ann Collins, REALTOR® - All Rights Reserved.
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