Advice For Buyers
The task of purchasing a new home can seem forbidding, even to the experienced home buyer. You can simplify the process by working with a REALTOR®. REALTORS® provide knowledge of the community, the marketplace, and the process involved in buying a new home. Finding the perfect home doesn't typically happen in one day. It takes careful planning and lots of research and footwork. There are a number of things you can do to in preparation for the process. Mark, as a skilled and knowledgeable sales representative and registered REALTOR® can help you through the process of determining your family needs and defining your priorities with regards to property style, features and location.
Define the parameters of your search...Needs vs Budget
What Features Do You Need? Do you need an extra bathroom, a garage, a fenced backyard, or lower utility bills? Do you want a fireplace, a short drive to work, or maybe minimal yard work? Once your list is complete, decide what’s most important to you.
What’s the Ideal Location?Where you live obviously affects your lifestyle; it’s also one of the most significant influences on the value of your home. Your choice of location may be somewhat limited by the price you can afford. Even so, make sure to consider such things as distance to work, schools, shopping and entertainment.
What Kind of Home?What type of property do you want? A single-family detached home is attractive to many people because it typically provides more living space and land. On the other hand, a condominium may be a more appropriate choice for you, with an emphasis on maintenance-free living. Determine what type of home best suits your desired lifestyle and budget.
What’s Your Budget?How much do you want to spend? Just as importantly, how much do you have to spend? Note there are numerous additional expenses (detailed below) that you’ll pay to complete the purchase of a home.
Searching for a home
As a registered REALTOR®, Mark will use various tools to try and find properties that meet your specifications. The most important is the Niagara Association of Realtors MLS® (Multiple Listing Service®) System. Mark can quickly search through numerous properties available for sale in specific areas to find suitable listings, that best match your needs, choice of neighbourhoods and price range.
Inspecting properties
When you find a property of interest and decide to visit a house, there are many things to consider. Does it have all the features you want? Is the neighbourhood what you expected? Does your furniture fit with the homes design?. Consider all of the technical aspects of the home, including:
Make an offer
Once you find a house you want to make your home, Mark will help you develop an offer. In the offer, you should specify how much you're willing to pay; when the offer expires and "close.' You can also propose some conditions on the offer for your benefit or protection. Some of the most common conditions are:
As your Realtor, Mark is able to guide you through the conditions that you need to include in your offer, the amount that you will need to present as a deposit along with your offer. An appropriate deposit will show your good faith to the seller. A seller's agent, if they are represented by one, is bound by law to bring all offers to the seller's attention.
Once your offer is accepted
After your offer is accepted and all conditions met, the offer becomes binding on both sides. If you later refuse to honour the agreement, you may lose your deposit or might be sued for damages. Before signing, make sure you understand and agree with all terms of the offer.
Before the property can formally change hands, there are still a few things to do. Be prepared to furnish proof to your lender that you’ve insured your new house. On or before closing day, both side’s lawyers will arrange to transfer title of the property from the seller to you. The mortgage money will be transferred to your lawyer's trust account, and then to the seller, and your lawyer will bill you all additional expenses such as land transfer taxes or outstanding legal fees.
At this time, be sure to check with your lawyer that everything is as stated in the offer-to-purchase.
Once you're satisfied and the keys to the front door are in your hands, there's nothing else to say, except welcome home!
No matter what type of home or property you're buying, plan on some extra expenses.
Buyer Representation Agreement
What is a Buyer Representation Agreement?
The Buyer Representation Agreement is a contract between the real estate brokerage and the buyer. The brokerage promises to provide a set of services and owes the buyer a number of fiduciary duties (accountability, confidentiality, full disclosure, etc.). In return, the buyer agrees to work exclusively with the brokerage for a set period of time, in their search for a home.
Among other things, the Buyer Representation Agreement also specifies the geographical boundaries of the home search, the type of property being searched for (e.g. “single-family residence”), and the commission that the brokerage shall receive (which is most often paid by the listing brokerage or the seller).
Why sign a Buyer Representation Agreement?
A Buyer Representation Agreement protects you the Buyer by providing the following;
Define the parameters of your search...Needs vs Budget
What Features Do You Need? Do you need an extra bathroom, a garage, a fenced backyard, or lower utility bills? Do you want a fireplace, a short drive to work, or maybe minimal yard work? Once your list is complete, decide what’s most important to you.
What’s the Ideal Location?Where you live obviously affects your lifestyle; it’s also one of the most significant influences on the value of your home. Your choice of location may be somewhat limited by the price you can afford. Even so, make sure to consider such things as distance to work, schools, shopping and entertainment.
What Kind of Home?What type of property do you want? A single-family detached home is attractive to many people because it typically provides more living space and land. On the other hand, a condominium may be a more appropriate choice for you, with an emphasis on maintenance-free living. Determine what type of home best suits your desired lifestyle and budget.
What’s Your Budget?How much do you want to spend? Just as importantly, how much do you have to spend? Note there are numerous additional expenses (detailed below) that you’ll pay to complete the purchase of a home.
Searching for a home
As a registered REALTOR®, Mark will use various tools to try and find properties that meet your specifications. The most important is the Niagara Association of Realtors MLS® (Multiple Listing Service®) System. Mark can quickly search through numerous properties available for sale in specific areas to find suitable listings, that best match your needs, choice of neighbourhoods and price range.
Inspecting properties
When you find a property of interest and decide to visit a house, there are many things to consider. Does it have all the features you want? Is the neighbourhood what you expected? Does your furniture fit with the homes design?. Consider all of the technical aspects of the home, including:
- What type of wiring does the house have?
- What about power outlets? Are there enough in each room and do they meet your needs? Different appliances use different types.
- What type of heating system does it use? Heating costs can vary drastically by type.
- Have the roof and foundation been well maintained?
- What condition are the windows in?
- What about the plumbing?
Make an offer
Once you find a house you want to make your home, Mark will help you develop an offer. In the offer, you should specify how much you're willing to pay; when the offer expires and "close.' You can also propose some conditions on the offer for your benefit or protection. Some of the most common conditions are:
- Getting a suitable mortgage (include the amount, interest rates and any other figures you feel important);
- Selling your current home (the seller may continue to look for a buyer, but will give you the right of first refusal);
- The seller providing a current survey, or a "real property report," showing that there are no encroachments on the property;
- The seller having title to the property (your lawyer will check this out when she conducts a title search to see if there are any liens on the property, easements, rights of way or height restrictions);
- If there’s a septic system, the seller having a health inspection certificate, stating that the system meets local standards;
- An inspection by a qualified engineer, should you have any doubts about the home's safety and construction; and
- Any inclusions of appliances and other items - basically, what stays and what goes.
As your Realtor, Mark is able to guide you through the conditions that you need to include in your offer, the amount that you will need to present as a deposit along with your offer. An appropriate deposit will show your good faith to the seller. A seller's agent, if they are represented by one, is bound by law to bring all offers to the seller's attention.
Once your offer is accepted
After your offer is accepted and all conditions met, the offer becomes binding on both sides. If you later refuse to honour the agreement, you may lose your deposit or might be sued for damages. Before signing, make sure you understand and agree with all terms of the offer.
Before the property can formally change hands, there are still a few things to do. Be prepared to furnish proof to your lender that you’ve insured your new house. On or before closing day, both side’s lawyers will arrange to transfer title of the property from the seller to you. The mortgage money will be transferred to your lawyer's trust account, and then to the seller, and your lawyer will bill you all additional expenses such as land transfer taxes or outstanding legal fees.
At this time, be sure to check with your lawyer that everything is as stated in the offer-to-purchase.
Once you're satisfied and the keys to the front door are in your hands, there's nothing else to say, except welcome home!
No matter what type of home or property you're buying, plan on some extra expenses.
- A land transfer tax (a sales tax on property) in certain provinces
- A mortgage broker's fee
- An appraisal fee
- Title Insurance, should the seller not provide you with a survey.
- A high-ratio mortgage insurance premium
- An interest adjustment. (Mortgages are normally calculated from the first of each month. If your closing date is the same as the beginning of your mortgage, there will be no adjustment. However, if your closing date is July and you move in on June 15, those last 15 days are the interest adjustment period. Your lender will expect you to cover the cost of the interest during that time.)
- Reimbursement to seller for the unused portion of any prepaid property taxes or utility bills
- Legal fees, and, if applicable, REALTOR® fees
Buyer Representation Agreement
What is a Buyer Representation Agreement?
The Buyer Representation Agreement is a contract between the real estate brokerage and the buyer. The brokerage promises to provide a set of services and owes the buyer a number of fiduciary duties (accountability, confidentiality, full disclosure, etc.). In return, the buyer agrees to work exclusively with the brokerage for a set period of time, in their search for a home.
Among other things, the Buyer Representation Agreement also specifies the geographical boundaries of the home search, the type of property being searched for (e.g. “single-family residence”), and the commission that the brokerage shall receive (which is most often paid by the listing brokerage or the seller).
Why sign a Buyer Representation Agreement?
A Buyer Representation Agreement protects you the Buyer by providing the following;
- Reassurance of the duties the brokerage owes to the buyer.
- Included in those duties is full disclosure of all property information known to the brokerage about a particular property
- These duties help to ensure that you receive expert, professional advice
- Peace of mind that your best interests will be protected
- Diligent and attentive service
