Finding the perfect home takes time. However, if prepared, we will be a huge step ahead in this competitive market. Below are a few tips to help streamline the process:
1. What is your wish list:
- Type of Home - single-family detached, condo, townhome, land
- Short-term vs. long-term rental
- deal breakers
2. Searching for a home:
Laura can help by using a variety of tools to identify properties that meet your requirements. One is setting up auto emails that notify you when new listings hit the market.
3. Viewing properties
Once you decide to visit a property, keep your wish list in mind, i.e. does it have all the features you want? is the location what you expected?
4. Making an offer
When you find a property that you would like to buy, Laura can put together an offer. The offer will include, the price you are willing to pay, expiration of the offer, a closing date for the purchase of the home and conditions for the purchase. Some commonly included conditions are:
- Selling your current home.
- Title of the property being owned by the seller
- Home inspection
- Inclusion and exclusion of any appliances and other items - basically, what is included and not
A deposit is given along with an offer. A deposit is typically around 5% of the purchase price and will show your good faith to the seller.
5. Offer Acceptance
When the offer is accepted and all conditions are met, it becomes binding.
Before the property is handed over from the seller to the buyer, a few more things must be done. You will need to show proof of insurance to the institution that provided your mortgage.
On or before closing day, the lawyers from both sides will arrange to transfer the property title from the seller to the buyer.
The mortgage will be transferred to your lawyer’s trust account, and then to the seller. Your lawyer will bill you all additional expenses such as land transfer taxes or outstanding legal fees. Be sure to check with your lawyer that everything is as stated in the offer-to-purchase.
Once this is complete, I will pass you the keys and you are ready to move in!
6. Additional costs
A few common additional costs to keep in mind when buying:
- Legal fees
- Real estate agent fees
- Appraisal fee
- Survey costs (if the seller didn’t have a current survey)
- A high-ratio mortgage insurance premium
- An interest adjustment for the mortgage.
- Reimbursement to seller for the unused portion of any prepaid property taxes or utility bills
- Land transfer tax in certain provinces
- Mortgage broker's fee