Home Buying Series

The Royal LePage Home Buyer’s video series provides a quick and informative overview of the home buying process. In this series, you will learn the critical steps of buying your new home with tips and advice from industry experts that will help you navigate this all important experience.

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Needs vs. Wants

Looking for a new home may seem a little overwhelming at first. There are so many things to think about, so many choices, and often not enough time.

A small investment of time and effort right at the start can pay tremendous dividends. Take the time to organize your thoughts and think seriously about what sort of home you want before you start looking. It will simplify the process, save you time, and help lead you to the right home for you.

Give me a call before you start your search. I’ll help you get organized, answer your concerns, and raise important questions to ask yourself, such as:

• Where do I want to live? (community/general area)
• How much should I expect to spend on purchasing a home?
• Are schools a factor?
• Do I want an older home or a new one?
• What style of home do I prefer? (two storey, bungalow, townhouse, condo, etc.)
• How much renovation and remodelling am I willing to do?
• Is being close to public transportation important?
• Do I have pets to consider?
• What sort of lot would I like? (small yard, large yard, fenced, garage, patio/deck)
• How many bedrooms do I need? How many would I like to have?
• How many bathrooms do I need? How many would I like to have?
• How big a house do I want? How many rooms? How many square feet?
• What features are important? (air conditioning, hardwood floors, eat-in kitchen, separate dining room, main floor family room, den, finished basement, separate laundry room, fireplace, workshop, other).
  
  

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Getting Pre-approved

Find out about your mortgage options before you start looking for a home. There's nothing more frustrating that falling in love with a home, only to find out you can’t afford it.

Pre-qualifying for a mortgage is the best way to find out how much you can afford. Your financial institution will look at your income, expenses and debt to determine how much they will lend you. Combine that amount with the money you have for a down payment, and that’s your budget.

Having a pre-approved mortgage will give you the confidence of knowing exactly what you can spend on a home before you start looking. An added benefit is that you will also be protected against interest rate increases while you look for your new home.

Want to get an idea of how much you can afford? Try my Mortgage Affordability Calculator for a quick estimate.

House Hunting

Once I have helped you identify what you want in your new home, I will compare your needs, wants and budget with what is available on the market – and make recommendations that will save you time and effort.

I have access to an incredible house-hunting tool called the Multiple Listing Service® (MLS® for short). You can view information about MLS® listings at www.Realtor.ca, the public advertising portal. I will start sending you listings of potential homes right away. Most listings will have multiple photos, and some even have virtual tours! You’ll be amazed how fast and easy it is to zero in on your favourite few homes.

I will accompany you as you view houses and help you assess their suitability and price. I can provide facts on the neighbourhoods, verify information, and recommend the use of other professionals to assist you in the process.

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Making an Offer

When you’ve found the home you’re interested in, it's time to make an offer. Deciding what to offer is one of the most difficult decisions to make. Offer too little and you stand a chance of losing the house (particularly in a seller's market). On the other hand, nobody wants to pay more for something than it's worth.

You can rely on my experience to negotiate, on your behalf, the best price in the current market conditions. I can help you by showing you what comparable houses are selling for, helping you assess the condition of the house, and judging the type of competition you may face. Once you have decided on the price you are prepared to offer, I will draft your offer and explain the details to you.

I will communicate your Offer, known as an Agreement of Purchase and Sale (a legal document specifying the offer’s terms and conditions) to the Seller or the Seller's representative, on your behalf.

The offer can be firm or conditional.

Firm Offer to Purchase: usually preferable to the seller, because it means that you are prepared to purchase the home without any conditions. If the offer is accepted, the home is yours.

Conditional Offer to Purchase: means that you have placed one or more conditions on the purchase, such as subject to home inspection, subject to financing, or subject to the sale of your current home. In the case of a conditional offer, the home is not sold until all the conditions have been met.

Five Main Elements
When you’re making an offer to purchase a home, there are five main elements to consider:

1. Price
The price you offer reflects your opinion of the value of the house and is determined by the condition of the property and local market factors. You can make any offer you like. It does not have to be the same as the seller's asking price.

2. Deposit
The deposit shows your good faith and will be applied against the purchase of the home when the sale closes. I will advise you on an appropriate amount.

3. Terms & Conditions
Within the offer, it is necessary to describe the type and terms of your financing details. Your offer could also include some conditions. Conditions are items that must be completed or fulfilled prior to an offer being concluded. These can include subject to home inspection, subject to you obtaining financing, or subject to you selling your existing property.

4. Inclusions and exclusions
Your offer may be contingent on certain items being either included or excluded in the sale. These might include appliances, fixtures, and decorative items, such as window coverings or mirrors.

5. Closing or possession date
The closing date is generally the day the title of the property is legally transferred and the transaction of funds finalized, unless otherwise specified.

Negotiating
Once your offer to purchase has been drafted and signed, it will be presented to the seller as soon as possible. The seller can accept your offer, reject it, or make a counter offer.

Rejection
A rejected offer means the seller did not agree with any of the terms and conditions set forth in your offer to purchase.

Counter offer
A counter offer means the seller agrees with some of the terms and conditions of your offer, but not all of them. The counter offer may change ? such as the price, the closing date, or inclusions and exclusions.

Once you have received a counter offer, you have two choices. You can either accept the new terms and conditions or counter back. Acceptance of the offer is final when both the buyer and seller agree to all terms and conditions.

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Home Inspection

Buying a home is probably the biggest single investment you will make. A home inspection will protect you and your investment.

A qualified home inspector will give your house a thorough examination, checking the heating and cooling system, plumbing and electrical systems, the roof, attic, walls, ceilings, floors, windows, doors, foundation, basement, and visible structures of the home.

The inspector will point out the need for major repairs, identify areas that may need attention in the near future, and explain what maintenance will be necessary to keep the house in good shape. But, it is not all negative. Most inspectors are more than happy to tell you about the home's good qualities as well.

Home inspections are relatively inexpensive considering the size of the investment that you are about to make. Many people consider this a small price to pay for peace of mind.

I will gladly provide you with a list of reputable, qualified home inspectors in your area.

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Land Transfer Tax

As in most large Canadian centres, purchasers in Ontario can add Land Transfer Taxes to their list of closing costs.

Land Transfer Taxes, levied on properties changing hands, are the responsibility of the purchaser. Ontario has a multi-tiered taxation system. For example, if you purchase a property for $280,000, 0.5% is charged on the first $55,000; 1% is charged on $55,000 to $250,000, and 1.5% is charged on $250,000 to $400,000.

Use the Land Transfer Tax Calculator to estimate the land transfer tax for your new property.

As an incentive to encourage home ownership, first time home buyers may be eligible for a refund of the Land Transfer Tax (LLT), up to a maximum of $2,000.

Closing Day

As in most large Canadian centres, purchasers in Ontario can add Land Transfer Taxes Closing day is the day you become the official owner of your home.

Typically, you visit your lawyer's office to review and sign documents relating to the mortgage, the property you are buying, the ownership of the property, and the conditions of the purchase. Your lawyer will also ask you to bring a certified cheque to cover the closing costs and any other outstanding costs.

Once the mortgage and the deed for the property are officially recorded, you become the official owner of the property and your lawyer will call you to pick up the keys to your new home.

Congratulations! You've just bought a home!