Finding
the perfect home doesn't happen in
one day. There are a number of
things you can do to simplify the
process, including defining
financial parameters, potential
neighbourhoods and the desired
features in your next home.
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 is
most important to your lifestyle.
Then
it's location, location, location.
Location affects your day-to-day
living and is one of the most
significant influences on value.
Your choice of location may be
limited somewhat by the price you
can afford. Even so, make sure you
consider such things as distance to
work, schools, shopping and
entertainment.
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.
A
REALTOR® can help you
analyze all of these buying issues.
A REALTOR® working as a
buyer's agent works to find the
connection between homes available
in the market and the needs and
financial capacity of buyers. Talk
to and compare the services of
REALTORS® to help you
navigate through this complicated
business transaction. Be comfortable
and confident with the REALTOR®
you are selecting as your business
partner.
As
your agent, the REALTOR®
owes you the duties of utmost care,
integrity, confidentiality and
loyalty. Make sure you discuss
agency with your REALTOR®.
In most provinces, if a REALTOR®
is showing you homes, they are
automatically deemed to legally be
your agent, and owe you all of the
associated obligations.
A
REALTOR® will use various
tools to try and find properties
that meet your specifications
including the MLS®
service. One of the important search
tools will be the local MLS®
system. By sitting down at a
computer the REALTOR® can
key in your needs, choice of
neighbourhoods and price range and
immediately come up with a list of
suitable properties available
through the MLS® system.
You can also view listings posted to
the national mls.ca web site.
When
you select a property and decide to
visit a house, there are many things
to consider. Does it have all the
features you wanted? Is the
neighbourhood what you expected? Try
to picture your favorite furnishings
in a room. Remember all of the
technical considerations:
what type of wiring does the
house have?
what about power outlets?
Different appliances use
different types.
what type of heating system does
it use?
what about the roof and
foundation?
what condition are the windows
in?
what about the plumbing?
There
are other things to look at as well.
If you don't have time or don't feel
comfortable doing it, home
inspection services are available
for a reasonable fee. Having a
qualified home inspector look at the
house is always a good idea. The
older the home, the greater the need
for professional inspection.
Once
you find the house you want to make
your home, work with a REALTOR®
to develop an offer. In the offer,
you should specify how much you're
willing to pay. State when the offer
expires, and suggest a closing date
for the transaction. You can also
propose some conditions on the
offer. Some common types of
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 the location of
the house on the property owned
by the seller and that there are
no encroachments;
the seller having title to the
property (your lawyer will check
this out when he or she conducts
a title search to see if there
are any liens on the property,
easements, rights of way or
height restrictions);
if there is a septic system, the
seller should have a health
inspection certificate, stating
the system meets local
standards;
if you still have any doubts
about the home's safety and
construction, you may wish to
make the purchase conditional on
an inspection by a qualified
engineer;
any inclusions - basically, what
stays and what goes.
You
will need to present a deposit along
with your offer. An appropriate
deposit will show your good faith to
the seller. The seller's agent is
bound by law to bring all offers to
the seller's attention.
After
your offer is accepted and all the
conditions are met, the offer
becomes binding on both sides. If
you walk away from the deal at that
point, you may lose your deposit.
You may also be sued for damages.
Make sure you understand and agree
with all of the terms of the offer
before signing.
No
matter what type of home or property
you're buying, plan on some extra
expenses. In some provinces, you may
have to pay a land transfer tax (a
sales tax on property).
You
may also have to pay:
a mortgage Broker's fee:
an appraisal fee;
surveying costs (if the seller
couldn't come up with a current
survey); and,
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.
You'll also have to reimburse the
seller for the unused portion of any
prepaid property taxes or utility
bills. As well, you must also pay
any legal fees, and, if applicable,
any REALTOR® fees. Be
prepared to furnish proof to your
lender that you have insured your
new house as well.
Before the property can formally
change hands, there are still a few
things to do. On or before closing
day, your lawyer and the seller's
lawyer 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!
(The
comments contained on this site are
for information purposes only and do
not constitute legal advice.)