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Note:
Information on this page is based on the "Guide to Buying a Home" and the "Guide to Selling Your Home" prepared by Royal LePage Real Estate Professionals to offer you practical information about the buying and selling process. It outlines steps that you and your Real Estate Professional will follow during your search for the ideal home.
© Royal LePage, Chartered Real Estate Broker
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GUIDE TO BUYING A HOME
DETERMINE WHAT YOU CAN AFFORD
Purchasing a home involves several one-time expenses, like the down payment which is usually between 5-25% of
the total price of the property. Part of the early stages of buying a home includes the Mortgage Application and Appraisal Fee and the Property Inspection- which is optional
but highly recommended. After you've found your home you'll determine with the seller a ‘closing' date which is the day you'll move into your new home and settle the paper
work and pay any final fees. These may include, if applicable, Legal Fees, Legal Disbursements and Property Surveys (sometimes provided by seller); Land Transfer; Deed Tax or
Property Purchase Tax-usually paid within 3 months following the signing; Mortgage Interest Adjustment and Take Over Fee. Adjustments for Fuel, Taxes, etc; Mortgage Insurance
(and application fee if applicable); and Home and Property Insurance commencing at closing date and on-going. On your moving day you might have to rent a truck or moving
company. Then once you're settled in you'll have the monthly fees that all home owners reckon with, like a monthly mortgage payment, maintenance fees, insurance, condo fees,
and property taxes and utilities.
UDERSTANDING MARKET CONDITIONS
The real estate market is always changing. So, you'll be
able to find the home that you want by understanding how market conditions affect your position as a buyer. In a Buyer's Market you sometimes have the best leverage in
choosing where you want to live and how much you want to pay due to a high inventory of homes for sale with few buyers. And since there are so many homes for sale for longer
periods of time, prices tend to drop. This can allow buyers more time to look for a home, make decisions, and negotiate a price. A Seller's Market means there's a shortage of
houses for sale with a lot of potential buyers looking for a home. This situation can raise the seller's asking price significantly. Also, homes tend to sell quickly, not
allowing buyers to make decisions or conditional offers. In a Balanced Market, there is a healthy supply of buyers and sellers. An equal amount of homes are available to buy
and sell. Selection is usually good. This can allow buyers to take time in searching for a home and sellers to accept reasonable offers more quickly.
OBTAIN A PRE-APPROVED MORTGAGE
When you have a pre-approved mortgage, you know how much you can afford. This protects you against rising
interests rates and allows you to focus on searching for your new home. Your Royal LePage agent can recommend a Mortgage Specialist who will answer your questions and help
with making the right decision in financing your new home.
FINALIZING YOUR MORTGAGE
When you've found the home you want to purchase, you'll most
likely be asked for various documents in order to finalize your financing. They usually include a copy of the real estate listing of the property or an architects or builder's
plans if it's going to be a brand new home construction along with the details on lot size and location, a copy of the offer to purchase or building contract, documents to
confirm employment, income source of pre-approval. Remember, when you have a Pre-Approved Mortgage, finalizing your mortgage can be as easy as consulting your Mortgage
Specialist to help you with finalizing of a few details.
THE MAJOR ELEMENTS OF AN OFFER
There are six major elements that you need to consider
when making an offer. Your Royal LePage Professional can advise you of details that are specific to the province in which you are purchasing. The first part is the price which
is depends on local market conditions, your opinion of value, and market information provided by your Royal LePage Real Estate Professional. Keep in mind that the price you
ask may be different from the seller's asking price. The second part is the deposit which shows your good faith. This is applied against the purchase price of the home when
the sale closes. The third part involves the terms of your offer. This includes the total price offered and the financing details. You may arrange your own financing or ask to
assume the seller's mortgage. The fourth part of an offer involves conditions. These can include ‘subject to home inspection',‘subject to you obtaining financing', or subject
to you selling your property'. The fifth part, inclusions and exclusions, are items that are either included or not included in an offer. You might want some appliances or
certain lighting fixtures to transfer to you when you buy the home. Finally, closing or possession date, is one of the most important of the six elements. This is the day when
you take possession of your new home and the transaction of funds is finalized.
HOW TO MAKE AN OFFER
When you're
ready to make an offer on a home, your Royal LePage Real Estate Professional will communicate your ‘offer to purchase' to the seller or the seller's representative. This is a
legal document which specifies the terms and conditions of your offer to purchase the home. You can make the offer conditional or firm. Conditional means that you have placed
conditions on the purchase, such as, ‘subject to home inspection', ‘subject to financing', or ‘subject to sale of buyer's existing home'. A firm offer means that there are no
preconditions. If your offer is accepted, the home is yours. Sometimes several offers are made for the same property. You may have to increase your purchase price to buy the
home that you want. This is when it's important to have a Royal LePage Agent helping you through this process.
ACCEPTANCE OF THE OFFER
Your
offer to purchase is presented to the seller as soon as possible. The seller may accept the offer, reject it, or submit a counter-offer. A counter-offer may be in reference to
the price, the closing date, or any number of variables. The process of presenting and acceptance of an offer can go back and forth until both parties have agreed or one of
you ends the negotiations.
HIRE A LEGAL PROFESSIONAL
A legal professional is there to represent your interests and to process the legal documentation
required. Your Royal LePage Real Estate Professional can provide you with the names of legal professionals who specialize in real estate and also advise you on the steps to be
taken. Details may vary by province.
HAVE THE HOME INSPECTED (OPTIONAL)
Though this step is optional, it will give you peace
of mind knowing you've made the right decision. Costs vary. When the procedure is complete, you may wish to ask for a full written report plus estimated costs for any
necessary repairs.
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GUIDE TO SELLING YOUR HOME
UNDERSTANDING MARKET CONDITIONS
The real estate market is always changing. So, you'll be able to sell your property quicker and more effectively
by understanding how market conditions affect your position as a seller. A Seller's Market means there's a shortage of houses for sale with a lot of potential buyers looking
for a home. This can cause homes tend to sell quickly and it may allow you to obtain a higher selling price for your property. In a Buyer's Market potential buyers sometimes
have the best leverage in choosing where they want to live and how much they want to pay due to a high inventory of homes for sale with few buyers. And since there are so many
homes for sale for longer periods of time, prices tend to drop. Your home may take longer to sell and not as much leverage in terms of your selling price. In a Balanced
Market, there is healthy supply of buyers and sellers. An equal amount of homes are available to buy and sell. Selection is usually good. This can allow sellers to take time
in accepting an offer from a prospective buyer and allow sellers to accept reasonable offers more quickly.
PRICING YOUR PROPERTY
The first
and most important step you'll take with your Royal LePage Real Estate Professional is determining the right asking price for your property. Once you've decided on a realistic
sale price, your property will be professionally marketed and promoted to bring more buyers to your door. You can also expect to sell your home for the best possible price in
the least amount of time.
THE BENEFITS OF PRICING RIGHT
1. Your property sells faster because it's exposed to more qualified buyers
2. Your home doesn't lose "marketability"
3. The closer to market value-the higher the offers
4. A well-priced property can generate competing offers
5. Real Estate Professionals will be enthusiastic about presenting your property to buyers
DETERMINING THE VALUE OF YOUR HOME
The market ultimately determines the true value of your property. So before you compare your home to other similar properties and establish an asking price, consider the
following items: Location, Size, Style, Condition, Community Amenities, Buyer Supply, and Financing Options.
GETTING TO KNOW YOUR MARKET
A
comparative market analysis helps indicate what buyers are willing to pay for a home. It compares the market activity of similar homes in your neighbourhood. -Recently sold
homes represent what buyers are prepared to pay -Homes currently listed for sale represent the price sellers hope to obtain -Listings that have expired were generally
overpriced or poorly marketed Your Royal LePage Real Estate Professional will prepare a comparative market analysis for your home based on the most current market information
and work with you to establish the best list price for your home.
AGREE ON A MARKETING PLAN
Because a house is a very complex to market and the process needs to be well organized, you need a plan. For many people it is their largest asset. Your Royal LePage Real
Estate Professional can prepare a personalized plan for you containing all the activities to market your property. At Royal LePage, your property will be aggressively promoted
through Royal LePage's own property advertising publications, Internet Site, other Royal LePage offices and Real Estate professionals, mailings to potential buyers in your
area, and the MLS information library (unless it's an exclusive listing).
SIGNING A LISTING AGREEMENT
The
first step in marketing your property is to enter into a Listing Agreement contract that commits Royal LePage to market your home for a specified period of time and commits
you to a pre-established marketing fee that is to be paid upon the successful closing of the sale. Your Royal LePage Real Estate Professional may require the following
documents: A Plan of Survey or Location Certificate-This outlines the lot size and location of building, and any details of encroachments from neighbouring properties. This
may be required in certain areas to complete the sale of your home. Your legal professional may recommend that you obtain a survey, especially if you've made significant
changes to your property. Property Tax Receipts-Most Listing Agreements require that the current annual property tax assements be shown. Mortgage Verification-This indicates
the exact balance of your remaining mortgage. You will be asked to authorize your mortgage lender to provide the figures required. Deed or Title Search-This a legal
description of your property and proof that you own it. Other Documentation-Other items that might aid prospective buyers and help your property sell quickly are any recent
home improvement costs, annual heating, electrical, and water expenses. Property Condition Disclosure Statement-This document is required in most provinces. By signing it you
disclose all known details such as repairs, known problems, history, etc, concerning the property that might be important to the buyer.
PREPARING TO SHOW YOUR HOME TO POTENTIAL BUYERS
First impressions are lasting impressions. You'll want all buyers to have the best possible impression when
looking at your home.
Your Royal LePage Real Estate Professional can help you achieve that goal. Inspect your home's exterior and interior features to make sure that they
are fixed and in good working order, such as:
Exterior House exterior in good repair
House number easy to read
Eaves troughs, down spouts and soffits in good repair
Garage/Car port clean and tidy Litter picked up
Cracked or broken window panes replaced
Lawns and hedges cut and trimmed, garden weeded and edged
Walks shovelled and salted Boot tray inside front door
Doorbell and door hardware in good repair Porch and foyer clean and tidy
Interior Chipped plaster and paint touched-up and repaired
Doors and cupboards properly closed
Leaky taps and toilets repaired
Burned out light bulbs replaced
Squeaky doors oiled
Mirrors, fixtures, and taps cleaned and polished
Seals around tubs and basins in good repair
Floors cleaned, garbage containers emptied
Inside of closets and cupboards neat and tidy
Appliances cleaned
Countertops neat and polished
All lights turned on
Air conditioner turned on in warm weather
Fresh air in house
Fireplace lit in cooler weather
Halls and stairs cleaned
Drapes opened during daylight
Carpet freshly vacuumed
Fresh flowers in various rooms
Jewelry and valuables locked safely away or taken with you
Valuable property or art objects, vases, etc out of reach, out of sight, or locked away
Pets absent, where possible, or contained during the showing, and littler boxes clean
THE MAJOR ELEMENTS OF AN OFFER
There are six major elements that you need to consider. Your Royal LePage Professional can advise you of details that are specific to the province in which you are
purchasing.
The first part is the price which depends on local market conditions and the buyer, but generally, the price offered is different from the asking price.
The second part is the deposit which shows the buyers good faith. This is applied against the purchase price of the home when the sale closes.
The third part
involves the terms of the offer. This includes the total the buyer is offering as well as financing details. The buyer may be arranging his/her own financing or may ask to
assume your existing mortgage if you have an attractive rate.
The fourth part of an offer involves conditions. These can include ‘subject to home inspection',‘subject
to the buyer obtaining financing', or subject to the sale of the purchaser's'.
The fifth part, inclusions and exclusions, are items that are either included or not
included in the sale of the property, like appliances, certain fixtures or decorative items, such as window coverings or mirrors.
Finally, closing or possession date is
the day the title of the property is transferred to the buyer and funds are received by the seller, unless otherwise specified (except in Quebec).
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Louis Landry
Agent immobilier affilié
Royal LePage
Vallées de l’Outaouais
203, ch. Aylmer
Aylmer, Québec J9H 6H4
(Bur.) 819-684-4000
(Rés.) 819-683-2449
(Cell) 819-328-8435
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© 2002 Louis Landry
Tous droits réservés | All rights reserved
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