BUYER'S GUIDE

 

Before you begin the search for your new home determine your needs and implement this step-by-step plan to make this process less stressful before you hit the streets. From choosing the type of home best suited to your needs up to the day of moving, this Buyer's Guide ensures an enjoyable experience.

 

 

Your Lifestyle

So, you've decided you want to own a home. It's a popular dream. For most people, with the right planning, it can become reality. But there is a lot to know before you begin moving. We’ll take you through the planning process step-by-step, to determine exactly the kind of home that's perfect for you. We'll ask you some questions and we've provided worksheets that you can print out and use with your RE/MAX agent.

 

What Does Your Future Lifestyle Hold?

How many bedrooms will you one day require? Your preschoolers will be teens some day. Are you planning to stay in your home that long? Perhaps your teens are ready to move out on their own. What will you do with all the extra space? When you're thinking about accommodating your family's needs, think of things like parking. How many cars will require space? You'll also want to consider proximity to -- and the reputation of -- schools in the area. How is your work situation? These days people tend to change jobs frequently, and sometimes the best way to get a promotion is to move to another company. If you might be transferred, will you be able to sell quickly? Keeping work in mind, how long do you want to spend commuting? Do you drive or rely on public transportation? As you can see, you will want to give some thought to how long you intend to stay in your home. It may be difficult to answer before you've even found your home, but if it's your first home give some thought to the resale value when it is time to upgrade. On the other hand, if you're planning to stay in your home for a long time, consider your future needs and purchase a home that will accommodate them.

Aurora real estate, Aurora Ontario real estate, Aurora homes, Aurora homes for sale, Aurora mls listings, Aurora real estate listings, Aurora real estate agent, homes for sale in Aurora, Oak Ridges, Richmond Hill, Vaughan, York egion, Ontario, Canada, remax, re/max york group, realtor, real estate agent, Ashlee Garrard

 

What Can I Afford?

There are two types of costs in buying a home -- the initial amount you will need for your purchase and the ongoing costs of paying back your mortgage along with monthly operating costs. The largest one-time cost is the down payment. It usually represents 5-10% of the total price of the property.

Typical One-time Expenses:

  • Deposit and down-payment
  • Property inspection (optional), due at time of inspection
  • Legal fees, due at the time of closing
  • Legal disbursements, due at the time of closing
  • Property survey (sometimes provided by seller), due at the time of closing
  • Land transfer, deed tax or property purchase tax, due at the time of closing.
  • Mortgage interest adjustment (if applicable), due at the time of closing
  • Home and property insurance, at closing and ongoing
  • Moving expenses, due on the date of move
  • CMHC fees if less than 20% down-payment

Typical Monthly Expenses:

  • Mortgage payments
  • Maintenance (this could be condominium fees, or allocated maintenance fees)
  • Property and content insurance
  • Property taxes
  • Utilities

 

What is a Mortgage?

A mortgage is made up of two parts: principal and interest. Principal is the actual amount borrowed. Interest is the lender's fee you are charged for borrowing.

You'll have to decide on an amortization period (the length of time it will take to completely pay off the mortgage) and the term, or length of time each mortgage agreement guarantees the interest rate.

Before you go to a financial institution or mortgage broker, keep in mind that there are many mortgage options available. Shop around for the best rates and the best terms. Negotiate. Everyone wants your business, but it's up to you to look after your interests. Of course, the key thing to remember is to negotiate a mortgage that fits into your lifestyle, and doesn't take over your life! Your mortgage broker can help guide you through this process and supply you with information.

Aurora real estate, Aurora Ontario real estate, Aurora homes, Aurora homes for sale, Aurora mls listings, Aurora real estate listings, Aurora real estate agent, homes for sale in Aurora, Oak Ridges, Richmond Hill, Vaughan, York egion, Ontario, Canada, remax, re/max york group, realtor, real estate agent, Ashlee Garrard

 

 

 

 

 

 

 

 

 

The Offer

For some, this is a stressful experience. After all, you and the seller may not be able to come to an agreement and you won't get your dream home. There are eight basic elements to an offer and there are various offer strategies that you may want to use during your negotiations. When you've found your home, you will make a formal, written offer to purchase. This is a legally binding contract outlining what you will give (a combination of price and terms) in exchange for the home. Your associate will probably use a pre-printed form covering all of the legalities and will modify it to cover what you want to offer.

Remember, everything is negotiable. You should ask for what you want, but keep in mind what you're willing to give up. Your RE/MAX associate will put everything in writing. Of course, the more contingencies in your offer, the less attractive it will be to the vendor. In a buyers' market, that's OK.

The vendor may counter your contingency with an escape clause. For example, the vendor may wish to continue showing the house and if they receive another offer, you'll have the option of backing out or removing your contingency.


 

Eight Basic Elements of an Offer

1. Basic Details

This includes the address and legal description of the property, and the names of the vendor, purchaser and brokers involved.

2. Price

Depending on the market conditions, your opinion of the value of the home and the information provided by your RE/MAX Associate, the price you offer may be different from the seller's asking price.

3. Chattel - Inclusions and Exclusions

Items within the home that will be included in the purchase price such as appliances, fixtures or decorations such as drapes or mirrors are referred to as chattel. Don't assume that anything will be left behind. If you want it, put it in writing.

4. Deposit

Items within the home that will be included in the purchase price such as appliances, fixtures or decorations such as drapes or mirrors are referred to as chattel. Don't assume that anything will be left behind. If you want it, put it in writing.

5. Terms

These include the total price of your offer as well as the financing details. You may arrange your own financing or may ask to assume the seller's mortgage, especially if it has an attractive interest rate. There will also be an expiration date and time after which the offer is no longer valid.

6. Conditions

These might make your offer subject to home inspection, to your obtaining financing or to your selling your property.

7. Closing or Possession Date

These might make your offer subject to home inspection, to your obtaining financing or to your selling your property.

8. Request for a Current Survey of the Property

If the vendor does not have one, you may wish to make one obtaining a land survey a condition of the closing. In most cases, the vendor will not pay for a new survey. As discussed earlier, you can ask the vendor to provide a "Declaration of Possession" or you could buy a "Title Insurance" policy instead. If however, you are planning to add to the house or build a garage, the best idea is to request a new survey - you'll likely need it to get your building permits.

 

The Closing


It's a day filled with nervous anticipation. This is the day on which all of the legal and financial promises in the offer are met. It's the day when you get the keys and begin a new phase in your life. Your RE/MAX agent and your lawyer will give you all of the details on steps and timings. All of the small details will be taken care of ahead of time, so in most cases it will be just a day of waiting by the phone. Also, remember that this is a hectic day for the seller, too! Very often it's moving day and they're trying to gather all of their belongings to leave as the purchaser is trying to move in.


In brief, here's what takes place before the actual closing day:

 

1. A copy of the offer will have been forwarded to the office of your lawyer. Your lawyer will have reviewed the conditions of the sale. You will have made your lawyer aware of how you, and any co-buyers, will be registered on the title of the property.

 

2. All of the conditions in the offer to purchase must be satisfied by the closing date. If one of the conditions in your offer was a house inspection, it should have been completed by the closing date, and you should be satisfied with the report.

 

3. All of your financing details will have been finalized and ready to fall into place on the closing date.

 

4. If the vendor did not have an up-to-date land survey, you'll have had one done. Your lender will insist on it.

 

5. Your lawyer will search the title of the property to ensure that you can purchase the home without any legal problems. Your lawyer will also make sure that tax payments have all been made and there are no liens on the home or the personal property the vendor has agreed to sell you as part of the deal.

 

6. You'll want to make sure that you've contacted all of the utility, cable, and phone companies to ensure an easy transition of service and billing.

 

7. Your lawyer will prepare a statement of adjustment. This confirms the selling price, adjustments, and the balance (less the deposit you provided with the offer). Your lending institution will draw up a certified cheque for your lawyer to hold in trust.

 

8. Additional settlement charges will have to be paid:

 

  • Your lawyer's fee and disbursements
  • Condo and co-op fees (Remember to ensure there is an adequate Reserve fund in place and that the condominium has a proper Technical Audit and Reserve Fund Study completed by competent professionals.)
  • Tax and utility adjustments; if they have been pre-paid, you'll have to pay the vendor for the portion of the service you assume
  • Land transfer tax; based on the price of the home, this fee ranges from 0.5% to 4% of the selling price

9. You'll want to make sure your homeowner's insurance policy will be in place to cover your new home and property once the deal is closed. Your lawyer will need a copy of the policy before closing. 

 

 

Translate