First things first...
I cannot stress the importance of
getting mortgage pre-approval BEFORE you start your home search.
This will tell you how much you can afford and what price range
you should be searching within. For more information, go here.
Buyer Agency 101
A Buyer's Agent is a professional realtor who acts on your behalf
as your representative to locate, evaluate & negotiate the
terms of purchase of a property. The Buyer's Agent has allegiance
only to you in all dealings with the Seller's Agent.
It wasn't always this way. Not so long ago,
all realtors worked on behalf of the Seller, even if you thought
that realtor was working for you. Changes were made to legislation,
so that now, Buyers have representation equal to that enjoyed
by Sellers.
Buyer Agency is a contractual agreement between
the Buyers and the REALTOR®.
With this commitment, a relationship that fosters confidence,
trust and loyalty is established. This results in better service
for you than you might otherwise receive.
The duties and Code of Ethics for a Buyer's
Agent are set by the various governing bodies for Realtors®
and ensure that your interests in your Real Estate dealings
receive proper attention to detail, and are dealt with in
a confidential and professional way.
It is in the best interests of the Buyer's Agent
to ensure that you are satisfied with all aspects of the transaction.
Without your own impartial representative, you can never be
sure that your interests and yours alone are being served.
As the Buyer, you are entitled to these services and, best
of all, it's
FREE.
Now I know you're thinking "theres no such thing as a
free lunch", but it's true! The compensation the Buyer's
Agent receives is "paid" by the Listing Broker.
It's a portion of the commission, as set out in the listing
agreement.
 So
you've got someone working for you, helping you every step
of the way, gratis!
Why should I work
with a Sales Representative?
Buying a home is more than looking at houses.
It's finding the right home, at the right price, in the right
location. Hopefully, with a minimum amount of time and inconvenience.
The best way to achieve these objectives is to work with a
professional realtor who understands your needs and wants,
your time frame, and the
financial boundaries to work within.
Selecting a
Sales Representative
It's important that the salesperson understands your needs.
A good salesperson will ask the questions they need to know,
before they start to show you homes. Questions you should
ask a salesperson when making your selection:
| • |
How will you represent my interests? |
| • |
Do you have access to M.L.S. information? |
| • |
Will you provide market evidence to support
the price? |
| • |
Will you look after the details from acceptance
to possession? |
| • |
Do you make it easy for me to contact you
if I have a concern or question? |
What does a Sales Representative do?
| • |
Provide information on the property. |
| • |
Provide information on the area. |
| • |
Negotiate a price and terms, acceptable
to both buyer and seller. |
| • |
Provide information on alternative sources
of financing at competitive rates, if needed. |
| • |
Provide information on Homeowner services,
offered by third parties, e.g. Insurance, Appliance Warranty,
Title Insurance etc. |
Can I afford to
buy?
A better question might be "Can I afford
not to?"
Many people currently renting can afford to buy. Mortgage rates
are lower than they've been in years, and for what you pay in
monthly rent to someone else for their mortgage (money gone),
you could be paying a mortgage for a property that is yours
and building equity (money saved). Maybe even have some money
left over at the end of the month to put into a savings account.
You remember what that is, don't you?
I've found that the hardest obstacle for many people to get
over is the "idea" of them being the person buying
something "so big"
"But I don't have the downpayment"
I'm a firm believer in "where there's a will there's a
way".
You don't need to have 25% to put down on a property. It helps,
but it's not a necessity. It does mean that you'll be paying
a bit more for your mortgage due to High Ration Mortage Insurance,
but that cost is usually added to your mortgage, and amortized
over the life of the mortgage.
Your dream of owning may not be as unobtainable as you think.
"I don't want the responsibility
of home ownership"
I felt that way too at first, and purchased
a condo as a result. You live in a place that's yours and though
there is a cost associated with it, someone else rakes the leaves,
shovels snow, and takes the garbage out.
My money is safer in the bank.
Think so? Your deposits are only guaranteed up to a certain
amount. Further, more and more homeowners are becoming investors
that buy a second (or more) property, taking advantage of today's
low interest rates. They make several times more rate of return
on their money than it would if they'd kept it in the bank.
Not sure how this works? Give me a call and I'd be happy to
show you how it works.
Purchasing
a home involves one-time costs and monthly expenses.
The largest one-time cost is, of course, the
down payment. It usually represents between 5-25% of the total
price of the property.
In addition to the actual purchase price, there
are a number of other expenses that you might be expected
to pay for. These are listed below:
| Expense |
When paid |
| Mortgage Application and Appraisal Fee |
At time of application |
| Appraisal Fee |
At inspection |
| Property Inspection (optional, but
recommended) |
At inspection |
| Legal Fees |
Closing |
| Legal Disbursements |
Closing |
| Deed and/or mortgage registration |
Closing |
| Property Survey (sometimes provided by
seller) |
When completed |
| Land Transfer, Deed Tax |
Closing |
Mortgage Interest Adjustment and
Take Over Fee (if applicable) |
Closing |
| Home and Property Insurance |
Closing (and on-going) |
| Connection charges for utilities (gas,water,hydro) |
Date of move |
| Moving Expenses |
Date of move
|
Then there are things you have control over
such as: landscaping, redecorating, furnishings, appliances,
repairs.
Typical monthly costs incurred with home
ownership are mortgage payments, maintenance, insurance, condo
fees, property taxes and utilities.
So what are you waiting for? Still not
sure you can do this? Please give me a call or an email
and we'll talk!
|
