Frequently Asked Questions for Buyers...
| Should I buy first or sell first? | Why do I need to have money ready for a deposit when I start looking? |
| What do I need to know about making an offer? | What will you do to help me make an offer? |
| What conditions should I include in my offer? | Why do I need to be pre-qualified? |
| Why do I need a lawyer, and when? | Why do you recommend a home inspection? |
| Will you tell me about other problems that I might encounter living in that house? |
| What happens if someone else tries to buy the house I want? | How can I identity all the costs involved in buying? |
| What is title insurance? | Will I have any trouble obtaining home insurance? |
| What is different if I am looking for a condominium? | How many homes do I need to see before I buy? |

Should I buy first or sell first?
It all depends on market conditions at the time you are thinking of moving. If it is a buyers’ market, then you probably want to sell first since you will have plenty of choices of homes available to purchase. If it is a sellers’ market where the supply of good homes is small, then you may wish to by first in order to be sure of having a home to move into while knowing that your existing home will sell within the time frame you have to move. Occasionally, there is a stable market where supply and demand are more or less equal

– in which case, it doesn’t matter whether you buy or sell first. The choice is yours.

Why do I need to have money ready for a deposit when I start looking?
When you find the home you want to buy, you must write a negotiable cheque for an amount between 1% to 5% of your offer price, in order to bind your offer. This too is negotiable with the seller and depends on how much money you have available as a down payment. (This should not hold you back from making an offer as your realtor will guide you) Events take place very quickly in buying and selling, it is important to be prepared.

What do I need to know about making an offer?
You need to know you are signing a binding contract, under seal, and that everything that is important to you is put in the offer. You may insert conditions and clauses to cover anything that you are uncertain about. Once it is accepted and all conditions have been met, it is legally binding on both parties.

What will you do to help me make an offer?
I will explain all parts of the offer and counsel you on the various ways an offer can be drawn. I will do our best to find out anything you wish to know prior to drawing up an offer, and advice you when to seek professional advice.

What conditions should I include in my offer?
Conditions are included in the agreement for your protection. Some of the typical conditions are for arranging financing, arranging household insurance, receiving a satisfactory home inspection report, reviewing the Status Certificate(for a condominium), selling your current property, receiving probate of the seller’s estate or your lawyer’s approval.

Why do I need to be pre-qualified?
You need to be pre-qualified in order to know the limit you can borrow in a mortgage, and therefore how much you will be able to spend on your home. There is also the possibility that you may be in competition with another offer for the same property, and in normal circumstances, a “clean” offer without conditions will be successful over an offer that is conditional on financing.

Why do I need a lawyer, and when?
You need a lawyer to search title and close the transaction. You may also wish to have a lawyer advice you on your offer prior to signing it. The offer form protects both buyer and seller, and because all parties know that, it is commonly accepted. The agreement is sent to both lawyers as soon as the offer is accepted.

Why do you recommend a home inspection?
A home inspection educates you about the property and gives you an indication of the expenses of ownership. If there is a major defect, you can withdraw your offer or renegotiate the price to accommodate for the repairs. Your mortgage lender will also feel more confident with a home inspection as a condition of purchase.

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Will you tell me about other problems that I might encounter living in that house?
As a Sales Representative, I will tell you everything I know about the property and find out the answers to any questions you ask. I will help you assess the value of the house by pointing out the characteristics that meet your needs and those that do not.

What happens if someone else tries to buy the house I want?
In the event that you are in a competing or multiple offer situation, the offer that comes closest to meeting the sellers wishes wins. Price, closing date and conditions are the most important influencing factors. Only one offer can be accepted, so strong bids and speed are important.

How can I identity all the costs involved in buying?
It is impossible to predict all costs, however, I can tell you the set costs are determined and what extra expenses you can expect.

What is title insurance?
Title insurance protects you against defects in the title of the property you are buying, and it also protects you from certain types of fraud including those that can occur after you buy your home. It saves your lawyer from costly searches of government records, and eliminates the need for a survey. Many real estate lawyers today insist that you take out title insurance for yourself and your lender.

Will I have any trouble obtaining home insurance?
Obtaining home insurance these days is becoming more difficult and more expensive, especially if you are buying an older home with out-dated knob-and-tube wiring. One good reason to have a home inspection done on the property before you buy it is to satisfy the insurance company as to the condition of the home. Be sure to allow plenty of time before closing your transaction to obtain several insurance quotes in order to find an acceptable insurer.

What is different if I am looking for a condominium?
In a condominium, you own your own unit and a proportionate share of the common areas of the complex, such as lobby, elevators, recreational facilities, outside grounds, and heating and air conditioning systems. You may own your own parking space, or have exclusive use of one. You automatically belong to the condominium corporation which manages the affairs of the complex. Your monthly maintenance fee covers the regular expenses to look after the common areas and building insurance, and also contributes to the condominium’s Reserve Fund, which is available to replace major heating or electrical systems, roofs, or the underground parking garage. Before you buy a condominium be sure to check out the condominium by-laws and recent board minutes to see what major issues or repairs have been discussed. (This is part of the Status Certificate your lawyer will request)

How many homes do I need to see before I buy?
That depends on how particular you are about the features your dream home must have and your specific needs- it may be the first few you look at or may take a little longer. As you visit the first few homes with me, we both get a better idea of what features you are really looking for, and we can narrow the search. If you are serious about making a move, I have two pieces of advice: Be available to see a new listing as soon as I tell you about it; and once you make your decision to buy a particular home, act quickly before it sells.