What Are Your Costs
- Purchasing a home involves one-time costs and monthly expenses.
- The largest one-time cost is 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:
|Mortgage Application and Appraisal Fee||At time of application|
|Appraisal Fee||At inspection|
|Property Inspection (optional)||At inspection|
|Deed and/or mortgage registration||Closing|
(sometimes provided by seller)
|Land Transfer, Deed Tax or Property
Purchase Tax (in Quebec within 3 months following signing)
Interest Adjustment and
Take Over Fee (if applicable)
|Adjustments for Fuel, Taxes, etc.||Closing|
(and application fee if applicable)
|Home and Property Insurance||Closing and on-going|
|Connection charges for utilities
such as gas, water and electricity
|Date of move|
|Moving Expenses||Date of move|
Other Costs may include:
Typical monthly costs incurred with home ownership are mortgage payments, maintenance, insurance, condo fees, property taxes and utilities.
What Are Market Conditions
- The real estate market is always changing. It helps to understand how market conditions can affect your position as a buyer.
- We can provide you with current real estate market conditions and explain their impact.
The supply of homes exceeds the number of buyers (supply is greater than demand). In this market prices tend to drop and the homes stay on the market longer. Thus your home may take longer to sell and you will have less negotiating power in terms of the selling price. Fortunately you will be in the driver's seat when making an offer on your next home.
The number of buyers exceeds the number of homes on the market (demand greater than supply). In this market prices are increasing and homes sell quickly. As a seller you will probably have more negotiating power and obtain a higher selling price for your property. Unfortunately you will be on the other side of the fence when purchasing your next home.
The number of homes on the market is equal to the number of buyers (supply equals demand). In this market, prices are stable and homes sell within a reasonable period of time. It is a calm atmosphere with buyers having a satisfactory number of homes from which to choose.
Why A Pre-Approved Mortgage
Having a pre-approved mortgage will give you the confidence of knowing exactly what you can spend on a home before you start looking. You will also be protected against interest rate increases while you look for your new home.
Your Mortgage Specialist will answer your questions and help you determine which financing terms and options are right for you. ogether with your Mortgage Specialist,we work as a team to help you find the right home and select the best financing.
Finalizing Your Mortgage
Once you've found the home you want to purchase, there are some documents you'll probably be asked for in order to finalize your financing. They will include:
- A copy of the real estate listing of the property. If the home is still to be built, the mortgage lender will need to see the architect's or builder's plans and details on lot size and location.
- A copy of the offer to purchase or the building contract, if this document has been prepared.
- Documents to confirm employment, income and source of pre-approval.
If you have a pre-approved mortgage, it's a simple matter of finalizing a few details which your Mortgage Specialist will explain to you.
Elements of an offer
There are six key components to the elements of an offer. They are:
Depending on the local market conditions and information provided by us, your Real Estate Professionals, the price you offer may be different from the seller's price.
Your deposit shows good faith and will be applied against the purchase of the home when the sale closes. As your Real Estate Professionals we can advise you on an appropriate amount.
Includes the total price offered and the financing details. You arrange your own financing or ask to assume the seller's mortgage, especially if it has an attractive interest rate.
These might include "subject to home inspection", "subject to you obtaining financing", or "subject to you selling your property".
Inclusions or Exclusions
These might include appliances and certain fixtures or decorative items,
such as window coverings or mirrors. These items would remain in the
Closing or Possesion Date
Generally, the day the title of the property is legally transferred and the transaction of funds finalized.
Making an offer
When it comes time to make an offer, we as your Real Estate
Professionals provide current market information and will assist you in drafting
As your Real Estate Professionals, we will communicate the offer, sometimes known as an Offer to Purchase, to the seller, or the seller's representative, on your behalf.
Sometimes there may be more than one offer on a property coming in at the same time. As your Real Estate Professionals, we can guide you through this process.
Firm Offer To Purchase
Usually preferable to the seller, because it means that you are prepared to purchase the home without any conditions. If the offer is accepted, the home is yours.
Conditional Offer To Purchase
Usually means that you have placed one or more conditions on the purchase, such as "subject to home inspection", "subject to financing" or "subject to sale of buyer's existing home". The home is not sold until all the conditions have been met.
Acceptance Of Offer
Your Offer to Purchase will be presented as soon as possible. The seller may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, the closing date, or any number of variables. The offers can go back and forth until both parties have agreed or one of you ends the negotiations.
Home Inspections are a must
Buying a home is one of the most important investment decisions you will make
in your lifetime. As such, it makes sound financial sense to enlist the services of
a qualified home inspection company to ensure your home is as solid and
secure on the inside as it is on the outside.
A home inspection will determine the structural and mechanical soundness of your home. Your home inspector will identify existing and potential problem areas, suggest practical low-cost solutions, and provide estimates regarding costs for any work required. Shortly after the inspection has taken place, a report summarizing the findings is generally provided to the potential purchaser.
By commissioning a home inspection prior to purchase, you're protecting both yourself and your investment, as well as buying a little peace-of-mind.
Home inspection costs often range according to size, age, and location of the home. Your sales representative can recommend a reputable home inspection service or arrange for a home inspector to visit your property.
Helpful Moving Tips
Use this helpful checklist as a reminder of the things you need to do before you move.
Book the movers. You can choose to have the movers pack everything, or just the breakables, or you can pack yourself. It's a good idea to obtain estimates from several different companies.
If You Own Your Present Home
- Arrange to have your gas, water, and electric meters read on the day you leave and have the bills forwarded to your new address.
- Have your oil tank read and filled before your sale closes, and provide a receipt to your legal professional if required.
- If the water heater or furnace is rented, arrange for a transfer of the rental agreement to the purchaser.
- Disconnect your telephone, cable TV, and water softener.
If You Rent Your Present Home
Give necessary written notice to your landlord and make arrangements for the return of any monies you have on deposit.
At Your "New" HomeMake arrangements for the gas and electric utilities, water softener, telephone and cable TV to be connected on the day the sale closes.
- Get "Change of Address" cards from the post office and send out well before moving day.
- Have the post office forward your mail to your new address.
- Cancel any contracted services and pre-authorized cheques.
- Inform gardening, dry cleaning, garbage pick-up, newspapers, magazines, diaper and other home services. Arrange for service at your new address.
- Obtain a letter of introduction from your current branch to help establish new accounts. Transfer trust or bank accounts and securities.
- Cancel or transfer social, athletic, civic, religious or business affiliations and memberships.
- Arrange for transfer of medical, dental, prescription and optical records.
- Change the address on your driver's license(s) effective the day of the move.
- Collect all items out for cleaning, repair or storage. e.g. fur coats, dry cleaning.
- Make special arrangements for the moving of perishables, such as plants.
- Make special arrangements for the moving of your pets.
- Dispose safely of all flammable liquids as it is illegal for movers to carry them.
Why hire a legal professional?
A legal professional is there to represent your interests and to process
the legal documentation required. As your Real Estate Professionals, we can
provide you with the names of legal professionals who specialize in real estate.
The legal process differs from province to province. Your lawyer will advise you on the steps to be taken before the keys to your new home are presented to you.