Buyer Seller Information
Buyers
Financing -
Visit your personal bank
and/or a mortgage broker and determine how much you can borrow. They will
provide you with a pre-approval, thus letting you know what price range
you can afford. Shop for your mortgage, compare the rates and terms of
mortgages. (A Mortgage broker will do the shopping for you and their
service is usually free).
Review Budget -
Review existing and
continuing monthly financial
responsibilities with your
expected/estimated monthly mortgage, property tax, condo fees, utilities
included. Determine the amount of mortgage payment you feel comfortable
with.
Total Costs -
Minimum Down payment is 5% (of the
purchase price) for a single family home, 7.5% for a owner occupied duplex
and 15% for a residential income/investment property. In addition to your
down payment there are other costs to consider and plan for, these include
CMHC Insurance Premium (on high ratio mortgages) .5 to 4.25% of price of
home (can be added onto the mortgage), GST on CMHC Premium, CMHC
application/processing fee $250+, Appraisal fee $150 to $200, Land
Transfer Tax (approx. 1% of purchase price less $275), Provincial Fees
(registering a mortgage and transferring title) $100, Home Inspection fees
$250 to $500 (resale homes), Ontario New Home Warranty Program Fee $373+
($460 on a home $150-200,000), GST on New Homes (most builders include
this in the asking price, should clarify), Survey Fee $750+, Fire and
Hydro Inspection (multi-family) $150+ each, Legal Fees $400+, Fire
insurance, utility deposits and hook-ups, prepaid utility adjustment,
property taxes (extra added to mortgage or adjustment for prepaid taxes by
vendor), Estoppel certificate (condo) $50+, water quality and quantity
certificates (rural), renovation expenses, appliances, moving
expenses.
(note: GST is added to all products and services, the
above are costs are approximates and should be
verified)
Determine your Needs and Wants - To help find your
new home write two lists. A 'Needs List' describing what you absolutely
need and another a 'Wish List', or 'Wants List' describing things that you
would like, but can live without or add later. Consider location,
traveling distance to work/schools, number of bedrooms/bathrooms, lot
size, storage, finished basement/familyroom, flooring, pool, garden, 2
storey Vs bungalow, possession date etc... Select a Realtor-Find a realtor
to help find your new home and guide and represent you through the home
buying process. A sales representative will represent your interests, have
access to the mls, search out and show
properties that best meet your
needs/wants.
Make an Offer - Once you have found your new
home, your realtor will provide market evidence to support the price,
draft and present an offer to purchase to the sellers on your behalf, and
negotiate the price and terms agreeable to both buyer and seller. Once the
Agreement of Purchase is accepted and all conditions are met, the
agreement is firm and binding.
Congratulations - Soon you will
be in your new home. Until that day you should now pack, book movers,
truck, elevators, contact utilities, postal office, and your insurance
company/mortgage company to notify them. You will receive the keys and
possession of your new home on closing day from your
lawyer.
Sellers
Free
Market Evaluation - The first step in selling your home is determining
how much it is worth. With no obligation I will provide you with a
detailed Market Evaluation of your home, showing you recent
active/sold/expired comparable homes in your neighborhood. The information
collected will determine the best price to list your home and how much you
can expect to sell it for.
Cost-Commission
- is payable for
the service of selling your home, 6% of the sale price plus GST. You
should also take into consideration the additional costs of
discharging/paying off your existing mortgage, early mortgage cancellation
penalties, Lawyer fees, Property Tax and utility adjustments.
Listing Your home -
We will decide what
price to list your home at, what closing date works for you, discuss and
record all relevant updates made to your home, measure rooms, take
pictures, decide which appliances/fixtures will stay or go, (fixtures you
wish to take with you can be removed or replaced prior to the listing to
avoid confusion), fill out a 'Sellers Property Information Statement',
determine how and when your home can be shown, and place a lock box on
your home.
Marketing your Home
- A for sale sign will be
placed on your lawn, feature sheets will be prepared to leave out at your
home, your home will be marketed on my website, my office website and the
MLS, your home will be featured in various newspaper ads, agent open
houses will be held to allow agents a chance to preview your home for
potential purchasers, and public open houses will be held by me, or
another agent selected by me, to give your home further
exposure.
Showings -
During showings it is best that you are
not at home, that the house be neat and tidy, valuables put away, alarm
systems turned off, feature sheets should be left out (kitchen table/entry
way), blinds and curtains should be open, and lights left on (if you are
just stepping out). After each showing I will fax a comment sheet to the
showing agent to receive feedback on the showing and pass this on to
you.
Offer to Purchase -
The offer to purchase will be
prepared and presented by the buyer's agent. I will be present to
represent you during the offer presentation, explaining all the terms and
conditions of the offer, and helping you to make an informed decision
whether to accept, reject, or sign back the
offer.
Congratulations -
Once you have an accepted agreement
of Purchase and Sale and all the conditions are met your house is Sold!
Between now and closing day you should pack, notify your lawyer, mortgage
company/bank, utilities, post office, insurance company, arrange for
movers and a truck. On Closing day the keys will be given to the
Purchaser's through the lawyers.
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