Buying Information

Owning Vs Renting

Home ownership has many advantages over renting. When you own your own home, it is an investment that will almost always yield a decent return. It is also you're "Space" and a place for you to enjoy as you please. A place where you are king- you're the boss!

When you rent you are paying off someone else's mortgage namely the landlords. We have all rented at one time or another, but If you have a stable job, and can come up with the resources for a down payment and closing costs you should become a homeowner.

When you own your own home, you are creating stability in your life and over time you will have "Equity" in that home. Equity is the difference between what you owe on your house and what it is worth, should you decide to sell.

Owning Real Estate particularly a home is absolutely the best investment you could ever make!

[Back to top]

Financing

The first step in purchasing a home is to get in touch with your bank or a Mortgage consultant and have a pre-approval completed. A pre approval will let you see just how much you can afford.

This is the most important step in setting the ground work in finding you a home!

[Back to top]

Choosing an Agent

The next step should be, choosing an agent.

Just ask around the most commonly used Agent is the one who gets referred by family, friends, co-workers and acquaintances.

Then schedule a meeting that agent. This will give you a chance to become familiar with him or him and the way they conduct themselves and their business.

You should feel comfortable with the agent you choose. You should be able to trust the agent to give you solid advice.

A good agent has a reputation that precedes him or her!

[Back to top]

Finding a home...The Role of an Agent

Once you have found a comfortable price range, and have your pre-approval in hand, you need to decide on what type of house, and the neighborhood in which to live. This is where your Realtor comes into the process. Your Realtor would then include these criteria among others you may have discussed, and input them into a system, like MLS.ca or the local Realtor system to find a number of possibilities. These systems contain all housing inventory that is currently for sale, and where all real estate agents place their "listings" to be viewed by other Realtors on behalf of his or her clients.

A falsehood: Many prospective purchasers believe that if they have several agents working for them, the more they increase their chances of finding a suitable home. A definite Misconception! Once you have met "Your" agent and him or she has committed to help you with finding the perfect home, it is also crucial to the process that you stay committed to that Agent!

As a buyer, to aid in the process of finding that perfect home, there are some things that you can certainly also do to help. You can visit open houses, upon entering please let the Agent hosting that you are working with an agent, and you can also give his or her name. Also when looking through the weekend paper or watching the local Homes Plus Network, when you see something of interest call your agent first; he or she has the available resources to get you an answer within minutes! Saving everybody concerned very valuable time!

Another great reference site for new listings, besides my own, is the local RE/MAX site, www.remax.nf.ca. This gets updated with new listings daily.

Commonly used Real Estate terms. A "Buyers" agent, as the word states, an agent representing a buyer(s), a "Vendors" Agent represents the sellers, and a Dual agent represents both the Vendors and the Purchasers, but only after disclosing the situation to all parties and have they sign off on it.

Please don't hesitate to ask your agent to clarify these terms if required.

[Back to top]

Making an offer

When...

...When you and your Agent have found the house that is best suited to fit you and your families needs.

How?

The offer is written up on an Agreement of Purchase and Sale, which is a standard form used by all Realtors. Your Agent should be able to give you sound advice as to the general condition of the house and as to it's value, and also if the asking price is in line with similar properties that have sold in the area.

Your agent should be able to let you know what conditions to include in your offer. Some of the common conditions are for example "Subject to a Finance", "Subject to a Home Inspection", and "Subject to purchasers being able to obtain Home Insurance."

There are also time restraints put on the above noted conditions in the offer. Generally in the offer to confirm Financing and/or a Home Inspection your agent would ask for 5-7 Business days to get the paperwork back to the Vendors Agent(s).

An Accepted offer? The next step...

Now is the time to meet the Conditions of the Agreement of Purchase and Sale. We will use the above listed "Conditions to Purchase" in the following scenario.

Now is the time to now contact your Mortgage broker and have them provide a Letter confirming your financing, 2) You have to pick a professional home inspector, seek the advice of your agent they should also be able to recommend an Inspector to complete the Home Inspection (to be paid for by the Purchaser(s), and last but not least once again contact the Insurance company you are using to get you a letter confirming they will provide you with insurance.

Your agent would then provide the Vendors Agent with all the documentation required to meet the above set out conditions.

[Back to top]

Choosing a Lawyer

Once your offer has been accepted and all of your conditions have been satisfactorily met you will need a Lawyer. Your Lawyer will look after your best interests when it comes time to close out the deal. If you don't happen to know a Lawyer your Agent may be able to recommend one. Remember what I said earlier about finding the best Agent, or the best contractor even, ask the people around you that you know and trust! Once you have decided on a Lawyer your agent will send a copy of all the necessary paperwork to the Lawyer on your behalf.

As the Buyer, you are legally obligated to get one final walk through to inspect the house you are buying. This final Inspection is usually done the morning of closing, or the evening before and its purpose is to make sure the house is in the same condition now, as it was when you made your offer. It is also standard for your Agent to be present during your final walk thru, also having a copy of the Agreement to purchase to make sure all the items that were included with the sale are actually there and accounted for.

Once your final inspection is complete and we'll assume all items are in order, you should contact your Lawyer immediately so that they can send the money to the Sellers Lawyer and then the sellers Lawyer can release the keys of the house to your Lawyer.

Congratulations! You are now the owner of a new Home!