BUYERS FREQUENTLY ASKED QUESTIONS



WHAT COSTS ARE ASSOCIATED WITH BUYING A HOUSE?

There are several costs to be aware of when you are planning to buy a home. The biggest factor is your down payment ( 5% minimum). After that you have legal fees (typically around $900) and adjustments (cost varies), property insurance (depends on the property), the cost of a home inspection if applicable ($420), the cost of a strata document review if applicable ($400), appraisal fees if your bank or mortgage company asks for one, HST if your buying a new home (depends on the price and if there is a HST rebate), potential title insurance (discuss with your lawyer). And in BC we have a Property Transfer Tax. It is calculated at 1% on the first hundred thousand and 2% on the balance. This is a general list and costs can vary. Please contact us for more clarification for your personal circumstances.

 

HOW MANY HOMES SHOULD I SEE BEFORE I MAKE AN OFFER TO PURCHASE?

 You should see as many homes as you need to until you find the right property for your needs. This will also give you the best possible education of whats available in the market. By viewing a lot of homes you are then prepared for when you find your dream home. There is no rush and should be no pressure. This is a big decision, take your time and make sure you are comfortable.

I AM A FIRST TIME BUYER. WHAT DO I NEED TO KNOW BEFORE MAKE AN OFFER TO PURCHASE?

You need know everything about the property and to make sure you have done your homework. You also need to know what comes next and what to expect if the seller and you can come to an agreement and you enter into a conditional sale. Above all else you need to be 100% educated, comfortable and confident with your decisions.

I AM BUYING A HOME. WHEN DO I NEED TO DELIVER THE BALANCE OF MY DOWN PAYMENT ?

 Typically, your lawyer will need to meet with you about 7 days before the closing. Though there are factors that affect this timing, plan on having your funds ready on or about that time frame. For your specific circumstances discuss this with your REALTOR® and lawyer ahead of time.

I HAVE BEEN PRE-APPROVED FOR A MORTGAGE, IS THIS GOOD ENOUGH TO REMOVE MY FINANCING CONDITION?

No, you have to make sure that the property you are purchasing also passes the mortgage company’s financial test. Once the mortgage company approves both you and the property that you have made the offer on then you can waive your financing condition. Make sure you discuss this with your mortgage professional before you remove the financing condition.

SHOULD FINANCING BE A CONDITION OF MY OFFER TO THE SELLER ?

Unless you are paying cash for the entire purchase price, I cannot think of any scenario where it would be a good idea to not insert a financing condition in your offer. When you are pre-approved this simply means that you personally are approved. However, this does not mean that the financing institution has approved the property you are planning to buy.

THE FINANCING HAS BEEN APPROVED, IS THERE ANYTHING ELSE I NEED TO DO ?

 Typically, you are approved subject to providing additional documentation like pay stubs, job letters, tax returns, downpayment verification or other items. These are items the bank relied on to approve the mortgage. You may have to provide a number of supporting documents prior to the mortgage being funded. Check with your mortgage specialist well in advance of the closing date to make sure that they have everything they need to proceed.

WHAT CONDITIONS SHOULD I INCLUDE IN MY OFFER?

 Unless you are paying cash and don't require a home inspection or strata document review then you will always want to insert conditions into the offer for your protection. The most common conditions are: Mortgage Approval, Having a home inspection completed that is satisfactory, a satisfactory strata document review and sometimes selling your present home if required. This is a short list of the most common conditions and does not reflect every circumstance. Please ask me if you have questions about the best protection for your circumstances.

WHAT COSTS ARE ASSOCIATED WITH BUYING A HOUSE?

There are several costs to be aware of when you are planning to buy a home. The biggest factor is your down payment ( 5% minimum). After that you have legal fees (typically around $900) and adjustments (cost varies), property insurance (depends on the property), the cost of a home inspection if applicable ($420), the cost of a strata document review if applicable ($400), appraisal fees if your bank or mortgage company asks for one, HST if your buying a new home (depends on the price and if there is a HST rebate), potential title insurance (discuss with your lawyer). And in BC we have a Property Transfer Tax. It is calculated at 1% on the first hundred thousand and 2% on the balance. This is a general list and costs can vary. Please contact us for more clarification for your personal circumstances.

WHAT IS THE DIFFERENCE BETWEEN CHATTELS AND FIXTURES?

Chattels are unattached goods like the kitchen appliances, washer and dryer etc. Any chattels you want included must be written into the purchase contract and agreed to by the seller. Fixtures are attached goods like window coverings or light fixtures that stay with the property unless the seller specifically excludes something.

WHEN DO I NEED THE DEPOSIT THAT ACCOMPANIES MY OFFER TO PURCHASE?

The deposit is a part of your downpayment. The deposit is held in trust as specified in the offer until you remove your conditions at which point it becomes non-refundable. For more details about the home buying process please contact us!

WHO HOLDS THE DEPOSIT WHEN I MAKE AN OFFER TO PURCHASE?

Normally the listing real estate company holds the deposit in a trust account in accordance with the rules and regulations of the Alberta Real Estate Act. Where the deposit is held is ultimatley negotiable between the buyer and seller but the previosuly mentioned process is the most common. For further clarification based on your personal circumstances send me a message and I will get back to your promptly.

WHY DO I NEED TO SHOW ID TO MY REALTOR®?

As of June 2008 the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is requiring the real estate industry to “ID” clients.
This government body, FINTRAC, was created as part of an initiative to fight money laundering and terrorist financing, both domestically and internationally. ID means that you are required to provide valid identification such as a birth certificate, a drivers license, or similar type of document.

WHY SHOULD I USE A REALTOR® WHEN BUYING A HOME?

Buying a home will probably be the largest and most complex transactions of your life and you dont have to navigate it alone. Having a professional, experienced REALTOR® on your team can save you a lot of time, hassle and money. Would you ever decide to be your own dentist? You hire a dentist because you want your teeth looked after properly and for the same reason you should hire a REALTOR®, because you want your home purchase or sale looked the same way.

The trademarks MLS®, Multiple Listing Service® and the associated logos identify professional services rendered by REALTOR® members of CREA to effect the purchase, sale and lease of real estate as part of a cooperative selling system.
MLS®, REALTOR®, and the associated logos are trademarks of The Canadian Real Estate Association.
OUR PROMISE TO YOU *We will not bend the truth to make a sale. *For every single customer, we will work as hard as we can to help them achieve their dreams. *We are grateful and inspired to be working with a select team of professionals whom we believe are the most capable, honest and hard-working in the area. *We believe that working hard at something you love to do, with people you trust, is one of the greatest experiences in life. *We love to help our customers find a house that can become a happy home. *We are devoted to our family, our colleagues and our community. *We are proud to offer our services that will refelect our belief which is having - your deal ~ your way.