Buyers should be aware of their options so they are better able to protect their positions in a transaction. The role of the Realtor has been undergoing tremendous change over the past several years. Prior to 1995, all Realtors worked for the Seller in a Real Estate transaction. A buyer can now choose to retain representation with a Licensed Realtor and receive the same legal relationship that Sellers have received for nearly 100 years.

A buyer who understands their options will typically want to select their Real Estate representative EARLY in the transaction in order to avoid potential conflicts of interest should they be making many calls to various Realtors (typically listing sales representatives representing the Seller) or if shopping New Home sites (representatives are not necessarily Realtors – thereby having no accountability to the Buyer through RECO* or REBBA**).

With the advent of the Internet, many Buyers are conducting tremendous research on their own before looking at homes or contacting a Realtor. It cannot be understated that part of the research conducted from a buyer's perspective is the careful selection of the Realtor to represent their interests in the acquisition of property. A skilled Buyers sales representative will add tremendous value to the buyer during the drafting of the contract, during negotiations, and oversee the contract to completion. If you're going to spend the next 25 years paying for your new home‚ shouldn't you spend a few minutes finding the right person to help make it all happen?

We know your rights‚ do you?

  • You have the right to remain silent
  • Anything you say while un-represented could be used against you during negotiations;
  • You have the right to be REPRESENTED
  • If you choose NOT to be represented;
    Then all Realtors will work on behalf of the Seller during negotiations.
 

To find out more, please feel free to contact one of our sales representitives to discuss your Real Estate Goals. Our services are guaranteed to ensure your complete satisfaction!

Put yourself in the sellers shoes and imagine how they will react to everything you're about to put in your offer. Oral promises are not legally enforceable when it comes to the sale of real estate. Please be sure you have communicated everything you want in the offer to your Realtor.
 

Price
Have your REALTOR® do a comparative market analysis for you. That will show you the fair market value of the property. The following factors could affect your offer price:
  • Property condition
  • New home improvements
  • Market conditions (that old supply and demand again)
  • Seller's motivation
  • Multiple Offers - expect to pay more if there are multiple bidders on a property
Deposit Money
You will be putting up some money to show the seller you are sincere about purchasing his home. Your Realtor can give you guidelines for how much this should be.
 
Financing Contingency
You will probably need to get a mortgage. Even if you have been preapproved the lender will still need time to have the appraisal done, etc. Your Realtor can advise you as to how much time you need.
 
Home Inspection
Don't skip this, whether it's because you think you can check out the house yourself or you want to save the money a professional inspector charges - it's money well spent in the long run. But remember, no home is perfect and small maintenance-type things found by the home inspector should not be part of any renegotiations with the seller. And don't skip your final walk-through just because you had a home inspection.
 
Disclosures
Make sure you received all the proper seller disclosures. Sellers may have completed a Seller Property Information Statement. Have your Realtor request a copy for your review. Further, material defects MUST be disclosed if known by the seller. Look over these documents carefully - the laws that govern them limit your recourse once you've signed them.
 
Multiple Offers
It doesn't have to be a 'hot' market for a seller to have the luxury of choosing between multiple offers on their property. If you find yourself in a multiple offer situation don't panic and don't withdraw your offer - you may be the highest bidder and won't even know it if you pull out. Go through at least one round of negotiations before you decide to withdraw. Have a price in your mind of where you want to go and stay in the game until that price has been reached. Too many buyers lose the property by pulling out too soon. Having a well-seasoned Realtor familiar with the process can be instrumental in Multiple Offers. Taking the time to hire the right Realtor will find you a Realtor with a good reputation among their colleagues and peers; this too will aid in your efforts to attain a property in the event of Multiple offers.

 

Once your offer has been presented to the seller the negotiating process begins. There are likely to be numerous counter-offers going back and forth between you and the seller. There are a few important things to remember:

  • Your offer is just that - an offer - until it has been accepted and agreed to by both you and the seller. At any time during the negotiating process another offer could come in and cause you to be in a multiple offer - or worse - lose the house completely. A wise buyer will try to come to an agreement with the seller in a reasonably short period of time.
     
  • If your contract calls for a home inspection and/or a financing condition, please choose both of these as quickly as possible and let your sales representative know who they are. Your service providers have a limited amount of time to protect your interests.
     
  • Be sure to comply with all requests of your lender after the mortgage application has been done. Not producing the documents or information they need can jeopardize your getting your mortgage on time.
     
  • Generally, the buyer accompanies the home inspector at the inspection. Please allow at least 2 to 3 hours for an average inspection. More time may be necessary for a large home.
     
  • Your Realtor will act as coordinator for all activities from this point and will keep everyone in the loop as far as what is going on. The lender, home inspector, both attorneys, the other REALTOR, the title company will all be performing necessary duties during this time.
     
  • If necessary your Realtor will work together with the cooperating Realtor to negotiate any repairs that were noted during the home inspection. Remember, routine maintenance items are not the type of thing that should be noted and negotiated. The purpose of the home inspection is to avoid buying a home with major structural deficiencies.
     
  • Your walk through will be scheduled as per your sales contract. Your Realtor will schedule this with you, the seller and the listing sales representative. It should happen just prior to the closing.
     
  • If all of this sounds a little overwhelming - don't worry - you're in good hands. Your Realtor has been through this many times and will be there for you during the entire process. Relax and enjoy the experience.

 

 

 

 

 

 

Over the course of your amortization period, you may have many different mortgages. The term is simply the length of time that interest rates, payment schedules and obligations to the lender exist. When the term comes to a close, you will have the option to renew your mortgage (taking into account current market conditions) at your current or new lending institution. You can also put a lump sum toward the principal without restriction, or pay off your entire mortgage without penalty. If you wish to change the structure of your agreement during the term you may have to pay a substantial fee to the lender.
 
Choosing Security or Flexibility
Mortgages are available with closed, open and convertible options, with fixed or variable rates. The options you choose will reflect your beliefs about the market -- is it going up or down? -- and your short-term goals and desire for long-term security.
 
Amortization
This is the amount of time over which the entire debt will be repaid. Most mortgages are amortized over 15-, 20-, or 25-year periods. The longer the amortization, the lower your scheduled mortgage payments, but the more interest you pay in the long run.
 
Schedule of Payments
 
There Are Ways to Reduce Your Interest Payments
  1. Negotiate a shorter amortization period. (That's the number of years over which you'll pay off the total amount of the mortgage. Don't confuse this with the term of the mortgage, which can run from 6 months to 10 years and must be renegotiated.) A shorter amortization period will mean higher monthly payments, but you'll be paying more principal with each payment.
  2. Accelerating your payments. Opt for a weekly or biweekly payment schedule. More payments per month mean less overall interest.
  3. Put lump sum payments toward your principal.

    When negotiating your mortgage, ask how frequently you can make a lump sum contribution. Most financial institutions allow a percentage of your overall mortgage to be contributed on your annual mortgage anniversary date. Depending on the type of mortgage you select, you may also be able to negotiate additional monthly, or even weekly, payments. These payments will rocket you toward mortgage freedom.
Open Mortgage
This type of mortgage offers a great deal of flexibility, as it can be repaid in part or full at any time without penalty. This is a great mortgage if you believe interest rates are moving down or if you plan to move in the near future. The term may be limited to six months or one year.
Closed Mortgage
Here the interest rate is fixed for the full term of the mortgage, and you will have to pay a penalty to change the agreement conditions. This type of mortgage is ideal for buyers who suspect that interest rates will rise and who are not planning to move in the near future. This type of mortgage is usually available in a wide variety of terms.
Convertible Mortgage
With this mortgage, you'll enjoy the same peace of mind as a closed mortgage, plus the flexibility to convert to a longer closed mortgage at any time without penalty. If you think rates will drop, this will allow you to wait until you feel they have hit bottom, or if rates rise, you can lock in.
Additional Costs
Before you calculate the amount of your down payment and determine what you can afford, it's a good idea to set aside a few thousand dollars to cover the extra costs that seem to spring out of nowhere. Here is an overview of costs you could encounter. The good news is that not all of them will apply.
Property Taxes
If the Vendor has paid a portion of the taxes in advance, you will be responsible for reimbursing the Vendor on closing. Plus, if you have a high-ratio mortgage, your lender may require that you have your property taxes added to your mortgage payments.
Utility Fees
Utility fees are calculated through a meter so you will be responsible for paying what you have used up on the meter.
Land Transfer Tax
This applies in most provinces and ranges from 1% to 4%. For instance, in Ontario, you'll pay 1% of the first $55,000 - $250,000 and up to 2% of any amount over $400,000.
Survey Fee
Your lender will require an up-to-date survey. You can make it a condition of the Offer to Purchase that the Vendor provide a survey, or you will have to have one done. If there is no survey available, you may purchase "Title Insurance" in lieu of a survey which saves you about $500 - 700.
Appraisal Fee
A basic appraisal usually costs under $250.
Property Insurance
Your lender will insist that you have insurance on your property because your home is used as security for the mortgage.
Service Charges
You'll be charged for telephone, cable and a variety of other services that you hook up at your new home.
Lawyer (Notary) Fees
Each real estate transaction requires the assistance of a legal professional to review the Offer to Purchase, search the title, draw up the mortgage documents and take care of the details on the day of closing. Lawyers fees range widely depending on the complexity of the transaction. Ask your RE/MAX sales representative to recommend a lawyer. And remember, fees can be negotiated.
Mortgage Loan Insurance Premium and Application Fee
Mortgage loan insurance will be necessary if you have a high-ratio mortgage (less that 25% down payment). The application usually costs $75 with a valid appraisal, otherwise it's $235. The actual insurance premium will range from .5% to 3.75% of the purchase price and is added onto the mortgage.
Mortgage Broker Fee
Some brokers may charge as much as 2% of the total mortgage to find you a lender. In most cases though, the broker is paid by the lender. Buyers with good credit should not have to pay a fee.
Moving Costs
Whether you've decided to do it yourself or hire a moving company, now is the time to budget for the costs involved.
Estoppel Certificate
If you're moving into a condominium (complex not necessarily a high-rise) this certificate outlines the condominium corporation's financial and legal state. It will cost you up to $50.
Condominium Fees
These monthly fees vary from complex to complex. The fees are applied to everything from grounds keeping and carpet cleaning to security personnel and health club maintenance. Depending on the type of structure, these fees will usually be a few hundred dollars.
Home Inspection Fee
For around $300, depending on the size of your home, you'll receive a complete written report about the condition of the structure. Do your research and hire a reputable firm.
Renovation and Repairs
Your home inspection may indicate the need for some general repairs or a major project. Have some money set aside, particularly if you are purchasing an older home.
Redecoration
Your taste will be different from the previous owner. Set aside money to paint and wallpaper. Prepare a list of things you can live with, for now, and decorating faux pas that need immediate alteration
Water Quality Certification
If you are purchasing a home with a well, you'll want to ensure the quality of the water. This will cost approximately $50 to $100.

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Ranjit & Kamal Dhillon
Real Estate Agents


Email :
dhillonk@rogers.com

Address :
7045 Edwards Boulevard, Suite 202
Mississauga, Ontario Canada
905-500-7675

Contact Numbers :
905 499 2700    416 545 7626(R)     647 283 6004(K)
 

 

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