Buying a home is one of life's most exciting milestones and as we all know, one of the most expensive purchases most of us will ever make. Finding the perfect home at a price you can afford can be hard work and a little scary if you've never done it before. That's why working with a team of real estate professionals is crucial to helping you navigate this complex and often emotional process.
In our competitive Toronto marketplace, buying a home can be stressful, but it is our goal to walk you through the process and answer all of your questions in order to make sure this experience is as fun and rewarding as possible. Our mission is to fulfill our clients' needs, dreams and aspirations by listening to what they want and using our knowledge of the areas, neighbourhoods and types of homes, to find them just what they're looking for. Understanding all of the subtle details that are important to our clients in a home and neighbourhood is our job and it all comes down to getting to know you, understanding your needs and working towards making your dreams a reality.
Buying a home is not only a complicated business transaction, but also a very intimate and personal decision. Patience, trust, approachability and experience are the key attributes that we pride ourselves on.
Liz and Andrea are passionate about real estate and take great pride in building personal relationships with all of their clients, so that they can put themselves in their shoes and find the perfect property to suit each and every one of their specific needs. Once the transaction has been completed, does not mean our jobs are done. We are always here to answer any questions or concerns, from the time you purchase your home, until the time comes to move up, down or away! We love hearing from our past clients and are always happy to chat.
How much does it cost to work with you on the buying side?
Technically nothing! In the majority of cases the Buyer's agent's commission is paid by the Seller.
Do I need a deposit to buy a house?
Yes you do. The deposit can be given to the listing brokerage either with an offer or within a set time frame, usually 24 hours after acceptance. The deposit is an important term of the offer as it shows the Seller that you have financial security and are serious about buying their home. The deposit amount is not usually specified, but in some cases can impact the strength of your offer in a competitive situation.
What's the difference between a deposit and a down payment?
The deposit is a portion of the down payment that is included, usually in the form of a certified cheque or bank draft, with the Offer to Purchase as a sign of good faith. The deposit cheque is made out to the Listing real estate agent's brokerage. If your offer is accepted, the cheque is deposited and held "in trust", until the deal closes. Upon closing, the deposit amount is deducted from your down payment, and you pay the remainder, if any.
The down payment is the amount used toward the purchase of the home. Your down payment can be as little as 5%, but if you want to avoid paying mortgage default insurance, you will need to have 20% of the home's value as your down payment.
For example, if you purchased a $500,000 home, your total down payment at 20% would be $100,000. If you put a $10,000 deposit with the offer, the remainder of the down payment needed upon closing would be $90,000.
Can I go to open houses on my own?
Of course you can - even if you're working with an agent! Open houses can be a great place to start your initial home search when you aren't familiar with a certain neighbourhood. Most public open houses are held on Saturday and Sunday afternoons where Buyers can wander in and ask as many or as few questions as they want. The listing agent may ask you to sign in, and you should. This is for security measures only and if you do not want to be contacted, you can indicate that on the sign in sheet.
Many buyers do prefer to see potential homes privately with their agent so that they can get their opinion, ask questions and see the home while no one else is there so that they can speak freely.
How do I book an appointment to see a house?
When we begin working together, all you have to do is contact me and I'll take care of the rest. Typically homes can be shown between the hours of 9am and 9pm unless specific times have been restricted by the seller. Once I've called to schedule a showing, it gets booked through the brokerage office and confirmed by the seller. All you have to do is show up!
How do I put in an offer?
Once we've found the perfect home for you, I'll begin preparing the offer paperwork and together we will discuss and decide upon all of the important elements of the offer, which include:
• Offer price
• Deposit amount
• Closing Date
• What Conditions, if any, that you'd like to include
• What's included/excluded in the price of the home
• Any other terms that we may want to include as a stipulation of the offer
Once we've decided what we'd like to put in our offer, I'll type it up and present it to you for signature. Once the offer is signed by the Buyer, the offer is ready to be presented to the Seller and Seller's agent. Presentation can either happen in person, or electronically via e-mail or fax.
What is a conditional offer/conditional sale?
A conditional offer refers to an offer that is subject to certain conditions being fulfilled before the purchase becomes firm and binding. This means that the buyer will only become obligated to purchase the home once certain conditions have been fulfilled. In real estate transactions, common conditions include a home inspection, mortgage and/or lawyer's approval and status certificate (if purchasing a condo). Once the conditions have been satisfied, the buyer or seller will then be obligated to purchase or sell the property. If the conditions are not met then the buyer or seller is not obligated to purchase or sell the property.
A conditional sale is the time period between acceptance of the offer and when the conditions have to be met. When a property is sold conditionally, the sellers may still allow other prospective buyers to see the home, but the sellers are not permitted to consider another offer until the conditional period of the original offer has expired.
What does "holding back offers" mean?
Holding back offers has become a popular term in our marketplace and is basically just what it sounds like. MLS rules state that when a property is listed on the MLS system, the Sellers should be ready and able to consider an offer right away. With the growing demand for homes in the Toronto area there are usually multiple buyers looking and competing for the same property. In order to give buyers a chance to see the property before it has sold, many agents "hold back" reviewing offers until a specified date and time. This gives buyers a chance to see the property and to do their due diligence before putting in an offer on the offer date.
What is competition/multiple offers?
This is when you have more than one Buyer offering on the same property.
What's a bully or pre-emptive offer?
This is an offer that has been presented before the scheduled offer presentation date. Just because a Seller is holding back offers, doesn't mean the Buyer has to obey. A seller has the right to view the offer or to decline and wait until the posted offer date.
If a Buyer really wants a property and does not want to be in competition, they may be willing to present the seller with an amazing offer that they are hoping will be too good to pass up! Hence they are trying to "bully" the Seller into accepting their offer.
Should I get a home inspection?
Buying a home is one of the largest purchases you can make and having a home inspection is always a good idea. The home inspector can tell you what repairs might be needed or what has already been updated, as well as the overall condition of the home.
How much is land transfer tax and when do I have to pay it?
Land transfer tax is based on a percentage of the amount paid for your home. There is both a provincial and Toronto land transfer tax. First time home buyers may be eligible for a rebate of up to $2000 for the provincial tax and $3725 for the municipal tax. Both fees are collected and paid through your lawyer at time of closing.
What are the other fees associated with buying a home?
In addition to your down payment, Buyers should have money set aside for legal fees, a home inspection, title insurance, land transfer tax, adjustments and moving costs.
How much can I afford?
Before you start looking for a home, it's essential to know exactly what budget you're working with. You don't want to find the house of your dreams and then realize you can't afford it. We strongly suggest working with a mortgage professional that you trust and if you don't already have one, don't worry, we can refer you to one of our trusted colleagues.
Why should I work with a Realtor to buy a home?
Finding the perfect home at a price you can afford in a competitive marketplace is hard work! Working with a professional who takes the time to get to know your needs can make navigating this complicated business transaction a breeze. As an expert in my local market, I can give you insights into price trends and important details about a location like the schools, parks and amenities that are nearby. Buying a home can be a complex and emotional process and you need someone with the experience and negotiation skills to make sure you make informed decisions.
What is a B.R.A and should I sign one?
A B.R.A is a Buyer Representation Agreement between you and your real estate agent. It's an agreement that says this real estate agent is legally and ethically committed to providing you with the highest standard of service while helping you find a home, as well as duties of utmost care, integrity, confidentiality and loyalty. Signing a B.R.A makes you a client, which is different from a customer, who gets only the straight forward facts on buying and selling in Toronto.