WHAT TO EXPECT WHEN BUYING YOUR NEW HOME

FOR FIRST TIME BUYERS OR A GREAT REFRESHER FOR EXPERIENCED PURCHASERS

REALTORS:

We’re here to help!  Using a Realtor to find your home is advantageous for many reasons:

• New Listings on MLS are available to Realtors before the general public. Your Realtor knows what you’re looking for, and can get you in for a viewing before anyone else.
• As a Buyer you don’t pay Realtor Fees, the Seller pays!
• Realtors are knowledgeable of the market, and can assist you in the negotiating process, help you locate inspectors and lenders, and guide you through your purchase.

SEARCHING FOR A HOME THAT FITS YOUR NEEDS

Make a list of the characteristics that you desire in a home:

• Bedrooms
• Bathrooms
• Parking
• Bus Routes
• Condition (Are you willing to do minor renovations?)
• Age of Home
• AREA!
• Price

VIEWINGS

After you have made your list of criteria, I will begin e-mailing you “listing cuts” of homes on the Multiple Listings Service (MLS) that fit your needs.

When we have narrowed down your criteria, we can begin viewings.  I will make appointments for us to view these homes together. It's important to keep notes on the homes that you view, as the process can seem overwhelming.

THE OFFER

When you make an offer on a property, we use an Agreement of Purchase and Sale. Here are some highlights of what the offer will entail:

• First you will decide what offer in PRICE you will make. As your Realtor, it is my responsibility to guide you, providing "up to date" market information.
• You will need to decide what items you would like the seller to include in the purchase price (appliances, window coverings, etc.).  We will list these items as inclusions in the Agreement.
• Another part of the agreement is your offer of a deposit.  A deposit of 1% of the purchase price is appropriate in most circumstances. This deposit should be in the form of a cheque or money order, and will be make out “in trust” to the selling brokerage.  The deposit forms part of the purchase price at closing.
• You will choose a closing date that fits your circumstances. This may be negotiated by the seller. The closing date is the day that YOU take OWNERSHIP!
• See below for the actual CONDITIONS of the Agreement of Purchase and Sale
  

It is important that you decide your moving time frame ahead of time. Do you have a house to sell?  It is often recommended that you make plans to list your home BEFORE you start your house hunt if you must sell your home in order to buy another one.  You should start looking for your new home approximately two to three months before your desired closing date (move in date).

ARE YOU IN A LEASE?

Be sure that you know what kind of lease situation you are in and what sort of notice is required so that you can choose a closing date.

CONDITIONS

• The major conditions that are included in all agreements of purchase and sale are those of FINANCING, INSURANCE, INSPECTION, and LAWYER’S APPROVAL. You will usually have 7-10 days to meet all of these conditions before the contract is considered “firm”.

FINANCING

Mortgage financing is frequently required to purchase a home.  Arranging for a loan is the buyer’s responsibility.  You should obtain a pre-approval for a mortgage before you start looking for a home to give you a guideline within to work. After you have made an offer on a property that has been accepted by the seller, the lender will approve your purchase (subject to any conditions set out by the bank).  Your lender will provide your lawyer with instructions and the required documentation to close the deal.  It is important to review the terms of the mortgage with your lawyer and understand the financial commitment.  The mortgage funds are typically advanced to the lawyer, who will then disburse the finds on your behalf.

INSPECTION

The purpose of an inspector is to locate any material defects, and to guide you through future home maintenance.  Home inspection will usually cost $350-$500.

LAWYER

Your Lawyer will review all documents, perform Title Search and Registration of the Deed.  Your lawyer will explain what you should expect.  Lawyer fees are usually $750 - $1300.

INSURANCE

I can assist you in securing Home Owner’s Insurance.  You must prove insurability before the 7-10 day timeline.  It is a condition that must be met BEFORE the deal is “firm”.

CONDITIONS ARE MET!

After all conditions are met, the deal is FIRM.  Before closing, you will want to prepare to move into your new home.

CLOSING COSTS

Closing costs are usually approximately 1.5% of the purchase price.

HOME LIFE ATLANTIC