Buying

HOW TO MAKE AN OFFER

When you have found a home you are interested in buying, I will walk you through the process of drafting an offer to purchase. I will communicate the offer to the seller or the seller's real estate agent for you. Some properties are in demand and you will not be the only interested party making an offer and I will assist you in generating an offer that is reasonable and protects your interests using specified terms and conditions.

An offer can be drafted with or without conditions; an offer without conditions is known as a firm offer and one with conditions is known as a conditional offer. A conditional offer represents the party with the placement of certain conditions on the purchase. Some of these conditions could be "subject to financing approval", "subject to the strata council allowing pets", "subject to the buyer's house selling", "subject to an approved home inspection", among many others.

The seller may accept your initial offer, reject your offer or present a counter-offer. The counter-offer may differ from your original offer in respect to price, conditions, the closing date or any other items. Offers can be countered back and forth between the parties until one of you accepts or rejects, ending the negotiations.

There are many components of an offer that you should be aware of and understand. I will answer your questions and explain the entire process to you so that you are comfortable with the steps involved.

Terms An offer includes certain "terms", which specify the total price offered and how the financing will be arranged, such as if you will arrange your own with a financial institution or mortgage broker or if you wish to take over the seller's mortgage (assumability).
Inclusions and Exclusions: These are specifications within the offer that detail the items to be included or excluded from the purchase of the property. Typical inclusions are appliances, window coverings, fixtures and decorative pieces.
Deposit A deposit is usually given from the buyer to the seller as a token of the buyer's assurance and intention to buy the property involved. The deposit is applied against the purchase price of the home once the sale has closed. I can assist you in proposing a certain and appropriate amount for the deposit.
Conditions Items that are usually put in place to protect a party's interests upon selling or buying the property and refer to things that must occur or be in place before the sale closes.
Possession or Closing Date This is usually the date that the legal ownership of the property transfers from the seller to the buyer and, unless otherwise noted, when the funds for the purchase are concluded.
Purchase Price This is the amount that the buyer is offering to pay for the property. The price is usually dependent on market conditions and may differ from the seller's current asking price.

FIRST TIME HOME BUYERS

As a first time buyer, you're likely to have many questions about selecting, financing and buying your first home.

How do we start looking for a home? How much money will we require to purchase the home? How much will the mortgage payments be each month and can we afford it? How does the home buying process work and what can we expect along the way?

These are just a few of the questions you're bound to have at the beginning of your exciting journey to buying your very first home!

I can provide the answers to your questions and walk you through the entire process, from viewing potential homes to making an offer to setting up mortgage financing.

Although buying your first home can be overwhelming, you can be confident that I will be available to help you every step of the way.

I can make buying your first home simple and straightforward, eliminating any confusion and doubt and allowing you the opportunity to enjoy your first home, worry-free.

HOME INSPECTIONS

A home inspection is an objective visual examination of a home's structure and systems.

Why get a home inspection? There are a number of reasons why REALTOR®'s recommends a home inspection including:

To ensure you are not surprised by major defects
So you can be advised about the various elements of the home including - heating and cooling systems, structure, electrical and plumbing
To learn about how the mechanical systems work and need to be maintained
Most homeowners are not expert in the numerous components of house construction
A third party can be objective as there is no emotional attachment

Who should you hire? Home inspectors are often referred by family or friends. Your REALTOR® can also provide you with a list of inspectors. Look for one that is trained and certified by a national organization such as Canadian Association of Home Inspectors (CAHI) or National Institute of Building Inspectors (NIBI) and who has errors and omissions insurance. Do not hire someone who will do any suggested work due to the conflict of interest.

When should you call? Order the inspection after your offer has been accepted. The contact will stipulate the length of time you have to complete the inspection.

What is involved? The home inspection will determine the structural and mechanical soundness of the home. Your home inspector can identify existing and potential problem areas, suggest possible solutions and provide estimates for the cost of the work required. You will receive a report outlining the inspection findings. You should accompany the home inspector during the inspection or arrange to meet them at the home so they can walk you through the report. If as a result of the inspection, you have further concerns, have a specialist in that area conduct a more extensive examination.

What does it cost? Costs vary depending on a number of factors including: size and location of the home, features, age, and services required. Additional services may include radon, septic and well testing. Your REALTOR® can assist you in obtaining a quote from a potential inspector before you enlist his/her services.