Frequently Asked Buyer Questions

Buyers Frequently Asked Questions: As a buyer, you have to make sure to know how the market works before you step in, or you risk missing out on the property of your dreams when you find it. Here are the core questions most buyers have. Feel free to send me one of your own. If I’m interested in a property, how can I determine if the list price is fair? How do I know what price to offer for a property? Do I need to have a home inspection done on every home I’m interested in? What happens to my deposit while I await closing? How do I go about finding open houses? Can I get a lockbox key from you and just visit a house myself? What is your referral policy? Should I buy first or sell first? Can you tell me more about bidding wars? Should I buy new or re-sale When should I make my offer conditional Do you know any mortgage brokers or financing specialists How long should a closing take – how soon before I can move in I saw a great house on MLS.ca but when I drove by, it was already sold If I just want to get in to see some houses, why do I need a Buyer Representative Is a Buyer Representative’s service free to me Do I need a...

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Making an Offer

Making an Offer When it comes time to make an offer, your Sales Representative can provide current market information which will aid you in presenting your offer. Your Sales Representative will communicate the offer, sometimes known as an Offer to Purchase, to the seller, or the seller’s representative, on your behalf. Sometimes there may be more than one offer on a property. Your Sales Representative will guide you through this process as smoothly and effortlessly as possible. Firm Offer to Purchase Usually preferred by the seller because it means that you are prepared to purchase the home without any conditions. If the offer is accepted – the home is yours. Conditional Offer to Purchase Your Offer to Purchase will be presented at the earliest possible opportunity. The seller may accept the offer, reject it, or submit a counter-offer. The counter-offer could be in reference to any number of factors, including the closing date and/or the purchase price. Acceptance of Offer The offers may sometimes go back and forth until both parties have agreed upon an offer or until one or the other ends the negotiations. Usually means that you have placed one or more conditions on the purchase, such as “subject to home inspection”, “subject to financing” or “subject to sale of buyer’s existing home”. The home is not sold until all the conditions have been...

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Negotiating Home Prices

Negotiating Home Prices Many buyers – and sellers – wonder what drives housing prices. Unlike an item for sale in a store, the advertised price of a home is not necessarily the figure required to purchase the property. Home pricing is very sensitive to fluctuations in market conditions, plus a host of other variables. Some of these variables include: what the owner originally paid for the home; whether there are additional lines of credit secured against the property; and what kind of margin the seller needs in order to acquire a new home. This is where the expertise of a professional real estate agent is vital. He or she will help you determine if the house is fairly or properly priced to begin with, and what a fair offer might be. Your sales representative will also counsel you throughout the offer and counteroffer process, where the buyer and seller ultimately negotiate the selling price of a home. Occasionally, a home may sell above its listing price. This can happen when there are a number of competitive offers. On other occasions, a house that was initially priced considerably higher than fair market value may ultimately sell for substantially less if there is both the impetus to sell and conditions that suggest the market will not sustain the initial pricing. What this means for buyers is that it is always wise...

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Benefits of a Home Inpection

The Benefits of a Home Inspection   For Buyers:   If you’re serious about buying a home, a qualified home inspection is a small investment that offers major returns. The inspection determines the structural and mechanical soundness of the home, and identifies existing and potential problem areas. A standard report by a qualified home inspection company also lists practical suggestions and provides cost estimates for repairs. You will then have precise information about the condition of the home and full knowledge of any work that may be required. It’s a cost-effective way to buy peace-of-mind while undertaking one of life’s most important investment decisions.   Your Buckingham sales representative will be happy to provide you with a list of qualified inspectors.     For Sellers:   Preparing for Home Inspection   If you are selling your home, there is a very good chance you will receive a visit from a professional house inspector. It is wise to be prepared and fully understand what inspectors will be looking for. An ounce of prevention will help ensure your home inspection is a success.   You may wish to familiarize yourself, or have an advance inspection, to identify the condition of your home in the following areas:   1. Structural: Inspectors will be looking for structural damages caused by renovations, termites or dry rot, or signs of cracks from the settling of...

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Land Transfer Tax Rebate

Land Transfer Tax Refund for First-time Homebuyers Land Transfer Tax applies to all transfers of land in Ontario. First-time homebuyers may be eligible for a refund of all or part of the tax. For transfers where: the agreement of purchase and sale was entered into after December 13, 2007, the refund applies to all homes, whether newly constructed or resale. the agreement of purchase and sale was entered into before December 14, 2007, the refund only applies on the purchase of a newly constructed home. Applications for a refund must be made within 18 months after the date of the transfer. How much is the LTT refund? The maximum amount of the refund is $2,000. If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Finance. No interest is paid on this refund. Who qualifies? To claim a refund, you: must be at least 18 years of age; must occupy the home as your principal residence within 9 months of the date of transfer; and cannot have ever owned a home, or an interest in a home, anywhere in the world. In addition: your spouse cannot have owned a home, or an interest in a home, anywhere in the world while being your spouse; and in...

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Understanding Your New Home Sales Contract

Understanding Your New Home Sales Contract Buying a brand-new home can mean a lot of different things — an opportunity to get the home you really want, a dream come true, an investment for the future, an achievement to be proud of. It is also a legal transaction that should never be done without a detailed written contract! The first rule of homebuying is to get it in writing! A contract, or Agreement of Purchase and Sale, as it is often referred to, spells out the terms between you and your builder — who, what, how, when and how much. It also sets out the rights, restrictions and obligations for each party. Without a detailed contract, there may be no reference point in case of a misunderstanding or disagreement between you and your builder. It may be impossible to prove what was agreed to, and difficult to enforce any arrangement or promise that’s not written down. Unlike resale transactions, there is no standard form of Agreement of Purchase and Sale for buying a new home. In some areas, builders may adapt model contracts prepared by their local home builders’ association or their new home warranty provider. Often, though, builders prepare their own agreements and require that you use those forms. As a result, new home contracts can vary considerably from one builder to another. Typically, a contract will contain...

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