The Process of the Real Estate Transaction 

Mortgage Pre-approval:
o Find a Mortgage Broker/Bank that you have confidence in; if you do not have one we would be more than happy to refer you to someone with experience that we TRUST. Be sure that you are PRE-APPROVED for a mortgage, if your bank or mortgage broker has only looked at your records, but not your accessed your credit history you may only be pre-qualified which does not indicate that you are approved to get a mortgage. Your mortgage broker will gather all your relative information regarding income and debt to provide you with an amount that you can manage in relation to monthly payments. It is your Mortgage Broker/Banks job to find you the best interest rate, as well as terms and conditions possible in regards to your situation. 

How we will find you your dream home:
o To help me find you your dream home you have to decide on location, style and price along with a list of “needs” and “wants”. Of course, I will be able to assist you with those decisions; together we can find you a suitable home in a desirable area at an appropriate price. Location will depend on where you work and whether you want to commute, as well as your family and lifestyle. Location is one of the MOST significant components of real estate value. When deciding what style of home you want to buy, it is imperative that you put together a list of features you want your home to have; be realistic and consider all the options. The amount you are willing to pay for your new home is very important; you must feel comfortable with the monthly payment along with all other expenses that come with owning your own home. 

o MLX.ca/Realtor.ca – New properties come onto the market many times a day. I will search the system to find you suitable properties and as soon as I find a property that suits your “needs” and “wants” I will send it to you. I will also be prepared and available to view any properties that interest you at request and convenience. 

Once we have found your dream home:
o Offers – I will research the market and the area to find the approximate value of the home that interests you and together we will decide on a pricing strategy; the first offer should be a reasonable one and I will assist you in drafting the offer. Be prepared for negotiations, as most Real Estate transactions are not concluded with the first offer. Also, have your check book ready, as we like to send a photocopy of the deposit check to let the seller know that we are serious about the offer. 

o Acceptance of an Offer – I will present your offer to the seller’s agent as soon as possible. The seller has the option to accept the offer, reject the offer or counter-offer. Their counter-offer may include variables such as: price, possession date, condition day, additional terms, or they may add a seller’s condition. Offers can go back and forth several times before both parties have come to an agreement. 

o Negotiations – The first offer is often not agreed upon; where we start the negotiation process is not where we will finish!! The negotiation process determines what each party will accept to be satisfied. After we present our offer, be prepared for a counter-offer from the sellers. Remember that every time a new offer is made it is the start of a new contract; meaning whoever made the offer also has the ability to rescind the offer if it has not been accepted. Each offer should be considered, although it may not meet all your expectations. The negotiation process can be an emotional one; I promise to negotiate with consideration and determination to get you your dream home for the best possible price. 

o Down Payment –The down payment is the total sum of money that you have to put down towards the purchase of your new home. This money has to be available approximately 1 week prior to possession, as you will give it to your lawyer to complete the transaction. If you have a down payment of less than 20% then the mortgage will be considered a high-ratio mortgage and will have to be insured by CMHC (Canadian Mortgage and Housing Corporation), which will add a cost to your monthly payments of approximately $45.00 - $65.00 depending on amortization.
 
o Deposit – The deposit is the amount of money you will put down on the property that you are interested in to let the sellers know that you are serious about closing the deal. This amount will come out of the down payment and will go towards the purchase of your home. The usual deposit is $5000 for a property listed $250,000 to $350,000. A property listed over the $350,000 price tag may require a deposit of $7000 - $10,000. Any property listed over the $500,000 price may necessitate a larger deposit. The deposit is to ensure that you will not walk away from the deal once the conditions have been waived. The deposit will be taken out of your bank account once the offer has been accepted and will be held in trust at the seller’s brokerage until the deal is firm. 

o Condition Day – There will be a five to ten day period where the sale will be dependent on conditions that you, the buyer, will decide. Common conditions are financing approval, home inspection satisfaction and condominium document review. After we have received approval from industry experts, we will then waive the conditions and the sale will be final. 

• Your mortgage broker will send your mortgage application to the lender and we will receive confirmation from your broker as soon as they have received approval from the lender.
• A home inspection is recommended on most homes, as we are not experts in home inspection techniques. A home inspection is paid by you. The price varies, but typically will cost $350 - $550. We have many trusted home inspectors that we can suggest if required.

"Know what you’re buying before you own it"

A detailed and thorough home inspection by a qualified, objective professional dispels buyer’s anxiety, especially for those who have little experience in the construction industry. It’s money well-invested and gives the buyer an honest, unbiased report before they purchase.

A home inspection is a visual inspection of the accessible internal and external aspects of the property. This includes systems such as surface grading and drainage, roofing, insulation, ventilation, chimneys, exterior siding, windows and doors, structural integrity, foundation, electrical and plumbing.

A home inspection can relieve your worries or confirm your worst fears. It can even provide you with information for further negotiations on the price of the property. 

• Condo document reviews by a condo expert are highly recommended when buying a condominium. They know what to look for in the documents and will be able decipher if there are problems or concern with the building or the condo management company. The documents provide information regarding budget, reserve fund, financial statements, by-laws, annual general meetings and other important documentation. The cost of a professional review of condo documents is approximately $350. 

o Lawyer – You will have to choose a lawyer to represent you in the purchase of your new home. The lawyer will get all of the paper work ready for the transfer of title of the home. You will have to sign the paper work approximately one week prior to possession. This is also when you will need the remainder of your down payment that you are putting towards your new home. Generally, when purchasing a home the cost of your lawyer will be $700 - $1100 depending on adjustments. 

o Possession Date/Closing Date –This is the day you will get the keys for your new home. The title transfer and money transfer will commence this day and generally by noon on possession day you will be the official owner of your new home. 

o After Sale Service –After you take possession of your new home I will always be available to help in any way that I can. We have trusted contractors, painters, electricians, locksmiths, etc. if you require. I am also available to answer any questions or concerns you may have. Don’t hesitate to call me for guidance or advice; I am more than happy to help!!! 

If you have any other questions about the purchase process please don’t hestitate to contact, I would be more than happy to answer any questions you may have.