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"I have prepared this guide to help you through
the process of buying a home. It helps outline the
steps that you would follow leading up to the purchase
of your home.
As a RE/MAX real estate professional, it is my job
to act like a 'project manager' in helping you with
your real estate transactions. From the very beginning
when you decide to buy until closing and even beyond,
my role is to make sure everything is being completed.
It includes from conditions being in place up to when
you are ready to move into your new home, I will guide
you through the various steps of the buying process
to make sure everything is being completed."
Click on any link below for information.
· what
you should expect from me
· costs
to you
· discussing
your needs
· obtaining
a pre-approved mortgage
· finding
suitable homes
· home
meets your approval
· the
offer
· closing
· buying
conditional to selling
As a licensed real estate agent and a member of NSAR
(Nova Scotia Association of Realtors) and regulated
by NSREC(Nova Scotia Real Estate Commission), it is
important for me to adhere to the rules and regulations
of the real estate industry.
When acting on your behalf you can expect me:
- to protect your negotiating position at all times
and disclose all known facts which you wish(undivided
loyalty)
- to obey all lawful instructions from you
- to keep your confidence
- to exercise reasonable care and skill in my duties
- to account for all money and property placed in
my possession while acting for you
Therefore, when helping you find a property, you
can expect me to:
- explain to you various costs, basics of mortgage
financing including pre-mortgage financing, services
you may need to deal with for purchasing a home or
land
- give you information about local real estate properties
- quickly find homes which meet your needs and approval,
as well as point to any potential problem areas
- help you complete the necessary forms for purchasing,
services available, help direct you to legal and
financial options available, etc.
- help you and make you aware of all the procedures
leading up to closing date, ensuring no details are
overlooked
Part of my job as a Realtor is to make you aware of
costs involved in purchasing property, along with closing
costs, deposit, mortgage arrangements, and any other
typical expenses so there will be no surprises for
you.
I will explain various costs to you in buying a home,
including:
- real estate commission
- deposit
- lawyer fees
- transfer tax
- mortgage costs (guide you only)
- closing costs including adjustments as heating
fuel, taxes, etc.
This is to help you be aware and to budget for the
transaction without any surprises.
Cost Summary Sheet
This handy chart will help you estimate the various
costs involved in purchasing your property. It could
be used in discussion with your lawyer to determine
actual expenses related to your purchase. Since the
majority of costs must be paid on closing day to your
lawyer, it will help you to be prepared.
Purchase Price |
|
$ |
|
Less: Deposit |
(-) |
$ |
|
Mortgage required |
(=) |
$ |
|
Total Mortgage(or
funds required) |
|
$ |
|
Closing Costs
Mortgage application
fee(may apply) |
$ |
|
Lawyers fees |
$ |
|
Property inspection(optional) |
$ |
|
Deed transfer
tax |
$ |
|
Property insurance |
$ |
|
Fuel adjustment
(oil, electrical, etc.) |
$ |
|
Property tax adjustment |
$ |
|
Miscellaneous |
$ |
|
Total closing
costs |
$ |
|
Whether you have previously experienced the buying
process or not, it is very important to discuss your
needs and explain the buying process and our services
to you. This makes the home search more efficient since
I would understand your needs, wants, price range,
and location.
I can then do a complete search in the MLS system or
take from our many listings with RE/MAX to help find
a number of properties suitable for you.
You should also expect me to talk to you about the
real estate market at present, educate you if needed
about the buying process, explain various costs, financing,
show samples of homes currently for sale.
There is a lot of information to absorb and I would
encourage you to take notes and give you any information
pamphlets I have available from RE/MAX.
One of the best things you can do for yourself is to
determine what you can afford before seriously looking
for a home. Unlike a pre-qualification mortgage, where
you merely supply to the lender your general income/debt
and being told what you can obtain, a pre-approved
mortgage certificate is a written commitment that you
will get a mortgage for a set amount of money at a
specific rate of interest guaranteed for a time period
such as 120 days.
But why get a pre-approved mortgage?
- a pre-approved mortgage helps you keep focused
on what you can afford
- you will know the approximate size of the mortgage
you will be paying including interest and monthly
payments
- with financing and other household costs figured
out, you can concentrate on finding the right home
in your price range
- when you find the right home, a pre-approved mortgage
helps move the final financing along quickly when
your offer is accepted
- sellers are certain to look at your offer seriously
when it shows that financing is already in place
Look under Services for
mortgages.
But remember, you always need final approval from your
lender for a mortgage with the specific property you
wish to buy.
We would have a good discussion which would include:
- Location
- space requirements
- nearness to amenities or not (shopping, quietness,
etc)
- price range
As a realtor, I have a number of methods for finding
properties which meet your requirements:
- local MLS system, where I can key in location,
needs, price range, and come up with a list of suitable
properties available
- national MLS websites especially with RE/MAX
- new daily local MLS listings, as well as from
our extensive RE/MAX area files
- networking with other agents
- watching newspapers, internet, advertising, private
sales, etc.
All of these and more to help you find the right
home for you!
When you find the home or homes that appeal to you,
my ‘due diligence’ begins. I know you want
to invest wisely and not pay more than needed.
I will help you by:
- comparing sales trends in the area
- prepare a CMA which compares similar homes in
the area in price and helps when negotiating the
sale price for you
- find out as much information as possible about
the property(ies)
- check for inventory of costs(heating, electrical,
taxes, etc.)
- review with you the PCDS(disclosure from seller
telling of the present condition of the property
such as recent repairs, electrical, plumbing, roof,
etc.) to the best of their ability
- help you with the necessary standard forms for
buying real estate in Nova Scotia in making an Offer
- advise you of your legal and financial options
and other services you may require
- be a negotiating facilitator acting on your behalf
to obtain the best possible deal for you
Overview
Once you are prepared to make an offer on a property,
I would meet with you to help complete the necessary
forms. Please note, these can be done in person, fax,
e-mail, or a combination of all.
- I would first review with you the format of the
Purchase and Sales Agreement and the particulars
such as deposit, important dates, price you are willing
to pay, conditions, mortgage options, etc.
- I would also give you a summary sheet for filling
in the closing costs as I believe it is important
to show clients the costs involved
- A check-off list to help you monitor the important
dates contained in the agreement
- Review with you the listing cut of the property
and the PCDS
- Once the offer is written up, I will give a copy
to the listing agent and discuss the price, terms,
conditions which you have offered, and any other
information you wish to disclose.
- If the seller(s) agree and sign the Agreement,
I would obtain a deposit from you and the process
begins.
The Purchase and Sales Agreement
There are a number of specific points in the Agreement
including:
Price - The home market in the area
helps the seller set the price but usually, the asking
price you offer may be near the market value. I will
help you by doing a CMA comparing other homes in the
area to this particular home to arrive at an asking
price.The seller has the option of accepting your offer,
rejecting it completely, or having a counter offer
which could include a compromise in price or changes
in conditions such as the closing date.
Deposit - The deposit by you is necessary
for the transaction to begin. It shows your seriousness
and good faith in buying the property. This will be
applied to what you owe at closing and will be deducted
from the total price.
Be aware, this forms part of the purchase agreement
and if all the conditions are met but you decide to
terminate the agreement, you may lose your deposit.
Terms - Includes the price of the property,
financial details, the amount of time and the dates
for conditions to be completed, and the closing date.
Conditions - You are prepared to buy
but conditions must be met(usually within a very definite
time period) before closing can take place. These are
important points that need to be completed in order
for the sale to become binding/firm. The following
are the most prominent:
Financing - You need to show your financing
will be in place for the transaction to take place.
Having a pre-approve mortgage certificate in place
shows you are serious and let’s the seller know
you mean business.
Insurance - You will need an insurance company
to check the insurability of the property you are buying. There
is usually no charge for this service by the insurance company
(but remember they would like your business) and your lender
would want a letter verifying that the property can be insured
for a mortgage to be put in place.
Water Test - Especially in rural Nova
Scotia, this is a requirement for dug and drilled wells.
It is a good idea, at any rate, and lenders make it
a requirement that the water results be ‘0’ for
mortgage funds to be available.
Inspection - In today’s market,
it is recommended that buyers have the house they are
buying inspected by a qualified building inspector
to help confirm that the house conforms to regulations
and building codes and that all mechanics in the house
are in good working condition. But just remember that
there will be regular
‘wear and tear’ in a resale property.
Other Conditions - The buyer and seller
can include other conditions as part of the agreement.
Time is of the essence. It is imperative that conditions
be met on time and if needed, and amendment in writing
to extend the time period for conditions can be requested,
agreed, and signed by both parties. Usually most conditions
are given a two week period as enough time for conditions
to be met. I would have a time sheet for you to be
aware of when conditions are to be met and I would
be checking to make sure.
Inclusions/Exclusions- The seller may have some inclusions
to help the sale or you might request some inclusion
such as appliances and the seller might want to exclude
some things, such as an antique chandelier. Everything
is negotiable!
Closing- The day the title of the property is transferred
to the buyer and funds are received by the seller.
Usually, the whole process takes around 4-5 weeks but
can be extended.
The buying process in a nutshell
Here are the sequence of events to help you see how
the buying process moves forward.
| 1. |
|
I meet with you to
discuss your needs, my role as a Realtor, agency
relationship, as well as closing costs (deposit,
conditions, financing, etc.) |
| 2. |
|
You should have pre-approval
for a mortgage. This shows what you can afford,
your budget, and gives you leverage when finding
the home of your dreams. |
| 3. |
|
Property search begins,
suitable homes selected for viewing. |
| 4. |
|
Hopefully, I show
you a home which meets your approval. I would
find as much information as possible about the
property for you to consider and review. |
| 5. |
|
I help you write
an offer for the property, you sign the documents.
I meet with the listing agent to discuss terms
of the offer. The offer is presented to the seller(s)
by the listing agent. The offer is accepted,
rejected, or counter-offered. |
| 6. |
|
I would discuss the
results with you, additional negotiations may
follow. When both parties reach agreement, an
arranged ‘sale’ exists, and then
you give me your deposit for the property. |
| 7. |
|
I submit copies of
the documents to our Re/Max brokerage, your lawyer,
and begin arrangements for any services . Any
issues are addressed. |
| 8. |
|
I prepare a schedule
of events coordinating conditions such as inspection,
water test, financing, appraisal, etc. I will
make sure all of the conditions are being completed
on time for your benefit. |
| 9. |
|
When all conditions
in your offer are satisfied (usually a two week
period to complete) the sale is firm. You can
start organizing for your move. |
| 10. |
|
Closing date- I will
be checking to make sure everything is ready
near closing date in coordination with the listing
agent and lawyers. A pre-closing inspection usually
takes place a few days before closing in which
you and I will walk through the property to make
sure everything is as it should be when you last
viewed the property and made your offer. |
| 11. |
|
At this point, the
funds have been transferred to the seller, you
have received your deed and keys. The sale is
closed and you can enjoy your new home. |
Congratulations!
Closing day refers to the date mutually agreed to
by the seller and buyer for the transfer of funds,
title to the property, and the keys. Formal closings
are a thing of the past. Transactions are agreed to
by telephone and documentation. Money can be transferred
by courier or wire. Usually both parties have signed
all necessary documentation prior to the closing date.
Your lawyer and the seller’s lawyer will arrange
to transfer title of the property from the seller to
you. The mortgage money will be transferred to your
lawyer’s trust account, and then to the seller’s
lawyer. Your lawyer will bill you all additional expenses
such as land transfer tax, or outstanding legal fees.
You will have to reimburse the seller for unused portions
as any prepaid property taxes, utility bills, oil tank
fill up, any rental agreements, etc.
A few days before closing, a pre-closing is done usually
with me. This is a walk through the property to make
sure everything is as it was when you saw the property
and signed the agreement. You also are checking to
see that everything is removed as expected and that
any inclusions agreed by the seller to leave on the
property are still in the home.
On closing, after funds have been transferred to
the seller, the keys are given to you along with your
deed to the property, and the home is yours!
(Note: These comments by me are for information purposes
only and do not constitute legal advice)
You own a home now but you want to move to another
location. Should you sell your current home before
you buy your next?
Selling your existing home before buying another
has its advantages. By selling first, you know how
much money you’ll be getting on closing, which
helps you establish a price range for the new home.
The down side is that you may not be able to find a
satisfactory replacement before the closing on your
current home, which means you may need to find some
place to live temporarily. Or you may be tempted to
settle for something that isn’t quite what you
want.
Condition-on-sale offers:
One way of co-ordinating your buying and selling
of a home is to make your offer conditional on selling
your current home. With a conditional-on-sale offer,
the offer becomes firm and binding only if you sign
an offer to sell your home within a specified period
of time, maybe three months. If it doesn’t happen,
then the offer is null and void and you don’t
need to do anything more.
The seller might not want to accept a conditional-on-sale
offer but if they are unsure of selling their home
in a time frame they want or the market is slow, they
might consider it.
Sellers can protect themselves (I’m sure you
can appreciate this) by accepting a conditional offer
but allows them to continue listing their house for
sale during the conditional period. If the seller has
an offer, you have first opportunity to waive the condition
of selling your home and going ahead to buy the home
you want. If market conditions are good and you feel
you can sell your home in a short time, you could go
ahead and purchase this home while still marketing
your original home. If you have a mortgage, you might
consider ‘bridging’, something which would
be explained to you in detail by your lender.
At any rate, if the seller receives another offer,
you will get first choice on the property, even though
you may not have sold your property. You may be given
48 hours to decide and if you don’t want to go
ahead with the transaction, your original offer would
be null and void and the seller can go ahead with another
offer.
This can be an attractive way of structuring a deal
but you have to feel comfortable with it. I would fully
explain your options and to make sure you are getting
legal advice before moving ahead.
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