Category: Buyer Info

There’s a lot of time, effort and energy spent into selling or buying a home. This can be exhaustive for an individual if you choose to do it by yourself, and not with the assistance of a professional Real Estate Agent. You may run the risk of losing money and getting a less-than-favorable deal. REALTORS® have years of education and experience and help you not only make a solid and responsible financial decision, but also protect you from the many risks that exist within the real estate market.

Risks of Buying or Selling without a professional on your side?

Buying or selling without a Real Estate Professional can have serious negative consequences. First off, it may take you longer to sell your home, resulting in wasted time and potentially lost funds. If you’re working full-time, the ability to sell a home is more difficult; you may have to take sporadic time off work and have a tight schedule for holding open houses and viewings, limiting the interest from potential buyers. Along with this, it can be quite uncomfortable letting just anybody into your home, and you may not know how to properly protect yourself against theft or fraud. A REALTOR® holds effective open houses with a stronger ability to detect any suspicious activity.

As a do-it-yourself seller or buyer, you’re likely limited to your knowledge and ability when it comes to selling a home. A Real Estate professional understands the lengthy paperwork and legal documents that go along with home sales and can also better determine what is or isn’t a good deal. Without the help of a professional you’ll likely waste hours researching and trying to learn all the details regarding a real estate transaction, and you could still be outmatched by a professional on the other end of the deal.

Why Use a REALTOR®?

The answer seems obvious: to get the best possible deal available to you. Especially for first time buyers, not using the services of a REALTOR® can jeopardize one of the biggest investments you’ll make in a lifetime by missing some crucial element in a home that puts high repair costs on you after closing.

If you were to try and sell on your own, you may not know the market as well as a professional and could risk pricing your home inaccurately and either selling your house for less, or pricing it too high and having it sit on the market. Homes priced too high are used as a benchmark to help sell other homes priced below them.

When buying a home, it’s extremely beneficial to have the assistance of a REALTOR®. Their market knowledge can increase your buying power and options within a marketplace. With access to a more advanced MLS system having additional information and searching capabilities, they’re much more likely to find you the home you’ve always wanted.

At R. W. Thur Real Estate Ltd., we’re able to effectively negotiate with sellers and help you to avoid any potential problems when you purchase your new home. REALTORS® know general costs of updates and potential problem areas within a home that may warrant a lower asking price. Having a REALTOR® by your side during the negotiations can help you get the best deal possible and ensure you’re not taken advantage of.

For many, home ownership will be the biggest investment you make in a lifetime. It is important to do your due diligence and understand all the costs associated with buying your first home, as well as some of the incentives and rebates that are available to you. With the help of a Real Estate professional, the entire process will be much less complicated and overwhelming. There are many things to keep in mind during the home buying process, below outlines some of the financial aspects to prepare yourself properly for your first home purchase.

1. Mortgage pre-approval: Know what you can afford – One of the most important questions to ask is how much home can I afford? Many things affect the amount your bank or mortgage broker will be willing to lend you and at what rate. Employment history, spouses’ income, amount of down payment all affect how much you will be approved for your mortgage. Speak to a specialist to find out what is available to you
2. First Time Home Buyer’ Tax Credit – An individual is considered a first-time home buyer if neither they nor their spouse has lived in another home in the year of home purchase or in the past four calendar years. There are Government tax incentives available to help offset some of the costs associated with first time home ownership. Speak to your accountant regarding how this affects you at tax time.
3. CMHC- Canada Mortgage and Housing Corporation allows you to put a lower down payment at time of purchase. A conventional Mortgage requires a minimum of 20% down on purchase price. This can be a substantial amount for first time buyers and you may require a high-ratio mortgage (5%, 10% or 15% down payment) for this, you will be required to pay a loan insurance premium, spread over the term of your loan, or spread out over the term of your loan.
4. Costs associated with the deal- There are a number of additional costs associated with the transaction and it’s important to plan for these costs. While amounts vary, you should be prepared for the following additional costs:
   1. Lawyer fees
   2. Home Inspection
   3. Title Insurance
   4. Land Transfer Tax: exempt up to $2000 for first time buyers.

   Further costs to keep in mind would be the cost of moving (if you need a moving company), furnishing your new home, any upfront / future renovations or upgrades (shingles, furnace, electrical, plumbing).

Have you begun to wonder if there’s a better home out there that will suit the current needs of your changing family dynamic? Family needs change quickly as your children grow or you add new members to your family. Before making the jump to your next home, there are a number of things to consider.

• Know your needs- It’s important to have an idea of what your family needs in a home. What type of house (bungalow, side split, 2 story, etc.) How many bedrooms / bathrooms? What size of garage? Is yard size important? How close do you need to be to schools, public transit, work etc.?
• Communication- Be sure to plan ahead of time to ensure you’re making the right decision. It’s important to know in advance that you have the resources in place to cover the costs of your move, if not, it’s wise to save up longer before making this big life decision. Discuss the option of moving with your spouse and ensure you’re both on the same page as to what criteria is most important for your new home. Once you and your spouse have talked things out, include your children in the conversation, every member of the family must be on board and prepared for the coming move.
• Support, don’t fight- Older children who have already established close friends are likely to be more resilient and rebellious towards the move. Try to understand their frustrations and encourage them to be as involved as possible with the decision to move. Show them the benefits of moving and explain to them the necessity behind it. Keep constant communication to avoid them feeling betrayed.
• Looking for the best home- You should always hire the assistance of a Real Estate Professional; they can provide you with meaningful insight and specific knowledge of the home and your new neighbourhood. When viewing potential homes, bring your children along and ask them what they like the best about each home. If you don’t have any children yet, try to imagine raising a family there and picture what features you would want to have while raising a family.
• Look outside the home- you’ll also want to have a good look around the house and the neighbourhood. Is the yard big enough for kids to safely run around and have fun outside? Is the neighbourhood safe? Is it close to schools, parks, community centers, public transit etc.? Your REALTOR® should have this information available for you.