Congratulations!
You have made the important decision to own a home. You have already started off on the right foot by working with The Hacking Team. Now you can start your house hunting journey with confidence!
Working with a REALTOR®
Working with a REALTOR®
The term Realtor is a trademark identifying real estate licensees in Canada who are members of the Canadian Real Estate Association (CREA). A REALTOR® adheres to a strict Code of Ethics and Standards of Business Practices. The code of ethics is a firm set of rules describing what kind of performance you have a right to expect from a REALTOR®. It's your guarantee of professional conduct and the best in service.
A REALTOR's Commitment to high standards if professional conduct works to the advantage of buyers and sellers alike.
A REALTOR is knowledgable about developments and trends in real estate.
A REALTOR will get you the facts: comparable prices, neighbourhood trends, housing market conditions, and more.
REALTORs are committed to ongoing education to increase competence and effectiveness in real estate trading.
Every REALTOR has been trained and tested. Their strict code of ethics ensures fairness to all parties in a transaction.
REALTORs pledge to be honest in disclosing property information and forthright in providing the facts needed to help you make one of the most important decisions of your life.
Only REALTORs, members of the Canadian Real Estate Association have access to the Multiple Listing Service, Canada's most powerful real estate marketing system.
This is why many buyers and sellers turn to a REALTOR. As a member of their local real estate board, a REALTOR has valuable data on the housing market. You can trust a REALTOR to protect your interests, look after details, and include you as an active partner in the process every step of the way.
Offer to Purchase
Once you have found a home you would like to purchase, you need to present a vendor with an offer to purchase. As your home is a big investment and the offer to purchase is a legal document, it should be carefully prepared.
In an Offer to Purchase we will need:
- Legal name and address of anyone going on the title
- Legal name and address of the seller
- Subject property legal civic address and legal description
- Total purchase price being offered
- Breakdown of the price into deposit, down payment and mortgage financing
- Any goods or chattels that are excluded from the sale
- Any goods or chattels that will be included in the purchase price
- Possession date
- Request for a current land survey of the property
- Date and time of the offer's expiration
- Conditions that your offer is subject to including property inspection and approval of mortgage financing
- Terms required
The process of making an offer, receiving a counter offer and then revising it again is not uncommon. The whole process can seem like a roller coaster ride - exciting, but stressful. It's all apart of making the deal work best for you and the seller.
Here's the process in detail:
Situation 1: the vendor accepts your offer. The deal is concluded.
Situation 2: the vendor may make a counter offer, asking for a higher price or different terms. You may accept, decline or further negotiate the sale.
Situation 3: the vendor may decline your offer. This would mean that the sale does not go through.
Closing the Deal
When you make an Offer to Purchase, you will most likely add certain conditions to it, making it a conditional offer. This means that the contract will only become final when the conditions are met. The following conditions are generally standard in the Offer to Purchase, especially for first time homebuyers:
- A satisfactory home inspection report
- Approval of mortgage financing to finance the purchase.
Once these requirements are met and your deposit paid, the conditions are removed and the Offer to Purchase becomes final.
After the mortgage has been approved and before the deal is closed, you must deliver certain documents and monies to your lawyer and the lender's lawyer. These include:
- A copy of the offer to purchase and any conditional waiver is that have been added.
- Proof of fire insurance.
- A survey signed by a qualified man survey.
- In case of an existing home the survey on file may be acceptable. Or you may want to explore title insurance, which may not require a survey.
Your lawyer was still search the title to the property, check into any taxes or liens on the property, draw up and finalize your mortgage documents. A Statement of Adjustments will confirm all transaction details in balance of the down payment and adjustments. This payment to your lawyer Interest is due together with the actual cost of your lawyers fees, plus closing costs and disbursements.
Closing day is the day you get the keys and legally take possession of your new home.
- Your bank will provide the mortgage money to your lawyer.
- You must provide the balance of your purchase price to your lawyer.
- You will also be responsible for paying legal fees disbursement and land transfer taxes.
- Your lawyer pays the vendor, registers the home and mortgage in your name and provides you with a deed and the keys.
Moving Schedule
2 Months Before:
- Give rental notice
- Select moving company
- Begin packing items you won't need during this time
- sell or donate unneeded items
6 Weeks Before:
- Make records of belongings/valuables and insure if required
- Make arrangements to store items if necessary
- Obtain copies of personal records (e.g. medical, dental, academic)
4 Weeks Before:
- Notify post office of change of address and send change of address cards.
- Notify utility and phone providers of change of address and arrange for connection at new address.
- Confirm move details with mover.
- Get boxes from the mover and continue packing.
2 Weeks Before:
- Draw a floor plan of your new home and provide moving company with instructions on locating furniture. Label furniture accordingly.
- Arrange for childcare and pet sitting on moving day.
- If discarding bulky items, make arrangements according to municipal acquirements.
- Arrange necessary move and related insurance costs.
One Week Before:
- Take down any fixtures that you plan to bring with you.
- Pack a moving date travel bag with essentials, such as change of clothes and toiletries.
- Label items to be moved in the car.
- Have your lawyer advise you of the exact amount owing, then have your certified cheque or bank draft prepared accordingly.
Homeowner Costs
Make your mortgage payments on time
Whether monthly, biweekly or weekly, be sure that you always make your mortgage payments on time. Making late payments may result in late charges and negatively affect your credit rating. Failure to make payments can even lead to more serious consequences like foreclosure.
A good way to prevent late payments is to have the amount automatically deducted from your account every month and put at least three months worth of mortgage payments in savings for emergencies situations. If you are having trouble making payments, discuss the situation with your financial advisor.
Costs of operating a home
Besides your mortgage, property taxes and insurance, there are many other ongoing costs related to operating your home. They include maintenance and repair, cost for service such as security alarm services, snow removal and gardening services. If you have a condominium, some of these expenses may be included as a part of your monthly maintenance fee.
Saving for emergencies
Even if you know how to do repairs yourself, there are costs involved. Every building has a lifecycle, which means that all parts of the building age and require major repairs or replacement at some point. For example, you might know that your roof will need to be replaced in a few years simply because of its age. Repairs like these are expected and can be planned for. However, many repairs are unexpected and can sometimes be costly.
Set aside an emergency fund to deal with unexpected problems ranging from major repairs to illness and job loss. A good guideline is saving 5% of your take-home payment and putting it in a special account.
Living within your budget
Prepare a monthly budget and stick to it. You should monitor your spending every month and evaluate your progress in meeting your financial goals. If you continue to spend more than you're bringing in, you must find ways to cut back. If you were having trouble sticking to your budget, don't hesitate to talk to your financial advisor for advice.
Maintenance
Once you have finally settled in, you may start to view your home with a more objective eye. Perhaps there are things you'd like to change – the kitchen cabinets or flooring, for instance. Perhaps there are things that require repair, such as the plumbing or the windows. You will soon realize that maintenance, repairs and renovations are a normal part of homeownership.
Perform regular maintenance and repair
By doing regular maintenance and taking care of small repairs right away, you'll avoid more costly repairs down the road.
What are the best things you can do is get to know your new home. Here are some things you need to know:
Your home is made up of various components that work together. These include mechanical systems (heating, air-conditioning and ventilation) and the building envelope (foundations, floors, walls, windows, doors and roof).
You need to learn enough about major mechanical systems of your home to be able to perform routine maintenance and handle various emergencies. Every adult member of your household should know the location of the following:
- Main shut off valves for water and fuel
- Emergency switch for the furnace or burner
- Hot water heater thermostat
- Main electrical switch
- Fuse box or circuit breaker box
Remember that homes, like people, get old. It's a good idea to inspect your home regularly and replace or repair parts and materials that wear out with use and time. And remember that since different components of your home work together and affect each other, minor repairs can quickly become major ones if they are not immediately taken care of.
You may be able to do many of the repairs yourself. However, if you feel you cannot handle the job on your own, it is best to call an expert. No matter who carries out the repair, remember that the work has to be done well. Bad materials and poor workmanship will end up costing more in the end. Don't forget to keep records of any repairs and improvements you make.
Home improvements
Besides doing regular maintenance and repairing your home, you will also want to consider renovating or making improvements. These changes will not only make the home more pleasant for you to live in, they will also increase its value.
Here are some things to keep in mind when planning a change or renovation:
- Think about how changes would appeal to somebody buying your home in the future. You can make very personalized changes with paint because it is inexpensive and can easily be changed. However, things like flooring, cabinets and countertops have a longer life - make choices that will also be appealing to others.
- Updating the bathrooms and kitchens in an older home can increase its resale value.
- Don't underestimate the importance of landscaping. The right planting can improve the appearance and value of your home.
- Updating your exterior paint, installing new roofing, resurfacing your walkways and driveway, adding attractive mailboxes and front-yard planting will also help make your home more appealing.
Over time, some renovations can practically pay for themselves, especially if they result in savings on utility bills, a higher selling price or years of greater comfort and enjoyment in your home!