Questions to Ask When Buying a House
Buyer Frequently Asked Questions (FAQs)
Considering purchasing a home or investing in real estate? Navigating this significant decision comes with numerous crucial questions. To help make your buying journey easier, we’ve compiled the most common inquiries received by our expert team of REALTORS®. Our goal is to equip you with the insights and knowledge needed to make informed choices, ensuring a smooth and successful real estate experience. Whether you’re a first-time buyer or looking to expand your investment portfolio, we’re here to help!
Financial Costs
The asking price is the value that the seller believes will generate enough interest for a buyer to write an offer.
A Royal LePage Noralta Real Estate Agent will first research the property and find its sales history, tax information, lot plan, and land title. Once we have a snapshot of the house we’ll review recent sales that match the property that is being considered.
A market value will be established and the buyer will target a purchase price. From there it is up to the buyer and seller along with their representatives to come up with a favorable price, possession date and terms of sale that everyone can live with. It could take a few times back and forth to get there.
The down payment includes your initial deposit and the balance owing on the property. The other amount would be the financed amount. Buyers finance anywhere from 95% or less of the purchase price.
Banks and other financial institutions will compete for your business. It doesn’t hurt to shop for the best rates and terms you can secure. Talk to your favorite mortgage specialist with a bank or a mortgage broker.
If a buyer is unhappy with a condition on a property and chooses not to move forward they can provide the seller with a non-Waiver based on the conditions they have on the purchase agreement and back out of the transaction. Deposits are returned after the Brokerage is able to confirm the deposit cheque has been confirmed in the bank account.
The taxes are assessed by the municipality and reported on a property highlight sheet.
Inspections come in many different forms, check with your favorite inspector for pricing. Budget from $400 and up. Most inspections take anywhere from 2.5 to 4.5 hours.
The buyer should budget for the following closing costs:
- The cost of a home inspection,
- Lawyer fees,
- An appraisal (if applicable),
- Movers fees,
- Goods & Services Tax (GST),
- Adjustment Costs (Property Tax),
- A deposit,
- Down payment, and
- Title Insurance.
Utility costs vary from property to property, and owner to owner. The more people in a property the more utilities are used.
Buyers should budget for all the services they plan to use:
- electricity,
- gas for heat,
- water and sewer,
- garbage removal,
- internet,
- telephone,
- television,
- insurance, and
- sometimes a homeowners association.
- Condominiums have a monthly condominium fee that may include some utility cost. A buyer should review which utilities are included or excluded with the condominium manager.
Buying Process & Property Details
Most buyers and sellers land on 30 – 45 days from condition removal. Possession can happen relatively fast, but realistically speaking count on 15 days or longer for possession to occur from condition removal.
There are days on the market and cumulative days on the market, days on the market is how long the property has been listed for a period of time. Cumulative days on the market is if the property has been on and off the market over its time on the market. Your Royal LePage Noralta Agent will review the property history with you prior to writing an offer.
Not all sellers are willing to share previous inspections and Inspectors will only support inspections completed for the client who ordered the inspection. It is important to understand that appraisals and inspections can become out of date.
Most sellers will proudly showcase work they have completed in their property write up. If a buyer is interested in more specific information their Realtor can request an information schedule that would detail all completed work.
A real estate agent has access to the property sales data over times a property has been on the mls system. We can also research historical information from the land titles office.
Some sellers happily provide their reason for moving, others prefer to keep this information confidential. We can always ask why they are moving, they aren’t obligated to share this information.
If there are enforceable restrictions on a property they will either be from the zoning rules or a restrictive covenant on title. These should be reviewed before moving forward with a sale. Things like type of exterior finishing, shingles, how many trees or shrubs need to be planted and even the type of fence is restricted in some areas.
A seller is required to disclose hidden defects that they are aware of. If a defect is discoverable through a normal inspection the buyer is responsible for finding these faults. The purchase agreement states that the seller is unable to provide a warranty for the quality of the property. It is important to understand that there is an element of risk in buying a property and also realize that properties need to be maintained on a regular basis. Real Estate is filled with buyer beware.
An RPR is a Real Property Report and it usually comes with a compliance certificate from the municipality you live in. It shows where the structures on the property are located and if they have a permit relevant to where they are located. These reports will not show what is or isn’t compliant in regards to permits inside the home. RPR’s are supplied to the buyer from the seller prior to possession day. A buyer must have an RPR with a form of compliance from the seller in order to obtain the mortgage on their property. If a seller is unable to provide a Real Property Report a financial institution may accept title insurance. The seller will often offer to pay for title insurance instead of a new RPR. Not all buyers are comfortable with title insurance.
Foreclosures are forced sales when an owner is unable to meet their financial obligations with their mortgage company. The nature of these sales is one where the bank can’t warrant anything about the property and must have the sale approved by the court. These sales should come in less than market value but often sell for more in a hot real estate market. You need to be able to write an offer unconditionally, be prepared to do a lot of work to the home, and not mind waiting for the court to view the offers.
Have more questions about buying a home?
Our team of REALTOR®s are happy to provide you with answers to all your real estate questions, so you feel confident in the home buying process.
Location and Amenities
There are places where a walkscore can be generated, Cities share crime stats for neighbourhoods, and the best thing to do before you buy a property is to get out and walk the street to see if it feels right for you.
Most city planning departments have postings for what is under scrutiny for new permits and long term plans. Development is restricted to the relevant zoning for the area the property is located. A Real Estate Agent can do a little more research to find out what is planned or about to be built.
Municipalities share public transportation routes and times on their websites. If you are relying on public transportation check out the routes to work and your future home before trying to secure the property. Some homes are easier to bus to than others.
School districts offer varied programing, bussing, and catchment areas. Some parents search for homes in specific neighborhoods due to the quality of the school. Don’t just read reviews online, ask your friends what they know about schools, interview the principal, and see if the school is a good fit. Check out the school during the morning and afternoon drop off/pick up times. Some areas handle this traffic better than others and you could be stuck by the school for longer than you want. It is always nice to be walking distance from your favorite school.
A real estate agent can report on the number of sales compared to the number of active listings to see how many months of supply is available in the area. Based on this calculation we can see if an area is in a buyers, balanced or sellers market.
Have more questions about the buying process?
Starting your journey to homeownership or property investment is just a form away. Our team of expert REALTORS® is eager to address all your queries, providing the clarity and guidance you need. Fill out the contact form to connect with us and take a confident step towards your real estate goals!