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Information for Buyers
Neighbourhoods
How can I tell if I'm choosing the right neighbourhood?
Here are just some of the things you may want to consider:
Environment
Ask your Realtor about any known environmental issues in the area. Check with neighbours and the local media about air, water, and soil quality. Environmental issues can be detrimental to your health and to property values.
Appearance
Explore the neighbourhood keeping an eye open for signs of neglect, such as overgrown lawns, tired and worn houses, and litter in yards and alleys. No matter how diligent you are at keeping your property in top shape, a run-down neighbourhood will drive your property value down.
Crime rate
Check with the local police department to find out if the home you are considering is in a safe neighbourhood. Police may be able to provide statistics regarding break-ins and other crimes.
Schools
If you have children, education is one of the most important considerations in finding a new home. Are there schools within walking distance or will your children have to take the bus? How do the local schools compare to other schools in the area? If your children need them, are there religious or special training educational facilities nearby?
Talking to neighbours with school-aged children can be helpful. In some areas school boards can provide important information to help you determine the quality of schooling in a particular neighbourhood or community.
Transportation
Convenient public transportation, good access roads, and major highways nearby can mean the difference between a pleasurable and not-so-pleasurable commute to work.
Amenities
Take a look around for all the amenities that you will need: shops, grocery stores, dry cleaners, restaurants, medical and dental offices, parks, and recreational facilities. Having a vibrant community with all the modern conveniences can make life a lot easier.
Property values
Property values are a pretty good indicator of how well a community is perceived. Your Realtor can tell you how property values have changed over the past few years and how they compare to equivalent communities in nearby areas.
Utilities and taxes
Avoid unpleasant surprises by finding out about municipal taxes and utility costs before you decide to purchase. Fees for water, electricity, cable TV, phone, and gas vary greatly by region.
Noise and nuisances
First impressions are not necessarily the most accurate impressions. It is a good idea to come back to the neighbourhood at different times of day and different days of the week. Listen for traffic noise, barking dogs, low-flying airplanes, and any other noises that could indicate problems.
First-time Buyers
Why buy?
Two out of three Canadian families own a home - that's one of the highest rates of home ownership in the world. And for good reason.
It is also a good investment. With the increase in house prices, it is all the more important for first-time buyers to get a foot on the first rung of the property ladder.
- Homeownership is the single largest source of savings for Canadian households.
- Unlike other investments, which can be quite volatile, the increase in the value of homes is relatively steady. The average house price in Canada has increased every year since 1998.
- The return on your investment in your home can be substantial. Homeowners can use the equity in their homes as security for other loans.
- Building equity in your first home is the first step on the property ladder. It gets you into the market, keeps you in touch with increasing house prices, and puts you in a good position to trade up to bigger and better houses as your circumstances allow.
Do I need a home inspection?
Buying a home is probably the biggest single investment you will make. A home inspection prior to making an offer will protect you and your investment.
A qualified home inspector will give your house a thorough examination, checking the heating and cooling system, plumbing and electrical systems, the roof, attic, walls, ceilings, floors, windows, doors, foundation, basement, and visible structures of the home.
The inspector will point out the need for major repairs, identify areas that may need attention in the near future, and explain what maintenance will be necessary to keep the house in good shape. But, it is not all negative. Most inspectors are more than happy to tell you about the home's good qualities as well.
Home inspections are relatively inexpensive considering the size of the investment that you are about to make. Many people consider this a small price to pay for peace of mind.
What is an appraisal?
An appraisal is a report containing an estimate of the value of the property. Appraisals are conducted for the purpose of mortgage lending by certified appraisers. The appraisal should not be confused with the home inspection or the market analysis.
Making an Offer
What are the main elements of an offer?
Price
The price you offer reflects your opinion of the value of the house and is determined by the condition of the property and local market factors.
Deposit
The deposit shows your good faith and will be applied against the purchase of the home when the sale closes. Your Royal LePage Realtor can advise you on an appropriate amount.
Terms
Include the total price offered and the financing details. You may arrange your own financing or ask to assume the seller's mortgage, especially if it has an attractive interest rate.
Conditions
Conditions are items that must be completed or fulfilled prior to an offer being concluded. These can include subject to home inspection, subject to you obtaining financing, or subject to you selling your existing property.
Inclusions and exclusions
Your offer may be contingent on certain items being either included or excluded in the sale. These might include appliances, fixtures, and decorative items, such as window coverings or mirrors.
Closing or possession date
The closing date is generally the day the title of the property is legally transferred and the transaction of funds finalized, unless otherwise specified (except in Manitoba and Quebec). In British Columbia the possession date is legally one to three days after closing.
Closing Day
What happens on closing day?
Closing day is the day you become the official owner of your home.
Typically, you visit your lawyer's office to review and sign documents relating to the mortgage, the property you are buying, the ownership of the property, and the conditions of the purchase. Your lawyer will also ask you to bring a certified cheque to cover the closing costs and any other outstanding costs.
Once the mortgage and the deed for the property are officially recorded, you become the official owner of the property and your lawyer will call you to pick up the keys to your new home.
Congratulations! You've just bought a home!
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