BUYER S GUIDE A COMPREHENSIVE QUICK REFERENCE GUIDE TO PURCHASING YOUR HOME.

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1 BUYER S GUIDE A COMPREHENSIVE QUICK REFERENCE GUIDE TO PURCHASING YOUR HOME.

2 WHAT YOU SHOULD KNOW ABOUT BUYING A HOME You know what they say about a mullet business in front, party at the back. That s what buying a house should be like.* Although it s tempting to start the party of shopping for your dream house ASAP, there s actually some business to take care of first. Buying a home is a huge deal. Whether it s your first rodeo or you re super experienced, real estate transactions are complicated. Buying a home is the biggest investment most people will ever make. It s exciting and kind of nerve wracking, too. We ve put together some suggestions here to help you kick off your search and give you some idea of what to expect throughout the process. *To be clear, we are not suggesting you get a mullet.

3 FIND YOUR REALTOR MATCH To get a REALTOR or not to get a REALTOR. That is the question. You may want to figure out your finances as your first step, or you might decide to hire a REALTOR at the very beginning of your housing journey. A REALTOR can help direct and advise you through the entire process, and can answer many of the questions you ve probably been driving your friends crazy with. Naturally, we think we have the best team of real estate professionals in the game. Not only do we know the ins and outs of the industry, we know the ups and downs, too. Buying property can be both exciting and overwhelming, so we re fully prepared to conquer the real estate mountain together and have some fun doing it!

4 BEST PRACTICES WHEN BUYING A HOME CRUNCH THE NUMBERS It may seem like you ve been saving for a down payment forever but you may still not know what you can spend on a new home. You know what s frustrating? Falling in love with a property you can t afford. There s really no point in starting to look until you ve figured out your budget. You can do some of the early legwork on your own. The conventional wisdom is your monthly housing costs, including mortgage payments, taxes and heating bills shouldn t exceed 32 per cent of your gross monthly household income. How much of a down payment do you need? What will your monthly payments look like? You can get an idea from using the affordability and mortgage calculators. We like the ones at CMHC: HOME BUYING TOOLS: co/buho/buho_005.cfm GET PREQUALIFIED AND PREAPPROVED FOR YOUR MORTGAGE Now that you ve got an idea of what you re working with, make an appointment with your bank or mortgage broker and lock it down. Getting preapproved is an important step because it lets you begin your search for a new home with confidence. Once you know your budget, you are almost ready to start looking for your new home! Your lender will help you choose a mortgage that works for you.

5 MORTGAGE BROKER OR BANK And speaking of lenders you have a couple of options to consider. You can deal with the bank directly or use the services a mortgage broker. There is no cost to your regardless of which you choose. A MORTGAGE BROKER is like a middleman between you and the lenders. Brokers are licensed mortgage specialists and, the big plus is, they have access to rates from many institutions including major banks, credit unions, finance companies, private lenders and trust companies. They will do a lot of the legwork for you by comparing rates and negotiating the best deal. If your credit is not quite perfect, they generally have a wider variety of options to offer. A LOAN OFFICER at a bank only has access to that bank s rates and products exclusively. If you are a good customer, you may be able to negotiate a better rate than what is posted, and it may be convenient for you to consolidate your banking with a single institution. NOW YOU KNOW YOUR BUDGET, IT S TIME TO FIGURE OUT WHAT ARE YOU LOOKING FOR? This seems obvious, but it s important to take some time to figure out what you re looking for as one of your first steps. Put some time aside and sit down to brainstorm. Ask anyone who s going to live with you to contribute to the list. Why do you want to move? What kind of home are you looking for? Condo, townhome, single detached? Decide what s a must have vs things that are just nice to have.

6 FIND A REAL ESTATE AGENT THAT HAS YOUR BACK If you don t have a REALTOR, now s the time you definitely want one. As a buyer, it doesn t cost you anything to use an agent so why wouldn t you? The commission is paid by the seller and the brokers at Sharp Realty are great partners and real estate gurus. Obviously, we think you should choose one of our amazing brokers, but don t take our word for it. Our brokers are more than happy to take a meeting. Make a list of questions and interview them. They love the chance to strut their stuff! EVERY ONE OF OUR SHARP REAL ESTATE PROFESSIONALS HAS: EXPERIENCE MAD NEGOTIATION SKILLS KNOWLEDGE OF THE INDUSTRY AND THE MARKET THEY KNOW THE PROCESS CAN T I JUST USE THE PERSON WHO S SELLING THE HOUSE? The short answer is yes, you could, but here s why you shouldn t. One REALTOR, representing both you and the seller, is considered to be a dual agent and you have immediately entered into a conflict of interest scenario. The REALTOR is not able to advocate or negotiate fully for either party. Having your own agent guarantees you will have a partner who will only have your best interests at heart.

7 YOU FOUND YOUR DREAM HOME, NOW WHAT? 4 STEPS AWAY FROM YOUR NEW HOME 1 MAKE AN OFFER OMG! You ve found your dream home! But how much do you offer? Stop biting your nails and take some deep breaths. Your calm, cool, and collected Sharp REALTOR has the area comps and the industry knowledge to help you strategize and come up with an offer you feel good about. Area Comps (Area Comparables) show all details of recently sold properties in a neighbourhood, such as sale price, built date, and square footage. Your Sharp REALTOR will use this tool to help determine the home s true worth. There will probably be some back and forth, but you ve got your brilliant Sharp REALTOR to take over the negotiations. Once your offer is accepted, you need to check the final things off your list. 2 BACK TO THE LENDER The deal is almost done and now it s time to settle the finances. At this point, your lender will usually contract an independent third party to conduct a home appraisal to ensure the actual value of the home is in line with your offer. Often the lender will cover the appraiser s cost but you should discuss this to avoid any surprises.

8 3 HOME INSPECTION Even though you, as the buyer, are responsible for hiring and paying the inspector, it s some of the best money you will spend. An experienced home inspector can literally save your wallet. They will evaluate key interior and exterior components of the home, looking for deficiencies, and provide you with a comprehensive report. It s a good idea to make a home inspection a condition of your offer so that the discovery of any major problems will allow you to back out of the deal without penalty. Prices vary, but a home inspector will generally be under $500; this cost is covered when you buy a home through Sharp Professional Realty. 4 SO. MUCH. PAPERWORK. CLOSING THE SALE. You ve been saving and laser focused on your down payment, but you have to be prepared for closing costs, too. It s a good idea to budget 1.5% - 4% of your home s purchase price to cover the legal and administrative costs that happen at the end of your real estate transaction. Closing costs might include: Property tax adjustment Property insurance Legal fees and disbursements (includes all transfer fees) Title insurance Moving costs

9 PERKS OF BUYING WITH US FREE INSURANCE * FREE HOME INSPECTION ($500 VALUE) $500 AMAZON GIFT CARD * Terms and Conditions may apply. IT S TIME TO GO SHOPPING! Finally! It s time for the fun stuff. You know what you want, your amazing Sharp REALTOR has found you a stack of prospects and it s time to go check them out, and hopefully find your property soul mate. Here are a few things to consider: What do the neighbours homes look like: Is there a car parked on the front lawn and a fire pit on the driveway? What s the parking situation? Unless you need to move, take your time.

10 WELCOME HOME! You made it! It s time to meet up with your Sharp REALTOR and high five! Today you ll do a walk-through of your new home and get your keys. Then fill up the bathtub with champagne and let the housewarming commence!

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