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Visiting Properties

OR

HOMEBUYING STEP BY STEP

A Consumer Guide and Workbook

Good real estate agents will listen to your wants and needs and arrange to show only those homes that fit your particular parameters. Also they quite often will even preview homes before showing them to you as well. With that in mind there should be no need to visit any more than a total of ten to fifteen properties and no more than four to five in any one day.

  • Bring a digital camera and begin each series of photos with a close-up of the house number to identify where each group of home photos start and end.

  • Take copious notes of unusual features, colors and design elements.

  • Pay attention to the home's surroundings. What is next door? Do 2-story homes tower over your single story?

  • Do you like the location? Is it near a park or a power plant?

  • You should wear shoes that are easy to put on and take off you'll be doing that a lot.

  • I suggest that on the initial first visits to leave the children at home if possible. You need to focus on the task at hand, to be able to have a thorough look around and to discuss matters with your realtor and your spouse or partner without interruptions.

  • Bring a tape measure with you so you can verify room sizes and to make sure your furniture or bed will fit.

 

I'm counting on you having a building inspector go through the home if you do buy it. But here are a few things you can do if you think that a home could be a potential candidate. But leave the final call  based on your inspectors report.

  • Flush the toilets specially the one on the lowest level to check its bowl's evacuation.

  • Turn on taps at the same time you flush to check water pressure.

  • Check the power panel board to make sure its at least 100 amp service (no fuses)

  • View the furnace to check on its approximate age hopefully it's a high-efficiency furnace.

  • If a room is carpeted take up a floor heating vent and check if the sub-floor is hardwood if that's important to you.

  • If there's an area rug lift it a bit to check for floor damage, or major stains.

  • Check the ceiling for water damage especially below bathrooms on upper floors.

  • Take a look at walls and ceilings for obvious problem cracks

  • Check the basement walls for water penetration.

  • Outside take a quick look at the roof condition.

  • Trees over-hanging the roof

  • Check for ground surface grading away from the house

  • Check windows for aging issues inside and outside.

  • Check for "Kitec' Plumping!! (Blue or Orange colored pipes leading to washers or under sinks) Popular mainly in condo between 1995 and 2007  "Google Kitec Plumping"

Immediately after leaving, rate each home on a scale from 1 to 10 along with the most salient pro's and con's. Its good to do this right on the MLS listing data sheet. (ask the agent to provide you with a copy of the listing)

 

View Top Choices a Second Time before making an offer to buy that first home.

After touring homes for a few days, you will probably instinctively know which one or two homes you would like to buy. Ask to see them again. You will see them with different eyes and notice elements that were overlooked the first go-around. Don't be surprised at this as you walk through a property for a second time because you're now viewing them with very critical eyes.

 

On that second visit many buyers like to take along a trusted friend or quite often parents. Its often good to have a second pair of eyes along that know you and your life style and as such may point out things your hadn't thought of. However be forewarned I've noticed a tendency of a few of these kind folks to think you brought them there to show their expertise in real estate by being very critical about the property and it price value, especially if they are somehow involved in the financing.

Keep in mind that they did not go through the process of combing through the listings or visiting the many properties. They might not be even aware of real estate the prices today, they themselves may not have bought a home in quite some time.


At this point, your agent should call the listing agents to find out more about the sellers' motivation and to double-check that an offer hasn't come in, making sure these homes are still available to purchase.

I'll let you in on a little secret. I generally know which home a buyer is going to choose, and I suspect most other agents operate the same way. It's an intuition. But I make it a practice not to steer buyers, and I insist that buyers choose the home without interference from me. It's not my choice to make.  Real estate agents are required, however, to point out defects and should help buyers feel confident that the home selected meets the buyer's search parameters.

If you are at this stage you should have your deposit liquid and ready to go or at lease to be quickly converted and deposited in your chequing account to certify the deposit cheque.

New Home Sales

New Home Sales

Tips For Buying A New Construction Home

 

It is Law in the Province of Ontario that all Newly Constructed Residential Dwellings, whether Freehold Residential or Condominium Residential, being sold to parties other than the builder, must be registered with the Tarion New Home Warranty.

The exception to this law is if the Buyer & Builder both agree in writing to waive the Tarion Warranty or the Builder is occupying the dwelling as his principal residence.     For additional information on Tarion visit www.tarion.com

Why Hire a Realty Sales Representative when Purchasing New Construction?

Many times the Buyer of New Home Construction is unaware of the fact that they can hire their own Realtor to protect their interests when buying a home from a builder. Your appointed sales representative, while being your advocate throughout the process and combined with their extensive knowledge will also advise and provide recommendations on the following:

Property Evaluation

* a Cost Evaluation of Price Per Sq. ft for all builders that may offer a similar product
* a side by side analysis of the different extras and features being offered by the different builders
* a market evaluation of the property comparing with resale-homes

* a report on all Builders’ Track Records i.e.: complaints filed, unresolved disputes etc.

Recommendations

* recommend Stage Building Inspectors
* recommend Building Inspectors and when to inspect
* Review Builders Agreement of Purchase and Sale, prior to signing, to ensure there are no hidden additional costs or unknown site influences and easements that may affect the property.

Advise on the Following

Your selected Team Realty Sales Representative will advise and ensure that you clearly understand some of the difficulties and problems that are synonymous with New Home Construction. They will also advise on the positive aspects to buying New Home Construction. If you are empowered with the full knowledge, you then can make an informed decision and should not suffer any costly surprises.The following are some of the topics your Team Realty Sales Representative will be discussing with you in detail.

Negatives

Deposits

* Deposits Required
* Large Deposits are required
* Freehold Residential Purchase: Deposits up to $40,000 are protected under the Tarion New Home Warranty Program
* Condominium Purchases: Deposits up to $20,000 are protected under the Tarion New Home Warranty Program

If the New Home Builder is requesting a deposit in excess of the aforementioned, please know that you may lose the excess amount not insured by Tarion in the event the builder becomes insolvent.

 

Hidden Additional Costs & Upgrades ie:

* Extras and Features
* Lot Premiums
* Survey

* Tarion New Home Warranty
* GST if Applicable
*

Site Influences

Your selected Team Realty Sales Representative will carry out research to ensure the property you are buying does not face or back onto or will be located near any future site influences that could effect the resale value of the home i.e.:

* Backing or fronting onto a future major roadway, railway, transit system etc.
* Backing or fronting onto future institutionally zoned lands
* Backing or fronting onto future commercially zoned property yet to be developed
* Is home fronting onto a street that is a proposed future Bus Route
* Is future home located in the vicinity of a waste disposal site (present or future) or airport (present or future)
* Does home conform with future residential development i.e.: mix of single family homes with town homes or town walk-ups, apartments etc.

Possession Date Not a Guarantee

Under the Tarion New Home Warranty Program the builder may delay closing for reasons out of the builder’s control. Tarion has built into the warranty that the builder can extend closing up to 120 days by delivering notice in writing to the buyer prior to closing stating that they will require an extension. Note the Buyer has no right to terminate the Agreement as a result of the extension and must abide by the extension if notice has been delivered properly.

Inconveniences

* Home may only be 80% Complete
* Landscaping may take several months to complete and Buyer cannot make use of the potentially muddy grounds
* Quiet enjoyment is diminished as the builders trades personal will still need access to the home to complete unfinished work or rectify deficiencies noted in the pre delivery inspection.
* Neighborhood will be dusty, dirty & noisy from unfinished construction

Long Occupancies

* Early Possession is not an option unless the builder has inventory and still may require 60 days before Buyer can take possession.
* Normally the Builder will need any where from 6 months to one and one half years depending on development plan & lot releases.

Mortgage Financing and Interest Rates May Not be Guaranteed

Mortgage Interest Rates cannot be guaranteed past 120 days, depending on lender and need to be applied for again prior to expiry of the guaranteed period and the Buyer may have to pay a high interest rate or may benefit from lower rates if they drop.

Positives

Design & Finishing Control

You will have the exciting opportunity of changing floors plans to suit their family needs and can select finishing in flooring & cabinetry etc. that will suit their personal tastes.

Note you will have limited control over the above, some builders do not allow for any floor plan changes unless a custom builder and the buyer must select finishings from builders samples. Some may be deemed as upgrades and additional costs will be associated with the upgrade or floor plan changes.

Appreciation: Building Equity on the Builders Dime

Due to the requirement for significantly longer closing dates, you will probably realize a healthy increase in their property value prior to closing. Your Royal LePage Team Realty Sales Representative will provide you with a complete assessment of the Market and Forecasts for the future (Exception: if the real estate market changes into a Buyers Market the Buyer may not realize a dramatic, if any, appreciation prior to closing.)

Land Transfer Tax Rebate

Applies to First Time Home Buyers only to a maximum of $2,000. Your Team Realty Sales Representative will advise on the application process.

Depreciation of Structure Due to Age

* Does not factor into New Construction

Cost of Future Repairs

* Will be less than that of re-sale

Time to Save Additional Monies

* Due to longer closing dates the buyer will have extra time to save for additional monies for down payment, upgrades or new home furnishings. This is especially beneficial to First Time Home Buyers

 

For additional information on Tarion visit www.tarion.com

TARION FEES:
SALE PRICE (exclusive of GST) Unit Fee (incl. PST & GST)
FreeHold and Condo
Up to $100,000 $511.75
$100,000 – $150,000 $540.50
$150,000 – $200,000 $598.00
$200,000 – $250,000 $655.50
$250,000 – $300,000 $713.00
$300,000 – $350,000 $770.50
$350,000 – $400,000 $828.00
$400,000 – $450,000 $885.50
$450,000 – $500,000 $943.00
$500,000 or more

Other Things to Look Into:

Do you have the right to sell before the building phase or phases are complete. If not how long after you can sell.

In the case of new condominiums. Find out if once you move in are your payments going towards your actual mortgage. There are situations related to condominiums where monthly payments are not going towards the buyers mortgage payments but is actually an occupancy fee similar to rent that the builder charged until the condominium is actually registered and title is transferred to you. 

A “condominium” is not technically formed until it is completed and passes the approval processes that enable it to be registered with the Land Registry Office. Only then can the title of your suite be transferred to you.
High-rise condos are usually fairly tall buildings in which the lower floors are finished well in advance of the upper levels.
Once the interior is complete, residents of the upper floors can move in as well. The approvals process, however, begins once the first suite is occupied. It typically takes up to six months, although sometimes it can be quicker.

With a new development inquire about the future plan for the neighborhood. Where is the new school, Shopping, parks, can the infrastructure handle all the new residents and their cars.

What will end up behind or in front of you particularly if you are in a high rise condo and your view is obstructed. Builders typically build in phases starting with the one that will be most impacted when the project is complete. 

Watch out for that greenbelt you see on the plans, it could mean that it is a greenbelt now, but maybe slated for development in the future.

(several years ago a friend bought a new home with a small park in his back yard on the main street, within a couple years it was a gas station.)

If you love it look into possible buying the builders model and: Research you builder before you buy.

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