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Get a REALTOR on your team when buying or selling
Thinking of buying or selling a home? If so you’ll want to enlist the services of a REALTOR to help you navigate through this complicated business transaction from start to finish.
Your REALTOR has what it takes to help you every step of the way to achieving your home ownership dreams. And, he or she will be the top player on a team of experts who will protect your interests and ensure your real estate transaction goes smoothly.
The team
Depending on your needs, the other experts on your team will likely include a lender, a lawyer, and insurance agent and a home inspector. Your REALTOR will offer guidance as to how to proceed with your purchase or sale and when it’s time to bring in the other experts and professionals on your team.
REALTORS role
A REALTOR has vast amounts of real estate knowledge and the experience required to stay cool, even in a hot real estate market. In Ontario, a REALTOR is a licensed real estate professional who is a member of a local real estate board as well as the Canadian Real Estate Association (CREA) and the Ontario Real Estate Association (OREA). When you work with a REALTOR, you can expect strict adherence to provincial law as well as to a code of ethics ensuring you’ll receive the highest level of service, honesty and integrity.
If you are buying a home, your REALTOR can help you determine how much house you can afford, offer advice on choosing the right neighbourhood and ensure your interests are best served during negotiations.
If you are selling a home, your REALTOR will help you determine a fair and accurate asking price for your home, develop a marketing plan, offer advice to help make your home more “saleable,” screen potential buyers, show your home and, of course, negotiate on your behalf.
Lender
As you and your REALTOR begin looking for a home, it is wise to also begin looking for a mortgage lender. Your REALTOR can help you review various mortgage options to ensure you get the best rates and terms available. Although most buyers will start their search with their own bank or financial institution, it pays to shop around for more competitive rates. Often, your bank will match or beat a competitor’s rate to keep you as a customer.
Lawyer
It is recommended that you have a lawyer waiting in the wings, preferably one who specializes in real estate transactions, to review complicated documents such as the Agreement of Purchase and Sale. If you are selling, it’s wise to have a lawyer review an offer to purchase before you sign it. As a buyer, your lawyer will also ensure you receive clear title to the property and calculate the amount of land transfer tax you will be required to pay.
Home inspector
Having a home professionally inspected before you seal the deal to buy can help you avoid costly surprises after you move in. A home inspector will report any minor problems as well as major ones such as structural deficiencies that could affect your decision to buy at all or at what price.
Insurance broker
In order to secure financing, mortgage lenders require insurance on the home. Just like when you shopped for your mortgage, do your homework with insurance companies too. Insurance coverage and rates vary and you will want to be sure you get the coverage you want at a fair price.
Your MVP
Having the right team of experts on your side can mean the difference between a successful real estate transaction and a personal and financial nightmare. When you select your team, start with a REALTOR – he or she will be your Most Valuable Player.
What's next?
The Listing Agreement
When you decide to sell your home with a REALTOR®, one of the most important forms you will encounter is the Listing Agreement. The Listing Agreement is the contract between you and the real estate brokerage authorizing the brokerage, including its brokers and salespeople, to market your property.
The Listing Agreement is such an important part of your real estate transaction that you’ll want to be sure it is as comprehensive and accurate as possible. Your REALTOR® will work with you to fill in all the details and leave nothing to chance.
Detailed information about your home is spelled out in the listing agreement which helps other REALTORS® respond to questions from potential buyers about your property. Also, the Listing Agreement forms the basis for any offers drafted on your home as well as any resulting negotiations involving the offer.
There are two types of listings – an “Exclusive” listing and a “Multiple” listing. An exclusive listing gives the brokerage the sole right to find a buyer for your home during a specific time period. You agree to pay a pre-established real estate commission to the broker once the sale is completed. The commission is payable to the broker regardless of whether someone else sells your home -- including yourself during the set period or even if your home sells at a future date to someone the broker introduced to the property.
A multiple listing is also an exclusive listing between you and the broker, but includes your authorization to allow the broker to market your home on the Multiple Listing Service (MLS) and have other REALTORS® help to find a buyer. In this case, you pay the agreed upon commission and it is shared between the listing broker and the REALTOR® who found the buyer.
Most often, a REALTOR® will recommend that you list your home through the MLS so that you receive maximum exposure in the shortest time possible. Many REALTORS® in Ontario use a standard listing agreement form such as the one published by the Ontario Real Estate Association.
Because the Listing Agreement is so vital to the whole real estate transaction, REALTORS® are well-trained to carefully include every last required detail. The agreement is divided into two sections – authority and property details.
The authority section establishes the legal relationship between you and the real estate broker, sets a time limit for that relationship, and describes the obligations of each party. The detail section provides information about the property being offered for sale and the ideal terms the seller would like to see in an offer. Your property will be completely identified by its full legal description, including street and house number, as well as to lot and plan number if the property is in a registered plan or subdivision.
Your property size and location, floor area, room sizes, style and number of rooms, zoning, building age and type of construction will all be spelled out on the Listing Agreement.
The listing price is specified along with any other clauses regarding price or terms. There is a specific reference to the commission that will be paid upon a successful sale, trade or exchange of the property.
Other details to be filled in on the Listing Agreement include mortgage information, how many days until closing after your home sells, and how your property will be shown. Your REALTOR® will also discuss with you what items you are willing to sell along with the home. These items usually fall under one of two categories – fixtures or chattels. Fixtures are permanent improvements that normally stay with a property as part of the sale. Things like central air conditioning, built-in appliances and wall-to-wall carpeting are fixtures.
Chattels are usually movable pieces of personal property such as microwave ovens, blinds or washers and dryers. You may wish to include some of these “chattels” to sweeten the deal. These items will be clearly spelled out in the Listing Agreement.
Your home is probably the largest asset you will ever sell and you want to be sure you do it right. Selling your home is a complicated transaction involving many legal forms and procedures. Having a REALTOR® on your side will ensure the sale of your home goes smoothly.
The importance of Home Inspections before buying
A home inspection prior to purchasing a home or condominium can bring peace of mind when you sign the sales contract. Knowing what to expect both inside and out will help you make an informed decision about the value of the home and the future upkeep.
A home inspection accomplishes two important goals. First, it gives you a chance to determine the condition of the house, its structural soundness, and the condition of its mechanical systems. Second, it brings any problems to the seller's attention at a time when they can be resolved before closing a sale.
If you sign a contract before inspection, consider including a clause that the sale is contingent upon a satisfactory structural inspection, and specify when the inspection is to be carried out. That way, you are protected.
A comprehensive inspection includes a visual examination of the structure from top to bottom, including the heating, air conditioning systems, the interior plumbing and electrical systems, the roof and visible insulation, walls, ceilings, floors, windows and doors, the foundation, basement and visible structure.
Following the examination, the inspector will provide a report that not only points out possible defects or areas of concerns, but also the positive aspects of the structure as well as the type of maintenance that will be necessary to keep the home in good shape.
Even the most experienced homeowners lack the knowledge and expertise of a professional inspection firm. For example, watermarks in the basement may indicate a chronic seepage problem, or simply may be a result of a single incident.
A professional assessment will provide complete information about the condition of the property you are considering and will help avoid any unpleasant surprises after the sale. In addition, a home inspector can remain totally objective, while you as a prospective homebuyer may be emotionally involved.
The inspection fee for a typical single-family house can vary depending upon the geographic area. The particular features of the home such as size, age and special structures will be taken into consideration. A decision to have a home inspected is a good investment. You might save many times the cost of inspection by being aware of defects, maintenance requirements, and upgrading requirements.
Good decorating should not sell you on a house. Remember, you're also buying structural and mechanical systems. Walk through a house twice before you hire an inspector. The first time, look at the rooms, the floor plan, and envision your own decorating ideas for the house. The second time, go back and look at the condition of the walls, doors, appliance, and plumbing. If the home still looks good after two visits and you're getting serious about the purchase, hire an inspector.
Inspectors should be licensed in building-related fields; architects, contractors, and structural engineers are good examples. When interviewing a potential home inspection firm, carefully inquire about the specifics of their work and company. Ask how long they have been in business, ask for references from previous customers. Find out what type of insurance they carry and do they guarantee inspections?
A home inspection usually lasts about three hours. Professional inspection companies will be happy to answer all your questions. Avoid firms that issue only a verbal report. The report should be in narrative form, not just a checklist of items inspected. The home inspector should also issue a written report with accurate cost estimates for any major defects discovered during the inspection. You may find it valuable to accompany the inspector as he goes through the house.
Property inspections are not limited to residential properties. Many inspectors help homeowners with analysis and solutions to specific problems such as energy conservation, wet basements or cracked foundations. Inspectors also inspect work upon completion to ensure that a contract has been properly fulfilled.
If you are considering purchasing a home, the Ontario Real Estate Association advises that you invest in an inspection by a reputable and qualified inspection firm. Buying a home is one of the biggest decisions you will make. Know what you are buying and what your future upkeep obligations will be.
For more information regarding home inspections contact the Ontario Association of Home Inspectors (www.oahi.com). |