Buyers & FAQ
Here are some frequently asked questions from the Buyers during a Real Estate Transactions.
We hope you find this blog helpful! Feel free to reach out to us if you have any other questions or input.
Let’s make this blog into a resourceful community for everyone ☺
1) Do I need a Real Estate Agent to purchase a home?
While not legally required, it is highly recommended to hire a professional Realtor that will represent you and protect your best interest during a transaction.
Benefit of hiring a Realtor: provides expert guidance throughout the transaction, help you filter & narrow down the property search, review necessary paperwork/document, assist in negotiations strategically, and provide professional networks!
2) Do I need a home inspection?
A home inspection is always highly recommended.
An inspector can often find hidden issues that you may not be aware of: such as possible stains of water damage/mold, faulty wiring, roof & attic issues, and other potential costly problems.
Negotiation Power: inspection report can give you leverage to negotiate for a lower purchase price wit the Seller. With the deficiencies, Buyers can request for repairs or ask the Seller for credit.
Peace of Mind: knowing the condition of the property can help you determine a confident and informed decision— whether to buy, walk away, or renegotiate.
3) Should I go for a new build or an existing home?
The answer really depends on a few factors, but consider the following may help you narrow down the decision:
✔ Pros of new build: likely to have deposit breakdown into portions so you won’t need to pay everything at once (more time to gather your source of finance.) Fresh and brand new with modern aesthetic and design, warranty protection (2-5-10 warranty), less likely to have immediate costly repairs.
✖ Cons of new build: likely to have a higher up front cost, unlikely chance to negotiate for price, risk with delays of construction and may have an unknown timeline. If it is a pre-sale, you are likely purchasing off a floor plan in a show room without seeing the actual home. Your views outside the window and balcony may also be unknown or with the possibility to change.
✔ Pros of an existing home: established neighbourhood, move-in-ready (or what you see is what you will get), likely chance to negotiate for price, and confirmed timeline for move-in date.
✖ Cons of existing home: older homes may likely to have maintenance & repairs coming up, may be less energy-efficient with older plumbing & appliances and less appealing aesthetic
A Realtor can certainly provide you with guidance on which direction and approach to go. We can chat further about this!
4) What other costs should I expect besides the down payment?
It is important to save some side money after you purchased your home. The general idea is at least 3% of the Purchase Price if you are buying an existing home. If it is a brand new home, then you will want to save 8% (5% for the GST.)
Here are some of the additional costs besides the downpayment:
Home inspection (may be applicable)
Bank appraisal fee (may be applicable)
Legal fees for your Lawyer / Notary + disbursement
Homeowners insurance
5% GST (please read more about First Time Home Buyer’s exemption - here)
Note: Buyers are not responsible for paying their Buying Agent a Commission. The Sellers are responsible for the commission for both side of the Agents.
5) How can I make my offer stand out?
The 3 things to consider are: Price + Subject + Closing Dates
Price: do a detailed research about the realistic market price. To make your offer stand out, determine the suitable price for this property. Sometimes when there are other offers on the table, the offer price may even go over the listing price.
Subject: simply means a “condition that must be met” and are usually set out by the Buyer (ie: Subject to Financing, Inspection, and review and approve all Strata Document.) There is always a date associated and it is called the “Subject Removal Date".” Tips: have your mortgage pre-approved, review all the associated documents early, and arrange inspection early. Note that offers with NO subject are risky but could help you potentially secure the home you want. Please chat further with a Professional Realtor about this!
Closing Dates: if you have a flexible closing date, you may want to match the Closing Dates with what the Seller is looking for.
In a competitive market or multiple offer situation, having a strong (more attractive) offer may help you outbid the others. Each transaction is different, so it is important to have a Professional Realtor that can help you with enriching your offer.
Got any more questions?
