So you want to buy a house? But you don't know where to start? This seems to be quite common amongst potential purchasers - particularly first time buyers. We really feel that it is important to have a systematic approach to looking for a home. It makes buying a home so much easier. We thought we would take the time to outline the steps for you, as we see them.
Here's the list:
  • Locate the general area where you are interested in buying and familiarize yourself with it by driving around. You may also want to see if the area is affordable by looking at the real estate ads in the newspaper.
  • Find a local real estate agent who knows the area where you want to buy. Explain to the agent your relationship will be on a trial basis and then use that agent exclusively - as long as you are working well together. Virtually all homes are listed MLS and can be shown by any agent. Loyalty to one agent will help to create a reciprocal loyalty to you. There are several ways in which a concerned agent can help to save to save you money.
  • Before you look, go over your house, area and price requirements with your agent.
  • Obtain copies of all area listings to read thoroughly - this will help you to weed out unsuitable properties and to save time and energy.
  • Go over your finances with your agent. He/she should be able to give you an idea of what you can afford, required downpayment, closing costs, lawyers fees, etc. Your agent should also have an idea of which financial institutions would be most responsive to your needs. If possible, go to the lender and get pre-approved for your mortgage.
  • When you do go to look at property, wear comfortable clothing and slip shoes (you'll be taking your shoes on and off endlessly). Take copies of the listings for the properties which you are going to see. Write your comments in the margin - it can be difficult to remember five or 10 properties at the end of the day without doing this.
  • You may want to view properties a second time when you get a short list of possibilities.
  • If the home you are considering is older, or if there are concerns about soundness of construction, you may want to make your offer conditional on the approval of a property inspector. The fee for this service is usually a couple hundred dollars - it may save you money in the long run.
  • By this time you should have a feel for the values of properties in the area. You should also have an idea of what you want and what you can afford. It's time to make an offer! The only think you will need to make the offer is a deposit cheque. This is the last money that will be required from you until closing. The amount of the deposit can vary from area to area. In our area, the average deposit is between $1,000 and $5,000. If you or your spouse will be hard to reach during the offer process, then the offer can be presented in one name - both names can then be registered on title upon closing.

No matter where you find homes that attract your attention...
  • In a real estate magazine, newspaper or via internet sites like mls.ca
  • Another agent's "FOR SALE" sign or at another agent's "OPEN HOUSE"
  • Another agent's "Exclusive" sale ad or sign
  • From a friend, co-worker or relative by word of mouth
  • A Builder's show home, condo display suite or other new constuction
  • A "For Sale By Owner" or "Comfree" sign or ad

I will represent you at any of them!

 

First time buyers!!!

Finalising or "closing" a real estate transaction can involve substantial costs that may come as a surprise if you don't know what to expect. A wide variety of fees, taxes and other expenses require payment before you take possession of your home.

  • Land Transfer Tax -

    Purchasers in most large Canadian centres can add Land Transfer Taxes to their list of closing costs.

    Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes (or property purchase tax) are a basic fact of life. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from a half a per cent to two per cent of the total value of the property.

    Many provinces have multi-tiered taxation systems that can prove complicated. If you purchase a property for $300,000 in British Columbia, for example, 1 per cent is charged on the first $200,000, and the amount over $200,000 ($100,000 in this case) is taxed at 2 per cent. Your total tax bill? $4,000.
    The following chart illustrates Land Transfer Taxes by province.

    BRITISH COLUMBIA - Property Purchase Tax
    Up to $200,000 X 1 % of total property value
    From $200,000 up X 2 % of total property value

    MANITOBA - Land Transfer Tax
    Up to $30,000 N/A
    From $30,000 to $90,000 X .5 % of total property value
    From $90,000 to $150,000 X 1 % of total property value
    From $150,000 up X 1.5 % of total property value

    ONTARIO - Land Transfer Tax
    Up to $55,000 X .5 % of total property value
    From $55,000 to $250,000 X 1 % of total property value
    From $250,000 to $400,000 X 1.5 % of total property value
    From $400,000 up X 2 % of total property value

    QUEBEC - Transfer Tax
    Up to $50,000 X .5 % of total property value
    From $50,000 to $250,000 X 1 % of total property value
    From $250,000 up X 1.5 % of total property value

    NOVA SCOTIA - Land Transfer Tax
    Halifax Metro - 1.5 per cent on total property value
    Outside Halifax County - Check with local municipality.

  • Title Insurance - Title insurance is a policy that covers residential or commercial property owners (and their lenders) against losses related to the property's title. For a one-time fee, or premium, a title insurance policy can provide compensation for losses due to factors like: unknown title defects; existing liens against the property's title; encroachment issues; title fraud; errors in surveys and public records; plus other title-related issues that can affect your ability to sell your property. Title insurance will also cover most legal expenses related to restoring your property's title.
  • Property Tax - Most of us are familiar with property taxes, however it is important to be aware that you are or might be responsible for paying part of the current years property tax on the purchased property depending on how the previous owner had it set up.
Please contact Sasha Dukic at 204.291.7009 to start your search today.