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Why should I choose
"Lil Wilkinson Realty" to help purchase my home?
The
best way to answer this question is to check our "Buyer
Benefits" page.
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Why should I use
a REALTOR® rather than finding a home myself?
Buying a home can be an emotional and complex undertaking. It's a step-by-step procedure that will create many questions, and involves more than just "looking" for a property. Getting a professional REALTOR® on your side at the outset will alleviate a lot of stress for you, and help
create a smooth and easy transaction. The REALTOR® also has the use of the MLS® System which
allows him/her to access all the properties listed for sale
with all the other brokerages. By keying in your wants and needs
into the system the REALTOR® can find homes that meet your specifications
within minutes. That's a lot easier than looking through endless
ads and calling on "for sale" signs. If you would
like to read more about the MLS® System and how it helps a buyer
then please click here.
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Why should I sign
a buyer agency agreement?
A buyer should always know that a REALTOR® is
working on their behalf and should stipulate that relationship
by signing an agreement with that REALTOR®. A REALTOR® can then
treat you like a client rather than just a customer. The REALTOR®
can give you advice, protect your bargaining interest, and will
not disclose any confidential information to the other parties
in the transaction. Signing an agency agreement is also a show
of "good faith" between the REALTOR® and the buyer.
The REALTOR® is working on your behalf to help you purchase a
property, and you are interacting solely with that REALTOR® for
the term of the relationship or until you make your purchase.
Both parties will then know where they stand with each other.
If you would like to read more about agency then please click
here.
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Why should I get
pre-approved for a mortgage before I begin my search for a property?
Sometimes you may think you can afford something
that you can't, or conversely you can afford more than what
you're looking at. By knowing your mortgage situation you are
able to look at properties that meet your criteria financially.
You will also be able to lock in an interest rate for a given
period of time. If you delay in getting approved then interest
rates may go up and that could affect how much you can afford.
Getting pre-approved for a mortgage also helps the REALTOR® significantly
when they are searching for properties to show you. It also
helps the offer presentation. When a seller has confidence that
you are able to meet your financing condition in the offer then
he is able to make easier decisions about his property and its
sale. You will also be confident that you can afford the home.
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Do properties under
"Power of Sale" necessarily sell for a bargain price?
No, they do not. The lending institution that
holds the mortgage to the property must make every concerted
effort to get the highest and best price for the home based
on the market conditions at the time. They must try to get enough
money to pay the mortgage off. Anything over that amount will
be given to the past owner of the home. Anything under that
amount the bank may likely sue the past owner for, if possible.
Lending institutions also do not warrant anything in the home
and do not even guarantee you a deed on closing. It may also
be your responsibility to pay any liens outstanding on the home,
if there are any. That may be the only way to obtain clear title.
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How do I know that
I'm paying fair market value for my purchase?
A good REALTOR®, after discussing your wants and
needs, will show you homes that suit your interests and your
pocketbook. After seeing a number of homes you will be able
to assess for yourself what you like and dislike, and also what
is the better deal for the money. Once you decide on a home
the REALTOR® can do a "reverse analysis" for you through the
data on the MLS® System to see what comparable properties have
recently sold for in the marketplace. This may give you a more
precise idea of what to offer the seller.
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What other professional
advice or services do I require?
The number of
extra services you require will depend on the nature of your
property. You will need a lawyer to close the transaction for
you, regardless of the home you choose. If you're placing a
mortgage on the home then you will need the services of a lending
institution. You may also wish to have a home inspection done.
You may need to get a survey, a building contractor for any
renovations you'd like, someone to check the well and septic,
if applicable, interior decorators, etc. The list may be lengthy
depending on your situation. If you would like some ideas for
helpful services then please click
here.
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What is Land Transfer
Tax and how much does it cost?
Land Transfer Tax is a government tax that is
applied when a property transfers from one owner to another.
The fee is based on the amount the property sells for. The higher
the amount then the higher the tax. You will pay $5.00 per thousand
dollars for the first $55,000 and then $10.00 per thousand for
the difference up to $250,000. At that time the cost is increased
to $15.00.
For
example: If you purchase a property for $185,000 then you will
pay the following.
$5.00 x 55 ($55,000) = $275.00
$10.00 x 130 ($130,000 is the difference) = $1300.00
The total is $275.00 + $1300.00 = $1575.00
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What are disbursements
and how much do they cost?
Disbursements are the property checks or requisitions
that your lawyer will do on your behalf, but that you will pay
for. These checks are required to obtain clear title to your
next home and are not something that you can waive or do without.
These checks include, but are not limited to; conformity to
zoning by-laws, utility checks, sheriff reports, city reports,
etc. Disbursements run anywhere from $400.00 - $600.00.
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When is GST applicable
on my purchase?
You should always look at GST as being payable
by you unless you're exempt from it. There is currently no GST
payable on resale homes. There may be GST payable on vacant
land, farms, commercial properties, etc. You should consult
your lawyer as to how much this would be and the rebate you
may be entitled to depending on your situation. New homes are
currently subject to GST, meaning you would pay the tax over and
above the purchase price. Some builders include the GST into
their asking price, however. Make sure you verify this during
negotiations.
