Nowadays, everyone loves a good deal; so why wouldn’t you be looking to save thousands of dollars on your next real estate purchase?
The first thought for most, is a “DIY” (do-it-yourself) approach to save on realtor commissions to in turn “get the best deal” on a property, but here are some important considerations that may change your opinion, and ultimately, save you thousands on your next purchase:
Enter into a Buyer Agency Relationship with your REALTOR®:
- The duties and services that will be provided to your by your REALTOR® will be clearly established in writing.
- As members of the Canadian Real Estate Association (CREA®), each REALTOR® adheres to a strict code of ethics and provides a wide variety of beneficial services for buyers and sellers. You can be assured they are acting in your best interest.
Have your REALTOR® prepare a market value report on the property you are interested in:
- Ask them to compare the property you are purchasing with other listings in the neighbourhood that have actually sold.
- Ask your REALTOR® to see what other homes in the area are listed for or have been listed for but did not sell, but keep your focus on what similar properties have recently sold for.
Why? Deals that closed will demonstrate the fair market value better than properties that have been listed, because they show what buyers were ACTUALLY willing to pay for them.
Get a home inspection.
- If an inspection is performed and flaws or unknown defects are identified, you can generally ask the seller to repair or fix the issues discovered or agree on fair compensation to have the problems fixed yourself.
- If the defect cannot be resolved and falls within the parameters of the property inspection condition agreed upon at the time the contract was negotiated, you may have the right to walk away from the property and save thousands on costly repairs.
Offer a good deposit.
- A larger deposit shows your sincerity and your intention to complete the transaction, and can be a factor in the negotiation of the purchase price and your offer ultimately being accepted.
Watch important timelines; there are important dates and timelines that must be strictly followed.
- Deadlines for completing and responded to the results of a home inspection
- When to review the title
- When your financing approval must be obtained
- When the contract has to be communicated to the other party and many more
A good real estate agent, acting on your behalf, will notify you of, and follow these guidelines to make sure that you do not miss any of these important deadlines.
Shop around for your mortgage financing.
- You can apply for a mortgage at ANY bank, with a mortgage broker, or the seller of the property
- Mortgage rates are often negotiable, and so are some of the fees associated with them
- Ask if the lender can reduce or absorb the closing costs
- Do all of these things before authorizing your credit being pulled or signing other documents with a lender
Insist the seller provide a Real Property Report (RPR) with municipal compliance.
- Have the seller provides you with a RPR, a survey of the land and buildings you are offering to purchase; it should reflect the current placement of structures on the parcel you are purchasing.
Purchase title insurance.
- There are various levels of title insurance that can cover you from a broad spectrum of issues, such as identity theft, fraud, development done with lack of necessary permits, encroachments, etc.
If purchasing a condominium, read all condominium documents.
- Include a Condominium Document Condition subject to your satisfaction in the contract and be sure to carefully read all of the documents of the condominium corporation.
Take your time before you purchase.
- Look at several homes before making a decision; You don’t have to buy the first home you look at.
- Your REALTOR® can provide you with these properties to view so that you can compare the one you are interested in with others that are similar, or may be a better fit for your needs. This process can help you determine the value of the home you would ultimately like to purchase.