Buyers
Sneaky Staging Tricks
To add to the long list of things you should be looking out for when house shopping, be on the lookout for sneaky staging tricks like out-of-place rugs, an abunence of artwork, or a strong smell of air freshener. Most of the time staging is just staging, but every so often we do come across staging used to cover up flaws.
5 Things to Consider Before Buying in the East End
If you’re thinking about buying a house in Toronto’s East End, there are several additional factors you have to look out for. Termites, sewage smells, and subway vibrations, oh my!
5 Things To Consider Before Buying a House in Toronto
Are you thinking of buying a home in Toronto? Well, before you do, make sure you consider these important factors! Because who wants to move into a house just to find out it has a 20 storey condo is going up 5 doors down?
Sound Insulation in Houses
Sound insulation is key when buying a house. Many first-time homebuyers in Toronto are shopping for a semi-detached or freehold townhouse and many older properties have terrible sound insulation between the walls - which means you might be able to hear literally everything your neighbours do.
What other kind of seller incentives do you think we’ll see as we move through this buyer’s market?
Seller Incentives
The Semi-Detached Dilemma
Not all houses are created equal… When you’re house shopping and looking at semi-detached, attached, or row houses, its EXTREMELY important to evaluate the quality of sound insulation. Some houses have great sound insulation, while in others you can hear everything your neighbours do.
Power of Sales
One of the biggest misconceptions among homebuyers is that power of sales and foreclosures are where they should look to find great deals. However, thats not the case. Lenders have a fiduciary duty to do everything possible to sell the properties for fair market value, making it harder to get a "steal".
Losing Your First Offer
Losing out on your dream house (and even your first offer) can be devastating. So many buyers have struggled with getting over the loss of the first house they fall in love with - BUT it gets better. You will find the right house for you, whether it takes a month or a year - your house is out there
How To Make Your Offer Stand Out During Negotiations
While price typically holds the most weight when trying to buy a home, there are other factors that can help give you an advantage during negotiations. In some cases, conditions, terms, or including a deposit cheque or buyer letter with your offer can work in your favour.
What To Expect On Offer Night
Offer nights usually aren’t very fun for buyers… They can be long and drawn out and that's usually because a few agents couldn’t get it together in time to submit their offers before the deadline. Sometimes you will see an offer presentation run smoothly and efficiently, but those are few and far between.
Final Buyer Visits
Final buyer visits are critical to ensure everything is in order before you close on a home purchase. During this visit, everything was working an nothing was out of place but every once in a while during a buyer visit, you'll find leaks, broken appliances, or even a broken window.
Walking Away During Negotiations
Sometimes the only way to succeed in a negotiation is to walk away from it altogether. Once you walk away, the seller's true motivation will always show. Nowadays, there are many struggling with the difference distinguishing the price they need vs the price they want, and buyers simply aren’t interested in conceding to sellers the same way they were in early 2022.
Debunking Common Real Estate Myths
There are plenty of myths around buying a house in Ontario. Some common myths are that you NEED to put 20% down to buy a property, you have to provide the seller with your pre-approval, and more.
How Much Does A Parking Spot Cost?
All else being equal, how does having a parking spot affect the price of a condo in downtown Toronto? Here is a side-by-side analysis of identical condo units that have sold with and without parking.
The Downside of Hard Lofts
Hard lofts are old industrial buildings that have been converted for residential use, and as a result are not always as functional as a typical condo unit may be. Sound insulation between units, poor window insulation, and odd bedroom locations are common issues found with hard lofts.
Understanding Seller Motivations
Knowing seller motivations can sometimes win you the house even if you aren’t the highest offer. Some sellers are highly sentemental and will take preference to a family over an investor or some sellers prefer a firm offer even if its at a lower price.
What to Expect From Your Realtor When Buying a Home?
Buying a home is not a simple process and its important that if you do choose to work with a Realtor, you are working with someone who will actually be helpful. Many buyers don't know what to expect from their agent but thankfully new legislation requires agent's to itemize the services they provide before signing a contract with a buyer.
Things to Look Out For When Condo Shopping
Buying a condo can be quite different than buying a house. There are certain things you need to look out for before you buy, including where the unit is relative to the amenities, how noisy the heating system is, etc.
Rental Item Contracts
Be careful when buying a property with a rental item, most rental contracts are extremely unfair to consumers. Always check the listing to confirm if the furnace, air conditioning unit, or water heater are rented.
Floorboard Separation in Condos
Floorboard seperation is relatively common in condo buildings, especially when the floors are laminate. Commonly because floorboards weren't installed well, this can be a huge nuisance as the gaps continue to spread over time.
What to Expect on Closing Day
Closing day is one of the most important, yet anticlimactic days in the home buying process. Most of the heavy lifting is done before the closing date itself. You will typically close sometime in the afternoon, and when that happens you'll get a call or email from the real estate lawyer confirming you have officially closed.
Using Conditions in Offers
Including conditions in an offer is a great way to protect yourself as a buyer, especially in markets where you have the leverage to use them. If you are purchasing in a buyers market or a balanced market, you will likely have the opportunity to negotiate conditions into your offer, for example submitting an offer conditional on a home inspection or on obtaining a mortgage approval.
Sneaky Details to Look for When Condo Shopping
It’s tough to know what to look for when you’re shopping for your first condo. Important things to keep an eye out for include Kitec plumbing, how packages are stored and received, and the ratio of elevators to floors.
What Does it Mean to “Close” on a Purchase?
While closing day is one of the most important days for a homebuyer, it’s also VERY anticlimactic. You are typically uninvolved on the day of and you’ll get a call or email from your lawyer sometime in the afternoon letting you know that the ownership has been officially transferred to you.
Pay Attention to the Small Details When Condo Shopping
Looking for small details like these when shopping to buy a condo is a game changer. People often focus on the larger picture (layout, location, aesthetics) and forget to check for smaller issues or flaws. This can lead to a rude awakening after you move in.
Pay Attention to the Small Details When House Shopping
There are so many small details people often miss when they’re house shopping. For instance, not noticing a missing heat register, missing bathroom vent, or uneven flooring. Take your time with showings and look for the little things. If you don’t have enough time, come back for a second showing.
Buying in a High Interest Rate Environment
Buying in a high interest / lower priced real estate market isn’t necessarily the worst time to buy. There are some benefits for those who are in a position to buy. There’s never a "perfect" time to buy, so if you are on the fence, it’s important to weigh the pros and cons of the environment you’re going to be buying in.
Occupancy Fees in Pre-Construction Condos
When you buy a pre-construction condo, you’ll likely need to pay the developer a fee to occupy the unit, which doesn’t go towards your mortgage. Essentially you have to pay rent on a unit you own until the building closes/registers - which can take months depending on the size of the condo building.
What Happens If An Appraisal Comes in Low?
What happens if you buy a property but the appraisal comes back at a lower price than what you paid? In a downward shifting market, it becomes more common to see appraisals not matching the purchase price. A financing condition is critican in these markets, as if your appraisal comes in low, you could be on the hook for the difference in price.
The Cost of Home Ownership
How much does homeownership actually cost? Let’s break down how much your monthly carrying costs could be by using actual expenses. Homeownership comes with tons of revolving fees including property taxes, utility bills, and repairs/maintenance.
When CAN’T you close?
Did you know that there are days that you can’t close on a purchase? If you buy or sell a property, you can only close on banking days, which means no closing on statutory holidays or weekends. Avoid closing Friday’s if you can as well!
Co-ops and Co-ownerships
With housing prices in Toronto being so high relative to the average income, alternative ownership has gained popularity. Co-op buildings and co-ownerships are two common alternative ownership types in the city, but typically require a larger down payment than if you were to purchase a house or a condo.
Toronto Condos That DON’T Allow Dogs
If you have or plan on getting a dog and are looking at purchasing a condo, don't forget to check the by-laws. Some condo buildings in Toronto do not allow dogs, and the last thing you want is to purchase a condo and then find out your dog can't come with you.
Toronto Condos That DON’T Allow Pets
Condo buildings have the ability to prohibit or restrict pets in their by-laws. This is more common in older buildings, but it's critical to check the rules before buying a condo if you do have pets.
What to Expect on a Buyer Visit For a House
Final buyer visits are typically done a few days before closing to make sure everything is in "good working order" if agreed to in your purchase agreement. Doing the visit a few days before closing allows the opprotunity to address any issues and have them resolved before the closing date. For example if the stove is broken or if the curtains that were included in the purchase were removed.
Minimum Down Payment in Ontario
The minimum down payment you will have to pay varies based on the purchase price, your mortgage pre-approval, and the type of property you are purchasing.
Closing Costs
The down payment isn't the only upfront cost you have when buying a property. Closing costs include legal fees, disbursments, land transfer tax, and any adjustments made to the purchase price. Make sure you calculate your estimated closing costs before you start looking to buy so you can ensure you can include the added costs in your budget.
Deposit Scams
With online scams on the rise, it's critical you take precautions to protect yourself when making a deposit for your home purchase. The safest option is always delivering the deposit directly to the listing brokerage, as it mitigates the risk for interception.
Things to Check Before Closing
Unless you bought a property in "as-is" condition, chances are you have a clause in your purchase agreement warranting that appliances (chattels) and fixtures will be in good working order on closing. Don't forget to visit the property before closing to make sure everything is working. Flush the toilets, run the showers, test the appliances, make sure nothing has vastly changed since your offer was accepted.
What is Often Overlooked During the Home Buying Process
Buying a house can feel like information overload, as there are so many things you have to pay attention to. Some commonly overlooked factors are entry closets/coat space, little details like dysfunctional doors and windows. If you are buying on your own, it can be helpful to bring a friend or family member as an extra set of eyes.
Fees to Expect When Buying a Property
What are the fees associated with buying a home? The largest portion will be your down payment. In addition, make sure you estimate the cost of land transfer tax, legal fees, appraisal fees, moving costs, etc. to form an accurate budget for yourself.