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What To Look For
After you come to terms with the financial realities of buying a home, you're ready to start house-hunting in earnest. You know in your heart what you want in a home. It's easy to fall in love with a house because it "feels" right but remember to take a practical look at the property, too.
Important Considerations
- Once you get a good grasp on how much you can realistically afford, be sure to stick with those numbers and look only in the price range that comfortably fits your financial circumstances.
- Consider your future housing needs - are you planning to start a family or have more children? Will you be needing a home office?
- Evaluate the neighbourhood - what's the condition of the other homes in the area? Are property values changing?
- What's the area zoned for and are there any developments that will impact on the neighbourhood?
- How close are you to the facilities that are important to you - schools, shopping, recreational facilities?
- How convenient is public transportation?
What Comes With The House?
Don't assume there is any kind of an "understanding" regarding what's included and what's not - always make it clear in your offer to purchase. List the items you expect will be included. These are referred to as fixtures and chattels. The vendors will counter-offer if they do not agree.
Presenting Your Offer
"Offer to Purchase" is a legally binding agreement between you and the vendor. It locks you into the conditions of the sale as described within, so make sure your interests are protected. Remember that your offer is negotiable, so the vendor may make some changes and present you with a counter-offer, which is also negotiable.
What Else To Include
In addition to basic details such as your name, the vendors name and the legal and civic address of the property you want to purchase, here are some of the items which should be clearly spelled out in your "Offer to Purchase":
- Your proposed purchase price.
- Everything in the house to be included in that price.
- Amount of your deposit - typically about 5% of the purchase price.
- How balance of the purchase price will be paid (i.e. arranging a new mortgage, assuming the existing mortgage, certified cheque, etc.)
- Closing date. This is the date on which the sale will be signed and you will take possession of the home.
- Conditions of the offer. You might want to make your offer conditional on arranging financing, the outcome of a building inspection, the selling of another property or the results of the survey. Make sure the offer can be cancelled if any of your conditions are not met and always put a time limit on the conditions. Keep in mind that a "firm offer" - one with no conditions - is usually more attractive to the vendor but remember that you need to feel comfortable with the offer yourself.
What Happens When Your Offer Is Accepted?
Once your "Offer to Purchase" is accepted, plan on contacting me as soon as possible. Be prepared to provide the following information and documents:
- A copy of the real estate listing.
- A copy of the accepted "Offer to Purchase".
- Income and employment verification (a letter from your employer indicating your place of employment and income level).
- Source of down payment.
- Last years assessment of your income tax return.
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