Expert Advice: Home Inspector & Appraiser

Buying a home can be an intimidating process, so it’s important to have the right people around you to answer any questions you might have along the way. Finding the people you want to work with can make a huge difference to your level of understanding and comfort when purchasing a home.

Home Inspector and Appraiser

Home inspectors check all of the major systems in a home, such as the plumbing, electrical, heating and air conditioning. They’ll also do a visual inspection of the foundation, doors, ceilings, roof, walls, windows, plumbing, ventilation, insulation, sewage system, lot, and garage at the very least. Their services are required to protect your investment and ensure there are not structural issues or flaws in the house that you may not be aware of.

Buyers will often order a home inspection as one of their conditions on the offer to purchase. They are the unbiased eye there to protect you and your investment. It’s important to find a qualified, experienced home inspector because at present, there are no standards for this occupation: anyone can call themselves a home inspector!

First time homebuyers should go to any chapter of the Canadian Association of Home & Property Inspectors when looking for a reputable inspector. They can be assured that these inspectors have some form of training or are en route to the training that each province has designated as required for membership.

You should take caution when the term “certified” is used by home inspectors, as they may have only taken an online exam or two-week home study course and may offer bargain prices. Sometimes first time homebuyers put all their money into their down payment and are picking an inspector based on price, which is not the best way to approach things.

It’s a good idea to interview home inspectors before booking an appointment. Have them explain what they’re going to do and ask them about the length of time the inspection should take. For a single-family home, an average home inspection should take 2 to 2.5 hours. Condos or smaller dwellings will take less time. If anyone says they can do it in an hour, they’re probably not spending the time they should and you should continue looking.

Asking potential home inspectors if they have error and omission insurance is another good idea. It’s used to protect both the home inspector and the buyer should anything be missed. This insurance isn’t cheap and insurance companies don’t issue this type of insurance to just anyone, so you can bet the insurance companies will make certain those inspectors are properly trained.

Also beware of any inspector who doesn’t encourage the buyer to attend the inspection, and would rather the homebuyer show up at the end with a cheque. Good home inspectors will encourage buyers to attend the inspection, since buyers will likely need to learn the locations of major valves and shut-offs in their new home.

In most cases, your lender will hire an appraiser to appraise the value of your home, but it’s also a good idea to have an independent appraiser as well to ensure you’re not overpaying before agreeing to buy the home.

When a lender orders an appraisal, it’s likely the homebuyer will not be able to view the appraisal document, even though they may have paid for it, so you may want to negotiate with your lender and find an appraiser you’re comfortable with, from your lender’s list of approved appraisers.

An appraisal takes about 30 minutes, but it may take about two days to receive the report. To find an accredited appraiser, first time home buyers can go to the Appraisal Institute of Canada’s website or ask for a referral from a Realtor or lender. To ensure your appraiser has experience, you may choose to go with an appraiser with a designation, like that of a Canadian Residential Appraiser (CRA).

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Expert Advice: Mortgage Broker

Buying a home can be an intimidating process, so it’s important to have the right people around you to answer any questions you might have along the way. Finding the people you want to work with can make a huge difference to your level of understanding and comfort when purchasing a home.

Mortgage Broker or Banker

Whether you’ve decided to finance your purchase through a bank or another lender, having a banker or broker who understands your daily cash flow needs and long-term goals is an integral part of the home buying process.

First time home buyers should choose someone they feel comfortable with, because you’re going to be sharing a lot of personal financial information. You need to ensure this person is knowledgeably, unbiased and accessible. Getting a mortgage is a very complicated process and unless you have all the information at your fingertips, it’s very easy to make mistakes by being superficially attracted to things such as an interest rate – you really need a professional who can navigate you through all that extraneous information and get you to what really maters.

A good banker or mortgage broker will provide buyers with an understanding of how a different selection of mortgage products affects their overall big picture. Often, people focus on getting the lowest interest rate possible, but depending on what their future goals are, the interest rate could be secondary.

So where does a first time homebuyer find a good broker or banker? It’s like finding a good mechanic: start asking question of people you know and work with, and look for recommendations.

Most banks have detailed listings of rates and products on their websites. If you choose to go with a mortgage broker, you might want to check the website for the Canadian Association of Accredited Mortgage Professionals (CAAMP). A CAAMP designation means they’re held to a higher standard, have a business code of conduct, and take ongoing training. After that, you’ll want to conduct research on those individuals – see what kind of work they’ve done in the past, and read testimonials about the service they provide. Members who ar not in good standing cannot keep their CAAMP designations, so this is a great reference and tool for first time buyers looking for an experienced mortgage broker.

One of the first things you’ll want to ask your potential mortgage broker is how much access to lenders they have. Most brokers say they have access to all lenders but that’s not always the case. Asking how long a broker and their company have been in business is also a good idea: the longer the company has been active and with a good reputation, the more likely the broker has established relationships with a wide variety of lenders and are more capable of dealing with those lenders on behalf of their clients.

Good bankers and mortgage brokers will ask questions to identify if the mortgage product that’s being obtained is really the best product for the buyer. They should be asking whether the product fits with your short-term and long-term goals, and if it’s going to provide you with the terms and conditions you need to maintain your cash flow and lifestyle.

In addition, a good mortgage specialist should ask about your income: do you get a salary every month, are you subject to commissions, do you think you might be transferred, are you planning to move, what sort of flexibility does your budget allow you for an increase in interest and payments, etc. A good interview with a good banker or mortgage broker will be at least one hour of questions to find out all of your wants and needs when it comes to the mortgage.

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Expert Advice: Real Estate Lawyers

Buying a home can be an intimidating process, so it’s important to have the right people around you to answer any questions you might have along the way. Finding the people you want to work with can make a huge difference to your level of understanding and comfort when purchasing a home.

Real Estate Lawyers

You’ll require the services of a lawyer to protect your legal interests, such as ensuring the property does not have any liens or charges. A lawyer will review all the contracts before you sign them. You’ll also want your lawyer to review your offer to purchase so that you understand what you’re getting into and are able to negotiate the terms.

Lawyers have the knowledge to be able to insert provisions that will protect you. For example, if you’re buying a new single-family home, you want to make sure you don’t have a storm drainage system running through your backyard that’s an easement. A standard agreement allows developers to do whatever they need for the development. However, a lawyer would know to put a clause in that would prevent that from happening.

Regardless of what you purchase, it’s important to have your lawyer put in the offer to purchase that the agreement is conditional upon their review and approval. If you don’t have the clause in the agreement and you have the lawyer review it after you’ve signed, it’s too late. 20% to 25% of first time home buyers use a lawyer only to close the deal, and not while drafting the offer to purchase. Some people would rather save on legal fees and figure it’s a standard agreement, so a lawyer review isn’t really necessary. The truth is every agreement is different, and some newer properties will even have hidden charges that can be missed by people who haven’t been trained in the legal profession.

You wan to make sure you know what you’re buying and you know what your costs are so there are no unpleasant surprises at the closing.

Recommendations are probably the best way to find a good, experienced real estate lawyer. But it is important to do some of your own research and find out what organizations they’re affiliated with and what work they’ve been doing more recently. Law associations can refer you to a lawyer who specializes in real estate or condominiums, specifically, and you’ll want to hire a more experienced lawyer if you’re buying a condominium because the closing process is lengthier.

When deciding on a lawyer, it’s important to find out how available they are, and if they’re willing to educate you. As a first time homebuyer you will have more questions and won’t fully understand the process, so you will very naturally require more time. This should be done over the phone, as most lawyers charge by the hour, so it could be costly to pay for each consultation.

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Expert Advice: Real Estate Agents

Buying a home can be an intimidating process, so it’s important to have the right people around you to answer any questions you might have along the way. Finding the people you want to work with can make a huge difference to your level of understanding and comfort when purchasing a home.

Real Estate Agents

When buying your first home, your Realtor is going to be a key player on your team. They’ll help you find a home, write an offer to purchase, and negotiate the price. But they’ll also act as a guide throughout the entire home-buying process. A knowledgeable Realtor should have an in-depth understanding of the market, familiarity with all neighbourhoods in their region, and can often refer you to other people you’ll need to build your team.

Realtors hear the good, the bad and the ugly when it comes to other service providers a first-time buyer will need to work with. They know who to stay clear of and who has a fantastic reputation.

Because your Realtor will be instrumental in helping you find your first home, it’s important you and your Realtor have chemistry, like any other relationship. They are someone you need to feel comfortable with and have a tremendous amount of trust in. Not all personalities work well together, so you’ll want to find someone who is willing to work as part of a team, with and for you.

It’s a good idea to “test drive” a few Realtors by going out and looking at a few houses very casually and ensuring you’re comfortable working with the Realtor. If that doesn’t suit your schedule, the same rules can apply by phone. Because first-time buyers often take a lot more time than other buyers, you need to ensure the Realtor you choose will be able to give you the time you need. Ensuring they are patient and even looking to build a long term relationship are qualities to look for in your agent.

When you’re interviewing Realtors you should ask them how much time it should take, how familiar they are with the area they’re looking at, what resources they have for first-time buyers, and if they can provide testimonials. A Realtor who has good reputations with clients should have no problem providing these.

A good Realtor will ask if you’ve been pre-approved, what sort of house you’re looking for, which neighbourhoods you’re interested in, how many people are going to be living in the home, where each member of the household works, if you have any kids, what kinds of hobbies or sports they do, if anyone works from home, what your future plans are, and whether they’re looking for a house that can adapt to those future plans.

So now that you know what to look for in a Realtor, where do you find one? There are thousands of Realtors to choose from; that’s why referrals or recommendations are a good place to start. Speak to family members, friends or co-workers who have had a great experience with their Realtor, then meet with them to see if they’re a good fit for you.

First time homebuyers should look for experienced Realtors, who they feel confident will negotiate a good price on their behalf. It’s also important to many people to have a Realtor who you feel genuinely cares about your purchase and your future. A great Realtor doesn’t necessarily have to be someone that’s been around for 20 years: someone who’s brand new on the job could give you 150% of him or herself and might be aware of the market and city as much as someone who’s been around for a long time.

Hiring a top Edmonton Realtor, Calgary Condos expert, Fort McMurray Real Estate agent, or Lethbridge Homes specialist can make a huge difference when you’re buying property in those areas.

Healthy Housing

Research has shown that your housing choice can have a direct impact on your health and that of the environment. When considering a new home or condominium, be aware that some developers are now offering buildings that have been designed to minimize energy use through improvements to wall insulation, the quality of windows, and heating and cooling equipment efficiency.

Not only does this save energy and minimize harmful environmental emissions, it also saves you money now and in the long run.

Developers are also becoming aware that the materials and systems they construct their buildings with can have impacts for your health. For instance, a building designed with a ventilation system for your unit, one that distributes fresh air directly to all rooms and exhausts air from the kitchen and bathroom, can greatly improve the quality of your indoor environment.

Similarly, be aware that materials and finishes used in the construction of your home or condo can have an impact on the quality of your indoor air. Note also that the commuting distance between your home and workplace will have a significant impact on energy use and your budget.

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Benefits of Buying New Homes

For the vast majority of Canadians, home ownership is an important goal – something they dream about, plan for and enjoy achieving. Today’s new homes offer greater value than ever before. If you are considering a home purchase, you owe it to yourself to explore the benefits of buying new.

Everything is new.
It is hard to describe the feeling of “new”. Simply enjoy it – along with the knowledge that everything is chosen by you to fit your lifestyle and your preferences.

Totally up-to-date construction.
A brand new home is built to the latest codes and standards, using modern building practices, products and technologies. For you, that means solid, lasting quality throughout – both what you can see and what you cannot. Energy efficiency to keep your costs down. A comfortable living environment. A home that’s easy to take care of.

Financial predictability.
Buying new makes it easier to manage your household budget. You know what your fixed housing costs are, and you do not have to worry about sudden expensive housing repairs or replacements for many years.

After-sales service.
Once you are in your new home, you still have back-up: your builder is only a call away if you have any concerns or questions. Professional builders have a customer service program and established follow-up processes, and will tell you clearly what to expect after move-in.

Warranty.
Professional new home builders provide a warranty on their homes, which is a great reassurance for new homebuyers. In addition, many of the products used in the home are warrantied by the manufacturers beyond the lifespan of the builder’s warranty.

Open The Door To Your New Home

Get the facts and consider whether you want to purchase a new home instead of a resale home, and you could enjoy the long-lasting benefits of a brand new home, today and for a long time to come.

When you are ready to purchase a new home, one of the first steps is to take a close look at the builders in your community. Who you buy from can be almost as important as what and where you buy. In fact, some would say it is even more important!

Your new home buying experience and your satisfaction with your new home rely on finding the right builder. The web site of your local Canadian Home Builders’ Association is a great place to begin. Use the “Find a Member” tool to get the names of professional new home builders in your community. Many members have links to their own websites so you can quickly get a first impression of the whole company, the types of homes they build, and their range of services. This will help you zero in on builders that are a good fit for you and your family.

When visiting builders’ websites, look at the homes and the communities they are building in and note what else they tell you about their homes, their values, services, experience and so on. If you like what you see and read, take the next step and visit the builder’s model homes or call them for an initial discussion.

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Buyer Conditions: What They Are and What They Mean

What is a Condition?

A condition is an event that must occur before the contract proceeds. For example, you may make it a condition of your offer to purchase that you obtain financing to complete the purchase. If you get the financing in place, then you will proceed with the purchase. If you don’t get the financing, then you will not proceed.

A condition is also commonly referred to as a “Condition Precedent” or a “Subject To”.

Example Buyer Conditions

• Subject to a buyer obtaining financing.
• Subject to a property inspection.
• Subject to a buyer’s lawyer’s approval of the agreement.
• Subject to the sale of the buyer’s existing home.

What is a Condition Removal Date?

The date and time by which you must remove your conditions. For example, where the buyer must obtain financing by May 21, 2011, then May 21, 2011 is the Condition Removal Date. If you need more time to deal with your condition, you can ask your builder or seller for an extension.

How Do You Remove Your Conditions?

You must remove your conditions in writing and notice must be given to the seller. This is called waiving or removing your conditions. If this is not done properly, it can result in the end of the contract. That is, if you forget to send the seller or builder notice that you are removing your conditions, you may not be able to complete the purchase of the property.

What Does It Mean When You Have Removed Your Conditions?

Once you remove the conditions, the agreement is firm and unconditional. You must now complete the purchase transaction or possibly risk losing your deposit and being liable to the seller.

What If You Can’t Remove Your Conditions?

If you have made efforts to remove the conditions, but you are not able to do so, then you don’t need to do anything. The contract will lapse if the conditions are not removed in writing by the condition removal date.

You must take steps to try to satisfy your conditions and if not a court could make you complete purchase. For example, if your offer is subject to a property inspection, you must actually get a property inspection done. If your offer is subject to financing, you must apply for financing promptly and make reasonable efforts to obtain it.

Remember every purchase agreement is different, and this is meant to be a general guide on what is seen most often.

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Impact of School Zones on Housing Prices

Finding a good school is paramount to a child’s success. But sourcing a neighbourhood linked to a good school system can also have real estate benefits.
Article from Canadian real Estate Magazine

Any parent knows how fast priorities can change. It’s no longer just about you, but suddenly your children have taken top spot in your life. So when the time comes to move out of that apartment or to add an extra bedroom, your decisions often flow around what’s best for the children. As a first-time homebuyer, either with children or who plans to have them soon, you usually look for a comfortable home in a nice neighbourhood, but close to a great school.

Those areas with great schools get a lot of attention from potential buyers, especially families, who all clamour to live close by. Prices are almost always higher near good schools, but that also means there’s likely always going to be strong demand. Even in a slow market, parents will always want those properties nearby good schools.

Of Toronto’s 24 north suburban zones, for example, five zones have at least one school within its borders ranked in the top 25 by the Fraser Institute, an independent Canadian public policy research and educational organization. While there may be other factors, all five of these zones with top schools had a median home price of about 6% higher than the overal median of the north suburbs.

That translates into a good investment. Neighbourhoods with good schools are more consistently priced priced and higher in value because the demand is higher: some people will even move from area to another in the same locality, just to change schools.

Highly ranked schools have a clear influence on home prices and area demand, especially in areas with a good elementary school that feeds into a top secondary school. For example, students attending Kennedy Public School would normally attend Dr. Norman Bethune secondary school, making it a prime choice for parents. And even if the overall market demand softens, homes in these areas will often still sell with multiple offers.

How to find the top schools

Finding the best neighbourhoods is not a simple task that can be done with a few Internet searches, however. Even if you’re a local, it’s not always easy to know where the best schools are in Canada. Canadian school districts don’t declare which schools have the best rankings – you have to figure it out on your own. Typing a search for the best Toronto schools will give you minimal results: some top real estate agents will sell reports ranking the top schools, but the best option is the Fraser Institute’s report cards. While this report doesn’t cover all of Canada, it does rank public and private schools on a scoring system for British Columbia, Alberta and Ontario.

The rankings can be a good first step for homebuyers, and also can indicate whether a school is improving or declining over time. For example, it showed that in the Greater Toronto Area, the Markham area had nine properties ranked in the top 25 by the Fraser Institute’s most recently published report. no other district in the GTA had more than three.

Tempering desire with your budget

It’s important to understand that many of these top neighbourhoods also come with higher price tags, so buyers might have to make some concessions, either in their budget or in the location.

It’s the same story in Vancouver. Some of the best schools are located in the city’s west side; the prices, however, can be prohibitive for most first-time homebuyers. Buyers willing to get outside of the area can still find affordable housing near good schools. Maple Ridge, Richmond and Surrey all offer some of the top-ranked schools in British Columbia, according to the Fraser Institute’s report.

Interested in learning more about great schools in the Fort McMurray Real Estate market? Check out a full listing of all the schools in Fort McMurray or search for Fort McMurray Homes by community.

What Type of Home Might Be Best For You?

In every city there are an abundance of different types of homes – single-family homes, townhomes, row homes, duplexes, fourplexes, and condominiums of all shapes and sizes… the options are seemingly endless! If you’re about the go through the home-buying experience, particularly as a first time home buyer, you’re sure to have a lot of questions about which tupe might be best for you.

Types of Homes

Single-Family Detached
A single-family detached home is a one-dwelling unit. It stands alone, and sits on its own lot. This often gives the family a greater degree of privacy.

Single-Family Semi-Detached
A semi-detached home is a single-family home that is joined on one side to another home. It can offer many of the advantages of a single-family detached, but is often less expensive.

Duplex
A duplex is a building containing two single-family homes, located one above the other. Sometimes the owner lives in one unit and rents the other.

Townhouse or Row House
These homes are several similarly styled single-family homes that are side-by-side and joined by common walls. They can be freehold or condominiums. They offer less privacy than a single-family detached home, although each has a separate outdoor space. These homes can cost less to buy and maintain, even though some are large, luxury units.

Stacked Townhouse
Stacked townhouses are usually two-storey homes. Two of these will be stacked on top of one another, and the buildings are usually attached in groups of four or more. Each unit has direct access from the outside.

Link or Carriage Home
A link or carriage home is joined by a garage or carport. The garage or carport gives access to the front and back yards. Builders sometimes join basement walls so that link houses appear to be single-family homes on small lots. These houses can be less expensive than single-family detached homes.

Forms of Ownership

Freehold
This means that one person (or two, such as joint ownership by spouses) owns the land and house outright. There is no space co-owned or co-managed with owners of other units. Freehold owners can do what they want with their property – up to a point. They must obey municipal bylaws, subdivision agreements, building codes and federal and provincial laws, such as those protecting the environment. Detached and semi-detached homes, duplexes and townhouses are usually owned freehold.

Condominium
Also known as strata, condominium ownership means you own the unit you live in and share ownership rights for the common space of the building. Common space includes areas such as corridors, the grounds around the building, and facilities such as a swimming pool and recreation rooms. Condo owners together control the common areas through an owners’ association. The association makes decisions about using and maintaining the common space.

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4 Essential First Time Home Buyer Tips

One of the most common first time home buyer questions is affordability. Here are four ways to help make your home buying experience smooth and straightforward.

1. Understand Your Financial Situation

Your financial needs will change and evolve throughout your life. Working with a trained professional to understand your current financial situation and your future goals can help you assess what type of home you can afford.

2. Ask About Your Credit History

A credit rating is a measure of how dependable you are in repaying your debts. A good credit rating goes a long way in helping you obtain credit and determines the interest rate you will receive. For example, if you pay your bills on time or repay a loan, you will be in good standing with the credit bureau. So, when it’s time to borrow, a lending institution will know that you are credit-worthy.

3. Get Pre-Approved

By getting pre-approved, you will know how much home you can afford, which will allow you to shop with confidence within your price range and prove to sellers you are a serious buyer. Plus, obtaining a pre-approval is absolutely free.

4. Ask About Extended Amortization

The extended amortization feature is available on most mortgage products. The feature provides homebuyers the flexibility of lowering their mortgage payments by spreading them over a longer period of time, helping to ease budget and cash-flow issues. But keep in mind that by extending your amortization, you will increase the amount of interest that makes up your mortgage payment. Given this, it is important to choose a mortgage that allows you to increase your payments and make lump-sum payments when you can.

If you’re a first time home buyer shopping for Lethbridge Homes, the best place to start is with an online Lethbridge MLS Search from a respected Lethbridge Realtor website.