Ultimate Buyer's Guide : simplebooklet.com

HELLO Laying the groundworkFinding your homePurchasing your home. Closing and Moving Welcome to the GoWylde Buyer’s Guide. We are excited to share the blueprint forpurchasing a home. This guide will make your home-buying experience less stressful andmore rewarding, making you feel professionally prepared. Buying a home will involve manymoving parts, but we will help you feel more confident and ready to start growing yourwealth in real estate. There are four steps to purchasing a home, and this guide will help you execute each. Your most significant risk in buying real estate is ignorance; your most importantopportunity is knowledge.

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Congratulations on exploring buying a home. Laying this solid groundwork sets the foundationfor a successful real estate journey. One of the first questions to ask yourself is whether buying a home, investment property, orupgrading to a new home is the right decision. Next, do you have a home to sell? Should yousell first or buy first? Having a team of experts will be crucial in guiding you through theprocess.Is buying a home right for you?Real estate isn’t suitable for everyone. Perhaps you should keep renting and purchase at alater point. Maybe you should renovate your home instead of buying. Let’s explore theoptions.LAYING THE GROUNDWORK Financially, you can not secure the money to purchase a homeYou are thinking of moving out of the area next yearYour present job is volatile, and there is a high risk of getting a layoffYour health is poor, and owning a home could be overwhelming in your currentpositionYou have equity (bank, stocks) and stocks that barely keep up with inflation.You plan to stay in the current area for three years or longer. Besides buildingwealth, you want stability.You like the flexibility of renovating and don’t like the restrictions of renting. You are looking to generate a passive income (investor).There are pros and cons to buying a home. Sometimes the decision to rent may be theright decision. Reasons renting may be better.Reasons purchasing a home may be better.You can explore more information on whether you should rent or buy; just click here.RENTING VS BUYING

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Is this something I could change by renovating myhome, and how much would it cost? For example, if Ihate the closed layout, could a renovation open thehouse? If I need more space, could I finish thebasement or do an addition to give me the extra space? With the things you love about your home, ask if youwould be able to find a home with those features. Forexample, if I love my neighbour, it is unlikely that youwill be able to find a home with your new desire andstay on the same street, close to your existingneighbours. This process can help clarify whetherrenovating or moving is right for you. Renovating can be a viable option instead of moving. Listwhat you don’t like about your home and what you enjoy.Looking at the things you dislike, ask yourself the followingtwo questions:1.2.Still not sure? You can explore more here... RENOVATING VERSUS BUYING

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BUY OR SELL FIRSTShould you buy first or sell first? Both options have some advantages andrisks. It will come down to what is happening in the market, your financialsituation, how in-demand your house is, and how available it is once youwant to purchase. If you choose to buy first, the benefits are that you know exactly where youare moving to, and you do not have to worry about being unable to find ahouse. In a strong seller's market, you may not be able to put in a sale ofproperty condition if your home doesn't sell in time, you may have to carrytwo homes or, worst, not be able to close on the purchase. In a balanced orbuyer's market, you can put in a sale of property condition, which eliminatesthe risk of owning two properties. The downside of a sale of propertycondition is that you may lose that home if another offer comes in on yourpurchased property. On the other hand, if you decide to sell first, the benefits are that you knowexactly how much money you have for purchasing your next home, and youhave the reassurance that you will not end up carrying two properties.However, you might have to make a double move if you don't find a newhouse before moving out. Buying a home in a strong seller market is morecomplex, and it is generally easier to find a property in a buyer's market. Here are some things to consider when deciding whether you should buyor sell first:1) What is your financial situation? Can you carry both homes? 2) How unique is the property that you are looking to buy? If tons of them areon the market, you shouldn't have a problem finding a home. If what you arepurchasing is unique, you might want to buy it first if you are financially able. 3) How fast are similar homes in your price range & neighbourhood selling? Ifyou have a "hot property" that will sell within a few days, you might feelcomfortable buying first; otherwise, it may be risky.

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HIRING A REALTORHiring a realtor can protect you from costly mistakes and help you buy the righthome. Click here to find out how a realtor enables you to find a property. Youmust have an EXPERIENCED agent helping you navigate this tricky buyers’market. Here are some important considerations when selecting a realtor. 1. What experience do they have in your specific area?2. How are they going to help you find your home?3. What separates them from any other agent out in the marketplace?4. What kind of negotiation skills do they have? It is a good idea before committing to go with a realtor that you do oneshowing to get to know them a little better and understand their skillset. If youare interested in some red flags about a realtor, click here

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The first step to buying a home is determining how much you can afford. You cango to the bank/mortgage broker to get preapproved. They will review yourassets/debts and employment information and give you an idea of what you canspend on a house.Why pre-approval is essential. A pre-approval will inform you how much money a bank will loan you—looking athomes you can't afford wastes your time. On the other hand, you don't want tomiss out on the house you could afford if you underestimate the amount of money.Pre-approvals can lock in the lower rate in times of rising mortgage rates for acouple of months. Sellers also want to know if a buyer is preapproved when theysubmit an offer on their property. Buyers need to be aware that just because theyare preapproved does not guarantee that the lender will give them the mortgage.If the buyer's income, debt, or credit changes from preapproved to closing, thelender may refuse to provide the mortgage. SECURING FINANCING Options for obtaining Financing1. Mortgage brokers - competitive rate and will search many options.2. Banks - are competitive, and they are familiar with you. Sometimes their rules arestricter, and you may qualify for less. 3. Credit Union is similar to banks but doesn’t have as strict rules. 4. Private Lenders - They have higher interest rates but are suitable for people with poorcredit scores or investors who have reached the maximum properties allowed by traditionallenders. Selecting The right lenderPicking the right lender can be the difference between getting your dream home and not.You want to ensure the lender has lots of experience and connections within theirorganization or industry to get things done. They are organized and can provide fast pre-approvals. If you have selected an experienced realtor, they can connect you to those whoexcel in this area.

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Location: Selecting the right neighbourhood is crucial toyour home's enjoyment and future resale value. Look forcommunities that possess the following fivecharacteristics: Schools - Many families will select a neighbourhoodbased on the quality of the schools in the area. TheFraser Institute is a great source to determine specificschool rates.https://www.compareschoolrankings.org/ Amenities - Look for areas with stores,entertainment, and healthcare. Crime rate - Low crime rate is important to everyone,particularly families or the elderly. Most policewebsites have detailed crime rate information. Growing/Decaying - Are a lot of new buildshappening in the neighbourhood? Are peopleinvesting in their homes? Are there new businessesopening? If yes, this is a growing and good area tobuy a house. You should make a list of your needs & wants. A generalidea of what you want is good, but don't get too caught up inthe "must-haves" list. Remember to keep an open mind.1.a.b.c.d.DETERMINING YOUR CRITERIA FOR YOUR HOME

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2. Your lender will qualify you for the loan amount.Understanding your monthly expenses helps determine yourprice range. Stretching your finances to the degree of themortgage can be a mistake. 3. Condition of Property. How much work are you willing todo, from minor repairs to more extensive structural repairs? Bydoing intelligent renovations, you increase your property'sfuture resale value. 4. Features: bedrooms, baths, number of units, parking, etc. Itis essential to distinguish your needs from your wants. Needsare the features you must have. For example, you may need amain floor bedroom if you have someone who can't do stairs.You may want an ensuite with a soaker tub, but it is not anecessity. Your search criteria should have only your needs toprevent you from missing out on a great home. Go house hunting! Have your agent take you throughmultiple houses/open houses. Remember, it is good tocheck out various homes to get a feel for which you prefer. When you see multiple homes in a few days, they may blurtogether. To ensure that you remember things clearly, it's agood idea to carry around a clipboard and write down thethings you like & dislike about each home.

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FINDING INFORMATION THEREALTOR DOESN’T TELL YOU Drive by the home at various times of the day. You may find certain hours that thestreet is busy or noisy. It is also an excellent way to see who the neighbours are.Go to www.housecreep.com; it will tell you if any stigma has been reported againstthe property, like a meth lab or a murder in the home.Google the address and see if anything comes up, like a fire, murder, etc.Some cities, like the City of Guelph, have permit searches so you can see if there areany open permits. Once you have found a desirable home, you can take extra steps to mitigate any surprises. 1.2.3.4.

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With your realtor’s guidance, decide upon the price, closing date, conditions, andinclusions you will offer. Your realtor will be able to show you comparableproperties to help you with pricing. Your offer will be presented to the sellers byyour realtor. The sellers will either accept, decline, or sign back. Once the offer isaccepted, it will either be firm (no conditions) or conditional (has conditions suchas home inspection, financing, or insurance.) In a hot seller’s market, offers aretypically firm unless the home has been on the market for a long time.How long does the seller have to respond to my offer?On the offer, there is an irrevocable time and date. This date is the time the sellerhas to respond to your offer. The seller may have requested a specific time on theSeller's direction. The type of market and your strategy will dictate when the besttime to ask for this is. Remember that just because you ask for 24 hours irrevocablydoesn’t mean the buyer will give you that time. If you don’t respond within theirrevocable time, the offer becomes null and void; you no longer have the right toaccept it.What is the deposit, and when is cashed? The deposit is a down payment on the house. The amount of the deposit variesdepending on the area and the price of the home. The desired deposit amountusually is included on the listing. As a buyer, you can give another amount. Theseller often views a larger deposit as the buyer having better financial stability. Thedeposit is submitted with the offer or delivered within 24 hours. Have the money inyour bank account as the cheque can be cashed at any time. If you don’t submitthe deposit, the seller has the option of selling the home to another buyer, but thatlegally does not get you off the hook for owing the deposit. If your offer hasconditions and your conditions are not met, the deposit is returned, and the offerwill be null and void for the majority of standard conditions. The deposit is usuallyheld in a trust account by the seller’s lawyer and goes toward the purchase priceof your home. MAKING AN OFFER

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Chattels & fixtures will be in good working condition on the closing date.,The right to have a specific number of walkthroughs, The home is in broom-clean condition No hidden defects exist and no previous illegal activity. What clause should be in the offer?There are clauses and conditions. A clause states an action, warranty, orrepresentation. Some standard clauses are 1.2.3.4.Conditional clauses allow the buyer or seller to do further due diligence,and if they are not happy with the results, they can end the contract and gettheir deposit back. The two most common conditional clauses are financingand home inspection. In a very hot seller's market offers will often have noconditions. Specific properties will have additional standard clauses and conditions,such as rural, tenanted, and condominium properties. As a buyer, you canhave a few or as many clauses/conditions as you want. From a seller’sperspective, the fewer clauses/conditions, the offer is more favorable. What if they don't accept my offer?When the Seller reviews your offer, they have three options; accept, reject,or sign back. If the offer is accepted, the home is either sold firm (nocondition and the buyer is committed to close) or conditional sold (there areconditions and the buyer may end the contract if the conditions are not metto their satisfaction). If they reject the offer, the offer is null and void. There isnothing stopping you from submitting another offer. When a seller rejects anoffer it is usually an indication that the Seller believes what they are willing toaccept and what the buyer has offered are too far apart to reach anagreement. When the Seller gives you a sign-back. It is now back in yourcourt and you can either accept, reject, or sign back to them. This processcan go back and forth until one party either accepts or rejects the sign-back.

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Single or Multiple OffersThere are a couple of different routes to take depending on whether there is oneoffer or multiple. When there is a single offer, you may come in lower than you expectto pay and put more conditions in the offer. There may be more negotiation back andforth before an offer is accepted. By contrast, when there are multiple offers placed,you come in with your best offer because you may not get a 2nd chance.Accepted Offer, now what?You are almost at the home stretch! If the offer has conditions it will now be the timeto fulfill those conditions within the term that was agreed upon. Your accepted offerneeds to be sent to your lender if conditional on financing. Home inspections willneed to carry out. If the deposit has not already been given to the seller's realtor itwill be required now.

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INSPECTIONS In your offer, you may have requested the right to conduct one or more inspections. The mostcommon inspection is a general home inspection. If your home is a rural property you mayalso ask for a septic inspection and well inspection. Your realtor can refer you to trusted inspectors and help you book the appointments. You willreceive a report of the inspection. A home inspection can contain a long laundry list of futuremaintenance items, this is normal, and you are really looking for the more serious expensiveissue with your home. It is good for you to be present at the inspection to understand betterthe deficiencies in your home. If there are serious unexpected issues you can ask the seller tofix them, ask for a discount, or walk from the deal. You do not have the right to do aninspection unless it is specified in the purchase agreement that you have the right to conductone. A septic system and well system are expensive items to have to replace, so it is a good ideato perform these inspections. Other inspections that are sometimes done are WETTinspections (wood-burning fireplaces), pool inspections, and termite inspections. Inspectionsare normally at the buyer's expense and paid prior to the inspection being completed. Other Conditions For financing, you will meet with your bank or mortgage broker who will walk you throughsetting up a mortgage. If you are putting less than 20% down, you will need to get anappraisal to ensure the home is worth the value of the mortgage.

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Most of the time, the offer will have a clause for 1 to 3 walkthroughs. You canask for as many as you want but remember, walkthroughs are inconvenient toyour seller, so you should limit the number. A walkthrough is a viewing of your property, not an inspection. If you discoversomething missed at your home inspection or didn’t do a home inspection,you will typically be out of luck getting the seller to repair it or compensateyou for the item. However, if it happened after you purchased the home orwas intentionally hidden from you, this may allow ramifications.WALK-THROUGH The final walkthrough is typically done a day or two before closing.Please check all appliances/ equipment (lights, taps, ice cube/waterdispensers, shower/tub, etc.) to ensure that they are the sameappliances/ equipment as the ones noted on your contract and are inworking order. Make sure all included curtains/ window coverings are still there (ifincluded in the offer)Check for damage since you purchased the home (cracked windows,wall holes, etc.). Note: Holes larger than a coin in the walls should berepaired by the seller(s); however, they need only be patched, notpainted.Home inspections and appraisals do not count as walkthroughs. Theseller should know if you bring a contractor through the home on oneof your walkthrough visits.FINAL WALK-THROUGH

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APPRAISALMany lenders will do the appraisal after the financing condition has been waived.There is no need to panic; this is very common. Don't be surprised if the appraisal isdone only a few days before your house is closed. As a buyer, you do not go to theappraisal and typically will not even hear the results. If the home you purchaseappraises lower than your purchase price, you have a couple of options. The firstthing is that the lender can challenge the appraisal, and the next thing would be toorder a second appraisal. If the appraisal was conducted during the financialcondition period, you could try to re-negotiate the price. Lastly, you can determinethe difference between and increase your down payment. In a seller's market whereprices are rising, it is less likely for an appraisal to come in low than in a marketwhere prices are declining.

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COST OF BUYING A HOUSEDeposit: The buyer must submit a deposit within 24 hrs of acceptance, typically tothe listing brokerage. Deposits vary by region; in Guelph, an averagedeposit is 4% but ranges from 3% to 5%. The seller will typically have thedesired deposit amount on the listing. The buyer's offer will contain thedeposit amount they are willing to give. A higher deposit is morefavourable to the Seller. If the deposit is not received within thespecified time, the buyer is considered in breach of the contract, and theseller can walk away. Home Inspection: A home inspection costs around $300 to $600 in Ontario. Rural Property Inspections: Septic Inspection: $300 to $500Well Inspection: $300 to $500Down Payment:You will need this money for closing. The minimum down payment formost lenders is 5%. If you put 20% or more down, you do not need to paymortgage insurance.Appraisal Fee: Most lenders will require an appraisal of the house you purchase to verifyits value. The appraisal cost ranges from $300-$700. Many lenders willcover the appraisal fee.

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Cost of Hiring a Moving Company: This can vary significantly depending on how much furniture you moveand if you want packing services. The average movers' cost for two menand a truck is between $90 and $120 per hour. Below are three localmoving companies that can provide you with free quotes:Macho Movers www.machomovers.caSwan Moving and Storage: www.swanmoving.comMike the Mover: www.mikethemover.ca Lawyer Fees: $1250 -$2000 + HST for the buying side. You will also have to pay titleinsurance ranging from $250 to $2,000. Mortgage Insurance:If you make less than a 20% down payment, you must pay mortgageinsurance. Usually, premiums range between 0.5% and 2.75% of theprincipal. This additional cost will get added to your mortgage amount.Land Transfer Tax:

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CLOSING DAY Closing day is the first day you can move into your home. If you are moving in on theclosing date, your home can close any time before 6 pm. Please plan on moving inthe late afternoon. If you have hired movers, it would be best to hold off the moveuntil the day after closing.Whether you move in or not on closing day, you or your representative should checkall your appliances and equipment to ensure they are in working order. Ensure thateverything that was to be left is actually in the home and there isn’t anythingdamaged. If there is a problem when you move into your home, you shouldimmediately contact your lawyer. It is essential that you let your lawyer know onclosing day. If it is after hours, email them, so you have a record of notifying themon closing. It is an excellent idea to let your realtor know as well. Create an “essentials” box for the day of the move (i.e. light bulbs, toilet paper,beverages, tissues, etc.) Ensure that your mobile phone is charged and that youhave the charger.If you have pets, please arrange for their care during the move. Moving can be avery stressful time for pets.

Ultimate Buyer's Guide

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