Question 1

What do I need to know when buying a property?

Accepted Answer

As a homebuyer, you must already know your goals—settling down with family, real estate investments, flipping, and rental investing.

When it comes to financing, it’s crucial that your credit rating will be able to qualify for mortgage loans, your budget, and most importantly, your ability to commit long-term to paying the property.

Other things you may need to do may include having a basic knowledge of the legal proceedings for purchasing the property and purchasing requirements.

Question 2

What’s the difference between a condo and a condo townhouse?

Accepted Answer

Condos and townhouses can seem very similar to each other. However, they are a little bit different in terms of ownership.

In a condo, you only own the unit, while in a condo townhouse, you are the owner of the house's exterior and interior as well as the land it is situated on. As a result, the homeowner is in charge of all maintenance requirements for the building on the interior and outside.

Question 3

What should I look for in a mortgage broker?

Accepted Answer

Homebuyers typically look for affordability in mortgage rates, other offers that come with the service, as well as the affordability of terms and closing fees. Also look for a mortgage broker with a good track record and a friendly personality.

Question 4

How much should I pay an agent to buy a property?

Accepted Answer

Agent commissions typically range from 4% to 6% of the property’s sale price, with the brokerage and the sales agent each receiving a portion of this sum.

Question 5

What credit score should I have to buy a property?

Accepted Answer

As of this writing, the required credit score to buy a property in Canada ranges between 620 and 680 to get pre-approved for a mortgage. In 2021, on the other hand, you will need a credit score of 650 to get a mortgage from a standard lender. In any case, to get a higher chance of qualifying for a mortgage loan, you'll need a credit rating of 650 or above.

For more assistance regarding this matter, please feel free to contact us.

Question 6

How much of a down payment should I have ready?

Accepted Answer

For a standard down payment, the home buyer should prepare 5% to 20% of the property’s sales price. However, to get an accurate down payment estimate, please get in touch with us today.

Question 7

How many properties should I view before I decide to buy?

Accepted Answer

Most home buyers will view around five to ten properties and narrow the choices down to around two or three that will suit their budget and criteria before finally deciding to buy a property.

Question 8

What happens if my offer is rejected?

Accepted Answer

Assess the reason why your offer was rejected. Is your offer too low? Is your credit score not catching up? Did you already get pre-approved for a mortgage? If you can change some of the requirements and can make a counter-offer for negotiations, you might need to do some of those to get your offer accepted the second time around.

Question 9

Should I ask for a home inspection?

Accepted Answer

Home buyers ask for a home inspection to learn more about the property and get a chance to verify if the home's facts are true as the seller says they are.

A home inspection can also be a way to negotiate the property sale price if there are defects found.

Question 10

Should I do a final walkthrough?

Accepted Answer

It depends on your judgment. If you’re already content with the property’s verification during the home inspection, you need not do a final walkthrough.

Final walkthroughs are there to give homebuyers the chance to evaluate the property during the last tour before the formal closure. The buyer and their real estate agent can tour the home room by room during the final walkthrough.

Question 11

Why do I need an agent’s help to sell my home?

Accepted Answer

There is a reason why most home sellers want to work with an agent rather than sell the property on their own, despite the hefty commission fees. First, it’s easy to market because of the wide reach of potential buyers that an agent can employ. Second, you will have fewer headaches when dealing with the overall selling process. Thirdly, agents are expert negotiators, and they can work throughout the selling process for your best interest.

Question 12

Should I stage my home? Will it make a difference?

Accepted Answer

Home staging, if done right, will make a difference. Home sellers only have one goal when they stage their homes—to increase the sales price by making a few tweaks here and there. If you think you can still increase your home’s value by improving curb appeal, decluttering, and deep cleaning, then you should stage your home.

Question 13

Should I sell my home first before buying a property?

Accepted Answer

It always depends on your situation because you’re both a home seller and a potential home buyer here. If you plan to buy a home with already established financing and have been pre-approved for a mortgage, and you’re not in a rush to sell your home, then you’re free to buy a new property. However, if you solely rely on financing the new property with the money from the property you're looking to sell and haven't been pre-approved for a mortgage yet, then you'd better sell the home first before buying a property.

Question 14

Should I set up an open house? Do these even work?

Accepted Answer

In most typical cases, the home seller and the real estate agent should coordinate with each other. It’s not necessary to hold open houses for every interested buyer, but you can narrow it down to those with the potential to actually buy the property. Furthermore, with the emergence of technology, most home sellers and real estate agents now resort to virtual tours of their homes. It’s easy and less of a hassle.

Question 15

What should I fix before getting my home ready?

Accepted Answer

Most home sellers typically look at subtle details in the home that are most frequently in use, such as the sink, faucets, loose tiles, knobs, damaged light switches, and scratches on walls, cabinets, and countertops. These types of fixtures are caused by wear and tear that plays a big role in the home’s functionality and, if not fixed, could actually affect the home’s overall asking price. So, if you have the means to repair these fixtures, you should do so if you want to sell your home for top dollar. Besides, this won’t cost you much.

Question 16

What safety protocols, such as COVID-19, should I have in place?

Accepted Answer

Social distancing and wearing masks still work best to follow health safety protocols. Furthermore, everything is now done digitally—property inquiry, home viewing, and document processing, with the need for an in-person meeting occasionally. So this limits the need for face-to-face meetups.

Question 17

Will you represent the buyer also?

Accepted Answer

Yes, we represent both buyers and sellers in our brokerage. Please contact us to assist with your inquiries further.

Question 18

Why my property isn’t selling quickly?

Accepted Answer

That depends on a number of factors. It could be the season where you’ve put the property on the market; it’s just not a good time to buy because of high interest rates; it could also be that it’s too expensive, has a lot of home defects, or could be that it belongs to a neighborhood where real estate investments can’t even break even. To assess your property concerns thoroughly, having a hearty talk with your agent will never go wrong.

Question 19

Can I use videos or a virtual tour?

Accepted Answer

Yes, absolutely. Properties with real estate videos are proven to have received 403% of inquiries and sell faster. Virtual tours are even better than hosting open houses.

Question 20

Do you disclose offers to other interested buyers?

Accepted Answer

Yes. At CiRealty, communication is very important to us. However, if you have concerns with the property’s price disclosure, please communicate with us first-hand.

Question 21

Is this a good time to buy or sell a property?

Accepted Answer

With interest rates continuing to rise, it could be the best time to buy or sell a property while the market remains buoyant. As per the seasonality, the ideal time to buy a house is from October through February due to low demand over the holiday season. Buyers can find homes at better prices during these months, and there is more room for haggling with the seller. On the other hand, the spring season through early summer is the worst time to purchase a home because of the high housing inventory, which raises demand and property prices.

Question 22

What makes a good real estate agent?

Accepted Answer

Aside from a strong track record, knowledge, skills, and expertise, an excellent real estate agent should also possess a good personality, be reliable, true to their word, and approachable. You can think of it as someone who can be your friend outside of business matters.

Question 23

Who pays the land transfer taxes?

Accepted Answer

As soon as the buyer gains property ownership, land transfer taxes become due. The land transfer tax is not a recurring expense like property taxes; you only need to pay it once.

Question 24

How much does it cost to use a real estate agent?

Accepted Answer

Real estate agents are typically paid a commission of around 5% of the home’s sale price.

Question 25

How will interest rate hikes affect me as a buyer?

Accepted Answer

Interest rate hikes can be a double-edged sword because, as a home buyer, you’ll get to benefit from the rising home prices. However, it can be difficult to finance homes as mortgage interest rates can go as high as 5–7% with the Federal government dramatically raising borrowing costs.

Question 26

How will interest rate hikes affect me as a seller?

Accepted Answer

As a home seller, interest rate hikes may cause your home's sale price to drop because of lower demand for goods and services. Therefore, it may be too costly for home buyers to borrow just to finance a property, which in the first place could drop eventually, meaning losing on a real estate investment or home’s value.

Question 27

What should I look for in a mortgage broker?

Accepted Answer

It’s best to work with a mortgage broker you feel comfortable with. Besides personality, choose a mortgage broker who can help you out with interest rates, even going the extra mile to provide tailor-made solutions to suit your needs and help you get your dream home. Also, look for brokers with comprehensible terms and conditions and who can be honest upfront regarding other fees.

Question 28

What should I look for in a real estate lawyer?

Accepted Answer

Similarly, when looking for a mortgage broker and real estate agents to work with, also choose the same qualities and credibility when it comes to experience, expertise, and track record as a real estate lawyer. Settle with a real estate lawyer who’s worth every penny.

Question 29

What if I’m not happy with a service?

Accepted Answer

Be honest and talk to your real estate agent, mortgage broker, or real estate lawyer. If there’s a misunderstanding, talking would be the sensible option to resolve the problem. However, if the problem is beyond simple misunderstandings, you can choose to end the service instead.

Question 30

What should I look for in a staging service?

Accepted Answer

It’s best to look at the home stager’s portfolio and consider their pricing. Ask about their home staging package and inclusions. Assess if they’re a good fit to work on your home and be able to help you achieve your goal.

F.A.Q

Buying A Property

Selling Your Property

General Real Estate