Real estate is always evolving, which means that our knowledge must continuously be tested with new scenarios which produce new questions and which further demand us (Realtors®) to equip ourselves with new answers. To combat this, I have crafted this thread to help answer some of the most common questions in brisk fashion! With that being said, the realm of real estate is a massive topic and each particular subsection has its own quirks, caveats, and unique characteristics, so below I have decided that this particular thread will focus on general questions regarding the home buying and home selling processes.
“What is the first step of the home buying process” and “what is the first step of the home selling process?”
The first step of the home buying process is getting pre-approved for a mortgage, which remains a smart move in any market because you’ll know your budget, it shows sellers you are serious and financially ready to move forward, and can help you act fast in a competitive Ontario market! The first step of the home selling process is scheduling a home evaluation with a trusted real estate professional like myself! This means assessing your home’s current market value (using my Complimentary Home Assessment!), walking through your home with you to spot anything that could help or hurt your value, and building a custom game plan designed to give your property sale the best chance of success!
“What does a Realtor® do when I buy a home?” and “What does a Realtor® do when I sell a home?”
When buying a home, a top-tier real estate representative such as myself will act as your advisor, negotiator, and guide from start to finish, including: understanding your needs, connecting you with other trusted professionals, finding and showing you properties, analyzing market values, writing and negotiating offers, coordinating inspections and conditions, keep you on track to closing, and support even after you move in and into your future with your property! When you’re selling a home, a skilled real estate representative like myself will be your marketer, strategist, and negotiator, which includes: pricing your property right, preparing your home, a full marketing treatment, handling showings and feedback, negotiating for your top dollar, managing details, and supporting you right through closing, making sure that your selling experience is an exciting, memorable experience!
“What if my offer is rejected?” and “What choices do I have when I receive an offer?”
Do not fear, a rejected offer isn’t the end of the road, but instead part of the “negotiation dance”, so a couple steps that could be included in the process are finding out why your offer was rejected (price, conditions, closing date, etc.), revise and re-offer if you are so inclined, or walk away and keep looking for another property that meets your dream criteria! Receiving offers is an exciting moment, and thankfully the options are fairly straightforward (although the offers might not always be!) which could include accepting the offer, countering the offer, or rejecting the offer. Remember, there are slightly different scenarios that could arise depending on the number of offers at play, but that is where a real estate representative like myself can clear the waters so you can determine which offers best fit your criteria and how we can handle specific offers!
“How do you handle multiple offer situations?”
The seller’s dream and the buyer’s challenge, ultimately when handled right can result in a higher sale price, better terms, and more control for the seller. If the market is hot or perhaps your property is a highly sought-after home, which at this point what I will do is set the stage (aka set an offer date and notify agents that there is a high level of interest in the property), disclose the situation strategically (inform buying agents that we are in a multiple offer scenario), review offers together, choose the best move, and lock in our final decision (whichever path leaves you the most satisfied!).
“Why does a seller use a best and final offer strategy?”
A smart question if you’re thinking like a savvy seller, a “best and final offer” strategy is meant to maximize price and minimize back-and-forth during a competitive situation, which could drive up the price, help to streamline the process, filter out weak offers, and give you control. Keep in mind that though this is the ideal scenario, the reality is often that offer back-and-forth is a norm and beneficial to take any offer that you receive to a better standard satisfactory to you!
“Should I get a home inspection?”
Absolutely, 100% yes, you should get a home inspection! A home inspection provides peace of mind, negotiating power, and assists in future planning (and as a buyer in a hot market sometimes a pre-offer inspection can be performed to remain protected and competitive). Even as a seller, a pre-listing inspection help you fix issues prior to hitting the market, prevent surprises during negotiations, and build buyer confidence and reduce conditional offers.
“How much do I need to pay for closing costs?”
You should budget about 1.5% to 4% of the purchase price for closing costs. As a buyer this typically includes Land Transfer Tax (LTT) (based on home purchase price, new home buyers may qualify for rebates), legal fees and disbursements (expect $1500 - $2,500), title insurance (usually $300 - $500), home inspection (typically $400 - $600), property tax and utility adjustments, and mortgage costs. As a seller, it’s usually a combination of legal fees ($1,500 - $2,000), mortgage discharge fees (could be a few hundred dollars), and Realtor® commission (4-5% of the sale price, split between listing and buying agents plus HST).
These are just a few of the many common questions in the home buying and home selling processes, and if you have any other inquiries regarding these questions or new ones for me, I am open to receive them all!
