Steps to buying a home - Part 2

Step 5 : Get out there!

  • Check out open houses with your real estate agent or go solo if you want to be able to do it on your own time.
  • This is the time to go on tours with your agent.  In Toronto's market if there is a house that is not holding back offers (creating a multiple offer scenario) then to try to get into that house as early as possible.  You never know and this way you can possibly avoid having to bid for a house against 10 other hungry buyers.
  • Drive around neighbourhoods that you are interested in.  Then get out of you car and WALK!  You get to experience the neighbourhood completely different as you are not zipping by while trying to avoid cyclists, other cars and pedestrians.  You will be able to focus on what kind of stores and restaurants the neighbourhood has to offer and just as important the demographic that lives and hangs out there.

Step 6 : Making the offer

  • Now that you have found your dream house, what do you do if you can picture yourself living there?  It's time to put what you think the house is worth onto paper and have it presented to the listing agent/Seller.
  • Keys items to think about are : price (obviously), closing date, amount of deposit, conditions if any and clauses.
  • The offer is presented to the Seller where they will decide to accept it, counter it or totally turn it down.  This goes on usually for about 3-4 rounds and a conclusion is usually made.  All the above terms and any clauses that are included with the offer can be negotiated.
  • If the offer has been agreed by both sides then you are in the conditional phase (if there are conditions).  You will need to supply the deposit cheque usually within 24hrs.  This is normally in a form of a bank draft or certified cheque.  In my experience bank drafts are usually cheaper.

Step 7 : You are the conditional phase

  • If you had conditions in your offer, which are usually financing, home inspection or status certificate review then these conditions have to be fulfilled to make the offer firm.  There are time limits as to when to complete these and it's typically 5 business days for the financing and home inspection and 2 days for the status review when it's made available.
  • For financing your mortgage broker / specialist will be sending your offer to their underwriter to review and either approve or deny.
  • In terms of your home inspection you will hire an inspector to go in to the home to inspect all major components and other items.  Usually you go through the house looking for major issues.  It's normal to ask the Seller to fix a few things on the deficiency list of the inspection but not every single thing.  Every house will have items to deal with no matter how new or old.  During multiple offers, you want to make your offer as strong as possible and throwing in repair conditions will definitely drop you a few rungs down from the group of buyers competing for that home.
  • The status certificate condition is done for condos, condo townhomes and lofts.  This is left to the lawyer to review.   Everything from the reserve fund, financials, court hearings and a plethora of other items are examined.  Once this is given the once over, the lawyer will give you a summary as to what he finds.
  • If all these conditions are fulfilled and you're happy with the results then you will waive these conditions meaning you have just bought yourself a HOME!  CONGRATULATIONS!!

Contact the W & Y Homes Team today at info@wyhomesco.com to help you buy your next home!

To read Part One of our Steps to Buying a Home click here