Faqs

A real estate agent is the agent helping you with buying or selling a home. Agents can work alone or in teams. A brokerage is a company that the agent or team works with. Brokerages have the responsibility of making sure agents stay up to date and adhere to real estate regulations.

MLS stands for Multiple Listing Service. It’s a database where realtors submit their properties so that they can be shared among all agents within the area. It includes the address of the property, the price, and its details. Homes currently for sale on the MLS are also available to the public via real estate websites. While the vast majority of homes for sale are listed on the MLS, not every single property makes it onto the MLS. Some homes are sold privately without an agent, or are sold with an agent Exclusively are are not listed on the MLS.

The cost of the transaction is paid for by the seller of the home. When selling, real estate fees are negotiable. This is something you’ll discuss and compare when you meet with a few realtors.

It’s always a good idea to look at who’s out there, read their reviews, review their internet and social media presence and take in all that information when making a decision. Once you’re getting close to taking action, try contacting one or more agents to come to see your home to help you determine who would be best for you to work with.

A real estate agent represents their client during the process of buying or selling a home. They advise buyers and sellers regarding their real estate needs and wants. They help buyers find homes and they help sellers market and sell their homes. They help clients understand the market and negotiate to get the best deal, while also navigating the logistics of the transaction.

As with anything else on the market, the answer is competition. Oftentimes, there are many buyers trying to get the same home. In the process, they compete by bidding higher and higher. The seller naturally choses the highest offer.

Being savvy and effective in your search are key if you want to find an affordable home in a competitive market. Some important points include: get pre-approved for a mortgage so you know how much you can afford, shop within your budget, keep your expectations realistic (no home is perfect), be flexible and open minded, listen to the guidance of your realtor. Time to action is also a critical factor. Homes can sell very quickly, and especially if a rare gem comes up on the market, it’s not likely to last long. It’s important to keep a close eye on the market, see what’s coming up, and take action as soon as a good prospect appears. A real estate agent will help you with all of these, which can make a huge difference in your chances of finding and successfully buying an affordable home.

Bidding wars can pose a stressful challenge for buyers. Some of the key points for succeeding in a bidding war are: start by being pre-approved for your mortgage and knowing how much you can spend, look for homes that realistically fit your budget, offer a price to the seller that is realistic for market conditions and the amount of competition, if possible avoid adding conditions to the offer, if the situation is competitive, be prepared to offer more, and lastly - follow the guidance of your realtor.

No. Once an offer is accepted, it becomes a legally binding contract and you will have to buy that property.

Yes. It’s possible to put a number of conditions on your offer, such as getting a home inspection, getting approved for a mortgage, selling your current home, and more. Conditions are useful because it means that if things don’t work out the way you need them to, you’re not going to be locked into an offer. That being said, offers with conditions attached are less appealing to the seller than unconditional ones. In a competitive environment, this can affect your chances of having your offer accepted, so it can be a double edged sword.

You should only put one offer on one property at a time. Once an offer is accepted, it becomes a binding contract and you are legally obligated to buy the home. If you put in several offers on different homes at the same time, you may end up in a scenario where you have to buy multiple homes.

A multiple offer situation is when multiple different buyers want to buy the same home. This leads to a competitive scenario where they bid higher and higher in hopes of securing the purchase. A multiple offer situation can happen on its own, if more than one buyer happens to show interest, or it can be an organized bidding competition by the seller. Sometimes, the seller and their agent may set a date in the future to review offers from all those interested. The fact that the review date is in the future means that a number of different offers may be collected during that time.

What differentiates condos from freehold properties is the fact that condominiums have common elements which need to be managed and maintained. If you think about an apartment building or a townhome complex, there are common areas and amenities used by all residents, which don’t belong directly to any specific person. These are managed by a condo corporation, which takes responsibility for maintenance. Living in a condominium (either apartment or townhouse) means you get to enjoy these amenities, but you also will have to pay condo fees and follow the condo corporation’s rules.

If you want to put in an offer on a property, you can let your agent know to prepare the paperwork. You’ll discuss with your agent what price to offer and if any conditions are needed. Once the offer documents are signed, your agent will send it to the seller’s agent. You will also need to have your deposit ready for when your offer gets accepted.

If you want to buy a home, you can put in an offer to buy it. You can ask your agent to put together the paperwork, which when completed is sent over to the seller and their agent. The offer documents outline the price you’re offering (which could be the asking price, a higher price, or a lower one), and any conditions you might want to add. Putting in an offer doesn’t guarantee that you will be able to purchase the home. The offer needs to be accepted by the seller. It can be accepted, rejected, modified, or returned as a counter offer with a higher price. When putting in an offer, you will need to have a cash deposit ready. The deposit is due upon the offer being accepted. Once accepted, offers become legally binding contracts and neither the buyer nor the seller can back out of the transaction.

When working with a mortgage broker, it’s possible for them to give you a ballpark estimate of what you can be approved for. This is very helpful in knowing what your budget is when buying a home.

From the time an offer is accepted, it usually takes 90 days for the transaction to complete, giving the seller time to find a new home and to move out. In some cases, depending on the situation, some homes are available as quickly as 30 days or even immediately. On top of this timeline, you should also add the time it takes to search for your ideal home and the time spent viewing properties. Depending on what you’re looking for, this can be as quick as 1-2 weeks, or it can take up to a month or more.

It’s not uncommon that the agent hired by the seller takes care of the needs of both the buyer and the seller (instead of the buyer coming in with their own agent). In general, that is still ok, however, we always recommend buyers work with an agent that is dedicated to them, as opposed to the seller’s agent handling both sides of the transaction. This is because agents have the duty to represent and work for their client, meaning that they are working for you. If the seller’s agent is handling the transaction, depending on the agreement you sign with them, they may only be looking out for the seller’s best interest.

Simply ask your agent to book a viewing for you and meet them there.

Yes. Buyers always pay land transfer tax even for a new home.

That depends on what you’re waiting for. If you’re busily saving for a downpayment or waiting to get a salary increase to be able to afford the house or condo you want, then waiting is a good idea. If you’re waiting because you want prices to come down, recognize that’s a risky proposition unless you have the ability to predict the future. We’ve had Buyers who have been waiting for prices to come down for years and can now no longer afford to buy a house.

No. You can buy a home by yourself, with the help of a lawyer or with a real estate agent. Real estate agents represent Buyers and are paid by the Seller. They can help protect your interests by providing guidance on neighbourhoods and specific condo buildings/houses, negotiate prices, help with obtaining financing/home inspections/contractors and have in-depth knowledge of the market. If you’re about to make the biggest financial investment of your life, wouldn’t you want to do it with someone who lives and breathes the real estate market every day?

Many lenders require an appraisal (meaning they send in an independent appraiser to justify how much you paid for a specific property before they give you the mortgage). Fees for appraisals are in the $300-$500 range, but many banks (including RBC) will pay the appraisal fee for you.

Every condo board has rules about what can and cannot be renovated, and owners have to get approvals for many alterations, from adding a wall to putting decking on your balcony. ALWAYS call your condo board before undertaking any renovation. If you make alterations to your unit without the proper approvals, you may be required to tear everything down and it may cause issues when it’s time to sell your unit. It’s better to get approval than to ask for forgiveness later.

Do your research and work with a REALTOR, who understands the needs of first-time Buyers. Spend some time defining your real goals, take time in making the decision to purchase a condo or house and don’t spend all the money the bank is willing to give you.

Please check out the link on our website bkteam.ca

Land transfer taxes are always paid by the Buyer. Keep in mind when you purchase property in the City of Toronto you will pay both Provincial and Municipal Land Tax.

Generally, you’ll need at least a 5% downpayment to buy a house in Ontario. If you have less than 20% down payment, you’ll be required to purchase CMHC insurance (which provides protection for the lender). Lenders will also look at your income and ability to pay a mortgage, the amount of debt you owe and your credit history. If you aren’t a resident of Canada, you’ll be required to have a larger down payment.

Legal fees vary by lawyer, but a house under $1,000,000 will generally cost about $1,500 in legal fees (all-in) in the GTA.

Generally, in Ontario, a first-time Buyer needs a minimum 5% downpayment to buy a house or condo, though banks will require you to get insurance if you default (i.e., don’t pay your mortgage). If you have less than a 20% downpayment, your lender will require you to get insurance through a company such as Canada Mortgage and Housing Corporation. If you’re having a hard time coming up with 5% down, check out our Downpayment Strategies for the First Time Buyer blog.

Knowing the crime stats of a neighbourhood is an important step when buying a house or condo. Our favourite site to know what’s really going on in the neighbourhood is Spot Crime, though you can also contact Toronto Police Services Statistics.

There really is no ‘normal’ in real estate closings- we’ve seen closings as short as 2 weeks or as long as a year. When an offer is made, the Buyer and Seller agree to when they want to close, depending on their own personal and financial situations. Typically in the GTA , we see closings in the 30, 60 and 90 day range.

This is a great question! Unfortunately, most (probably all?) Home inspection companies in the GTA limit the amount of their liability to the cost of the inspection. So if they miss a $10,000 problem, you’ll likely only be able to recover the amount you paid for the home inspection (usually around $500). Before a home inspection, you’ll be asked to sign an agreement that will detail the home inspector’s liability. It will also detail the limits of what they are inspecting – for example, most Toronto home inspections don’t include looking for termites or mold, and, of course, the inspector can’t see behind walls and under floors.

You cannot avoid paying land transfer tax. Unless you don’t buy land. And yes, a condo is considered land.

There are a number of programs to help first time Buyers in Toronto: the Home Buyers Program allows people to take out up to $25,000 tax-free out of their RRSP to finance the purchase of a house; the Land Transfer Tax Refund for First Time Buyers provides a refund on closing (meaning you don’t really ever to come up with the money) of up to $2,000 on Ontario Land Transfer Tax and up to $3,725 on Toronto Land Transfer Tax; the First Time Home Buyer Tax Credit which provides a tax credit of up to $750 for closing-related costs for first-time Buyers. You can read all the program details and restrictions by clicking here: Government Programs for First-Time Buyers in Toronto, Ontario