BUYING A HOME

• Purchasing a home involves one-time costs and monthly expenses
• The largest one-time cost is the down payment. It usually represents between 5-25% of the total price of the property
• In addition to the actual purchase price, there are a number of other expenses that you might be expected to pay for e.g. Property Inspection, Legal Fees includes Disbursements, Land Transfers, Adjustments for Property Taxes and Home & Property Insurance.
• Typical monthly costs incurred with home ownership are mortgage payments, property taxes, insurance, utilities and condo fees (if condo).

• The real estate market is always changing. It helps to understand how market conditions can affect your position as a buyer.
• I can provide you with current real estate conditions and explain their impact. Here are some examples of market conditions and there implications.:

  Buyer's Market- Supply of homes on the market exceeds demand. This means high inventory of homes. Homes on the market longer. Prices tend to drop. This results in you having more time to look for a home and more negotiating leverage.

  Seller's Market-The number of buyer's wanting homes exceeds the supply or number of homes on the market. This means that there is a smaller inventory of homes. There are many buyers, homes sell quickly and prices usually increase. This results in you possibly having to pay more, make decisions quickly and in some cases conditional Offers may be rejected.

  Balanced Market-The number of homes on the market is equal to the demand or number of buyers. This means that demand equals supply. Sellers will accept reasonable Offers and homes sell within an acceptable time period. Prices are generally stable. This results in having a reasonable number of homes to choose in a more relaxed atmosphere.

• Having a pre-approved mortgage will give you the confidence of knowing exactly what you can spend on a home before you start looking. You will also be protected against interest rate increases while you look for your new home.
• Your mortgage specialist will answer your questions and help you determine which financing terms and options are right for you.. Your mortgage specialist and real estate professional work as a team to help you find the right home and select the best financing.

• Once you've found the home you want to purchase, there are some documents you'll probably be asked for in order to finalize your financing. They will include:

1. A copy of the real estate listing
2. A copy of the Offer to Purchase
3. Documents to confirm employment and proof of Down Payment

THE MAJOR ELEMENTS OF AN OFFER

• Price
• Depending on local market conditions, your opinion of value and market information, the price you offer may be different from the seller's asking price.

  Deposit The deposit shows your good faith and will be applied against the purchase of the home when the sale closes. Your sales representative (myself) will advise you on the appropriate amount.

  Terms Includes the total price offered and the financing details. You may arrange your own financing or ask to assume the seller's mortgage, especially if it has an attractive interest rate.

  These might include "subject to home inspection", "subject to you obtaining financing", or "subject to you selling your present home". Inclusions and Exclusions These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors.

  Closing or Possession Date Generally, the day the title of the property is legally transferred and the transaction of funds finalized..

• When it comes time to make an Offer, I can provide current market information and will assist you in writing up the Offer on our Offer to Purchase form provided by the Edmonton Real Estate Board.
• I will communicate your Offer, (Offer to Purchase) to the seller through the seller's repre- sentative on your behalf. Sometimes there may be more than one Offer on a property coming in at the same time. I will guide you through this process.

  *Offer to Purchase: a legal document which specifies the terms and conditions of your offer to purchase the home. · The offer can be Firm or Conditional.

Conditional Offer to Purchase: means that you have placed one or more conditions on the purchase, such as "subject to home inspection", "subject to financing" or "subject to sale of buyer's existing home". The home is not sold until the conditions have been met.

Acceptance of the Offer

• Your Offer to Purchase will be presented as soon as possible. The seller may accept the offer, reject it, or submit a counter-offer.
• The counter-offer may be in reference to the price, the closing date, or any number of variables.
• The offers can go back and forth until both parties have agreed or one of you ends the negotiations. Please note that while these negotiations are ongoing another Offer can be presented, usually you will be notified if another Offer has been made.

• Having the property inspected by a qualified home Inspector will give you the added confidence that you've made the right decision.
• A full written report plus estimated costs for any necessary repairs is included with with the inspection.

• A legal professional (Lawyer) is there to represent your interests and to process the legal documentation required.
• I can provide you with names of Lawyers who specialize in real estate or you may use one of your choice.

Once you have bought your home, your Royal LePage Real Estate professional can help make the move easier for you. Please follow this handy checklist:

1. Book the Movers:
   You can choose to have your movers pack everything, or just the breakables, or you can yourself. It is a good idea to obtain estimates from several different companies.

2. If You Own Your Present Home:
   Arrange to have your gas, water and electric meters read on the day you leave and have the bills forwarded to your new address. Disconnect your telephone, cable t.v.

3. If you Rent Your Present Home:
   Give the necessary written notice to your landlord and make arrangements for the return of any money you have on deposit.

4. At Your "New" Home:
   Make arrangements for the gas, electric utilities, water, telephone, cable t.v. to be connected on the day the sale closes.

5. General:
   • Get change of address cards from the Post Office and send out prior to your possession day.
   • Have the Post Office forward your mail to your new address
   • Cancel any contracted services and pre-authorized cheques
   • Inform gardening, newspapers, magazines and other home services. Arrange for services at your new address.
   • Change the address on your driver's license effective the day of the move
   • Make special arrangements for the moving of perishables, such as plants
   • Make special arrangements for the moving of your pets
   • Safely dispose of all flammable liquids as it is illegal for movers to carry them