Toronto MLS Search and Home Evaluations

WOW! Just wanted to take the time to thank everyone who dropped by over  the past week to view the loft I had listed at 68 Broadview. WOW! There certainly was a lot of you! I know quite a few of you were neighbors just wanting to sneek a peek but I also had a ton (over a hundred people/couples) come through the door looking for the perfect loft to call home. So ... are we running out of original loft and condo spaces in the downtown area? Maybe. The nice thing about the Broadview Lofts (Candy Factory, Tip Top, etc.) is that many units in the building are unique to themselves - no copies. No living in a box! Your own space that no one else can say is exactly like theirs. There is something to be said for that.  A few years ago I was telling people that loft living was just a trend (phase, a thing of the moment) but I now realize that it is a viable way of life (and preferred) for so many people. They don't want the same old condo in the sky and they even go as far as to opt out of a house - a loft defines them and their lifestyle much better.  Anyway, thanks again for storming the place and making it a raging success (we sold it with multiply offers!) And YES - I am looking for another loft in the building to list - great spaces and I met some great people who call loft-living at Broadview home.

Jarrett

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Have you had the “First Time Buyer Jitters?”  This is a great question for the first time buyer and the Realtor® looking after them.  As someone who works with the general public on a daily basis, I need to address the many personality types, their emotions, questions, concerns, attitudes, etc. as that will determine our successful, working partnership with each other. The first time buyer is special. I like to refer to it as the “Fear Factor” - Wow – as Realtors®, we have a lot of different types and severity’s of fear to deal with.

The first time buyer is in a very unique situation.  They are dealing with a new subject that they know nothing about and usually with someone they have just met. (now I am afraid!) And, let’s not mention that they are also on the verge of making one of the most important decisions of their life!  Sure, our industry is highly regulated and there is a ton of protections set up for the home buyer but that is not readily known and doesn’t help any fears the buyer may have. How do we actually overcome fear? We address its existence and rather than disregard it, we explore it.  What form of fear are we dealing with?

Paranoia?-maybe a bit but I don’t think that is the whole story.

Terror? I certainly hope not! A little too extreme for the first time buyer!

Distrust? Now we are talking. Yes, I think the majority of peoples fear when buying their first home is wrapped up in several degrees of distrust.  And why shouldn’t they? This is a whole new venture for them and now they need a stranger’s help to guide them. And what is in it for the guide? Money, of course! There is a big payoff for the Realtor® when a home is sold. We are already set up to be distrusted.

Now for the reason I decided to write this article in the first place:  How do we earn a clients trust and help their fears to subside?  I could start listing in point form all the cute little ways to earn trust but I feel it really comes down to the education of the buyer. Yes, the more the buyer knows, the less he will distrust you and the more the fear will subside. Your buyer needs to know a little about you – how you work, your methods, your plan of attack (so to speak) – they need to know the process.

My buyer clients get a buyer package on the very first meeting with me.  It outlines who I am, my credentials and most importantly – the process – the steps to be taken to find the perfect home, put in the offer, negotiate the offer, conditions (protections) of the offer, etc,. etc. The more the buyer knows the better.  That way, no surprises for anyone and no fear of the unknown!

So, now that the fear of the agent and the process have subsided, what other fear do we need to address? The fear of the commitment (home ownership, big mortgage, the 20+ years of debt, etc) and all the things that run with owning your own home. Note:  the buyer needs to be pre-approved right away! They need to know how much they can afford and they need to know that the financial institution will in fact lend them the money – this fear is one of the first to be addressed as it can hinder the whole process. Hopefully, through the buying process, this fear of commitment will subside as the excitement and the realization of all the benefits of owning your own home increases.

I deal with a lot of first-timers. Their needs are very vast and diverse to say the least. They all require a lot of attention and guidance. They need to trust you and the process. It is the Realtors® job to address the buyer’s fears (they typically do not tell you they are afraid so you need to be attentive to this fact) If you cannot address the buyer’s fear, another Realtor® will. Be good to each other.

Warm regards,

Jarrett

My purchaser's are always asking me about the process to take to buy a home in Toronto.  The process is a bit involved but with a good plan it can be made to be a very smooth transaction.  I have come up with a typical step by step outline that I use with all my purchaser's. I have found this to be the best process to find and get the best deal on the perfect home.  All of my new clients recieve this outline so that they will know what to expect through each step of the process.

1. Start the Search

a)       get listings automatically through TorontoMLS system

b)       manually search listings through www.Jarrett.ca

1. Visit Properties

 a)       once you find a property that seems to fit your needs, I will book a day and time for us to visit the property.

b)      this process will continue until we find a property you would like to purchase

1. The Offer

 I will walk you through the offer process in greater detail when the time comes but the general process is here.  We submit an offer to the Seller outlining all our terms. (eg. Offer Price, Deposit, Closing Date, Conditions, Time Limits, etc.)

a)   Offer Price – this is how much we would be willing to pay for the property – typically, this is a lower price than what the Seller is asking for.

b)   Deposit – this is an amount approximately 5% of the offer price. We will give this to the Seller’s real estate brokerage as a deposit to hold the property.  This amount will be applied towards the purchase price on closing day. Note: this money should be readily available as it will be required the day our offer is accepted.  Please speak with me if 5% will be an issue.

c)  Closing Date – this is an agreed day in which you receive the key and title to the home and the Seller receives your money from the purchase (needs to take place on a business day)

d)  Conditions – this will depend on the property and your circumstances. Conditions may vary from a financing condition if you require a mortgage, a home inspection for a house or a Status Certificate condition on a condominium.  We will discuss our conditions when drawing up our Offer.

e)  Time Limits – time is of essence as it is with every contract.  Please make sure you are easily accessible during the offer process. Note:  If at any time during the Offer process we are late with an initial or signature, the Offer becomes void and the process will have to begin again from the beginning.

1. Negotiation

Typically, what we are willing to offer the Seller is not what the Seller is willing to accept.  This is why a negotiation is required.  The Seller will have three options after reviewing our Offer:

a)  Accept the Offer – this ends the negotiation process.

b)  Reject the Offer – this ends the negotiation process.

c)  Sign back the Offer – the Seller signs the Offer back to us with the changes the Seller has made.  If this happens, the process begins back at a) again.  This will continue until both Buyer and Seller are happy with the results.

5.  Offer Acceptance

a)  Conditions – this is the time that we work diligently to remove any conditions on our Offer (eg. Contact the bank for financing, schedule a home inspection) – don’t forget – even our conditions have time limits.

b)  Lawyer – this is a good time to hire a lawyer who will look after your side of the purchase.  If you do not have a lawyer, please let me know.

6.  Closing Day

a)  Your money is transferred out of your account (includes mortgage proceeds) and paid out to the Seller.  Title is transferred into your name.

b)  Pick up keys to your home from your lawyer’s office.

c)  Pick up lawyer’s bill – you should have previously discussed the bill with your lawyer.  This bill will include the lawyer’s fee, disbursements and Land Transfer Tax*

d)  Time to Move!

*Land Transfer Tax Calculation:

Add the following together:

-         0.5% on the first $55,000 of the purchase price

-         1.0% of the amount from $55,000 to $250,000

-         1.5% of the amount from $250,001 to $400,000

-         2.0% of the amount in excess of $400,000

*C.M.H.C. Insurance for mortgages with less than a 25% down payment:  go to www.cmhc.ca for details on these insurance premiums.