"KNOWLEDGE IS MONEY" David K
1% LISTING COMMISSION Willowdale
Because we work with knowledge & efficiently
Tell me more...
1% LISTING COMMISSION Willowdale
Because we work with knowledge & efficiently
Tell me more...
David K. Willowdale Realtor
FAQ Tip 19: What is the multiple listing service (MLS)?
Watch Video: Why do we say real estate is local?
2.5 min
2.5 min
Watch Video: Importance of working with local agents
1.5 min
1.5 min
FAQ Tip: I need to sell the house I bought last year, Will I lose money?
1 min.
1 min.
FAQ Tip #6: How Do I Find The Right Agent for Me?
2 min.
2 min.
Watch Video: Interview Your Real Estate Agents
Watch Video: Understanding of Real Estate market
What are the factors in determining my home value?
2 min.
2 min.
How do I know what my home value is?
1:30 min.
1:30 min.
Watch Video: Buying a home without real estate agent
5:30 min
5:30 min
Should I sell my home in a hot market and wait for the market to cool off?
6 min
6 min
Because we work hard to bring you all the best information you may need.
Thank you. David
Thank you. David
Frequently Asked Questions (FAQ) Home Buyers
Q. What are the advantages of owning my home?
The advantages of homeownership can be summed up in two interests, financial reward and emotional reward. Typically the benefits are more realistic in the long term since real estate transactions are expensive and moving is not fun.
The financial benefits are (1) paying down your mortgage and building equity, (2) real estate prices will always go higher in the long run, hence protecting you from inflation and also building equity and (3) building credit history.
The emotional benefits are significant, especially for families. You have the freedom to renovate and customize your home to your liking. The pride of homeownership is fulfilling.
Q. What are the advantages of renting a home instead of buying it?
The advantages of renting a home, instead of buying it, boil down to two components: lifestyle and financial interests. If your lifestyle requires you to move, for example, your job requirement, or simply do not want to stay in one place, perhaps it is best to rent. Since it is much easier and cheaper to move when you are renting, you will also have the freedom to move quickly if the neighbourhood has lost its appeal.
For many people buying a home is a safe and sound investment in the long run. However, you may have the expertise and knowledge to invest your money in alternative options. There are many know-how investors that buying real estate does not appeal to them.
Q. Do I need a real estate agent to purchase my home?
Do I need a real estate agent to purchase my home?
You have heard the saying, "if something can go wrong, it will." It is about the risk and how much risk you are willing to take. Typically professional real estate investors hire real estate agents to help them with real estate purchases. You may wonder why; because experienced investors understand risk and want nothing to do with it. Here are some of the risks of buying a home with a real estate agent.
Understanding the local nature of the real estate and the delicate negotiation process is not taught in school. As a result, it takes many years for your local experienced real estate agents to do what they do best. Your experienced buyer's agent is there to minimize your risk during the most important transaction. They will help you find the best home for you, negotiate a fair price, and make sure the home buying process becomes a cherished memory. So do what expert real estate investors do, hire the best agents and let them work hard for you and increase the chance of success.
Q. What are the initial steps before buying a home?
It is beneficial to consult specialists and professionals for an essential decision as buying a home. You should consider consulting your accountant and financial planner, if you have one, your mortgage lender or bank institution, to understand the mortgage terms fully. Finally, you should consult with your trusted real estate agent.
Summary:
(1) Consult with your accountant and financial planner.
(2) Consult with your mortgage lender or banking institution.
(3) Consult with your real estate agent.
Q. When should I consult my bank?
If you believe the time is right and you are ready to purchase your dream home. The first thing is to talk to your bank (mortgage broker) to figure out the price range you can afford. The mortgage specialists are professional and work with customers like you daily, so they have many good questions. First-time home buyers may learn a great deal from mortgage specialists regarding the government program for first-time buyers. Next, you want all the information on the paper and get a pre-approval from the bank.
Keep in mind not all banks and mortgage brokers are cut from the same cloth; consider speaking to a few to get a complete picture.
Q. What is a foreclosure home?
A foreclosure home is a home sold by a lender, for example, a bank, a lending company or a private lender. A lender takes control of a home via the foreclosure process when the owner fails to make their mortgage payments.
A foreclosure is unfortunate, and neither side, the bank and owner, is happy about it. Banks are in the business of lending money, and they do NOT wish for foreclosure. Hence, banks sell the property as quickly as possible to circulate their money, typically for lower than the market value.
Keep in mind, buying a foreclosure home is different from buying from an average seller. Banks may settle with less money, but legal documents are in place to ensure no responsibility and legal obligations after the selling - it is an as-is purchase to its full extend. It is not a purchase for the faint of heart. Typically buyers are investors and contractors with experience who can afford the risk. Their goal is to fix the issues and sell the home for a quick profit.
Q. What are the advantages and disadvantages of buying a foreclosed home?
Advantages
The only advantage of a foreclosed home is possibly the lower price, which is not always the case. I have witnessed several times in my horror that too many buyers happen to compete for the same foreclosed home and pay close to the home's actual value. I am sure the lander was happy about it.
Disadvantages
Here are a few drawbacks of buying a foreclosed home to mention:
It is possible that the previous owner might claim and take back the home at any time before closing. And the buyer has no claim for the time and money spent during the buying process.
Buying a foreclosed home comes with some risks that one needs to pay close attention to. Unless you have experience in the process and hence buy the property for the right price, it may be a time-consuming and expensive endeavour.
Q . What is the Multiple Listing Service (MLS)?
The Multiple Listing Service, referred to as the MLS, is a centralized location of all homes for sale by real estate agents. The MLS is the most valuable tool for real estate agents, as you can imagine, for the following reasons:
Note that many believe one massive MLS database is serving all that is not true. But regional real estate markets have their own MLS managed and operated by them.
Q. How does the MLS work?
Only real estate agents have access to the MLS databases, and real estate agents pay a small fortune to use the service. The MLS databases contain extensive information on recent as well as older listings and transactions. With continuous software improvement, the MLS search and filtering tools give the agents incredible tools to locate the right home for their clients.
Real estate agents use the information for:
Q. Should I list my home on the MLS?
Yes, you should. The benefits of listing your home on the MLS is undeniable for the following reasons:
The higher exposure at a short period translates to quick and increased demand for your home. Higher demand is the best approach to get you the top dollar for your home.
Q. I am selling and buying a house at the same time; what is the best strategy?
The best scenario is to buy your future home first before selling the existing one. In this manner, you can find your desired home and buy it. Also, you have the flexibility to move to your new home at your convenience. However, you need the financial means to buy your new home before selling the existing home.
The second scenario is to time the closing dates for both houses on the same day. You can move into your new home the same day you close the existing home. This scenario may prove to be difficult in some markets.
The third option is to sell your current home and move to temporary accommodation until you find the desired house for you. However, this can be costly and inconvenient since finding the right home may take a while.
Q. When is a good time for you to buy a home?
To get a good deal on your purchase, the best time to purchase a home is when the demand is lowest. Seasonally, spring, summer and early fall typically have higher demand. However, there are more houses for sale as well. In the winter, demand may diminish, but there are fewer houses for sale. The take-home message is that you and your trusted real estate agent need to investigate the market demand and decide at that time.
There are other factors you may need to consider; for example, kids, school, job. Hence, you should consider the best time that works for you.
Q . What are my costs as a buyer?
Buyers are not obligated to pay a real estate fee; however, the seller must cover the associated costs of selling their property. However, some costs buyers may need to consider are land transfer tax, property inspection, deed or mortgage registration, legal fees and disbursements, closing adjustments.
Q . What are the benefits being pre-approved for a mortgage?
(1) you will have a clear idea of what you can afford; hence you can focus on the right houses for you. (2) you will be in a better negotiating position when the time comes to present an offer.
What happens once I'm ready to make an offer?
We can assist you with drafting, submitting and negotiating your offer once you have found the property of your choice. Once an offer is submitted to the seller, the seller may accept or decline and counter your offer.
Q . What is a land transfer tax in Toronto?
In Toronto, properties sold are subject to both (1) provincial tax and (2) municipal tax.
For more information:
Land Transfer Tax Ontario
Municipal Land Transfer Tax
Once I found the property that I like, what is the best way to determine if the listing price is the actual market value?
We have over 25 years of experience in North York, Willowdale community; we'll look at several factors. The most critical factors are looking at the property's sales history and comparable (houses sold within a few kilometers of your house) recently sold within the neighbourhood.
How do I know what price to offer for a property?
Professional appraisers and real estate agents have the right tools and experience to estimate the house's actual value. We'll prepare a professional (1) comparative market analysis (CMA) of that the similar properties recently sold (2) We'll look at the properties that are for sale and how they stack up against yours (3) We will consider the market condition in the area, like the number of houses for sale, seller's market, buyer's market. As a team, we usually have 30 - 40 listings anytime, so we have a good grasp of the market.
Should I consider a home inspection for the house that I am interested in?
We suggest a home inspection for all our clients. The benefits outweigh the relatively low cost of home inspections. Some sellers may have a pre-listing inspection done and available for the buyers to see. We suggest buyers review the seller's inspection; it should be current and from a reputable inspection company. The onus is on the buyer to decide; however, we recommend hiring an inspector regardless of the seller's inspection.
What happens to my deposit money while I am waiting for the closing date?
Your deposit is held in the listing brokerage's trust account until closing when applied to the property's purchase price.
Will I receive interest for my deposit money?
If the listing brokerage deposits the money in an interest-bearing account, you will earn interest on the trust money. The brokerages are not required to have an interest-bearing account. However, the brokerages must disclose, generally in your original offer, whether the trust account is an interest-bearing account or not.
If an interest-bearing clause was part of your original offer, you might be entitled to the interest accrued on the deposit.
Note.
Here are the wordings from the Real Estate Council Of Ontario (RECO):
"Non-Interest Bearing Trust Account – REQUIRES DISCLOSURE
If a brokerage places a deposit into its real estate trust account and the account is non-interest bearing, the
brokerage is required to disclose in writing that the brokerage's financial institution does not pay the brokerage any interest on the real estate trust account."
Should I attend open houses in the area?
The answer is yes if you have the time to spare. You may get a better idea of the area and type of houses for sale. However, visiting the random open houses can be time consuming and exhausting; you may consult with your real estate agent to preselect some of the houses that fit your needs.
How do I find open houses in the area?
If our client is interested in visiting open houses, we will prepare a list of current open houses to browse.
Can I get the lockbox code from my real estate agent?
Any access to the property must be via prior appointment granted by listing brokerage. And only a registered real estate agent can make such an appointment and access the lockbox code. Finally, during the showing buyer representative is required to be present at all times. You must not visit a property without your real estate agent in any circumstances; unless the listing agent (or the seller) holds an open house.
Should I sell my current home first before buying?
Selling before buying scenario: Most people will need the proceed from their current home to purchase the next house. Hence selling first means less pressure and lower risk. You may have a more extended closing date, hoping to find your next home. If you don't, you may have to bear the expenses and inconvenience of finding a temporary location.
Buying before selling scenario: This is the desired option. You'll enjoy the flexibility to move into your new home when you want to. Mainly, if you're buying a highly in-demand property, it's better to buy first since such property will not be on the market for too long.
I am concerned, after all, I pick the wrong house; what should I do?
The right approach would be to prepare a checklist of what is critical for you and prioritize the list items. You can't have everything on the list, so the checklist will remind you where you are willing to compromise. Gather your family to review the plan with them; you find some of the priorities change, or perhaps you missed an item. Discuss your checklist with your real estate agent. An experienced agent should guide you to refine your list and make it more realistic.
What is an established neighbourhood?
An established neighbourhood refers to an older community neighbourhood, typically located in the city core. The established community appeals to many buyers because of the vibrant lifestyle, being closer to public transportation, being closer to downtown and having long-term stable neighbours.
Should I consider living in an established neighbourhood?
The answer is yes if it fits your lifestyle. As with any community, an established neighbourhood has its benefits and drawbacks. You may enjoy being close to downtown, your job location. It is desirable to be within walking distance of restaurants, coffee shops. However, houses can be smaller and more expensive. Limited parking space, traffic, noise are also some of the drawbacks of living in an established neighbourhood in the city core.
The advantages of homeownership can be summed up in two interests, financial reward and emotional reward. Typically the benefits are more realistic in the long term since real estate transactions are expensive and moving is not fun.
The financial benefits are (1) paying down your mortgage and building equity, (2) real estate prices will always go higher in the long run, hence protecting you from inflation and also building equity and (3) building credit history.
The emotional benefits are significant, especially for families. You have the freedom to renovate and customize your home to your liking. The pride of homeownership is fulfilling.
Q. What are the advantages of renting a home instead of buying it?
The advantages of renting a home, instead of buying it, boil down to two components: lifestyle and financial interests. If your lifestyle requires you to move, for example, your job requirement, or simply do not want to stay in one place, perhaps it is best to rent. Since it is much easier and cheaper to move when you are renting, you will also have the freedom to move quickly if the neighbourhood has lost its appeal.
For many people buying a home is a safe and sound investment in the long run. However, you may have the expertise and knowledge to invest your money in alternative options. There are many know-how investors that buying real estate does not appeal to them.
Q. Do I need a real estate agent to purchase my home?
Do I need a real estate agent to purchase my home?
You have heard the saying, "if something can go wrong, it will." It is about the risk and how much risk you are willing to take. Typically professional real estate investors hire real estate agents to help them with real estate purchases. You may wonder why; because experienced investors understand risk and want nothing to do with it. Here are some of the risks of buying a home with a real estate agent.
- The local nature of real estate is complex. In an extreme case, similar houses on the same street can differ by up to 10-20% just because of their location. There are many details to consider that only a local real estate agent can fully grasp the difference.
- The listing agent has a contract with the seller to take his side, yes, his side. The listing agent's ultimate goal is to draw attention to the best aspects of the house and minimize the issues to get the most money for the seller. At the end of the day, you need to rely on your own experience to figure out the home's actual value and ultimately negotiate.
- The Agreement of Purchase and Sale and many conditional clauses are usually drafted to protect buyers and sellers. The experience agents must make sure buyers' interests are addressed in the agreement.
- Purchasing a house is a process with details and crucial steps, and there is so much at stake. Therefore, agents play an essential role, from inspection, showing, and closing to ensure a satisfying process.
- An essential aspect of buying and selling a home that is overlooked is the extend of emotions sellers and buyers experience. Experienced and professional real estate agents are good at keeping their emotions under check. Real estate agents have learned over the years how to work with listing agents, negotiate, and compromise when required. For any deal to happen, the right amount of compromise is a must.
Understanding the local nature of the real estate and the delicate negotiation process is not taught in school. As a result, it takes many years for your local experienced real estate agents to do what they do best. Your experienced buyer's agent is there to minimize your risk during the most important transaction. They will help you find the best home for you, negotiate a fair price, and make sure the home buying process becomes a cherished memory. So do what expert real estate investors do, hire the best agents and let them work hard for you and increase the chance of success.
Q. What are the initial steps before buying a home?
It is beneficial to consult specialists and professionals for an essential decision as buying a home. You should consider consulting your accountant and financial planner, if you have one, your mortgage lender or bank institution, to understand the mortgage terms fully. Finally, you should consult with your trusted real estate agent.
Summary:
(1) Consult with your accountant and financial planner.
(2) Consult with your mortgage lender or banking institution.
(3) Consult with your real estate agent.
Q. When should I consult my bank?
If you believe the time is right and you are ready to purchase your dream home. The first thing is to talk to your bank (mortgage broker) to figure out the price range you can afford. The mortgage specialists are professional and work with customers like you daily, so they have many good questions. First-time home buyers may learn a great deal from mortgage specialists regarding the government program for first-time buyers. Next, you want all the information on the paper and get a pre-approval from the bank.
Keep in mind not all banks and mortgage brokers are cut from the same cloth; consider speaking to a few to get a complete picture.
Q. What is a foreclosure home?
A foreclosure home is a home sold by a lender, for example, a bank, a lending company or a private lender. A lender takes control of a home via the foreclosure process when the owner fails to make their mortgage payments.
A foreclosure is unfortunate, and neither side, the bank and owner, is happy about it. Banks are in the business of lending money, and they do NOT wish for foreclosure. Hence, banks sell the property as quickly as possible to circulate their money, typically for lower than the market value.
Keep in mind, buying a foreclosure home is different from buying from an average seller. Banks may settle with less money, but legal documents are in place to ensure no responsibility and legal obligations after the selling - it is an as-is purchase to its full extend. It is not a purchase for the faint of heart. Typically buyers are investors and contractors with experience who can afford the risk. Their goal is to fix the issues and sell the home for a quick profit.
Q. What are the advantages and disadvantages of buying a foreclosed home?
Advantages
The only advantage of a foreclosed home is possibly the lower price, which is not always the case. I have witnessed several times in my horror that too many buyers happen to compete for the same foreclosed home and pay close to the home's actual value. I am sure the lander was happy about it.
Disadvantages
Here are a few drawbacks of buying a foreclosed home to mention:
It is possible that the previous owner might claim and take back the home at any time before closing. And the buyer has no claim for the time and money spent during the buying process.
- The foreclosed homes are often in need of repairs from long-time negligence.
- Homeowners may intentionally damage home.
- If there are significant issues with the home, the buyer has no legal options to pursue the seller's.
- Most likely, there is no record of repairs and possible city permits, if any existed.
Buying a foreclosed home comes with some risks that one needs to pay close attention to. Unless you have experience in the process and hence buy the property for the right price, it may be a time-consuming and expensive endeavour.
Q . What is the Multiple Listing Service (MLS)?
The Multiple Listing Service, referred to as the MLS, is a centralized location of all homes for sale by real estate agents. The MLS is the most valuable tool for real estate agents, as you can imagine, for the following reasons:
- The MLS database is available online.
- The MLS is local, with all the homes for sale by agents
- It is easy and fast access
- It provides search and filtering tools to customize the search for home buyers.
- It contains the most reliable and accurate information.
Note that many believe one massive MLS database is serving all that is not true. But regional real estate markets have their own MLS managed and operated by them.
Q. How does the MLS work?
Only real estate agents have access to the MLS databases, and real estate agents pay a small fortune to use the service. The MLS databases contain extensive information on recent as well as older listings and transactions. With continuous software improvement, the MLS search and filtering tools give the agents incredible tools to locate the right home for their clients.
Real estate agents use the information for:
- To estimate home value
- To generate real estate market reports
- List homes for sellers
- Search homes for buyers
Q. Should I list my home on the MLS?
Yes, you should. The benefits of listing your home on the MLS is undeniable for the following reasons:
- The most crucial factor is exposure; imagine presenting your home to every potential buyer.
- Real estate agents use the MLS to look for homes for their clients, which is more exposure to serious buyers.
- The real estate industry trusts the information on the MLS because of the roles and regulations in place.
- The simultaneous exposure to all potential buyers because of the popularity of the MLS and online search tools
The higher exposure at a short period translates to quick and increased demand for your home. Higher demand is the best approach to get you the top dollar for your home.
Q. I am selling and buying a house at the same time; what is the best strategy?
The best scenario is to buy your future home first before selling the existing one. In this manner, you can find your desired home and buy it. Also, you have the flexibility to move to your new home at your convenience. However, you need the financial means to buy your new home before selling the existing home.
The second scenario is to time the closing dates for both houses on the same day. You can move into your new home the same day you close the existing home. This scenario may prove to be difficult in some markets.
The third option is to sell your current home and move to temporary accommodation until you find the desired house for you. However, this can be costly and inconvenient since finding the right home may take a while.
Q. When is a good time for you to buy a home?
To get a good deal on your purchase, the best time to purchase a home is when the demand is lowest. Seasonally, spring, summer and early fall typically have higher demand. However, there are more houses for sale as well. In the winter, demand may diminish, but there are fewer houses for sale. The take-home message is that you and your trusted real estate agent need to investigate the market demand and decide at that time.
There are other factors you may need to consider; for example, kids, school, job. Hence, you should consider the best time that works for you.
Q . What are my costs as a buyer?
Buyers are not obligated to pay a real estate fee; however, the seller must cover the associated costs of selling their property. However, some costs buyers may need to consider are land transfer tax, property inspection, deed or mortgage registration, legal fees and disbursements, closing adjustments.
Q . What are the benefits being pre-approved for a mortgage?
(1) you will have a clear idea of what you can afford; hence you can focus on the right houses for you. (2) you will be in a better negotiating position when the time comes to present an offer.
What happens once I'm ready to make an offer?
We can assist you with drafting, submitting and negotiating your offer once you have found the property of your choice. Once an offer is submitted to the seller, the seller may accept or decline and counter your offer.
Q . What is a land transfer tax in Toronto?
In Toronto, properties sold are subject to both (1) provincial tax and (2) municipal tax.
For more information:
Land Transfer Tax Ontario
Municipal Land Transfer Tax
Once I found the property that I like, what is the best way to determine if the listing price is the actual market value?
We have over 25 years of experience in North York, Willowdale community; we'll look at several factors. The most critical factors are looking at the property's sales history and comparable (houses sold within a few kilometers of your house) recently sold within the neighbourhood.
How do I know what price to offer for a property?
Professional appraisers and real estate agents have the right tools and experience to estimate the house's actual value. We'll prepare a professional (1) comparative market analysis (CMA) of that the similar properties recently sold (2) We'll look at the properties that are for sale and how they stack up against yours (3) We will consider the market condition in the area, like the number of houses for sale, seller's market, buyer's market. As a team, we usually have 30 - 40 listings anytime, so we have a good grasp of the market.
Should I consider a home inspection for the house that I am interested in?
We suggest a home inspection for all our clients. The benefits outweigh the relatively low cost of home inspections. Some sellers may have a pre-listing inspection done and available for the buyers to see. We suggest buyers review the seller's inspection; it should be current and from a reputable inspection company. The onus is on the buyer to decide; however, we recommend hiring an inspector regardless of the seller's inspection.
What happens to my deposit money while I am waiting for the closing date?
Your deposit is held in the listing brokerage's trust account until closing when applied to the property's purchase price.
Will I receive interest for my deposit money?
If the listing brokerage deposits the money in an interest-bearing account, you will earn interest on the trust money. The brokerages are not required to have an interest-bearing account. However, the brokerages must disclose, generally in your original offer, whether the trust account is an interest-bearing account or not.
If an interest-bearing clause was part of your original offer, you might be entitled to the interest accrued on the deposit.
Note.
Here are the wordings from the Real Estate Council Of Ontario (RECO):
"Non-Interest Bearing Trust Account – REQUIRES DISCLOSURE
If a brokerage places a deposit into its real estate trust account and the account is non-interest bearing, the
brokerage is required to disclose in writing that the brokerage's financial institution does not pay the brokerage any interest on the real estate trust account."
Should I attend open houses in the area?
The answer is yes if you have the time to spare. You may get a better idea of the area and type of houses for sale. However, visiting the random open houses can be time consuming and exhausting; you may consult with your real estate agent to preselect some of the houses that fit your needs.
How do I find open houses in the area?
If our client is interested in visiting open houses, we will prepare a list of current open houses to browse.
Can I get the lockbox code from my real estate agent?
Any access to the property must be via prior appointment granted by listing brokerage. And only a registered real estate agent can make such an appointment and access the lockbox code. Finally, during the showing buyer representative is required to be present at all times. You must not visit a property without your real estate agent in any circumstances; unless the listing agent (or the seller) holds an open house.
Should I sell my current home first before buying?
Selling before buying scenario: Most people will need the proceed from their current home to purchase the next house. Hence selling first means less pressure and lower risk. You may have a more extended closing date, hoping to find your next home. If you don't, you may have to bear the expenses and inconvenience of finding a temporary location.
Buying before selling scenario: This is the desired option. You'll enjoy the flexibility to move into your new home when you want to. Mainly, if you're buying a highly in-demand property, it's better to buy first since such property will not be on the market for too long.
I am concerned, after all, I pick the wrong house; what should I do?
The right approach would be to prepare a checklist of what is critical for you and prioritize the list items. You can't have everything on the list, so the checklist will remind you where you are willing to compromise. Gather your family to review the plan with them; you find some of the priorities change, or perhaps you missed an item. Discuss your checklist with your real estate agent. An experienced agent should guide you to refine your list and make it more realistic.
What is an established neighbourhood?
An established neighbourhood refers to an older community neighbourhood, typically located in the city core. The established community appeals to many buyers because of the vibrant lifestyle, being closer to public transportation, being closer to downtown and having long-term stable neighbours.
Should I consider living in an established neighbourhood?
The answer is yes if it fits your lifestyle. As with any community, an established neighbourhood has its benefits and drawbacks. You may enjoy being close to downtown, your job location. It is desirable to be within walking distance of restaurants, coffee shops. However, houses can be smaller and more expensive. Limited parking space, traffic, noise are also some of the drawbacks of living in an established neighbourhood in the city core.