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 comparables (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.
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 above Real Estate article was provided by David Khosravi, a leader in his field in North York, Willowdale Real Estate, Reach out to David via email: firstname.lastname@example.org or by phone: 416.990.2424