When you're ready to make an offer, your REMAX Hallmark® agent will prepare the required paperwork and negotiate the purchase price and terms on your behalf, but there are a few things you'll need to do as well:
1. Purchase insurance.
You are required to purchase homeowners insurance if you have a mortgage. Make sure you purchase enough to fully cover your home and your belongings in case of a total loss.
2. Get a home inspection.
Inspections generally cost hundreds of dollars but will bring to light any major issues or concerns with the home. The purchase agreement can be contingent on the outcome of the inspection, so if you don't like what you find you can withdraw the agreement and keep looking.
3. Determine the status of utilities.
In a traditional home sale, with sellers as occupants, you'll want to check on the status of the utilities required by the home. Outstanding invoices for items such as water, gas and electric should be paid in full by the owners before closing. You will also want to have the services transferred to your name for billing. In a foreclosure or vacant home sale, in which the water has been turned off, contact the city to turn the water back on and check for broken or damaged pipes.
Reliable resources
Your REMAX Hallmark® agent is a great resource. Don't hesitate to ask for a referral if you're looking for a:
- Mortgage lender
- Inspector/appraiser
- Moving company
- Insurance provider
- Contractor
- Landscaper
Tax break
Preparing your taxes as a first-time homeowner can be, well, taxing. You will have a number of new tax considerations, including new deductibles such as mortgage insurance and property tax to claim. If you're not sure what you'll be eligible to claim, consider visiting a tax consultant or visit canada.ca/revenue-agency.
From the glossary
Offer
An offer is a legal agreement to purchase a home. An offer can be conditional on a number of factors, like financing or the home inspection. If the conditions are not met, the buyer can cancel their offer.
Deposit
An up-front payment made by the buyer to the seller at the time the offer is accepted. The deposit shows the seller that the buyer is serious about the purchase. This amount will be held in trust by the agent or lawyer until the deal closes, at which point it is applied to the purchase price.
Contingencies
This term refers to conditions that have to be met in order for the purchase of a home to be finalized. For example, there may be contingencies that the mortgage loan must be approved or the appraised value must be near the final sale price.
Home appraisal
A qualified professional provides a market value assessment of a home based on several factors such as property size, location, age of the home, etc. This is used to satisfy mortgage requirements, giving mortgage financing companies confirmation of the mortgaged property's value.
Comparative market analysis
A comparative market analysis (CMA) is a report on comparable homes in the area that is used to derive an accurate value for the home in question.
Each office independently owned and operated. The information contained in this guide is for informational and educational purposes only, and is not legal, business, or real estate advice. Even though we have taken every reasonable effort to attempt to make sure that the information presented is accurate, up-to-date, and useful, we can not guarantee that it is complete, correct, or current. This guide is not a substitute for professional advice. Real estate laws, regulations, and practices may vary from market to market. Consult with local professionals for specific advice.