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TIPS
ON BUYING YOUR HOME
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From selecting the right real
estate partners to understanding market values and
financing options - buying a home is a monumental
event.
The following
tips offer helpful advice as you prepare to
make many important decisions surrounding home
ownership.
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First Impressions are everything!
Cut your lawn, trim the hedges and shrubs and
remove all traces of outside clutter. In the fall,
rake the leaves.
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Invest some time and elbow grease!
Clean up your home as if you were the buyer. If
the living room of dining room could use a paint
job, paint it. A few dollars spent on a gallon of
paint can bring great dollar rewards and spruce up
the appearance of your home.
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Check
for water leaks!
Check your faucets, toilet, laundry room for
running water leaks. Discolored sinks indicate
plumbing problems. Eliminate the problem.
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Check the Light Bulbs!
Some showings may be in the evenings. No lights in
a room will be immediately visible.
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Check all the Doors!
Check to make sure
all the room and closet doors open and close with ease. A prospective
purchaser will play with your doors. Make sure
they close smoothly.
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Get rid of the Junk!
If you have things lying around that create
clutter to your home, things you really don’t
use or need, throw them out.
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Make
use of all Storage space!
Buyers are always looking for storage space. They
too have “junk” they refuse to part with.
Clean up the basement and/or the attic so they can
envision space for their “junk”.
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Clean
and Organize your closets!
Show that they are spacious and suitable for the
buyers’ needs.
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Shine up your Bathrooms!
The two most important rooms that sell homes are
kitchens and bathrooms. Don’t spare the elbow
grease when cleaning your bathroom. Make sure it
sparkles.
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Create a Bedroom of Dreams!
Make your bedroom cozy and comfy where prospective
buyers can visualize themselves in blissful
slumber. Paint, duvets and blinds can do a lot!
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Let the Sun shine in!
Open the curtains and blinds and let the prospects
see how bright and cheery your home is during
daylight time.
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Lights on after dark!
Light up your home if showings occur after dark.
Bright lights show prospective buyers the
highlights of each room and give them a welcome
feeling.
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Keep a low profile!
When buyers come through your home, stay in the
living or family room so they don’t feel
overwhelmed with people, causing the buyers to
rush through your home. Ideally, go for a 20
minute walk while your home is being shown. Buyers
will never discuss their concerns knowing you are
in the house.
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Not everyone likes pets!
Keep the dog or cat out of the way when showing
your home. Some people don’t care for animals
and although you love them dearly, just the sight
of an pet can turn off a potential buyer.
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Keep the
TV and Stereo turned to
“Off”!
While a showing is in progress, always remember
that the buyer is comparing your home to the homes
he has already previewed. If music is blasting in
the background, it could be a turn-off to his
decision.
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Don’t distract the buyer!
The Agent is there to sell your home. Don’t
point out the positives and negatives. This will
distract the buyers and can make or break a sale.
Your agent is there to best serve your needs.
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Keep a low profile!
Nobody knows your home as well as you do, but your
agent knows what the buyer is looking for and what
they want. Your agent will have an easier time
relaying the virtues of your home if you stay in
the background.
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Your home is not a “Garage Sale”
When a prospective buyer comes to view your home,
don’t distract them with offers to sell your
appliances, furnishings or pets or those things
you no longer have any use for. They may be
instantly “turned off”.
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Let the Professionals help!
When prospective buyers want to discuss price,
terms or other real estate matters, let them speak
to an expert, your RE/MAX real estate agent.
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Support your Agent!
Your real agent will have an easier time showing and selling your
home if showings are can be scheduled with some
flexibility. You will appreciate the results and
be
a “very satisfied customer.”
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Closing
Costs
Property
Purchase Tax
The
British Columbia Provincial Government imposes a
property purchase tax, which must be paid before
any property can be legally transferred to a new
owner. The tax is 1% on the first $200,000
of the property value and 2% on any value over
$200,000. Ask me about the special
regulations for first time buyers in B.C.
Goods
& Services Tax
If you purchase a
newly constructed home, you may be subject to a 7%
GST on the purchase price. However, if the
home is under $350,000, and this is your principal
residence, a rebate will reduce the GST paid to
4.48% of the purchase price. If the price is
over $350,000 the net GST to be paid increases
gradually until it is a full 7% at amounts over
$450,000.
Property
Tax
If the current
owners have already paid the full year’s
property taxes to the municipality, you will have
to reimburse them for your share of the year’s
taxes. Property taxes are calculated from
Jan – Dec and are paid at the end of June.
Appraisal
Fee
When the lending
institution requires an appraisal of the property
before approving your loan, it may be your
responsibility to pay the appraiser’s fee.
Survey
Fee
The lending
institution may also require that a survey
certificate be presented to them. The
purpose of the survey is to formally establish the
boundaries of the property and to ensure that all
buildings are within those boundaries. If
the current owner cannot provide a recent survey
certificate, it will be your responsibility to pay
the surveyor’s fee.
Mortgage
Application Fee
Lending
institutions may charge a mortgage application
fee. This application fee may vary between
lending institutions.
Mortgage
Default Insurance
This type of
insurance is required on all mortgage loans in
excess of 75% of the appraised property value.
Its purpose is to insure that the lender will not
lose any money if you cannot make your mortgage
payments and the value of your property is not
sufficient to repay your mortgage debt. The
insurance premium is paid to the lender and ranges
from ½% to 3.75% of the loan value; however, in
most cases this premium is added to the loan
amount, and paid for over the term of the loan.
Life
& Disability Mortgage Insurance
At your option,
you may purchase insurance that will ensure that
your outstanding mortgage balance is paid if you
die or become disabled.
Fire
& Liability Insurance
The mortgage
lender will insist that you purchase an insurance
policy which guarantees that, in the event of
fire, the lender will receive the balance owing on
the mortgage loan before you receive any insurance
proceeds.
Legal
Fees
The transfer of
property ownership from the seller to the buyer
must be recorded in the Land Title Office in order
to protect the new owner’s interests. You
will probably want to engage a lawyer or notary
public to act on your behalf during the completion
of your purchase. The legal fees for this
service will include payment of a registration
fee. If you are financing your purchase with
a new mortgage loan, there will be a further fee
to prepare and register the mortgage documents.
Possible
Other Last-Minute Costs
Home
inspection fees
Moving
expenses
Deposits
required by utility companies
Household
goods:
kitchen appliances,
garden equipment, garbage
cans, tools, window
coverings, etc.
Renovations
or
redecorating
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