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Brian Madigan LL.B., Broker
BRMadigan@Rogers.com

RE/MAX West Realty Inc.,
Brokerage
Independently owned and operated

96 Rexdale Blvd. 
Toronto, Ontario 


Phone: 416-745-2300

Cell: 647-404-8150 
Toll Free: 1-888-507-0817

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RECO Toolkit #4

December 31, 2018 - Updated: December 31, 2018

RECO’s Toolkit #4

 

What follows is a series dealing with some publications by RECO to help the Consumer:


 

Real Estate Council of Ontario
 

Buying Checklist

Buying a home is a big decision – whether it’s your first home or a vacation home. To help you make smart decisions, it’s important to think with your head and not your heart. The Real Estate Council of Ontario (RECO) shares their tips for being home smart when you’re in the market to buy.

 

Do your homework

Get informed about the buying process before it begins to save time, hassle and money.

Shop around

Don’t be tempted to hire the first real estate representative you meet. Make sure the fit is right, check their references and visit the RECO website (www.reco.on.ca) to confirm their registration.

Get it in writing

If your real estate representative offers you rebates or incentives,
they should provide the details in writing.

Understand what you’re signing

Before you sign a buyer representation agreement, make sure you know what it means, how long it will be in effect and what the different clauses mean. Ask questions and seek independent legal advice if you’d like a second opinion.

Keep budget in mind:

  • Remember to include legal fees, land transfer tax, mortgage insurance and utility hookups in your total cost.

 

  • Know the costs of a home inspection and home appraisal or survey.

 

  • Moving costs can vary based on volume, distance and whether you hire a professional mover. Have wiggle room in your budget to cover the cost.

Protect yourself

Make your offer conditional on mortgage financing, a home inspection, the sale of your existing home, and/or other factors that are important to you. These conditions provide you important protection as a buyer.

Check what’s inside the walls

Ask your real estate representative to look into the age and condition of the home’s systems, such as the plumbing and electrical. Find out if proper permits were pulled for any renovations. Consider a home inspection to further examine the home and don’t hesitate to ask questions.

Be specific

Make your offer as detailed as possible. Outline what will be included with the sale (e.g., appliances and light fixtures) and be clear if certain renovations need to be completed, based on the home inspection.

Plan ahead

If you encounter a bidding war, enter with a strategy. Set ground rules in advance about what you want from a home, what you’re willing to spend and what conditions must be met. Once your rules are set, stick to them.

Competing offers

It can be tempting to waive your conditions, such as a home inspection. Think twice before
doing this.

Expect the unexpected

Does your closing date on your new home align with when you need to move out of your existing home? Have a contingency plan in place in case the dates don’t match up.

Above all, working with a registered real estate professional will help you navigate the many steps and decisions involved in the home buying process.

looking for more information?

For more information on how RECO protects the public’s interest, please visit www.reco.on.ca or call 1-800-245-6910.

 

 

Brian Madigan’s Annotated RECO Publication Toolkit #4
 

I have altered the presentation, but not changed any words, added italics and highlighting, as well as some “notes”.
 

Real Estate Council of Ontario
 

Buying Checklist
 

Buying a home is a big decision – whether it’s your first home or a vacation home.

 

To help you make smart decisions, it’s important to think with your head and not your heart.

 

The Real Estate Council of Ontario (RECO) shares their tips for being home smart when you’re in the market to buy.

 

Do your homework

 

Get informed about the buying process before it begins to save time, hassle and money.
 

Shop around

 

Don’t be tempted to hire the first real estate representative you meet. Make sure the fit is right, check their references and visit the RECO website (www.reco.on.ca) to confirm their registration.
 

Note: this does appear to convey a lack of overall confidence in the profession. This seems like an odd caveat from the Regulator. Neither the Law Society nor the College of Physicians & Surgeons approach their professions like this.

 

Get it in writing

 

If your real estate representative offers you rebates or incentives, they should provide the details in writing.
 

Note: Seemingly, this caveat would appear to suggest that they won’t otherwise be honoured.

 

Understand what you’re signing

 

Before you sign a buyer representation agreement,

  1. make sure you know what it means,
  2. how long it will be in effect and
  3. what the different clauses mean.

 

Ask questions and seek independent legal advice if you’d like a second opinion.

 

Note: second opinions are also available from knowledgeable individuals within the profession.

 

Keep budget in mind:

 

  • Remember to include legal fees, land transfer tax, mortgage insurance and utility hookups in your total cost.

 

  • Know the costs of a home inspection and home appraisal or survey.

 

  • Moving costs can vary based on volume, distance and whether you hire a professional mover. Have wiggle room in your budget to cover the cost.

 

Note: there are many others. Mortgage arranging fees, insurance, both fire and liability, mortgage life insurance are additional matters of concern. The most significant comes with all the unknown extras in new builds.

 

Protect yourself
 

Make your offer conditional on
 

  1. mortgage financing,
  2. a home inspection,
  3. the sale of your existing home, and/or
  4. other factors that are important to you.

 

Note: you certainly will need to have a professional working with you, as this properly isn’t advice. This is totally shooting for the stars in a buyers’ market. Get pre-approved, so you won’t need a financing condition. This just looks like you can’t afford the property and the Sellers will drop you to the bottom of the list in a bidding war. There’s a significant chance it won’t fly, and if you do your homework in advance, you won’t need it. You should know the condition of the property, so put a condition to that effect in your Offer. If you are in multiples, you can even do that ahead of time. This will give you an edge. If you don’t win, this is still a cost of doing business. Conditional on the sale of your own home! That’s quite a stretch. It only works, if the Seller can’t sell. Even more conditions…..very doubtful. On a few of these points, the Regulator should stick to regulating. They are not helpful or practical in many cases. Seek professional help here.

 

These conditions provide you important protection as a buyer.

 

Check what’s inside the walls
 

Ask your real estate representative to look into
 

          the age and condition of the home’s systems,

          such as the plumbing and electrical.
 

Find out if proper permits were pulled for any renovations.
 

Consider a home inspection to further examine the home and don’t hesitate to ask questions.
 

Note: Let me be perfectly clear about this. ALWAYS get a home inspection. There are no exceptions. Don’t “consider” it. ORDER it!
 

Be specific
 

Make your offer as detailed as possible.
 

Outline
 

  • what will be included with the sale (e.g., appliances and light fixtures) and
  • be clear if certain renovations need to be completed, based on the home inspection.

 

Note.: We have a problem here. Don’t get the impression that renovations are part of the real estate deal. That hasn’t been the case in the last 800 years, so I don’t think that’s about to change. All transactions are on an “as is” basis. And why would you want the Seller to do your renovations? The notable exceptions is you are buying a brand new home directly from the builder. I would prefer that you had professional advice here to guide you through the process.
 

Plan ahead
 

If you encounter a bidding war, enter with a strategy.
 

Set ground rules in advance about what you want from a home, what you’re willing to spend and what conditions must be met.
 

Once your rules are set, stick to them.
 

Note: Sounds like good advice on paper, but, it’s simply “silly”. You will never win, you will always lose, until one day, you actually overpay for a dump. But, yes, you do need a strategy. However, never, ever spend more money than you have. That will just prove to be a disaster.
 

Competing offers
 

It can be tempting to waive your conditions, such as a home inspection. Think twice before doing this.
 

Note: to be quite frank, I thought that this was going to be a buying checklist. It’s more a checklist about protecting yourself from your own agent. The true answer here, is get yourself a good agent in the first place. If you are properly represented by a true professional, then you won’t have a problem. When dealing with the issue of competing offers, there’s far more to it, than thinking twice about the home inspection clause.
 

Expect the unexpected
 

Does your closing date on your new home align with when you need to move out of your existing home?
 

Have a contingency plan in place in case the dates don’t match up.
 

Above all, working with a registered real estate professional will help you navigate the many steps and decisions involved in the home buying process.
 

Note: Of course, you will have to figure out when you are going to move. I thought that would be obvious. And, I am caught offguard about the “working with a ….professional” comment.

 

looking for more information?
 

For more information on how RECO protects the public’s interest, please visit www.reco.on.ca or call 1-800-245-6910.

 

 

 

COMMENT
 

Here’s the link to the RECO website for a “PDF”:

 

http://www.reco.on.ca/wp-content/uploads/RECO-Buying-checklist.pdf

 

If you would like some additional information about any of the issues raised here, then please give me a call.

 

Brian Madigan LL.B., Broker

www.iSourceRealEstate.com


Tagged with: reco toolkit buyers checklist
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Brian Madigan LL.B. Broker

RE/MAX West Realty Inc. Brokerage

Independently owned and operated

96 Rexdale Blvd. , Toronto Ontario,

Phone: 416-745-2300

BRMadigan@Rogers.com

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