buyers and sellers guide

Bambi Marshall

Sales Representative

For YOU, as a First Time Buyer, this is one of the most exciting things that will happen in your life. This can be fun as well as stressful, but that is why you have chosen me to give you step by step instructions. Because this is your first time purchasing, you will have many questions and I am available through email, phone or texting and I pride myself on giving same day service and answering your questions right away. If I do not know the answer then I will find out and get back to you. I was an Avon District Sales Manager for 17 years and had over 300 Independent Representatives in my sales force. My area included as far West as Gananoque, as far North as Seeley’s Bay, Westport, Smiths Falls and as far East as Kemptville down to Prescott, so I am familiar with those areas and getting back to people, especially women in a timely manner. I am also proud to say that I am an Army Brat, my Dad was in the Army for 20 years…

Buyers

Visit your financial institution to determine your affordability and obtain pre-approval. Pre-approval provides a clear understanding of the price range within which to search for homes. Consider looking for properties below your pre-approved amount, especially if you’re open to renovations. Inquire about ‘Improvement Plus’ options for details on financing renovations.

Remember, pre-approval is based on information provided to the financial institution, and obtaining a commitment requires submitting necessary paperwork. To stay ahead, have the following documents ready:

T-4 forms from the last two years
Notice of Assessment (NOA)
Photocopies of recent pay stubs
A letter from your Human Resources confirming your full-time employment duration and annual income.

Being prepared is essential in a competitive market where timing is critical, as other buyers are also exploring similar properties.

Before diving into the house hunting process, it’s crucial to contact a real estate agent and interview a few of them. Whether it’s over the phone, face-to-face, or via the internet, this step is essential to ensure alignment of goals and expectations.

Make sure the agent understands your needs and preferences, and that they will be fully committed to assisting you during and after the sale of your new house. Purchasing a home is a significant investment, and you want to ensure it’s both what you want and what you can afford.

Here’s a list of wants and do not wants to consider when determining the area you’re interested in living:

Wants:

Proximity to good schools for children.
Convenient commute to work.
Close to family and friends, if desired.
Access to amenities such as grocery stores, restaurants, parks, and recreational facilities.
Safety and low crime rates in the neighborhood.
Access to public transportation, if needed.
Availability of green spaces or outdoor recreational areas.
Neighborhood character and community vibe.
Affordability of housing in the area.
Future resale potential of the property.

Do Not Wants:

High crime rates or unsafe neighborhoods.
Excessive noise or traffic congestion.
Far distance from essential amenities.
Poor quality schools in the vicinity.
Lack of access to public transportation, if necessary.
Limited green spaces or recreational facilities.
Undesirable neighborhood character or lack of community engagement.
Unaffordable housing prices.
Poor future resale potential of the property.

Consider these factors carefully to ensure you find a location that aligns with your lifestyle, needs, and long-term goals.

Once you’ve found a house that meets many of your criteria, I’ll guide you through the offer process. Before making this decision, there are several important factors to consider:

Offer Amount: Determine how much you’re willing to offer for the property based on its value, market conditions, and your budget.
Deposit: Decide on the amount of deposit to include with your offer. Deposits typically range from $500.00 to $5,000.00 and must be provided within 24 hours after the offer is accepted.
Move-In Date: Consider when you’d like to move into the new home. If you’re renting, you’ll need to give 60 days’ notice, but you can arrange to take possession of the house 2-3 weeks before leaving your rental. Choosing a closing date mid-week, preferably Tuesday to Thursday, allows flexibility in case of any delays.
Inclusions and Exclusions: Determine which items will be included in the sale, such as appliances (e.g., fridge, stove, washer, dryer), and specify any exclusions, such as personal belongings or rented items.
Legal Representation: Choose a lawyer to handle the legal aspects of the transaction. Remember that closing costs typically amount to around 1.5% of the purchase price. For example, on a $150,000.00 house, closing costs would be approximately $2,250.00.

Once your offer is accepted, timing becomes crucial for both you as the buyer and the seller. You’ll need to arrange the fulfillment of conditions outlined in your offer, known as contingencies. These conditions serve as safeguards, allowing you to walk away from the deal and receive your deposit back if issues arise, such as financing or concerns uncovered during the house inspection. Typically, these conditions are to be met within seven to ten days of the accepted offer.

Financing: Remember the documentation supporting your pre-approval? The financial institution now requires this paperwork along with the Agreement of Purchase and Sale and the property listing (which I can provide for you). It’s crucial to submit these promptly to expedite the financing process and secure a commitment from your financial institution.
House Inspection: Choose a reputable inspector. While some may balk at the cost, especially first-time buyers, it’s essential to have a professional assess the property thoroughly. Booking the inspection between the 5th and 7th day allows time to address any concerns before committing financially.
House Insurance: Insurers typically require a review of the property listing to assess insurability. Without insurance, securing a mortgage becomes challenging, making this step crucial for the financing process.
Water and Septic: For rural properties without municipal services, ensuring the quality of drinking water and the functionality of the septic system is vital. A comprehensive assessment prevents costly surprises for first-time buyers down the road.
Final Walk-Through: Conducted days to a week before closing, this ensures the property’s condition matches your expectations and includes all agreed-upon items. Any discrepancies can be addressed promptly to avoid last-minute complications.

With everything proceeding smoothly, including securing your financing with a commitment from the financial institution, completing your house inspection successfully, and obtaining insurance, you’re now ready to fulfill these conditions. As the SOLD sign goes up on the house, you can move forward confidently with the next steps in the process.

While you’re waiting to move into your new home, don’t forget to give your landlord a written 60-day notice of your intention to move out. Be sure to review your written lease for any rules regarding lease termination before you begin searching for a new house.

Start decluttering by getting rid of any items that are no longer useful or needed. You’ll appreciate this later on. (If you haven’t used or worn something in the last 6 months, chances are you won’t miss it when you move.) Begin packing and labeling boxes, organizing them by room. This will streamline the moving process and make unpacking much easier and less stressful on moving day.

You will be contacted by your Financial Institution and Lawyer to go and sign papers and ensure they have all of your paper work and walk you through the process.

Getting the keys from your Lawyer and now the house is yours (sort of, until you pay the mortgage off it belongs to the financial institution).

Moving day has come to move everything to your new home…be sure to arrange with a moving company or rental service ahead of time and watch out for long weekends as they usually charge you more.

Congratulations!!!!!

On your new home and when the time comes you can call me to sell or pass along my name to friends and family members.

Thank you….Bambi

IMPROVEMENTS PLUS

This is a great opportunity to have the renovations of your new home done and added to your mortgage versus saving up the money to do the renovations. ASK ME ABOUT THIS PROGRAM. CMHC allows 10% of the purchase price and GENWORTH will allow 20% of the purchase price for Improvements Plus

PURCHASING A RENTAL PROPERTY

If you’re considering purchasing a rental unit, it’s important to note some recent changes with CMHC and Genworth. New Rental Policy! CMHC and Genworth will now consider up to 100% of gross rental income from a two-unit owner-occupied property under the following conditions:

All applicants must have a credit score of 680 or greater.
The rental income must be sustained for at least two years.
Confirmation of the two-year average of the rental income is required.

For 3–4 unit owner-occupied and 1–4 unit non-owner occupied properties, the net rental income (gross rents less operating expenses) can be included as part of the borrower’s gross annual income, as per the income tax return schedule of rental activity.

If you’re purchasing a property for a family member to rent from you, check with your mortgage broker. You might qualify for a down payment as low as 5%, instead of the usual 20-25%.

Sellers

Now that you’ve made the decision to sell your house, it’s time to choose who will represent you in this endeavor. Start by interviewing agents referred to you by friends or from reputable real estate companies. It’s crucial to feel comfortable with your chosen agent, so don’t hesitate to ask direct questions. Consider whether you can establish a productive working relationship with them.

Once you’ve selected an agent, the next step is crafting a marketing plan to sell your property. Pricing is paramount, along with staging, enhancing curb appeal, and depersonalizing the house. Begin packing items you’re not currently using to streamline the moving process later on.

If you’ve chosen to work with me, here’s my commitment to you as the seller:

Professional Photography: I collaborate with a skilled photographer who will capture your home professionally. You’ll receive a comprehensive guide outlining necessary preparations leading up to the photo session.
Marketing Strategy: I’ll promote your property through strategic pricing and advertising. Your listing will feature prominently in the “New to the Market” section of the Recorder and Times, published every Wednesday. If an open house is scheduled, it will be included in this advertisement.
Property Signage: A sign on your property is essential for attracting potential buyers who frequent the neighborhood. It’s often the first point of contact for interested parties before they explore online listings.
QR Code Integration: Passersby can scan a QR code on your property sign, directing them to my website for instant access to detailed information, including interior photos, updates, inclusions, and exclusions.
Comprehensive Advertising: Your property will be advertised in local publications like the Recorder and Times and Homefinder, extending coverage beyond Brockville to areas like Prescott, Kemptville, Cornwall, and Ottawa. I’ll leverage platforms like Realtor.ca and Remax.ca, ensuring your listing reaches a wide audience.
Open Houses: While some may attract curious neighbors, they serve as effective advertising channels, generating word-of-mouth referrals. Open house details will be promptly shared on relevant platforms, including the Recorder and Times.
Showings: I’ll personally coordinate all showings, whether initiated by prospective buyers or their agents.
Follow-Up: After open houses, I’ll send thank-you emails and provide any requested information to attendees. I’ll also reach out to showing agents for feedback, which is invaluable for refining our approach.

Before making a decision to sell, it’s crucial to understand the potential penalties associated with your mortgage. Always inquire about the cost of early mortgage termination. Ask your lender:

“What is the penalty for early mortgage termination?”
“Can I port my mortgage to a new property?”
“Is it possible to combine my original mortgage with any difference in price for the new house, without incurring a penalty? If so, what would the new interest rate be?”

Being informed about these aspects of your mortgage can greatly impact your decision-making process when buying or selling a property.