Your Real Estate Team
You’ll want to have a team of professionals at your service when buying your first home. Here’s a guide to who they are and what they do. You decide exactly who is on your team, but there are a few professionals without whom buying a home is nearly impossible. Ask neighbors, friends, family members, and coworkers for referrals in putting together your team.
Mortgage Associates
When it comes to making a major decision like financing your new home, mortgage advisors are qualified professionals who can help you sort through the maze of different options and features available today. They do all the paperwork and offer better rates than you can obtain in a branch.
Realtors
When a home is put on the market, the vendor (seller) is generally responsible for any real estate commissions associated with the sale. Therefore, there are many advantages to you in seeking the assistance of a qualified Realtor who has experience in the area you are house hunting. A good Realtor will make the home-buying process easier, helping you avoid common pitfalls and making sure you get the best value for your money. Be sure to find a real estate agent who is interested in giving great service – as defined by you the client.
Home Inspectors
A property inspection includes a check of the roof, foundation, insulation, beams, gutters, bricks, siding, and caulking of the building you are considering buying. The plumbing, heating, and electrical systems should all be tested and fully examined.
Not only do inspectors catch things you may have missed, but they also provide a detailed, written inspection report which includes an estimated cost for specific repairs and maintenance if applicable. The offer you make to the vendor should always be conditional on a satisfactory inspection. If you discover any serious defects you should renegotiate your offer or suspend negotiations altogether by withdrawing your offer.
Appraisers
An appraisal includes an unbiased assessment of the property’s physical and functional characteristics, an analysis of recent comparable sales, and an assessment of current market conditions affecting the property.
Most mortgage lenders require an appraisal to be completed prior to you receiving your mortgage funds. An appraisal report provides you with an expert’s second opinion as to the property’s market value, which may or may not match your purchase price.
Lawyers
Hiring a lawyer is the best way to ensure that your legal interests are being protected when you buy your new home. Your lawyer will review any documentation you need to sign and perform the necessary searches to clear the title from the seller so that the property can be duly registered in your name. A few days before closing, you will visit your lawyer’s office to sign the closing documents. The lawyer collects the mortgage funds from your lender, and together with your certified cheque for the remaining balance, disburses the funds to all relevant parties.
Insurance Agents
An insurance agent or broker can provide you with all your insurance needs, including property insurance and life and disability protection. Lenders insist you purchase fire insurance because your property is their collateral or security for the money they lent you. Property insurance covers the replacement cost of your home, and premiums vary depending on your coverage amounts, deductibles, and the value of your home.
Life and disability insurance is offered by most lenders, but unlike fire insurance coverage, you are not required to purchase it. It may be easy and convenient to do so, but often it’s more expensive and less flexible than it could be. If you are a nonsmoker with no history of health ailments private insurance coverage through an insurance broker is less expensive, and offers better coverage for you and your loved ones.
