Sales Representatives
A real estate sales representative is a professional who can save you time and trouble. And possibly even a lot of money. You see, real estate sales representatives have the home buying experience most people lack. They know all of the steps and they are good negotiators who will work on your behalf.
A sales representative will:
- Fine-tune your wants/needs list
- Get special computer access to listing information
- Screen houses so as not to waste your time
- Arrange appointments
- Offer helpful advice about the neighbourhood
- Introduce you to trusted contacts who should be on your team, such as mortgage brokers, lawyers, and home inspectors.
- Above all, find a real estate sales representative who is a professional in the type of home you're seeking. For example, a country home professional may not be the urban market specialist you need. And when speaking with your sales representative, be as straightforward as possible about your needs.
Contractors
If you've decided to do some renovations on your home to make it more sellable, it's time to look for a credible contractor. However, before anyone begins work on your home, it is essential to do your homework.
1. Ask for Referrals
Your architect will make recommendations
Your sales representative will offer some suggestions
Contact friends or neighbours who have had similar work done
Ask at your local builder supply store
When you're interviewing contractors, ensure their credibility. Contact their references. Ask to see samples of the contractor's work and speak to their prior clients to ensure they were satisfied with the price, length of time in which the project was completed and overall, how the project was handled. Also, check with your local Better Business Bureau.
Once you have the names of a few contractors that look promising, arrange to get estimates from them. By acquiring three quotes you'll get a good idea of the costs and quality of work.
When going over the project with your contractor, ensure that he understands your needs and your budget. Each contractor will have a different idea of approaching the work and inspecting your home before providing an estimate. If contractors are bidding based on an architect's plans, be sure that they have detailed their approach to the job based on the drawings.
What's more, if there is a significant difference in the price, ask the contractors to explain their estimates. And keep in mind that the lowest price is not always the best. A price that's too low may mean that the contractor has undercut to get the project and then may submit additional project costs once the project is underway. As well, a high price doesn't always mean that you're getting gouged. The contractor may have budgeted for higher quality materials and may offer results that are overall better quality.
In every case, before you sign the contract, ensure that it is as detailed as possible to the point of noting the specific finishes and brand names of the products to be installed.
2. Evaluating a Quotation
- Are the specific details of the project outlined?
- Are the specific costs detailed?
- Is there a provision for extra costs?
- Has a cap been set for the total project?
- Is there a firm project timeline?
- Has the contractor allotted time for inspections?
- Have you indicated that you wish to see all material receipts?
- Will the work be subcontracted?
Appraisers
Hiring an appraiser to appraise the value of the property you are considering buying may seem sensible but it is highly unnecessary. Your lender will want their own personal appraiser anyway, and you could be wasting valuable money. Most sales representatives are competent and can do a "Comparative Market Analysis" for you, to establish a value range. The only situation where hiring an appraiser would become necessary is where the property is unusual with no comparable sales.
Lenders
The true test for a buyer is "What else can we buy for the same or less money?"
In short, a lender is anyone who will give you money. There are private lenders and institutional lenders, like banks and credit unions. Even your brother-in-law can be your lender. But, of course, when you're looking for a lender, you're looking for a long-term relationship and terms and rates which are beneficial to you.
You really have a few options. First, it would be best to go to a mortgage broker who will search the mortgage market for the best rates and conditions based on your circumstances. Usually the broker is paid by the lender without cost to you. However, the cloudier your credit history, the more likely there will be a fee! A good mortgage broker will be connected to all major lenders through the mortgage market.
You can also search on your own. With a good credit history, it's really not that complicated. Search online or pick up a newspaper, and you will see what the different lending institutions are offering. Find the institution you feel you would be most comfortable with, and one that offers the terms and conditions you're seeking. Then, go in person and negotiate your best deal.
We'll go into more detail about this process in the arranging a mortgage section.
Mortgage Brokers
This person will do the leg work in finding the institution that offers the mortgage terms and conditions that are right for you. Much like an insurance broker, this professional works for you and can provide an unbiased referral. Although the lender pays most brokers a finders fee, some will charge 2% of the total mortgage to find you a lender.
Lawyers/Notaries
A lawyer is there to represent your interest, and to process the documentation required. The legal aspects differ from province to province. Your sales representative can recommend lawyers to advise you on the steps you need to take before you receive the keys to your new home. A lawyer helps ensure you are protected!!!
Home Inspectors
Have the home inspected! Whether you make it a condition of purchase or not, having the property pre-inspected by a qualified home inspector will give you the added confidence that you've made the right decision. Be very careful to verify the qualifications of your home inspector because there are no government standards or licenses for home inspectors. Some home inspectors in Canada do not have any form of accreditation. For your protection, ensure your home inspector is a member of (PACHI) or (OAHI). The inspector's membership guarantees that they have met their education requirements, have the experience and carry E & O Insurance.
Insurance Brokers
You'll want to ensure that your property and valuables will be covered. A broker offers independent advice and can save you time, trouble and money. Plus, the bank will insist that you carry full insurance since your property is used as collateral against your mortgage.