Real Estate Talk:
The Purchase Process
Searching for a property with a broker and the step by step purchase process
By Joseph Marovitch
Updated October 24, 2018
If you are buying a property for the first time, it can be an overwhelming endeavor. There are questions such as where do I start? Where do I look? Should I use a broker or do this alone? How do I arrange financing? What if the house has problems? Am I paying a fair price? Will I get my money back when I sell, and the list goes on and on.
To provide a better understanding of the real estate process and all that is entailed, we will provide a series of articles that include topics such as the purchase process, the selling process, the pre-approval process, inspection, financing, cash or mortgage, marketing process, income property, buying with or without warranty, purchasing a second home and other issues. You can also contact me anytime for questions about topics presented, or any other real estate issues.
Buying a property for the first time can be an overwhelming endeavor. There are questions such as where do I start? Where do I look? Should I use a broker or do this alone?… And the list goes on and on.
In this article the first topic addressed is searching for a property with a broker. You can search on-line or through ads in the local newspapers, however this is a time-consuming process and much effort can be wasted. An experienced broker does not cost you and can narrow your search to specific criteria such as location, number of bedrooms and bathrooms, style and price range.
The first step is to meet several referred brokers and find chemistry, integrity and trust. In a meeting you will determine if the broker appears informed, professional and trustworthy.
Questions to ask the brokers include:
• How long have you been a broker?
• Have you purchased many homes?
• How do we finance?
• Can you recommend a mortgage broker?
• Can you recommend an inspector?
• Can you recommend a notary?
These are not complicated questions but you want to detect knowledge, patience, integrity, professionalism, the ability to negotiate, and commitment to you… and not just a sale. If your gut feeling is positive, then use the broker. If not, go to the next broker.
The wrong broker to buy or sell a property can lead to legal issues and plenty of frustration. The broker should ask you several questions as well, to determine and create a foundation of trust. After all, you will be working together intensely for a period of time.
‘The wrong broker to buy or sell a property can lead to legal issues and plenty of frustration.’
The following is the purchase process step by step:
Meet with the broker to determine:
• Type of property – residential, detached, semi detached, condo
• Number of bedrooms
• Number of bathrooms
• Parking or garage or both
• Price range
• Style – old, new, concrete, wood, brick, stone
• Financing: mortgage or cash? (Require or arrange pre-approval of proof of cash.)
• Broker searches and reviews listings based on criteria provided by buyer
• Broker emails listing to buyer to review
• If buyer finds any listings to be of interest, buyer informs broker
• Broker arranges visits and checks for liens, mortgage, registered rights, etc.
• Broker prepares promise to purchase with price and conditions
• Broker prepares counter offer if required
Once offer is accepted:
• Broker ensures all required documents are provided to designated notary
• Broker ensures financing is arranged with bank evaluations
• Broker ensures inspection deadlines
• Broker handles miscellaneous problems: Certificates, loans, servitudes, non-conformities, septic, well, weeping field, etc.
Broker then arranges signing
Next article: Financing process: Pre-approval or proof of cash
Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, go to the search link and type in Joseph Marovitch.
Have a great week!
State of the market
The overnight interest rate is poised to rise a quarter percent in October, bringing the prime rate to 1.75%. The overnight rate affects mortgages and loans and an increase of .25% will cause mortgage rates to rise. If you are in the market to purchase property with a loan, now would be an excellent time to acquire a pre-approval from your financial institution. You can still lock in a lower rate for up to 120 days and save a significant amount of money over the long term.
A positive effect for buyers is an increase in interest rates will signal a price reduction in real estate prices. Prices have risen due to less property for sale. The market has been hot up till now as borrowing has been relatively inexpensive. With the cost to borrow increasing, it will be more difficult for venders to sell.
Image: Andrew Burlone
Read also: Real Estate Talk: The buyer’s contract
Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible to, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or email@example.com