Buying a House - Realty Executive

Realty Executives | Saint John |

Preparing toBuy a HomeThis guide will be your road map to successfully purchasing your new home. Understanding and following many of the suggestions outlined within this guide will help you to understand how the process works. Your Realty Executives agent will work with you to ensure that your home buying experience is a positive one and this guide will help you do this!

Realty ExecutivesRealty Executives is one of the fastest growing Real Estate companies in the World.

Winning several recent awards and high praise from popular business publications, Realty Executives is your solution to the fast and successful purchase of your new home.

Our agents are professionally trained and ready to work hard for you. We pride ourselves on having professional, friendly, hard working agents who will go the extra mile for you.

Agents that you can count on.Let a Realty Executives Expert WORK FOR YOU!

Table of Contents

Realty Executives ................................................................... 1Our Agent’s Commitment to Serving You ................................2Understanding Your Needs and Wants ...................................4Understanding Location .........................................................6Understanding Pricing .......................................................... 10Additional Things to Think About ..........................................11

Realty Executives

33 Hanover St.Saint John NB.E2L 3G1

p. 506.646.8080f. 506.646.9004

Saint Johnwhere the experts are TM

I ListenI will meet with you to discuss your wants, needs and goals when it comes to purchasing your next home. I will help you identify which nuances are important to your move. These may include location, lifestyle and financial comfort level.

I SearchI will use several different search tools atmy disposal to find a home that matchesyour criteria.

Multiple Listing Service (MLS) is an inventory of all properties listed by a Realtor (unless sellers have otherwise specified) which enables every Realtor to search active, pending, sold and expired listings. Using this tool keeps me connected to the most up-to-date information.

My Network is a large network of associates from both my office and my region which enables me to network frequently and

efficiently on your behalf. The collective knowledge, information and inventory that I have direct access to will benefit your transition into your new home.

My “Sphere of Influence” is made up of hundreds of people from within our community including friends, family, current and past clients alike. Staying in touch with this diverse group of people will create more opportunity for me to know about potential new homes for sale that fit your needs.

I PreviewTo make the most of your time, I will tour properties before you see them to make sure they match your taste, lifestyle and previously determined search parameters. Doing this will save you time and effort because we will be able to narrow down listings to those which are most likely to be of interest.

I ScheduleViewing potential properties is exciting, but it can be an overwhelming process too. If

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OUR AGENTS... COMMITTED TO SERVING YOUOur Real Estate Agent will serve you in a friendly, professional manner, offering you the best advice and best set of professional sales skills that we have to offer.

you see too many homes within a short time span, they can start to blend together. I’ll make the most of your time by scheduling the appropriate number of appointments to make sure the homes we view together are the best candidates for you next home.

I TourEvery area has a designated weekly and/or monthly home tour. These home tours are exclusively for agents and brokers, so we are able to stay in touch with the most recent listings in a given area. Staying informed with what’s new on the market will always assure that you are the first on the scene to get a look at new listings that may interest you. If you are looking for a newly constructed home, I’ll tour new construction communities as well.

I ResearchIt is imperative for me to stay connected to property values, market fluctuation, changing lending guidelines and anything that impacts the purchase of your next home. I can assess fair market prices by performing a market analysis on areas relevant to your search criteria. Doing this will positively impact your negotiating power down the road.

I VerifyOnce you have found a home that you are really interested in, I will verify that the tax records, history, time on the market, location, square footage and condition listed in the MLS are all accurate. This will save you time and headaches as you get further into theoffer process.

I AdviseI will assist you in the analysis of which listings best fit your needs. Once we have identified a home for which you would like to make an offer, I will help you write the purchase offer which begins the negotiating process. I will also assist you with details such as appraisals, inspections, title searches, your mortgage and more because, after all, it really is all about making this process as seamless as possible for you.

I RepresentI have a responsibility to meet your needs when it comes to dealing with sellers and their Realtor so that you can concentrate on the exciting details of your new home like moving, new furniture, cable, phone etc. We’ll be in touch throughout the entire process to make it as stress free as possible.

I NegotiateYour negotiating power varies greatly based on current market conditions. This is dependent on things like the economy, job growth, interest rates, exchange rates, inventory and demand. Once we find the right home, I’ll guide you through the negotiating process, educating you along the way about what comparable fair market housing prices would be in that area as well as the terms of the contract.

I CommunicateFrom the beginning we work together until the day you move into your new home, I’ll make every effort to make the transition as smooth as possible for you. If you need additional assistance selling your home, I will provide

those services or refer you to the appropriate parties to best coordinate the timing on both transactions. You will hear from me regularly via telephone, e-mail, fax and in person.My goal is to keep you informed about our progress and get you moved into your new home within your ideal time frame.

I SatisfyIt is my job to find the home that best suits your wants and needs. My goal is to make this transition as comfortable and stress free as possible so you can enjoy the opportunities that await you in your new home. So letsget started!!

Canadian RealEstate AssociationAs a member of the Canadian Real Estate Association, I adhere closely to the Realtor Code of Ethics. Under this code of ethics I promise to provide you with:

• Professional competent service• Absolute honesty and integrity in business dealings• Co-operation with and fairness to all• Personal accountability through compliance with CREA’s Standards of Business Practice.

To meet their obligations, REALTORS® pledge to observe the spirit of the Code in all of their activities and conduct their business in accordance with the Standards of Business Practice and the Golden Rule – Do unto others as you would have them do unto you.

So you’ve decided to purchase a house. Congratulations, now the fun begins! One of the first steps to take is to make a list of needs and wants. This is a realistic shopping list of things that are important to you and will help narrow the choices of properties. Searching for a home is a time consuming process and it can be even more of a drain on your time and energy if you do not have a plan. One mistake that many buyers make is misinterpreting a want as a need. The end result is that you will miss out on homes that would have perfectly fit your needs. These needs and wants depend a great deal on your lifestyle as well as your life goals. Consider your personal family situation.

The average person buys or sells every 5 to 6 years. When reviewing your needs, it’s a good

idea to tailor those needs to what you believe will be important over the span of the next 5 or 6 years:

• How large of a family could you have?

• Are there any special needs for yourself or other members of your family?

• Do you have or want pets?

• Are there any special school or work related requirements?

• Do you need to be close to Church, Clubs or other groups or hobby’s?

• Are you willing and able to perform renovations?

• Are you looking for locations that you are familiar with or are you open to new areas?

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UNDERSTANDING YOUR NEEDS& WANTSCreating a healthy balance between your true needs and wants is the first step in determining what homes will be best suited for you to purchase!

• How many bedrooms will you need? Remember to think about guests and home office space.

• How many bathrooms will you need?

• What size kitchen will suit your needs? How much time do you spend there?

• What types of views do you like? (Waterfront, Hills / Country, City)

• Do you have exterior plans for a deck, fenced backyard or a garage?

• Do you need one level living for health reasons?

All of these potential needs are good examples of things you need to think about as they pertain to you over the next 5 or 6 years.

What we need and what we want are two separate issues. The wants are the things that we would like to have but could live without. It is important to find a home with a good balance with most of what you need and some of what you want. Here are some examples of typical wants:

• Colors for flooring, roofing, walls• Hardwood floors• Pool or Jacuzzi• Large bay windows

• Water view• Central Vac• Heat pump• Solid brass fixtures• Wood stove• Air conditioning• Close by to churches, clubs, activity areas• Close by to schools, shopping centres, restaurants & night life

It is not always possible to find the perfect home without compromising a little on your wish list therefore it may also be a good idea to get quotes on renovation costs.

Another great way is to make a list on paper of all of your needs and wants. Your Realty Executives Expert will supply you with a sheet that you can use to do this in an organized fashion.

Listing out all of your needs and wants and being honest with yourself about exactly what that list entails is the first true step in determining what homes you will be looking for. It is the first step in helping your Realtor to develop a list of good potential homes for you to review. This process leads to home showings and finding that one home that fits your needs and your wants perfectly!

LOCATION, LOCATION, LOCATION.

These three words are some of the most important words that come to mindwhen buying a home. Why? Here aresome examples:

Two identical houses, one built in a popular part of town and the other in the “wrong” part of town. Both cost the same to build but one will resell for less.

Is the home you are interested in, located in a quiet, peaceful setting or are you close to an airport or major arterial highway? You could find a great deal but then realize planes taking off from the local airport fly directly over your new home.

Are you flipping houses or are you planning a

long term stay? Neighbourhoods can change over time.

Do you have kids and need a home with a yard or do you want to live in the downtown core? A safe green space for kids to play may be important. Even if you don’t have kids now, you could in the future and if not, there is always the possibility of your needing to move in the future and potential buyers could have kids.

Do you have pets? You may need a large yard. Some dogs need space to run.

Are you flipping homes? All things being equal, a home renovation in one part of the city will not have the same return as in another part of town.


UNDERSTANDINGLOCATIONSLocation, Location, Location. It determines and sets the cap for fair market pricing on all homes and it is one of the key determining factors in which area you will choose to live in.

Do you plan on renting out you home? A property with a yard in a quiet neighbourhood and close to schools and public transit could be easier to rent out and demand a higher rent than a location that is far out of town or in a rough part of town.

When purchasing a property for investment purposes, location can be a key factor in keeping your property fully rented at it’s maximum potential rent with the best tenants possible.

What is the crime rate like in the area you arelooking at?

The further out of town you are, the more some utilities could cost such as internet access. The only option may be satellite access and that is much more expensive than internet access in town.

Is the community you are thinking of economically stable? If you decide to sell a few years down the road, your community will still be a desirable one and you will have less trouble selling.

Is there good municipal services in your area such as street cleaning, snow removal and quick access for Fire, Ambulance and other emergency services?

Are you close by to utility repair services? You may need to decide between rural (longer down time for electrical failures, telephone / internet issues) or urban (faster, better service for these types of things).

A community with excellent potential growth could mean a good return on your home should you decide to sell.

Easy access to public transit or taxi can be a consideration.

Do you enjoy night life in the city? Looking at homes that are a bit closer to city centres may be the best option for you and would cut back on taxi fare, hotel stays etc.

If you purchase a home with the intent of reselling at a profit, make sure you do a good home inspection before purchasing. A home that requires extensive repairs in the near future, may not be the best investment for you to get a solid return on later on.

Is the home you are considering in an area that is prone to flooding? Be aware of these locations as you start your search for your new home. If you are purchasing a home that may not be in a direct flood zone but close by, check with your insurance company to ensure that you can get coverage to protect your home should a flood breach the area and damage your house.

Did you grow up in the city or do you prefer quiet living off the beaten path?

Do you have a reliable car? Living in town can be easier if you do not have to rely on one as your main method of transportation.

Do you run a small business out of your home? Easy access for your clients is an important consideration.


SAINT JOHN AT A GLANCE

(1) Grand Bay - Westfield

• West Suburb• Avg Price of 3 Bedroom Bungalow: $200, 000.00• Tax Rate: $1.34 per $100• Population: 5000• Elementary, Middle School, Ice Arena, Boat Marina, River Views

(2) West Saint John

• Avg Price of 3 Bedroom Bungalow: $200, 000.00• Tax Rate: $1.79 per $100• Population: 16000• 4 Elementary, 2 Middle School, Shopping, Irving Nature Park, 2 Ice Arena’s

(3) Millidgeville (North)

• Avg Price of 3 Bedroom Bungalow: $230, 000.00• Tax Rate: $1.79 per $100• Population: 9500• 1 Elementary School, Regional Hospital, University, Limited Shopping, Marina’s, Ice Arena, River Views• Rockwood Park

(4) East Saint John

• Avg Price of 3 Bedroom Bungalow: $170, 000.00• Tax Rate: $1.79 per $100• Population: 14000• Shopping hub of city, Movie Theatres, 1 Ice Arena, Golf Course

(5) Rothesay & Quispamsis

• Main Suburb for Saint John• Large area with smaller town feel• Avg Price of 3 Bedroom Bungalow: $230, 000.00• Tax Rate: $1.34 per $100• Population: 27000• Plenty of schools / arena’s / sports fields, Limited Shopping• 2 Marina’s, Golf Course

(6) Hampton

• Country Living / Suburb• Avg Price of 3 Bedroom Bungalow: $190, 000.00• Tax Rate: $1.27 per $100• Population: 4000• Plenty of schools / arena’s / sports fields, Limited Shopping

(7) Uptown Saint John (City Centre)

• City Centre, High percentage of condo, multi-family, office, government, night life.• Mix of modern-condo / heritage homes• Single Family: $185, 000.00 to $450, 000.00• Rent: $700.00 to $1500.00• Tax Rate: $1.79 per $100• Population: 7500• Plenty of schools, Harbour Station (official city arena), Harbour Passage walking trail, night-life, fine dining, art galleries, New Brunswick Museum, City Market, Plenty of shopping, Theatre, several city centre parks, Ocean / Harbour views

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Pricing decisions on a home need to be grounded in reality rather than wishful thinking. When the time comes to purchase a home, you may be tempted to pay close to the listed price in order to get the home. The reality is that several factors determine a homes true market value and there is always room for negotiation.

The following are some points and guidelines that can help you determine fair market value for any home you’re interested in offering on.

Once you’ve found a home that you’re willing to purchase you need to separate yourself from personal feelings about pricing and look at the facts. You need to look at the pricing of other homes for that area and do your

research. You’re Realtor will help youwith this.

Get a CMA done. CMA stands for comparative market analysis. It is an opinion of a likely selling price. A CMA shows the selling price of comparable homes in the area you are looking in, homes that are currently on the market as well as homes that were on the market but did not sell. CMA values are not written in stone. There are agents that will underprice a home to start a bidding war, there are those that will over price and leave it up to you to come up with a price that is fair based on the area. The important thing is that you and your agent do your research and figure out what a fair market value for that home is. Only then


UNDERSTANDINGPRICINGUnderstanding why homes are priced theway they are is as important as understanding how much you should be spending for the home of your dreams. Here are some tips to help you understand pricing.

can you proceed with putting in a solid offer and negotiation within reason after that.

Do your own market research. Go to any open houses in the area of the home that you’re interested in bidding on. Try and be as impartial as you can when deciding if this home closely matches the home you’re interested in. Think in terms of location, size, condition and amenities. Now assume the asking prices are the same and ask yourself, would you pay “x” for the home you’re interested in or the one you just saw? Comparing homes of the same calibre in the same area is crucial to figuring out if the price of the home is fair to begin with.

Calculate the price per square foot. Average price per square foot should not be the sole factor in determining if the price of the home you’re interested in is accurate but it is a great starting point.

Consider market conditions. Are prices in your area of interest going up or down? Are homes selling quickly or taking many months to sell? Are you buying during a busy time of year or during the dead of winter? What are interest rates doing? How is the economy doing? Will you be buying in a buyers market or in a sellers market? Is the local economy strong?

ADDITIONAL THINGS TO THINK ABOUT.BEING PREPARED FOR THE CONDITION OF PROPERTIES

When searching for a new home you will see many listings and go to many open houses. You should be prepared to see almost anything. You will see some properties that are in immaculate condition. On the other hand you will also see properties that are in serious need of repair. In all cases you should be prepared to see a house for the potential that it has.

Are you a handy person with the abilities needed to fix things, or do you have the resources required to have it done? You will see homes with and without full basements, homes with pets, homes with holes in walls, homes with strange layouts, homes that are dirty, homes that are clean... In short, be prepared to see many different things.


BEING PREPARED TO VIEW ANDSHOP FOR HOMES

Shopping for new homes is a good thing. It is important that you realize it will be a time consuming endeavour.

This investment in time will help you find the right home for you. Rarely will you walk into a home and say this is the one. Each home is unique and you will take a piece of each home with you when you look at others on your list. You will see many things and think of these as you go through other homes.

Another reason for viewing homes is that when you see a listing it will have dimensions on it but going to the house itself is really the only way you will get an accurate feel for the sizes of rooms and if they fit your lifestyle now and in the future.

Viewing homes is important for another reason. A picture is worth a thousand words but nothing can replace the complete picture you get when going into a house. The pictures at your disposal may showcase the strong parts of a home but not include any potential problem areas such as water in the basement, mould in the bathroom or support beams that need replacing.

HOW REALTOR’S AND MLS WORK

So you have decided to work with a realtor in your search for a home. Here are some things that realtors, combined with MLS can do for you:

• Set up a search on the MLS system based on your needs and wants and in specific areas. This will help eliminate listings that do not interest you.

• Send the results of these searches to you immediately, at noon, at the end of the day or once a week. You decide.

• Assist you in getting the best possible price on the home you are interested in.

• Handle all follow ups for you.

• Keep you up to date on current market conditions (market could be stable and a big job announcement causes the market to get hotter).

• Get you the facts you need for an educated decision.

• Duty of care, integrity, confidentiality, loyalty, in all transactions.

• Bring all your offers to the sellers.

• There is no up front cost to you.

HOW OFFERING ANDNEGOTIATION WORK

Once you find a property that meets your need and given you can get it with terms that are acceptable to you, and you wish to take the next step, it is time to make an offer.

There are many conditions that you will have to consider when making an offer:

• How much financing will you require?

• When would you like to take possession of your new home? (4 to 12 weeks is the normal range).

• What items (chattels – things not attached to the home or property) are to be included? Examples would be fridge, stove, washer, dryer, baby barn, garage door opener etc.

• Are there specific things that need to be removed; garbage, old fridge, car parts etc?

• Note, if there is rental equipment with the property (hot water heaters, furnace, propane fireplace)?

• What lawyer would you like to use?

• What are the costs up to, and above the purchase price?

• Will I be using a building inspector? (strongly recommend).

• If there is a well, water must be tested for bacteriological standards. Will you want an extended water test for inorganic substances or heavy metals?

• What will you require for home insurance?

• Do you understand who is taking care of your interests in the negotiations?

• Price?

All of these questions will go into an offer form at the start of the negotiation process.

The seller will be given a set time to do 1 of 3 things; Accept the terms of the offer, counter offer (any point can be countered; price, closing date, chattels) or rejection.

If accepted the offer becomes a purchase and the sale agreement becomes a contract. If countered the buyer can accept the offer (becomes a purchase & sale agreement or contract) or reject. While considering the

counter the seller is not allowed to sell the home to any one else within the time limit of the counter offer. If the offer is rejected at any point the property will become open to new offers from anyone including a new offer from the original people.

If you have a purchase and sale agreement in place then the work begins to complete the terms and conditions. It is very important to complete each condition within the time frame allotted, failure to do so may render the agreement null and void.

It is important to understand the effect of the price you offer, the lower the offer is, does not equal a lower accepted price. Often times, offering too low of a price will make the seller very defensive and thus more difficult to negotiate with. The purchase of a home must be a win-win scenario. The best deals come with all parties being content.

UNDERSTANDING MORTGAGEBROKER VS BANKER

BENEFITS OF A BROKER

• Can offer advice on credit and how it works

• Has multiple financial institutions which can meet various needs or requirements

• Will shop for several institutions to get the best rates

• Brokers work various hours and will often come to you at your convenience

• As a broker they are working for you not the institution• Not limited to just one set of credit products

BENEFITS OF A BANKER

• You often will have an established relationship

• They can work on banking, investment, saving and mortgages all together

• Can help plan your longer term financial strategies

ADDITIONAL SERVICE PROVIDERSTO THINK ABOUT WHEN SELLING YOUR HOME

• Lawyers

• Home inspection services for pre-purchase inspections

• Moving companies (book ahead as these companies can be very busy!).

• Packing supplies (tape, boxes, wrapping paper)

In the event that your new home may not be move-in ready before you need to be out of your current accommodations, plan ahead to help lower the stress. Arrange lodging well ahead of time, whether it’s a short stay in a hotel or a longer term stay in an apartment, with friends or family and make arrangements to have personal belongings, furniture etc. stored properly.

Buying a House - Realty Executive

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