Jason & Bernie Gavadza On Real Estate

Do You Understand the Words That are Comin' Outta my Mouth?!?!

Real Estate 101 - Advertising.  This is a classic example of making sure when advertising the sale of your home how important it is to get a 2nd opinion.  Choose your words carefully....

How Can I Help YOU?

Former "Pro"fessional Athlete, Current "Pro"fessional Family Realtor,

www.YourRealEstatePros.CA ~ Jason Gavadza

Keller Williams Referred Realty Inc, Brokerage 416-445-8855

How Much Are My Closing Costs?

Closing costs are a list of charges your lawyer presents to you on the closing date of your home.  Many people are surprised at the additional costs over and above the price of the home.  According to the CMHC and Genworth Financial you should have at least 1.5% of the purchase price for closing costs in addition to the down payment (have around 2.5% to be on the safe side).  The costs vary among provinces and cities.

Below you will find a brief explanation of these costs.  Please note these are some of the closing costs you may encounter depending on your specific situation.  Use this as a guideline then talk with your lawyer who can provide a more realistic estimate for your situation.  CLOSING COSTS CONTINUED......

Is It Better to Buy a New or an Older Home?

New homes tend to cost more than older homes, but the sticker price doesn't tell the whole story. For instance, the price of a new home usually doesn't include window coverings or landscaping, and the flashy upgrades that caught your attention in the model home cost extra. However, new homes are built to current building code requirements, they're energy efficient, and they're free of the deferred maintenance that can result after years of use and neglect.

A well-built new home should be relatively maintenance-free for the first ten years or so. This doesn't mean that you won't have any problems with a brand new home. A new roof can leak if a skylight or vent pipe isn't properly sealed. You should expect there will be a number of little items that need fixing within the first few months of buying a new home.

It's often said that a new home is only as good as its builder. Be sure to investigate the builder carefully before buying one of his or her homes. You're looking for a builder who has a good track record for taking care of problems promptly. Although minor problems are to be expected, you want to find a builder who has a history of building homes that don't develop major problems.

One couple bought a new home in a small development. Soon after moving in, serious problems developed which the builder refused to fix. Windows leaked, the drainage system didn't work properly and water seeped through the exterior walls. Unfortunately, by the time the buyers decided to sue the builder, he was bankrupt.

First Time Tip: Any home you buy, new or old, should be thoroughly inspected by licensed professionals before you complete the purchase. Don't make the mistake of foregoing an inspection just because a home is new. In fact, it's a good idea to have a new home inspected twice: once during construction and again when it's completed.

The big disadvantage of buying an older home is that it may need refurbishing. Although an older home may cost you less than a new home initially, it may end up costing you much more when the expense of updating is taken into account.

To evaluate the true cost of buying an older home, find out the age of the roof, appliances and major systems like plumbing, heating/cooling and electrical. Ask your home inspector to estimate how long each of these items is likely to last. Then get replacement estimates from licensed contractors.

Ask sellers for documentation on any major work they've done to the property. For example, if they put in a new drainage system, ask for copies of the work proposal and the paid invoice. This will be useful when it comes time for you to sell. If the roof was replaced recently, find out if the roofer will extend any remaining warranty to you. Also find out how much the utility bills are in an average summer and winter month.

Older homes require more maintenance than new homes. This takes time and money. However, older homes often have more character and architectural distinctiveness than new homes. Older homes usually have mature landscaping and they are often more conveniently located. Older neighborhoods may also offer better schools. And, while older homes may need updating, they have withstood the test of time which is not the case with new homes.

The Closing: From an investment standpoint, your best choice is either a quality-built new home or an older home that has been meticulously maintained.

Making an Offer

When it comes time to make an offer you will require current market information and assistance in drafting your offer. You will need a Real Estate Professional.

A Real Estate Professional will communicate your Offer to Purchase to the seller, or the seller's representative, on your behalf.  Sometimes there may be more than one offer on a property at the same time. A Real Estate Professional can guide you through this process.

Firm to Offer Purchase

Usually preferable to the seller because it means buyers are prepared to purchase the home without any conditions.

Conditional Offer to Purchase

Usually means there are one or more conditions on the purchase, such as "subject to home inspection", "subject to financing" or "subject to sale of buyer's existing home".  The home is not sold until all the conditions have been met.

Acceptance of Offer

An Offer to Purchase is presented to a seller who may accept the offer, reject it, or submit a counter-offer.  The counter-offer may be in reference to the price, closing date, or any number of variables.  Offers can go back and forth until both parties have agreed to terms or either side ends the negotiations.

Making an Offer

If you would like more information on making an offer, or for more information on buying a home please do not hesitate to call 647-219-7653

Renting vs. Home Ownership

This is a decision which many people face, and the decision is not as easy to make as it may sound.

As a homeowner, you can reasonably expect the equity in your home to increase over time as your mortgage is paid down. That, combined with regular appreciation in property values, can be a rapid and rewarding way to increase your net worth.  In contrast, the person renting over the same amount of time is left with no property investment but may have enjoyed lower living expenses and the opportunity to invest in other opportunities.

When comparing owning to renting, you have to add up all of your figures, including the cost of your home, the size of your down payment, utilities, immediate repairs, interest rates and insurance, and compare them with how much you are currently spending on rent. 

Of course, you also have to place a value on the enjoyment and satisfaction that you will derive from owning your own home.

Tired of Renting?  Check out our Rent vs BUY CALCULATOR

Elements of an Offer Explained

There are six key components to the elements of an offer. They are:

Price

Depending on the local market conditions and information provided by me, your real estate consultant, the price you offer may be different from the seller's price.  This what we call a CMA (A Comparative Market Analysis)

Deposit

Your deposit shows good faith and will be applied against the purchase of a home when the sale closes. As a real estate consultant I can advise you on an appropriate amount.  It is wise to have this money liquid and available when shopping for your home.

Terms

Includes the total price offered and the financial details. You arrange your own financing or asked to assume the sellers mortgage especially if it's an attractive interest rate.

Conditions

These might include "subject to home inspection", "subject to obtain financing", or "subject for the purchaser to sell their current property".

Inclusion and exclusions

These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors or built-in Shelving. These items would remain in the house upon closing.

Closing or Possession Date

Generally, the day the title of the property is legally transferred and the transaction of funds finalized.  Remember in addition to your down payment, you will need to produce enough funds for all of your closing costs.  Contact us for an in depth look at what all these closing costs entail.

Title Insurance Explained

Title insurance is growing in popularity in Canada. 

But w hat is it exactly? Should you get it? Do you need it?  Whether Title Insurance is right for you is something you should discuss with your lawyer, as it depends on the circumstances of your transaction.

As you continue reading, this article will provide you with some background information about title insurance to help you to make an informed decision.

Title to property

Title is a legal term for ownership of property.  Buyers want "good and marketable" title to property -- good title means title appropriate for the buyer's purposes and marketable title means title the buyer can convey to someone else. Prior to closing, public records are "searched" to determine the previous ownership of the properties for outstanding taxes, utility charges, etc., registered against the property.

At closing the buyer expects property that is free of such claims, so normally they must be cleared up before closing. For example, the seller's mortgage will be discharged and outstanding monetary expenses (such as taxes and utility charges) will be paid for or adjusted for at closing.

Title Insurance can help ensure that a closing is not delayed due to defects in title.  Also, if an issue relating to title arises with respect to a risk covered under the policy, the title insurance covers the legal fees and expenses associated with defending the insured's title and pays in the event of a loss.

It's a one-time fee, payable on closing.  It's a very minimal cost when you take into account the amount of savings and peace of mind you get when you buy it.  Just ask your lawyer when when you first meet with him or her.  Learn more about how Title Insurance can benefit you.