With 35+ years of selling homes under my belt, I pretty much have seen it all. That also means that when it comes to selling homes, my team of agents and I have some pretty good ideas based on our experience.

Selling a home with kids isn’t problematic, but it does take some planning. You know your own kids, and how much to involve them in the process. Normally with kids the least disruption, the better.

If you maintain their regular schedule and limit special requests to keeping their own rooms clean including the playroom, things should go fairly smoothly, I’d consider that great involvement!

But, I do have a couple of ideas for parents, that will help you better manage the sale of your house, and help your real estate agent do their job.

1. CHUCK (DON’T HIDE) THE CLUTTER.

Give yourself a full days 10 days to seriously de-clutter your home. Tackle one room at a time to keep things manageable. Closets too! Buyers want to see the inside of the closets and all of the storage space that a home has to offer.

And then, after you’ve de-cluttered, place another 25% in storage – seriously. Anything seasonal (coats, boots) big toys and tables and all of the baby stuff (swings, potties etc.) that you may want to keep but don’t need to have on hand.

This is the time to remove the personal photographs (including fridge artwork) or as we like to say in the biz ‘de-personalize the home’. Buyers want to see themselves in the home, not the previous owners. It’s also for your child’s safety and privacy.

2. STAGE THE PLAYROOM.

If you do have a dedicated playroom, then stage it to show off it’s capabilities.

Staging a small tea party looks sweet and kind of fun; art room that has tidy individual buckets of supplies or a school room, will make buyers smile. Playrooms can continue to be used, but can be easily prepped for showings or open houses.

3. SET EXPECTATIONS WITH YOUR AGENT.

While the bulk of buyers will come to the home during open houses, there will be additional showings. Not all buyers need to see a home at dinner or bed time. So offering your real estate agent some creative options while being flexible will go a long way.

It’s not wise to be too restrictive withe strict timeframes. It could reduce the number of potential buyers.

4. LEAVE YOUR HOME DURING SHOWINGS.

Nothing is worse for the buyer or the agent than showing a home when the homeowners are still there. It can potentially turn off a buyer. There have also been instances where the homeowner can’t resist adding additional information about the home. They think it’s helpful but it’s not.

If you do have to accommodate showings around bedtime, it’s more than ok to sit down the street in your car while the showing takes place. Pack a snack and a kit bag with activities to help pass the time. If you can get their PJ’s on before, it’s an added bonus when you return later.

5. PREPARE A ‘GETAWAY QUICK’ CHECKLIST.

Even if you have been given notice, prepare a checklist of things to do when you get the ‘showing call’. That way you won’t forget the essentials and all the other stuff beyond picking things up such as putting the toilet seats down, emptying the garbage

And finally, I picked this one up from the Twin City’s Mom’s Blog.

Keep your trunk clear. Despite your request for 2 hours notice, sometimes you get ten minutes. That’s when you throw any clutter in the back of your car and GO! 🙂

We would be thrilled to work with you and your family in selling your home. Contact us Today!

Our team of real estate sales professionals is committed to finding you, your dream home. Whether you’re looking to buy or sell, the Karen Paul team is here to help with any questions.

Karen Paul & Associates | Real Estate
905-333-6234 | karenpaul.com | info@karenpaul.com
Burlington • Oakville • Hamilton • Milton • Niagara
Free Home Evaluations | See Our Listings

Credit to posts by Family For Home & Twin City’s Mom’s Blog

There is a lot to be said for real estate investment properties. Purchasing a rental property is not just a great way to supplement your income but it could launch a new business. And that’s the best way to handle your new role as a landlord – treat it like a business.

All tenants basically want the same thing: ‘A place that’s well-maintained, safe, close to work and school, and is owned by a landlord who’s professional.

Here are a few things to consider when thinking about becoming a landlord.

Get the right info.

This is not the time to listen to your friends and neighbours but do your own research. Read the Residential Tenancies Act, 2006 and make sure you understand your rights and obligations. It’s also worth your time to check out your local municipal bylaws and ensure that the unit meets fire and building standards.

If you are renting a unit in your home, you are obliged to inform your home insurance company, you may need extra insurance. Don’t assume that if the tenant has insurance (which can be a lease requirement) that the unit is covered.

Your rental income is subject to tax. Before you start renting, a discussion with your accountant to fully understand how the extra income will affect your current tax status might be prudent.

Buying or selling a rental property, has it’s own set of complications. An experienced real estate agent will help you successfully navigate a successful result.

Always, always have lease.

Even with friends and family, a properly written lease clearly outlines the rules and responsibilities for both the tenant and the landlord. There is where you can set your expectation as a landlord for such issues as: late rent penalties, bike storage, noise levels, parking.

Landlords can also request references, emergency contact information and set the length of the rental term.

Set up communication channel and reasonable response time, whether it’s a repair or an emergency.

Re-signing the lease annually, for you as the landlord to do an annual home inspection checking for damages and cleanliness.

Don’t dismiss student rentals.

If you live close to a university or college student rentals make be the solution. Most students only stay 8 months of year, returning to you the privacy of your backyard for the summer.

While student renters come with their own set of complications (loud noises, parties etc.), they are also usually attached to larger institutions that may be able to help you have problems. Parents are often willing to co-sign a lease and help pay for the rent, guaranteeing that there will never be a missed payment.

Students often have lower expectations. Not having an updated kitchen, or the latest furniture, will likely be of little concern to them. For a reduced rate in rent, they may also be willing to take on some of the home maintenance chores such as shovelling the snow or taking out the garbage.

While student rentals are mostly short-term a good experience with a one student tenant can keep you in referrals forever.

Learn from other landlords.

Knowing the tricks of the trade is important and who better to learn from than other landlords? The Ontario Landlords Association provides ‘networking, news and education for landlords’. In the end, if you set a professional tone with your renters, they will mostly likely respond in the same manner.

Looking for a investment property? We would be thrilled to what you are looking for.  Contact us Today!

Our team of real estate sales professionals is committed to finding you, your dream home. Whether you’re looking to buy or sell, the Karen Paul team is here to help with any questions.

Credit to posts: “Student Rentals: What You Should Know Ahead of times; Del Condominium Rentals; Canada Homestay International and The Globe & Mail.

Under the Influence is one of those great CBC radio shows that I try to never miss. It’s an exploration into the world of marketing: the age of persuasion and influence. Host Terry O’Reilly, brings such colour to the broadcast with his extensive knowledge of marketing and humourous inside stories and tips.

If you want to know why a brand is marketing a particular idea – chance are Terry has a pretty good idea why.

And nothing escapes Terry’s realm of discussion – including real estate marketing which he explored on his April 6th show Selling The Dream: Real Estate Advertising.  It’s still available via podcast. It’s funny, historical and filled with exciting and sometimes unknown facts about the real estate marketing!.

According to Terry, “the world of real estate marketing has its own rules, its own techniques and its own unique breed of salespeople.” (Well that’s true!) I took a moment and pulled out some of the best show highlights.

Real Estate History

Real estate marketing has been around since the mid 1800s. While some things have changed dramatically, one that hasn’t:… real estate agents are still selling the dream!

The real estate industry had very dubious beginnings. The first agents were more like hustlers selling properties that weren’t what they said they were. Yes, there were landsharks that sold swamp land in Florida. (That’s where that saying come from.)

In order to combat the landsharks, honest real estate agents organized to improve the industry’s image by starting real estate boards, establishing ethics and codes of conduct. Honest agents were encouraged to get offices differentiating them from the drifters or swindlers of no fixed address and therefore no accountability.

The term REALTOR® (short of Real Estate Operator) was created at this time. 1910 there were 126,000 REALTORS.

In Canada the first real estate board was in Vancouver in 1888. In 1922 the first real estate licence was enforced to set standards across the nation. In 1925 the MLS was established and  used in over 200 cities.

In the early years, most REALTORS® were men, but in 1920 there was an influx of women. The home was considered the ‘women’s domain’, and women knew how to find homes for women. The depression would drive women out, with WWII bringing them back to the business.

In the 1960s, 25% of all realtors were women.  Today:  In Canada 42% of all REALTORS are women while 65% in the US.

There are 120,000 real estate agents in Canada and they spend $625 million in advertising.

Real Estate Firsts

The very first radio commercial in 1922 was for a real estate development in New York.

The first advertising agency was started by real estate agent Volney Palmer. In 1837 he was looking to diversify to keep his real estate business a float and so started selling advertising services. He became so successful in the 1845 abandoned all businesses and opened advertising agencies in Boston & NY.

REALTORS® On The Cutting Edge ?

• Often a lawn sign will include a additional single pane to highlight a particular feature of the home. There have been some creative choices: FREE pizza with purchase of house | Reduced: But not stupid or desperate | Zombie Free.
• Josh Altmann – California Realtor who ‘Sells the Dream’ with a rap video.
• Terry Waggoner  – Ferris Property Group – Your House Is A Piece of Junk.
• Ian Adams – Australian Realtor who uses online videos featuring mostly naked men and women lounging around in the luxury homes he sells.
• Cotty Lowry a Keller Williams agent, made his name when his billboards were continuously defaced. Every time he put up a new billboard, within a week it was vandalized. In the end, it worked as everyone remembered his name – and started looking towards the next ‘defacing.’.

And who could forget Alec Baldwin’s performance in Glengarry Glen Ross. If you haven’t seen Blake’s 8-minute ABC – Always Be Closing soloquy — take a moment and see it now.

Real estate marketing continues to lead the way in marketing from social media to flying drones to music videos. What’s next? Online offerings no doubt…

We would be thrilled to work with you and host your open house. Contact us Today!

Our team of real estate sales professionals is committed to finding you, your dream home. Whether you’re looking to buy or sell, the Karen Paul team is here to help with any questions.

Credit to posts by CBC | Under the Influence

Team photo array from the 2016 Keller Williams Edge Realty Fifth Annual Awards Luncheon (March 2017). Honoured guests included Ontario Real Estate Association CEO Tim Hudak and OREA President Ettore Cardarelli (first row, centre photo).

Karen Paul & Associates won the Double Platinum 2106 Group Award. They were also awarded in the Top 5 Groups for all of Canada. Congratulations to team members: Karen Paul • Justin Loncaric • Jessica Barnett • Kim Perosa • Michael McQuinn  • Erin Kofoed  • Amanda Barker • Sarah Rahim and Natalie Williamson. 

Karen Paul & Associates Celebrating
At the Keller Williams Edge Realty 2016 Awards Luncheon

We would be thrilled to work with you and host your open house. Contact us Today!

Our team of real estate sales professionals is committed to finding you, your dream home. Whether you’re looking to buy or sell, the Karen Paul team is here to help with any questions.

Over the years, I’ve developed a CLIENT FIRST guiding principle that emphasizes accessiblity, attention to detail, effective communication and meeting customer’s needs. Sometimes, this can involve advising or even assisting with the financial end of a real estate transaction.

This article The 10 Don’ts of Mortgage Closing was included in a mortgage newsletter from Lisa Upshaw, a local mortgage professional in Burlington. She compiled this compendium of don’ts from a variety of sources. I asked her permission to re-post these don’ts in our blog because they are so important.

____________________
Here is a list of things you should NEVER do in the time between the financing complete date (when everything is setup and looks good) and your closing date (the day the lender actually advances funds).

In fact, never make changes to your financial situation without first consulting your mortgage broker. Changes to your financial situation before your mortgage closes could actually cause your mortgage to be declined.

Mortgage Financing: 10 Things Never To Do

1. DON’T QUIT YOUR JOB.

This might sound obvious, but if you quit your job your mortgage broker will have to report this change in employment status to the lender. From there you will be required to support your mortgage application with your new employment details. Even if you have taken on a new job that pays twice as much in the same industry, there still might be a probationary period and the lender might not feel comfortable with proceeding.

Discuss any employment changes with your mortgage broker to see if there could be any negative complications.

2. DON’T DO ANYTHING THAT WILL REDUCE YOUR INCOME.

Similar to #1,  don’t change your status at your existing employer. Getting a raise is fine, but dropping from full-time to part-time status is not a good idea. The reduced income will change your debt service ratios on your application and consequently your ability to qualify.

3. DON’T APPLY FOR NEW CREDIT.

It’s easy to get excited about your new home, especially if this is your first, however now is not the time to go shopping on credit or take out new credit cards. So if you find yourself, shopping for new furniture and they want you to finance your purchase right now… don’t. By applying for and taking out new credit, you can jeopardize your mortgage.

4. DON’T GET RID OF EXISTING CREDIT.

In the same vein, as #3, it’s best not to close any existing credit either. The lender has agreed to lend you the money for a mortgage based on your current financial situation and this includes the strength of your credit profile. Mortgage lenders and insurers have a minimum credit profile required to lend you money. If you close active accounts, you could fall into an unacceptable credit situation.

5. DON’T CO-SIGN FOR A MORTGAGE FOR SOMEONE ELSE.

You may have the best intentions in the world, but if you co-sign for any type of debt for someone else, you are 100% responsible for the full payments incurred on that loan. This extra debt is added to your expenses and may throw your ratios out of line.

6. DON’T STOP PAYING YOUR BILLS.

Although this is still good advice for people purchasing homes, it is more often an issue in a refinance situation. If you are just waiting on the proceeds of a refinance in order to consolidate some of your debts, you must continue making your payments as scheduled. If you choose not to make your payments, it will reflect on your credit bureau and it could impact your ability to get your mortgage. Best advice is to continue making all your payments until the refinance has gone through and your balances have been brought to zero.

7. DON’T SPEND YOUR CLOSING COSTS.

Typically the lender wants to see you with 1.5% saved up to cover closing costs. This money is used to cover the expense of closing your mortgage, like paying your lawyer for their services. You might think that because you shouldn’t take out new credit to buy furniture, you can use this money instead. Bad idea. If you don’t pay the lawyer, there will be no house to deliver the furniture to.

8. DON’T CHANGE YOUR REAL ESTATE PURCHASE CONTRACT.

The are times after purchasing a new property that things will show up after the fact on an inspection and you might want to make changes to the contract. Although not a huge deal, it can make a difference for financing. Even if financing is complete, check with your mortgage broker if you want to make changes to to the purchase contract.

9. DON’T LIST YOUR PROPERTY FOR SALE.

If your mortgage broker has set up a refinance for your property and your goal is to eventually sell it… wait until the funds have been advanced before listing it. Why would a lender want to lend you money on a mortgage when you are clearly going to sell right away (even if it’s a short-term loan)?

10. DON’T ACCEPT UNSOLICITED MORTGAGE ADVICE FROM UNLICENSED OR UNQUALIFIED INDIVIDUALS.

Although this point is least likely to impact the approval of your mortgage status, it is frustrating when people, who don’t have the first clue about your unique situation, give you unsolicited advice about what you should do with your mortgage, making you second guess yourself.

____________________

Thanks Lisa.. By the way, #10 also pertains to real estate professionals. If you’ve hired a professional to act in your interests, then take their advice. Your friends, family and neighbours no doubt will have lots of other experiences and great advice, but your REALTOR® is the one that always, has your best interests in mind.

We would be thrilled to work with you on your next real estate transaction. Contact us Today!

Our team of real estate sales professionals is committed to finding you, your dream home. Whether you’re looking to buy or sell, the Karen Paul team is here to help with any questions.

Karen Paul & Associates | Real Estate
Burlington • Oakville • Hamilton • Milton • Niagara

Credit to information provided by Lisa Upshaw and other sources.

During an average week, how many places can you, or do you, walk to?

If you’re like many Canadians, it’s difficult to get everything done in one day on foot—at some point, you need to drive – whether to school, work, or shopping.

Recently, I have noticed a trend away from a car-centred style of living. Instead, younger Canadians are looking for communities that allow them to focus on how much they can walk as part of their daily lives.

They seem to be gravitating towards vibrant city center neighbourhoods that include work places, schools, restaurants, shopping and recreation. City centre living means adapting to smaller homes sizes and giving up the giant yard and house – the focus of suburban living.

I found this interesting infographic about walkable communities from RentToOwnLabs. While the information and stats are US, we are seeing the same trends here in Canada. It’s been interesting to watch this shift in this ever surprising market!

We would be thrilled to help you establish a new life in a city centre, walkable community.

Our team of real estate sales professionals is committed to finding you, your dream home. Whether you’re looking to buy or sell, the Karen Paul team is here to help with any questions.

Karen Paul & Associates | Real Estate
905-333-6234 | karenpaul.com | info@karenpaul.com
Burlington • Oakville • Hamilton • Milton • Niagara
Free Home Evaluations | See Our Listings | Subscribe To Our Newsletter

When you hire a real estate agent whether you are buying or selling your home, what exactly are you getting?

Experience and expertise in real estate transactions!

Most people sell only a few homes in their lifetime, usually with several years in between each sale. Even if you’ve done it before, laws and regulations change. REALTORS® on the other hand manage hundreds of transactions over the course of their career.

What you get most is advice. From how to improve your curb appeal to handling rental properties to questions about renovations, title insurance, mortgages rules and mortgages, if your real estate agent doesn’t know the answer, they certainly know where to find it.

Selling or buying a home requires dozens of forms, reports, disclosures, and other technical documents. A knowledgeable agent will help you prepare the best deal, and interpret the jargon on your behalf. Buying and selling your home requires legal documents, so the tiniest mistake or omission could cost your home or worse.

Contrary to what some people believe, real estate agents do not select prices for a house. A good agent acting as an advocate, will help guide clients to make the right choices for themselves. Then based on market supply, demand and conditions, the REALTOR® will devise a marketing and negotiation strategy.

Access to superior marketing channels!

A lot of time and effort goes into marketing a property: realtor websites; online listing sites; print advertising, open houses, social media and more. But a property doesn’t sell due to advertising alone. A large share of real estate transactions come as a result of networking from previous clients, friends, and family. That’s called hustle!

A top producing real estate agent wants to entice serious buyers  to immediately write an offer. This means they often act as a filter, handling all of the tire-kicking phone calls or overly aggressive agents.

Fine-tuned negotiating skills!

You don’t need nerves of steel to be a good negotiator but it does help to have someone take the emotional side out of selling your home.

For most people, selling or buying a property represents the largest transaction they’ll ever make. Having a REALTOR® acting as third party helps stay focused on the issues most important to you.

Good real estate agents are not simply messengers, delivering buyer’s offers to sellers and vice versa. They are professionals who are trained to present their client’s case in the best light and agree to hold client information confidential from competing interests.

Being a skilled negotiator is big part of the real estate agent job description.

Neighbourhood ‘know-how’!

Agents possess intimate knowledge and know where to find the industry buzz about any neighbourhood. They can provide local information on utilities, zoning, schools, and more.

REALTORS® also have comparable sales data at their finger tips.  For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.

…a friend for life!

Even the smoothest transactions that close without complications can come back to haunt. Many questions can pop-up that were overlooked in the excitement of closing. Good real estate agents stand by ready to assist. Worthy and honest REALTORS® don’t leave you in the dust to fend for yourself.

And yes it’s true, a top producing real estate agent is a friend for life. 🙂

Whether looking to buy or sell your home, the Karen Paul Team would love to work with you.  Contact us Today!

Our team of real estate sales professionals is committed to finding you, your dream home. Whether you’re looking to buy or sell, the Karen Paul team is here to help with any questions.

Most real estate agents have busy weekends hosting open houses and chatting with the potential buyers they meet. My team is no exception. This past weekend, we hosted four open houses which were just packed with prospective home buyers.

If you are thinking of selling, there is no better opportunity that now, particularly when inventory is low, and buyers are plentiful.

During a Friday morning real estate video chat, Kim Perosa stated that in all her years of selling real estate she’s never seen a market quite like this! And she urged anyone thinking of selling, to get ready now in order to get a jump on the spring market! And I concur!

Getting ready to sell your home isn’t really all that complicated. But listen to Kim, and start prepping early so you get an early start on the spring market which can move quite quickly.

Selling your home? Here’s where to start.

Interview REALTORS®:

Not enough can be said about how critical it is to choose the right real estate agent. Your REALTOR® not only showcases and advertises your home, they help you prep and price it. And as your advocate they are making sure that you are doing everything possible to get the best dollar for your home.

Having a successful, experienced and competent real estate agent will make all the difference. And in a buyer’s market, a REALTOR® who has experience managing a variety of different selling scenarios can make all the difference.

Have A Plan:

Be sure to make your newly hired REALTOR® part of your real estate battle plan. Selling your house means that you are also moving – so having an idea where and when you will move is key.

Drafting a budget should also be part of the plan. Are you planning on buying another home? Do you know how much money you will have after closing? Can you rent if necessary? Having a chat with your financial adviser, even obtaining a pre-approved mortgage will give you a step-up over another seller who is basing their sale ‘subject to finding a suitable property to purchase.’

And there are costs in listing your home such as renovations and updates,, cleaning, de-cluttering, staging even boarding the pets. Most real estate agents have a ‘listing cost checklist’ that can be quite helpful.

Consider A Pre-Listing Home Inspection:

Generally speaking the spring market moves quickly and having a pre-listing home inspection can work to your advantage. Your REALTOR® may even suggest that your home inspector attend an open house to answer any buyer questions.

Check Your Curb Appeal:

• Outside Your Home: – First impressions count. That means making sure that the outside of your home looks clean, tidy and welcoming even during a muddy spring. Your real estate agent will be helpful in determining whether the outside should be re-painted or a powerwash will do the job. But there are loads of other chores including: cleaning out the junky winter stuff, tidying lawns and flower beds, cleaning the garage, gutters and maybe even re-sealing the driveway.
• Inside your Home: –  A professional cleaning service will really give things a deep clean (appliances, windows, light fixtures, flooring, vacuuming and steam cleaning carpets and upholstery, dusting), leaving you with de-cluttering, organizing, touch-ups and if necessary re-painting to neutralize rooms.
• Get your paperwork in order: – Nothing says full-disclosure than making sure all of your home’s paperwork (warranties, instructions) are in one place and readily available for buyer inspection.

Renovate or Not:

Most real estate agents are cautious when recommending home renovations or improvements prior to listing. Generally speaking, new home owners like to remodel to their own liking. And not all renovations add to the selling price.

In this market however, your real estate agent may agree that you will get a return-on-investment with a particular renovation. It’s about timing, cost and what’s happening in the market.

Thinking of taking advantage of this hot market? We would be thrilled to help you sell your home this spring. Call us today!

Our team of real estate sales professionals is committed to finding you, your dream home. Whether you’re looking to buy or sell, the Karen Paul team is here to help with any questions.

The selling price is only one of the real estate related costs you’ll encounter when purchasing a new home. Getting your real estate agent involved in helping you prepare a budget will ensure that nothing is overlooked.

Along with a wide network of suppliers, experienced real estate agents have an idea as to approximate fees and costs.

Budgeting for expected expenses and allowing a slush fund for unexpected costs will go a long way towards a smooth real estate transaction.

THE COST OF BUYING A HOME

MORTGAGE RELATED FEES:

Your mortgage is the largest part of a real estate transaction and there are a number of pre-qualifying expenses that are part of obtaining a mortgage.

• Application Fees: Some lenders will add a cost to process your application. These fees vary and some lenders have been known to waive them entirely, depending on the level of other business you have with them. It’s worth asking a mortgage broker, if there is a fee to arrange for a mortgage on your behalf.
• Interest adjustments: If there is a gap between the closing date of the real estate transaction and the first payment towards the mortgage, there will be subsequent interest adjustments. Discuss with your lender ways to avoid any additional interest payments.
• Mortgage Loan Insurance: If the down payment on your real estate transaction is less than 20%, there is a one-time insurance premium on the mortgaged amount. It can either be paid before closing or added to the principle and part of the regular mortgage payment. Insurance included in the principle will be subject to interest charges.
• Mortgage Default Insurance: Optional type of insurance that protects your financial security. In the event of premature death, mortgage life insurance will pay off all or a portion of your mortgage.
• Appraisal Fee: Many home sellers opt to have a home appraisal completed. It is not an inspection, rather protects the buyer by ensuring they are not paying beyond market value. If there isn’t one of record, a buyer can always opt for one and could be useful but not necessary in obtaining a mortgage.
• Land Survey: There are times when a lender may require a current survey before signing off on the loan. A survey indicates the boundaries and measurements of the land and positions of major structures, and any registered or visible easements (such as a driveway) or encroachments (such as a neighbour’s fence) on the property. If there isn’t one in the seller’s file, it might be beneficial for the buyer to have one completed. Again, an experienced real estate agent would be help weigh the odds in having land survey completed.

LAND TRANSFER TAX:

All real estate transactions in Ontario for condos and homes are subject to Land Transfer Tax on closing date.

Levied by the province, the LLT is a marginal tax where each portion of your home’s value is taxed at a different rate. For example the first $55,000 is taxed at .5%, while any amount over $2,000,000 is taxed at 2.5%.

Since it’s a complicated formula, there are a number of online calculators that can automate it and allow for any municipality transfer tax – such as in Toronto.

First-time Ontario home buyers can apply for a rebate that covers up to $4,000 of the land transfer tax.

LEGAL FEES:

The lawyer’s fees can only be finalized on closing date. However, most lawyers charge a standard ‘real estate fee’ that includes a variety of tasks from reviewing legal documents to drawing up the mortgage.

All real estate lawyers will calculate the various disbursements/costs involved such as: drawing up the title deed, conducting a title search, preparing and registering the mortgage and preparing your tax certificate.

There will also be adjustments to the seller for any payments they made extending beyond the closing date such as property taxes or condo maintenance fees.

HOME INSPECTION FEE:

A home inspection protects the buyer by revealing any current or potential problems in any real estate transaction. Most home inspections also provide instructions on how to use various appliances such as the home’s HVAC system. An offer to purchase can be conditional based on a successful home inspection.

There are times when a seller may elect to have a pre-listing home inspection completed for a quick sale or to speed real estate negotiations. A home inspector may attend open houses to address any concerns by the buyer.

TITLE INSURANCE:

Title insurance is optional and covers problems that may arise due to encroachment issues (for example, a structure on your property is actually part of your neighbour’s property and needs to be removed), existing liens against the property’s title, title fraud, undischarged mortgages and other issues relating to the property’s previous owners.

Learn more about title insurance from Dave Larock in this blog post on the value and role of Title Insurance.

PROPERTY INSURANCE:

You will be required to obtain and provide proof of property insurance for the mortgage lender. It needs to cover the replacement value of the house and its contents from the day of taking ownership.

MOVING COSTS:

Moving costs can add up quickly. Beyond the moving van, there are the additional utility fees charged for service hook-ups, off-site storage and pet boarding if necessary. And there are always a few things that need to be done to the new home – from purchasing some new furniture to smaller renovations and repairs like painting.

Thinking of buying a new home? Our team would be happy to get your started on finding a new home and discuss any incidental buying costs.

Our team of real estate sales professionals is committed to finding you, your dream home. Whether you’re looking to buy or sell, the Karen Paul team is here to help with any questions.

Karen Paul & Associates | Real Estate
905-333-6234 | karenpaul.com | info@karenpaul.com
Burlington • Oakville • Hamilton • Milton • Niagara

Credit to posts by Style At Home, Rate Hub, CIBC & Treb

On the surface, selling your property should be a simple calculation: Profit = Selling Price Less Outstanding Mortgage. So when a real estate agents starts sharing the incidental costs when selling your home, it seems almost counter-intuitive.

One of the responsibilities of your real estate agent is to help identify and estimate your individual ‘selling’ costs. And it’s important to get them right and not overlook anything.  Knowing the bottom line is absolutly critical when the proceeds from the sale of your current home is to be down payment on a new property.

THE COST OF SELLING YOUR HOME

REAL ESTATE TRANSACTION COSTS:

A professional REALTOR®, will charge a total commission calculated as a percentage of the purchase price. That amount is divided between the listing agent (the real estate agent that represents you) and the buyer’s agent (the REALTOR representing the buyer). Note that HST is added to the real estate transaction fees.

Selling your home privately is one way to avoid real estate commissions. But before you take that path, considering reading Under the Microscope: A Real Estate Agent’s Day, to see what services a real estate agent provides.

MORTGAGE DISCHARGE FEES:

A visit to your financial institution or mortgage broker will confirm that you can’t just simply switch your mortgage from one real estate property to another. You have to discharge your mortgage on one home and reapply for the new home.

There are differences between open, closed and variable rate mortgages. Penalties can range from 3 months interest or Interest Rate Differential (IRD). Depending on how the lender calculates the penalty, the discharge fee can really vary.

A home equity line of credit secured to a property, might not be subject to a discharge fee but there could be a lender fee.

Each mortgage contract is written up differently lender by lender, so sitting down with your mortgage provider before beginning the process will give you the bottom line in writing.

LAWYER’S FEES:

For uncomplicated real estate transactions, most lawyers have a standard fee that covers a set number real estate tasks such as: discharge to the title of current property; mortgage discharge; buyer title verification and itemizing a list of standard utility charges etc.

Anything beyond that can be subject to additional charges, which your real estate lawyer will clarify with you.

STATUS & INSPECTION CERTIFICATES:

A status certificate may be required in the sale of a condominium to describe the legal and financial health of the condo corporation. Most condo offers-to-purchase include a condition that allows the Buyer’s lawyer to review the documents.

Inspection certificates maybe required in property real estate transactions for wells, septic tanks, water etc.

Your real estate agent will be able to advise you on whether one is needed, the estimated cost and most likely direct you on how to get it done.

UTILITIES AND PROPERTY TAX:

The seller is responsible for paying the property taxes and utilities until closing day. That includes mid-month expenditures and any outstanding amounts due to equalized payments.

All expenses must be current before the lawyer discharges the mortgage and turns over the keys.

PROPERTY EXPENSES:

• Home Inspection: Some sellers elect to purchase a pre-listing home inspection. It gives them the opportunity to fix any issues or factor the cost of repairs into the asking price.
  Having a pre-listing home inspection can also speed-up the negotiation process, saving the buyer time in not having their own home inspection completed.
• Improvements: All properties for sale should be in ‘show ready’ or tip-top shape. That could mean taking care of the small low-cost minor improvements such as: patching and painting walls; fixing damaged flooring; repairing plumbing leaks; replacing light bulbs (with energy efficient bulbs) and updating light fixtures; and keeping the yard and garden neat and tidy.
  Sometimes home sellers get the itch to renovate or up-date. However not all renovations are equal. Before undertaking any project discuss it with your real estate agent to determine whether it will add to the selling price or hasten a quick sale.
• Staging: Certainly if the property is vacant, having it staged will show its full potential. Staging can add value to a home sale, offering new design possibilities the seller hadn’t considered. What staging does mean for the seller is the removal and storage of furniture in an off-site storage locker, an additional expense.
  Your real estate agent will be able to point out the advantages to home-staging your property and provide recommendations to several services.
• Moving: And of course once you sell your house, there are moving expenses which can include hiring movers to boarding the pets.

Thinking of selling your home? Our team would be happy to get your started on a free home evaluation and discuss any of the selling costs.

Our team of real estate sales professionals is committed to finding you, your dream home. Whether you’re looking to buy or sell, the Karen Paul team is here to help with any questions.

Karen Paul & Associates | Real Estate
905-333-6234 | karenpaul.com | info@karenpaul.com
Burlington • Oakville • Hamilton • Milton • Niagara

Credit to posts by Dominion Lending Centres & BREL team