Both a real estate agent and a broker are licensed to handle real estate transactions. A real estate agent works under the supervision of a licensed real estate broker or brokerage. An agent can represent buyers, sellers or both in real estate transactions.
At Matthew Gravina, we either handle one or the other for our client, but not both. Something that we take very seriously is conflict of interest. In the same way that you would not work with a lawyer representing both sides of a lawsuit, we view a real estate transaction in the same light. We ensure that we represent our clients fairly and provide the highest level of fiduciary service to ensure that you are protected throughout the entire transaction.
Brokers operate independently or can employ other real estate agents as they have undergone additional education and licensing requirements.
Is it a buyer’s market or a seller’s market? Understanding what is currently going on in the market near your home, what your home evaluation looks like today, and how your property compares others, will influence our pricing strategy and timing.
Property in ship-shape?
Is your home market-ready? Have you considered the necessary repairs to enhance your property so it looks its best for agents and buyers. These might be cosmetic changes or major repairs to the house. How does it compare to other homes that are within your area?
Do I need an real estate agent?
Yes, you can sell the home yourself. Obviously we are going to recommend that you work with an agent. There is an advantage to working with an agent who works in collaboration with you, and brings a skill set to your selling transaction that they have crafted and learned from over time. Knowing what’s going on in your area, who the agents are in the area, how your property compares to others, when the best time to look in your area — are all benefits of working with an agent that are sometimes overlooked.
As your own agent, make sure that you understand the legal requirements for selling your home, including disclosure obligations, contracts and potential taxes.
Prepping your house for sale
In addition to any repairs whether cosmetic or major, it is best if it is decluttered (yes, items can be moved to the garage or into storage) and depersonalized (so others can see themselves in your property). At MGRE we suggest having our professional designer in to ensure that the value of your home is maximized with repairs and that it looks its best with a minimum amount of clutter and personal effects. Using their services can be done a la carte or bundled, and the ultimate goal is to raise your property’s value.
Marketing
Using professional photos, we develop a marketing plan that suits the area. This will include online listings, open houses, yard signs, and social media promotion.
Negotiations
Offers? Counter-offers? Beyond price, we need to consider the closing date that best works for you, whatever restrictions or caveats the Buyer has suggested and more.
Once you’ve accepted the offer, you need to make sure that the property is ready for inspection by the Buyer prior to Closing. This will include their Lender’s appraisal as well as any other inspection by the Buyer (any repairs that were on condition with the offer, bringing designers through the house for measurements, etc).
Your lawyer will work with you to ensure that the ownership has been transferred with title.
Moving?
You will want to transfer or cancel your utilities for the day of closing. At that point on, the responsibility of the property is with the new owners.
When buying a home, there are several financial steps and considerations you need to take care of to ensure stressless and secure financing:
Determine Your Budget
Existing Home Owner
If you have an existing property, MGRE recommends selling it prior to purchasing another. This action reduces stress and you’ll have a better understanding of your finances.
At MGRE we can assist you with either the buying or selling of your home.
New Home Buyer
If you are a new home buyer, make sure you take into account The Home Buyer’s Plan if you have RRSPs to draw from and the First Home Savings Account (if you contributed to a registered account.
General Rule about Lenders
Lenders will want to ensure that you are able to carry a mortgage without due hardship.
Gross Debt Service Ratio
The Gross Debt Service Ratio (GDS) calculates how your income compares to your Mortgage expenses.
Most Lenders say that no more than 30-32% of your Gross Annual Income should go to home-related expenses.
Total Debt Service Ratio
Total Debt Service Ratio (TDS) looks at how your income compares to any and all debt you may have.
Most lenders say that your total debt payments should not be more than 37% – 40% of your gross annual income.
Getting a Pre-Approved Mortgage or a Mortgage.
As one of your largest investments, it is worth both your time and money to spend some time reviewing your options:
Check RateHub so you can review at a high level your budget based upon income, your down payment and any other financial obligations.
Payment calculator
Affordability calculator
Land transfer tax calculator
CMHC insurance calculator (based on the percentage of your down payment)
Get a Pre-Approved Mortgage. Your lender, a bank or other financial institution, or a broker, can assess your financial situation and provide a conditional commitment to lending you an amount.
Rely upon your Lender to provide you with Mortgage options and choose the one that best suits your financial situation and long-term plans.
RateHub provides up to date information for new buyers and existing homeowners looking to move-up.
Costs to consider when Buying
Various costs in addition to the Mortgage need to be taken into account:
down payment
cost of mortgage insurance (dependent on the size of your downpayment) from CMHC (Canadian Mortgage and Housing Corporation), Sagen and Canada Guaranty
land transfer tax
any Lender fees, eg. Loan processing
appraisal of the property (your lender will likely require a home appraisal to ensure the property’s value matches the loan amount).
professional home inspection to identify any issues with the property
title insurance on the property property taxes
set-up fees for new home utilities, eg. Hydro, internet
home insurance
moving costs
lawyer’s fees
any appliances that may need to be purchased as agreed upon in your offer
Reviewing the Loan from your Lender
Once you’ve shopped around and have determined your Lender, consider their fine print:
interest rate
frequency of payment (have they provided you with an Amortization Schedule and a Term Schedule?)
closing costs
any prepayment penalties
your contact person to ensure that you have no issues the day of Closing
Lender Interests:
Not only is your Lender interested in ensuring monthly payment, but they will have an Appraiser check out the home in order to ensure that the property value’s amount equals the loan amount.
Stay in touch with your lender to ensure all necessary documents are submitted and the loan is processed smoothly. Be prepared to provide any additional information they request.
