Don’t Forget These Extra Costs When Buying a London Ontario Home

    Don’t Forget These  Extra Costs When Buying a  London Ontario  Home

Buying a home in London Ontario will take much more money than just the purchase price of the property, and not the  things like moving costs, furniture, paint, rakes or shovels, blinds and all the thing most of us never even think about!

I’m talking about the actual costs of buying real estate, below are some costs, either hidden, or included in your mortgage or money that you will have to spend right away. Of the hundred’s of transactions we do, very few people even take these into consideration.

 Now, you can!

it takes more money buying a home

  Purchase Price
duhhhh! you say, of course, but this is just the starting point in your calculation.

  Registration Fees
Fees paid to the provincial government for recording a title transfer, mortgage registration or other instruments.

  High Ratio Insurance (CMHC)
Must be purchased if you are buying a home for less than 20% down. A sliding fee scale applies, depending on the percentage of the purchase price required in a first mortgage (some minor exceptions) which can be added to the mortgage. More information.

  Compliance Letter
Obtained by your lawyer and required in many municipalities throughout Canada before a property transfer can take place. This is an acknowledgment from the building department that the property either has, or is clear of outstanding work-orders. Work-orders are specific clean-up or fix-up requirements that the owner is legally required to do, and which must be completed before ownership can be transferred.

paperwork for buying a house London Ontario

  Tax Certificate
Obtained by your lawyer at the time of sale to confirm that local taxes have been paid and are up-to-date. If they are not up to date, the seller is required to pay them from the proceeds of the sale. If there are insufficient proceeds, then you may be legally required to pay the outstanding taxes. If, on the other hand, taxes have been prepaid, you may have to compensate the seller for them.

   Provincial “New Home Warranty Program” premiums — New Homes Only!
A third party (provincial) warranty program between a builder and a buyer. With the exception of Ontario and Quebec, membership in such a program is voluntary for the builder. Through these programs, your home is guaranteed against defects for at least one year.  See Tarion. 

   Mortgage Appraisal and Application Fees
Application feees &  appraisal fees are common. Generally $150 — $235 each would apply. (Be careful here, ask your lender what the fees are and if they can waive some or all of it)

  Home Inspection
A report commissioned by the buyer, usually to verify the condition of a property prior to the “firming up” of a purchase agreement. The scope and detail may vary, but most reports outline any particular problems and associated repair costs. Unfortunately, home inspectors in Ontario are not licsenced!

   Land Survey
The legal written and/or mapped description of the location and dimensions of your land. The survey should also show the dimensions and placement on the lot of any structure, including additions such as pools, sheds and fences. An up-to-date survey is often required by a lender as part of the mortgage transaction, although Title Insurance is more prevalent and is usually included in your lawyer’s fee.

  Title Insurance
Title insurance can be purchased by home buyers to protect against potential deficiencies in a number of areas, such as the land survey.  More about title insurance.

  Connection Charges
Some local utility companies (hydro, gas, oil) charge a fee on closing to connect new buyers up to their service. More common, however, is an extra charge on the first billing.

property taxes in London Ontario

  Property Tax and Prepaid Utilities Adjustments
If the previous owner prepaid property taxes or other utilities, they will be credited the prepaid portion on closing. If they paid all their taxes by April, expect a large adjustment cost on closing!

  Interest Adjustment 
If you arrange to make your mortgage payments monthly on the first day of the month, and your transaction closes after the first day of the month, your lender will charge you interest on closing to the next interest date, called the Interest Adjustment Date (IAD), when your payment cycle will commence. This can be a sizeable amount, but it is the correct interest you should pay. For example, close on June 15th, pay 15 days interest on closing and start payments on August 1st.

 Property Taxes

Depending on your down payment, your lending institution may decide to include your property taxes in your monthly mortgage payments.

Property Insurance

Home insurance covers the replacement value of your home (structure and contents). Your lending institution will request proof that you are insured as it protects their investment on the loan.

 Legal Fees

Shop around here; rates vary depending on the complexity issues or experience of the lawyer or the cost of their overhead and associates.

  Mortgage Loan Insurance Fee

In the event of disability or death, your insurer will pay your mortgage or mortgage payments. *** Be very careful here; compare rates with your lending institution and your life insurance sales person.

 Mortgage Broker Fee

Shop around; most lending institutions will pay the mortgage broker’s fee, not you. Ask up front, “Do I have to pay any fees by using your services?”

 Mortgages & Buying real estate London Ontario

 Moving Costs

$50-$100/hour for a truck and 3 movers, 10 –30% higher at end of month and other peak times

 Maintenance Fees

Condos charge monthly fees and vary depending on the building.

 Water Quality and Quality Certification

If the home you purchased is serviced by a well, you will require and should get regular water portability tests by your local heath unit.

 Local Improvements

If the area you are moving to has made local improvements (such as sidewalks or addition of sewers), this could impact a property’s taxes by thousands of dollars.

 Land Transfer Tax

This tax is applied whenever property changes hands and the amount varies on the purchase price of the property. Your lawyer or I can let you know what this amount will be. More info.

 Congratulations, you’ve read this far! Believe it or not, you are a minority and the type of person we like to work with, thorough, willing to learn, careful and prudent!

As you can see, there are extra costs to consider before you make that purchase. By working with a very good Realtor, you will be aware of these and some you may prevent.

We use a spread sheet that we developed that comes pretty close to giving you an idea of how much extra you may need when buying a home in London.

Do not stress yourself out! Be prepared! Let us organize your steps towards getting the house you want!

Contact us- Sutton Group Envelope Real Estate

Frustrated Looking For Homes For Sale London Ontario

Are you spending countless hours searching the MLS, real estate magazines, weekend classified ads and real estate websites looking for the ideal home for a great price and in a great neighbourhood in London Ontario?

Searching to buy a home in London Ontario

 

If you enjoy doing that, great. Are you aware you may be missing out on some great homes that sell in a day or two or a home that was priced quite so agressively that it sells as soon as it comes on the market or on a specific street?

Do you think you will get a head jump on others by searching daily or weekly? Avoid paying commissions? Avoid a pesky or bothersome real estate person (don’t blame you)?

Or, perhaps you are curious or you are in the ‘just thinking stage’ of real estate. Perhaps to purchase or sell.

Regardless, real estate changes, people change, neighbourhoods change, real estate markets change and the motivation of buyers and sellers change.

So how do I, as a real estate professional, as a Broker of Record and Owner keep you, the curious, the maybe, the must have by the end of the month, the retiree, the downsizer, the upsizer, the DINK’s (double incomes,no kids), the tire kicker, deal maker, bread winner or just plain ready to move informed about real estate in London Ontario?

My asociates and I view a lot of houses and condos every week. We do loads of searches daily for clients, we are constantly researching properties, even For Sale By Owners.

we find houses in London Ontario

 

As professional house hunters in London we know the jungle (the bushes in London), the alleys, the streets, avenues, crescents  and can guide you on the right path to ensure your purchase is wise & financially sensible.

You won’t have to jump off any cliffs, scale any mountains, wrestle a crocodile, put up with a pushy real estate salesperson, cross-eyed lawyers, impotent mortgage lenders, near sighted home inspectors, all you have to do is put up with us!

Ty Lacroix

  These folks did and they are still with us!

How To Have The Advantage When Buying a Home in London Ontario

If thinking or you are buying a home in London Ontario, did you know  that in some of the top neighbourhoods in London Ontario, some homes are selling in a day or two , (for asking price or even 10-18% more) and in some cases, the seller has jacked up the price to try to take advantage of this seller’s market?

Buying a house London Ontario

   Here are some very,very important questions you may want answered before you make a decision before buying a home in London Ontario.

  • What is the property really worth in today’s market?
  • What is the property worth in a normal market?
  • Will it be worth what you paid 5 years from now? (Don’t guess on this one or apply uninformed confidence that it will)
  • How flexible is the seller on closing date?
  • Will there be multiple offers?
  • If there are multiple offers and I have to go in with no conditions, what’s wrong  or could be with the property? (extremely important)

 All Houses & Condos For Sale on MLS            Search MLS London Ontario

Condos for sale on MLS in London OntarioAll Houses For Sale on MLS London Ontario & Area Houses With a Pool London Ontario

London Ontario Neighbourhoods       Communities Around London Ontario

Downsizing or Rightsizing London Ontario                     Income Properties London Ontario

Did you know you may NOT be seeing all homes for sale with the email notifications from the various home search websites you are registered with? We have access to properties for sale that are not listed for sale on MLS. (Home owners have asked us to help them sell, but there’s a few days lag time before they are searchable on MLS or they are doing a few bits of tidying up.

How about  a process that puts you in the driver’s seat? We like to take the time (which will save you many hours later and frustration)  to understand your individual needs by creating a personalised “property profile”.  We have an extensive network of contacts that clients have said have saved them  days and even weeks of searching.

Our contacts open doors .

Sutton Group Envelope Real Estate Opens Doors

Buying a home in London Ontario and area is usually the most expensive purchase you will make in your life and it’s not something you do every day of the week (unless you are like myself & our partners, we do it everyday, 7 days a week!).

Our past clients have found that our inovative Dedicated Buyer Program provides them with an objective and unbiased view of the property’s true worth and helps remove the emotion from the buying process. This coupled with expert negotiation skills allows our clients  to save thousands of dollars and in mostcases, quite a few problems. Remember:

  Price is what you pay, value is what you get” Warren Buffet

Again, when you engage in our Dedicated Home Buyer Program, we take the time up front to understand your needs, reviewing your criteria and designing a strategy to meet your goals. We then , ( at no cost to you, we only get renumerated AFTER you have successfully taken possession of your home) undertake an extensive research to match your purchasing criteria with properties for sale. We even have have access to many properties that may never appear on the open market (sometimes called “exclusive listings” or “pocket listings”).

Our full search service includes:

  • Initial consultation to listen to your wants, dislikes, must have’s and would like to have
  • Unprecedented  market research tools that most other companies have never even heard about.
  • Discretion, confidentiality and our work ethic.
  • Access to our support services such as  legal, home inspection, movers, trades people, property management etc.
  • We are never too busy because when you work with us as a buyer, not only will you have a professional experienced Realtor to help you ( extensive training and work ethics), we have a closing coordinator, three office administrators, an inside sales associate and a marketing specialist.
  • We all follow this great quote from Jack Bergman:  There never is enough time to do it right, but there is always enough time to do it over!”
  • Why not check us out?

Forgetting Anything When Buying a London Ontario Home?

Is there anything you are forgetting when buying a  London Ontario Home?

Buying a home, things to think about

I know that when I meet buyers for the first time, be it first time buyers or 5th time buyers and we go through a checklist of the buying process, I hear this statement all the time; “You know, I never  thought of that!”

  • How much exactly have you been preapproved for a mortgage, is it in writing and at what rate and is that rate guaranteed and for how long?

  • What lawyer are you going to use? Do they specialize in real estate and what is their fee, not just their real estate fee but their disbursements! (You would be surprised of the stories I hear where that low fee did not turn out to be low! Yes, the fee was low, but additional charges such as filing fees, record keeping, and blah and blah fees add up!) Get it in writing; they are lawyers, which would be their advice to you!

  • When working with a Realtor, do you have to sign a buyer agency contract? Not sure or what is Buyer Agency? Have your Realtor explain buyer agency to you and if they insist you sign one before showing any homes, fully understand what you are signing and how long you are committed to that Realtor.  In most cases you don’t and won’t mind being committed, but what if your relationship is not working out!?Be very careful!

  • What about a home inspection? Do not leave that to chance or google the least expensive inspector on the web. Home inspectors in Ontario are not regulated and would you trust hundreds of thousands of dollars for a home inspection to save $100 or $200?. A few tips.

Those 4 are the more common misunderstood steps in the buying process  that home buyers have, and, the most expensive!

 Buying a home is the easy part, it is the lack of details, lack of information or the lack of experienced professionals to help you that will make you toss and turn at night.

How To Prevent Overpaying For a London Ontario House

Overpaying for real estate in London Ontario over the past few months is occurring more often than not and I have heard the following statements from buyers and Realtors.

happy buyers

 

  • “There is nothing I can do about it”.
  • “That’s just the way the real estate market is right now.”
  • “There is nothing else out there”

Really?

Learned helplessness is a condition in which a buyer adapts to the scarcity mindset, the fear of loss and instant gratification and overpays for a house in London Ontario and feel that there is nothing they can do about it and that the acceptance of their offer is totally out of their control.

Yes, the real estate market in London Ontario is vibrant and as a Realtor, that is quite positive yet the consequences of overzealous buyers and their representatives actions will have a negative effect , as history has proven over and over that the axiom “What goes up must come down”, holds true.

As a home buyer in London Ontario, you have choices and there are strategies you can take to ensure you do not over pay and get caught up in the frenzy.

 You cannot ever overpay with the research and the facts we provide to our clients!

Finding a Home To Buy In London Ontario Should Not Be a Puzzle

  Finding a Home in London Ontario Should Not Be A Puzzle!

If I brought you in a room and in a pile on a table in that room was a 1200 piece jigsaw puzzle with no picture of the completed puzzle on the box and then asked you to put it together, where would you start?

Thinking about buying a house in Uplands

I am sure eventually you would be able to put it together over lots of time and lots of trial and error and some frustration! But why go through the hassle if all you needed was the picture?

Well, buying a house or condo in London Ontario is no different!

If you had a picture in your mind of exactly what you wanted and needed in a house, do you not think that the buying process would be easier and in the long run, save you money?

Here is a scenario that is frequently a request that we receive:

   “We are looking for a house in __________________________ 3-4 bedrooms, 2 bathrooms, garage and between $____, 000 and $___, 000.”

  “We would like a master ensuite, fenced back yard etc.”

      A puzzle to Buy a Home                          

                                  

Yes, you may have decided on a one floor home versus a two story, maybe even a neighbourhood or close to a particular school or your work.

Over the years what our clients have really appreciated is what we call a market education.

We sit down with our clients and take the time to narrow down your must have’s, your lifestyle preferences, your budget, your comfort zone and after that we are getting close to having a picture of your needs.

We then go look at 4-5 homes with the intent of not buying any of them! We are solely getting a clearer picture of what you would really like and can afford in a home. After this 2-3 hour tour and analysis, we have found that  90% of the time, our buyers have a clear picture and now can act on the home that matches their picture!

Our clients know comparative prices; know the right neighbourhood, the right style of home and the necessary amenities that match their lifestyle.

I will agree that this process may not be for everyone but over the years it sure works for our clients and their level of satisfaction is very pleasing to us and a barometer of our values and work ethic!

In 90% of cases, a real estate sales person’s role is not to be a home finder. That was what real estate people did in the 80’s & 90’s, consumers  did not have access to  the vast amount of information that is available today.

Home Buyers in London

A good real estate person’s advantage and skill is to be an interpreter of data, a consultant, an advisor, a professional negotiator who ensures that not only is the price right, but the terms and conditions of a complex transaction are well managed from start to finish.

32 Minutes Will Make Buying A Home in London Ontario Easier!

First, Second ,Third Even Fifth Time Home Buyers

Ask Sutton Group Envelope Real Estate


Have you been driving around looking at open houses, searching the web, picking up real estate magazines in a constant search for a home? Then find one that you fall in love with and its been sold or a little out of your price range? It gets to be frustrating and a waste of time to say the least.  I know the feeling; I was there once myself.  The problem is most home buyers  just don’t know where to start. 

So you ask many of the Realtors you meet  questions about home buying and get different answers, becoming  even more confused.  Well there is a right way, and a wrong way, and the best way of getting the right house, and at the right price.  You want accurate and proven information (facts) that will guide you through the jungle of home buying with ease and success.

Have you or will you face any of these situations?

  • You’re looking to make one of the most important purchases of your life and you don’t want to get burned because of not knowing whom you can trust, or making a mistake that could cost you thousands of dollars later.
  • You do not know the values in the marketplace and you want to be assured of getting the most that you can for your money, without having any regrets after your closing?
  • You’re feeling out of control because there are so many unanswered questions. Making it hard to know where to start.

Is there an easier way to go about it?

If any of these situations sound familiar,or, you do not even want to go there,  then we  can help you prepare you for the purchase of your next home.  Doesn’t it make sense that in order for you to make one of the most important decisions in your life you should be well informed and have all the facts?

I say that because I was in your shoes.  In fact, I was once facing every one of the above situations.

Just 32 Minutes of Your Time Will Save You from “Years of Headaches”

How? Give us a call 519-435-1600 or contact us, we will arrange to set up a brief get together, you tell us what you want and when and we will offer some suggestions and leave you with some great information.

Call 519-435-1600

You are under no obligation what so ever, you don’t have to sign anything, don’t bring a thing, not even a pen, just yourself or you and your partner, we might even offer you a free coffee or water!

 

 

 

Eliminate Fear When Buying a London Ontario House

Most house buyers have many fears when getting ready to buy a home, whether it is the first time buyer or a couple who have bought and sold 5 homes in their lifetime.

fear of buying a home

Most of those fears are normal and that is a good thing. However:

F false

 E evidence

 A appearing 

 R real

I have worked with hundreds of home buyers over the years and I have found that most of their fears were of the unknown or worst of all, here say by family, friends and co-workers. My role as a professional Realtor is to address those fears, acknowledge them and then overcome those fears with factual information, not my perceptions but the real world of real estate reality.

The fear of buying the wrong house, over-paying for it, defects, financing and location can in 99% of the time, can be overcome with due diligence.

The fear of being happy in that home, entertaining and appreciating in value is internal and way above my paygrade to offer advice!

In the end, common sense, being practical and keeping your emotions in check will be your best friends.

Do Not Overpay When Buying a Home in London Ontario

Overpaying when buying a home in London Ontario over the past few months is occurring more often than not and I have heard the following statements from buyers and Realtors.

happy buyers

 

  • “There is nothing I can do about it”.
  • “That’s just the way the real estate market is right now.”

Really?

Learned helplessness is a condition in which a buyer adapts to the scarcity mindset, the fear of loss and instant gratification and overpays for a house in London Ontario and feel that there is nothing they can do about it and that the acceptance of their offer is totally out of their control.

Yes, the real estate market in London Ontario is vibrant and as a Realtor, that is quite positive yet the consequences of overzealous buyers and their representatives actions will have a negative effect , as history has proven over and over that the axiom “What goes up must come down”, holds true.

As a home buyer in London Ontario, you have choices and there are strategies you can take to ensure you do not over pay and get caught up in the frenzy.

If you never ever want to overpay for real estate, I will not let you!

Buying a Home in London Ontario & Co-signing?

What are the consequences if your daughter and her husband want to buy a home, but recently asked you to “Co-Sign” on the loan?

buying a house in London Ontario

There’s nothing wrong with helping a family member or close friend with buying a home.  However, co-signing on a loan should be done with great care and knowledge of the consequences.  Co-signing means that you are extending your personal credit for the benefit of someone else.  Problem is, if the borrower defaults, the lender will look to you for full repayment.

So you’re not really a co-signer, you’re a co-debtor.  Here are a few tips that may prove helpful when co-signing:

Although you’re co-signing, make sure your co-borrower is putting cash into the transaction.  The more they put in, the lower your risk.

Obtain a credit report on the person you’re co-signing for, even if it’s another family member.  If they’ve defaulted on other debts, there’s a good chance they’ll default on the debt you’re co-signing.

Ask the lender to release you from the loan when the principal balance is reduced to a certain amount.

Examine how your credit rating and ability to borrow will be impacted.  Co-signing on a loan can sometimes impact your ability to get financing if you need it.

Make sure you’re name is listed on the deed as a co-owner.  And by all means, speak with a good real estate lawyer.

If the home is sold, will you share in any appreciation or gain in value?

These  are only a few of the consequences let alone the dis-harmony between family or a friend. I have advised and helped many families over the years, so not only is a competent lawyer and lender required, but a real estate person with your interests in mind.