Your Team and Their Roles
Agents
A real estate agent is a professional who can save you time
and trouble. And possibly even a lot of money. You see,
real estate agents have the home buying experience most
people lack. They know all of the steps and they are good
negotiators who will work on your behalf.
An
agent will:
- Fine-tune
your wants/needs list
- Get
special computer access to listing information
- Screen
houses so as not to waste your time
- Offer
helpful advice about the neighbourhood
- Introduce
you to trusted contacts who should be on your team, such
as mortgage brokers, lawyers, and home inspectors.
- Above
all, find a real estate agent who is a professional in
the type of home you're looking for. A country home professional
may not be the urban market specialist you need. And when
speaking with your agent, be as clear as possible about
your needs.
- When
looking for a real estate agent, consider The Locatelli's.
RE/MAX associates who are the industry's top producers.
They're the cream of the real estate crop.
Contractors
If you've decided to do some renovations on your home to
make it more sellable, it's time to look for a credible
contractor. Before anyone begins work on your home, it is
important to do your homework.
1.
Ask for Referrals
- Your
architect will make recommendations
- We
can offer some suggestions
- Contact
friends or neighbours who have had similar work done
- Ask
at your local builder supply store
- When
you're interviewing contractors, ensure their credibility.
Contact their references. Ask to see some samples of the
contractor's work and speak to his clients to ensure that
they were satisfied with the price, length of time in
which the project was completed and overall, how the project
was handled. Also, check with your local Better Business
Bureau.
Once
you have the names of a few contractors that look promising,
arrange to get estimates from them. By arranging for three
quotes you'll get a good idea of the costs and quality of
work.
When
going over the project with your contractor, ensure that
he understands your needs and your budget. Each contractor
will have a different idea on how to approach the work and
they should inspect your home before giving an estimate.
If contractors are bidding based on an architect's plans,
be certain that they have detailed their approach to the
job based on the drawings.
What's
more, if there is a significant difference in the price,
ask the contractors to explain their estimates. And keep
in mind that the lowest price is not always the best. A
price that's too low may mean that the contractor has undercut
to get the project and then may submit additional project
costs once the project is underway. As well, a high price
doesn't always mean that you're getting gouged. The contractor
may have budgeted for higher quality materials and may offer
workmanship that is of an overall better quality.
In
every case, before you sign the contract, be certain that
it is as detailed as possible to the point of noting the
specific finishes and brand names of the products to be
installed.
2.
Evaluating a Quotation
- Are
the specific details of the project outlined?
- Are
the specific costs detailed?
- Is
there a provision for extra costs?
- Has
a cap been set for the total project?
- Is
there a firm project timeline?
- Has
the contractor allotted time for inspections?
- Have
you indicated that you wish to see all material receipts?
- Will
the work be subcontracted?
Appraisers
Hiring an appraiser to appraise the value of property you
are considering to buy may seem sensible but it is highly
unnecessary. Your lender will want their own personal appraiser
anyway, so you could be wasting valuable money. As well,
most RE/MAX agents are competent and can do a "Comparative
Market Analysis" for you, to establish a value range.
The only situation where hiring an appraiser would become
necessary is where the property is unusual with no comparable
sales.
Lenders
The true test for a buyer is "What else can we buy
for the same or less money?"
In
short, a lender is anyone who will give you money. There
are private lenders and institutional lenders, like banks
and credit unions. Even your brother-in-law can be your
lender. Of course, when you're looking for a lender, you'
re looking for a long-term relationship and terms and rates
which are beneficial to you.
You
really have a few options. You should go to a mortgage broker
who will search the mortgage market for the best rates and
conditions based on your circumstances. Usually the broker
is paid by the lender without cost to you. However, the
cloudier your credit history, the more likely there will
be a fee! A good mortgage broker will be connected to all
major lenders through the mortgage market.
You
can also do your own search. With a good credit history,
it's really not that complicated. Pick up your newspaper
and you'll see what the different lending institutions are
offering. Find the institution you feel you would be most
comfortable with, and one that offers the terms and conditions
you're looking for. Then, go in person and negotiate your
best deal.
Mortgage
Brokers
This
is a person who will do the leg work in finding the institution
which offers the mortgage terms and conditions that are
right for you. Much like an insurance broker, this professional
works for you and can offer you an unbiased referral. Although
most brokers are paid a finders fee by the lender, some
will charge 2% of the total mortgage to find you a lender.
Lawyers/Notaries
A lawyer is there to represent your interest, and to process
the documentation required. The legal aspects differ from
province to province. Your RE/MAX Agent can recommend lawyers
to advise you on the steps to be taken before the keys to
your new home are presented to you. A lawyer helps ensure
you are protected!!!
Home
Inspectors
Have the home inspected! Whether you make it a condition
of purchase or not, having the property pre-inspected by
a qualified home inspector will give you the added confidence
that you've made the right decision. Be very careful to
verify the qualifications of your home inspector because
there are no government standards or licenses for home inspectors.
Some home inspectors in Canada do not have any form of accreditation.
For your protection make sure your home inspector is a member
of (PACHI) or (OAHI). This is your assurance that they have
met their education requirements, have the experience and
carry E & O Insurance.
Insurance
Brokers
You'll want to make sure your property and valuables will
be covered. A broker offers independent advice and can save
you time, trouble and money. Plus, the bank will insist
that you carry full insurance since your property is used
as collateral against your mortgage. |