useful information if buying or selling your home

Let’s get social

Keep your home dry during the spring thaw

Buying a resale condo? Here’s what you need

to know.

SPRING EDITION 2014

With that in mind, here are the most common buying and selling pitfalls, and tips on how to avoid them:

HIRING THE FIRST SALESPERSON YOU MEETWhile you may decide to work with the first real estate professional you meet, it's a good idea to meet with a few different representatives before settling on one. Make sure you feel comfortable with them and their approach to the process. Also, be sure to get references and contact them to learn about their experience with the salesperson. Before signing a representation agreement, it’s a good idea to use the ‘Registrant Search’ tool at the top of RECO’s website (www.reco.on.ca) to check the status of their registration and see whether they have been subject to disciplinary action.

NOT MAKING YOUR EXPECTATIONS CLEAR WITH YOUR REAL ESTATE PROFESSIONALWorking with a real estate professional is a partnership, so communication is the key to success. It’s important to have a mutual understanding about what you’re looking for in a home, what elements you would consider to be ‘deal-breakers’, and what services the brokerage will be responsible for. Make sure you discuss what services you expect them to provide, and get it in writing.

FAILING TO READ AND UNDERSTAND FORMS AND CONTRACTSIt can be tempting to speed the process along by signing forms that you haven’t read. After all, nobody really likes reading the fine print. But taking the time to understand what you’re signing can avoid a lot of problems later on. For example, you don’t want to find out that you’re on the hook for a six month listing agreement to sell your home if you only want your house on the market for three months. Make sure all the blanks on the form are filled in before you sign it, and make sure you get a copy of whatever you sign.

ALLOWING EMOTIONS TO OVERTAKE COMMON SENSEWhen you fall in love with a property, it can be hard to walk away. Stick to your budget and be aware of the risks of foregoing a home inspection for a chance to win a bidding war. Making your offer conditional on a home inspection is a smart decision because a qualified home inspector, engineer or contractor can identify underlying problems with a home’s major systems, like heating and electrical. Skipping an inspection is a gamble because you’ll leave yourself vulnerable to a much more costly problem later on.

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It’s worth the effort to learn about the home buying and selling process; doing so could save you time, stress and money. One way to protect yourself is to learn from the mistakes of others.

“RECO is responsible for protecting home buyers and sellers, and we’ve seen too many Ontarians fall victim to easily avoidable buying and selling hazards,” says RECO’s Registrar Joseph Richer.

“Being mindful of these issues can help the process go a lot smoother.”

MOST COMMONBUYING AND SELLINGMISTAKES

WATCH OUT

FOR THE

TOP 10

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ASSUMING EVERYTHING IS INCLUDEDDon’t assume that the stove, washing machine and dryer or other items are included with the sale. The seller may want to take the dishwasher with them, and the hot water tank might be under a rental contract that you’ll be required to take over. The best way to protect against any surprises is to detail all the items (known as chattels) you expect to be included in your written offer. In the offer, you can also include a clause requiring the seller to pay out any outstanding leases on the home’s major systems.

FORGETTING ABOUT WHAT’S WITHIN THE WALLSThe hardwood floors, stained glass windows and walk-in closet are appealing features, but the insulation, wiring and plumbing are just as important when you’re evaluating a property. Ask your real estate professional to look into the age of the home’s systems and if there have been any upgrades. If extensive renovations have been done, your real estate professional can also help determine if the appropriate permits were issued.

FORGETTING ABOUT WHAT’S OUTSIDE THE WALLSWhen you buy a home, you’re also buying a place in a community. Visit the neighbourhood at different times of the day to see if the surroundings fit your lifestyle. Is it too noisy, or not vibrant enough? The only way to find out is to spend some time exploring the area, talking to neighbours and researching the locations of amenities like grocery stores and banks.

NOT DOING YOUR RESEARCHIf you’re concerned about buying a home with a troubled past, a simple Internet search for the address can go a long way. This is also something you can ask the neighbours about.

MAKING VERBAL AGREEMENTSVerbal agreements aren’t a problem, until they’re a problem. Putting everything in writing forces both parties to be clear about their expectations and provides a record that can prevent disputes later on.

UNDERESTIMATING CLOSING COSTSThe price paid for a home is just one of many costs associated with the purchase. Related costs, such as land transfer taxes, title insurance and a home inspection, can really add up and take an unexpected chunk out of your budget. There are also the final touches – like a fresh coat of paint, some window coverings or a new appliance – that you may want to do to make the place feel like your home. For more information, check out the Fall 2013 edition of RECOnnect, which includes a feature on the full costs of buying a home. You can find it under ‘Publications and Resources’ at www.reco.on.ca.

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10 While these tips will certainly help, the most important advice is to work with a registered real estate professional.

“Registered brokers and salespersons provide a great deal of knowledge and expertise about the buying and selling process, along with specific knowledge about neighbourhoods and local issues,” says Richer. “They can also provide crucial help in avoiding these hazards.”

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LET’S GET SOCIAL


For more information and to access the new digital tools, please visit us at:www.Facebook.com/recohelpswww.YouTube.com/recohelpswww.Twitter.com/recohelpswww.reco.on.ca

NEW DIGITAL TOOLS to help you make smart home– buying and selling decisionsBuying or selling a home is an important life milestone that can be emotional, stressful and confusing. With so much at stake, RECO has launched new digital tools that encourage Ontarians to be home smart.

The resources offer credible and objective advice to help Ontarians successfully navigate the home buying and selling process.

Visit Facebook (www.Facebook.com/recohelps) for interactive tools that highlight some of the most common buying and selling mistakes. Participate in the Choose Your

Home Adventure game, which will take you through five scenarios that most homebuyers encounter. By participating, you’ll also have the chance to win a $100 RONA gift card. Determine whether you make decisions with your head or your heart by taking our Are you home smart or home emotional?

quiz. And remember to check back daily for real estate dos and don’ts, infographics and buying and selling checklists.

Check out Youtube (www.YouTube.com/recohelps) for a new video series that answers common home buyer and seller questions, such as “what closing costs should I budget for,” “what should I do to have a safe open house” and “how do I know what’s included with the sale of a home.”

Follow Twitter (www.Twitter.com/recohelps) for daily tidbits on home buying and selling.

Being informed, asking questions and not letting your emotions take over will help you have a positive buying or selling experience.

Also, a registered real estate professional is an important source of information and an objective ally during the buying or selling experience.


KEEP THE WATER OUT

Before the snow begins melting, clear away any snow and obstructions that have accumulated around windows, and clear debris from gutters and downspouts. If there are any piles of snow near the house, move them further away. Make sure there’s nothing outside that would block proper drainage as the snow melts. Proper grading around your home is essential—the ground shouldn’t slope toward your home.

MINIMIZE RISK

Even if water gets into your home, there are steps you can take to minimize the damage. Basements are often used as storage, but it’s not a good idea to keep highly valuable or irreplaceable items down there. Don’t take the risk, keep your treasured possessions above ground.

Also, make sure any water that enters your home can drain properly. Keep the drains in your basement clear of obstructions and consider installing a sump pump. If you already have one, make sure it’s in proper working order. Also consider installing a sewer backwater valve to prevent flooding due to a sewer backup.

By following these simple tips, you can reduce your risk of flooding and enjoy the change of season.

The information in this article is courtesy of the Insurance Bureau of Canada (www.ibc.ca).

Keep your home dry during the spring thawSpring is here, bringing longer days and warmer temperatures. That melt-ing snow is a welcome sight, but it also presents a flooding risk. Fortunately there are things you can do to protect yourself from springtime flooding.


BUYING A RESALE CONDO? HERE’S WHAT YOU NEED TO KNOW.

In many ways, buying a resale condo is similar to buying a house, but there are additional caveats to a condo purchase that buyers should be aware of.

Is condo living for you?Before you go through with a condo purchase, consider whether condo living fits with your lifestyle. Condos often have rules regarding pets, noise and even drapes and balcony furniture. As such, condo living requires more “give and take” than a house. Take that into consideration before you go on the hunt for a condo.

The status certificateWhen you make an offer on a condo, it should be conditional on a review of the status certificate. It’s a document that includes a lot of critical information about the condo corporation.

• BY-LAWS AND RULES: make sure you can live with the condo’s rules. If pets aren’t allowed, don’t try to sneak in your puppy. Instead, find another property that is more suitable.

• FINANCIAL RECORDS FOR THE CONDO CORPORATION: the certificate will include the corporation’s most recent budget and the balance of the corporation’s reserve fund. If costly repairs are required in the future, insufficient cash in the reserve fund could require a steep increase in your condo fees or result in a special assessment.

• UTILITIES: utilities could be included with your condo fees or paid separately. Each unit could have its own hydro and water meters, or there could be one set of meters for the whole building, with everyone sharing the costs equally. You’ll want to know so you can budget accordingly.

• RENTAL STATUS: when owners lease out their units, they are required to notify the condo corporation. The corporation keeps a tally and includes the figure as part of the status certificate. If you want to rent your unit, it may make sense to buy in a condo that contains many other tenants. On the other hand, if you plan to live in your unit, a place where most owners live in their condo may give you the kind of community you desire.

• PARKING DETAILS: your unit may include a parking space, but it’s important to understand whether you will own the parking space yourself, or whether it’s a common element owned by the condo corporation that you are assigned, but that you don’t own.

Ultimately when you buy into a condo, you are also choosing your community. It’s a big commitment, so take the time to find a place that suits your personal needs. Don’t overlook potential issues in the rush to purchase a property. For more information about buying a condo, check out the Ministry of Consumer Services’ Condo Guide.


Do you have any comments or inquiries about the Reconnect newsletter?Please send them to: [email protected]

Real Estate Council Of Ontario3300 Bloor Street WestSuite 1200, West TowerToronto, Ontario M8X 2X2

Tel: 416-207-4800Toll-Free: 1-800-245-6910Fax: 416-207-4820

@RECOhelps

RECOhelps

Disclaimer: While RECO makes every effort to ensure that the information in this publication is current and accurate, RECO does not warrant or guarantee that it will be free of errors. The information contained in this publication is not intended to cover all situations. It is general information only and users/readers are encouraged to seek their own independent advice for particular fact situations.

DID YOU KNOW?

There are new options for real estate commissionsThe Government of Ontario has changed the rules to give consumers and real estate brokerages more options and flexibility regarding how fees and commissions for real estate services are calculated.

Previously, real estate brokerages could charge consumers a flat fee or a percentage of the sale price, but not a combination of the two. This restriction has been removed, so brokerages now have the option to make fee arrangements that include a combination of a flat fee and a percentage of the sale price.

“While choice and flexibility are good for consumers, it remains crucial for home buyers and sellers to educate themselves and understand what services will be provided to them and at what cost,” says RECO Registrar Joseph Richer.

When choosing a real estate professional, consider the services you are looking for and the prices associated with those services. Both prices and service levels vary, and communicating clearly ahead of time and getting everything in writing can help avoid problems later on.

CONSUMER Q&A

I’m looking to buy a home. How do I know what’s included?When looking at a home, you can’t assume that what you see is what you get. Buyers can be in for a costly surprise if they find out that the appliances, light fixtures, water heater, alarm system or other items they thought were part of the home are actually not included. These items are referred to as chattels.

Before putting in an offer on a home, ask your registered real estate professional to confirm, in writing, which chattels will be included with the purchase. Additionally, you’ll want to confirm whether there are any rental or lease agreements in place that you will be responsible for taking over.

By getting all the details in writing, you’ll know that you’re making an informed buying decision.

Message from the Chair – RECO Board of DirectorsBy Glenda Brindle

If you’re looking to either buy or sell a home, becoming an informed consumer before you

start can help the process go smoothly. With the right information, you’ll know what questions to ask and what to expect of your real estate professional, you’ll understand how the process works and you’ll be able anticipate potential issues so you can work with your representative to address them.

With a vast amount of information just a few mouse clicks away, the challenge isn’t finding information; it’s sorting through it all to find a trustworthy source.

As the real estate regulator in the province, the Real Estate Council of Ontario (RECO) protects the public interest by enforcing the rules and regulations that govern real estate professionals. We also provide consumers with objective information about buying, selling and owning a home. In short, if you’re looking to learn about the buying and selling process, you’ve come to the right place. RECO is a respected authority and one-stop-shop for valuable consumer resources, including this newsletter.

Published two times a year, Reconnect offers an easy-to-read way of accessing a wide range of helpful information, tips and news for home buyers and sellers. In this issue, you’ll find guidance on common home buying and selling drawbacks, tips on how to prevent flooding in your home this spring and things to consider when buying a condo. I hope you enjoy the read, find the contents useful and sign up to receive future editions by email.

But don’t stop there; I also encourage you to visit our Facebook page (www. facebook.com/RECOhelps) for daily tips and interactive resources, watch our helpful videos on YouTube (www.youtube.com/RECOhelps), follow us on Twitter (www.twitter.com/RECOhelps) and explore RECO’s website (www.reco.on.ca), which has a section devoted to educating Ontarians about the home buying and selling process.
