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BUYERS
First Time
If you've never purchased a home before, don't worry, we are here to help. Taking your first step into the housing market can sometimes seem daunting for first time buyers, but with The Kesh Group on your side, you can reach your real estate goals. There is no such thing as a stupid question and our team of knowledgeable REALTORS® will help explain the ins and outs of real estate so that you can feel calm and confident when making one of the biggest, and most exciting, decisions of your life. We'll start at the very beginning - dreaming about being a home owner - and walk you through the steps until you actually are one!
We strongly recommend getting pre-approved before starting your house hunt.
To do that, start by making an appointment with your Bank or Mortgage Agent to review your finances (if you don't have a Mortgage Agent or Bank that you currently work with you can reach out to our team and we are happy to recommend the services of our trusted associates).
This initial meeting is a very important first step because it helps you understand if you have the financial resources at the moment to make home ownership a reality.
If you are in a good financial position, that's great! Your Bank/Mortgage Agent will let you know the amount you're pre-approved for and you can then communicate that amount to your REALTOR® so that they can search for homes that best suit your wish list and your financial abilities.
If you aren't quite there yet with your finances, that's okay, don't get discouraged. Knowing your numbers accurately allows you the opportunity to make a solid plan to get your finances to where you want them to be. Focus on cutting back unnecessary expenses, prioritize saving and work on building a good credit history and before you know it, you'll have your down payment saved up and have lots of Lenders interested in working with you.
That depends...is the house you're buying going to be your principal residence (i.e. you are going to live there yourself) or is it an investment property (i.e. you're going to rent it out)?
If it's a Principle Residence then typically the down payment is 5% of the purchase price (for example: if you are offering to buy a house for $600,000, your down payment would be $30,000).
If it's an Investment Property then typically the down payment is 20% of the purchase price (for example: if you are offering to buy a house for $600,000, your down payment would be $120,000).
This is a general rule, but of course there are exceptions. For example: If you're buying a vacation property you may be able to pay only 5%, if you are buying a second family home that you are going to occupy (ex. for school) you may be able to pay 5%, some lenders may require a specific percentage for the down payment.
It is always a good idea to discuss what type of down payment will be required for the specific property you are looking at with your REALTOR® and Bank/Mortgage Agent to make sure you understand everything clearly. But if you're just looking to start saving up for a future down payment, you can use the general 5% and 20% rule as a guideline.
A mortgage is a loan that is used to buy a home or other property. Rather than you having to save up a large sum of money to purchase a home, a Lender (usually a bank, B-Lender or Private Lender) provides that large payment upfront and the home owner repays the amount in monthly installments over many years. The years over which the loan is paid back (typically between 25-30 years) is called an "amortization period". The monthly payments are made up of two parts, payments that go towards the principal balance (i.e. the amount of the original loan) and interest payments (essentially additional money you pay to the Lender as a "thank you" for loaning you the money).
In simple terms mortgage insurance is insurance that you as the home owner pay to the financial institution. In most cases, you pay a mortgage insurance premium when you have less than a 20% down payment for your home purchase. The main objective of mortgage insurance is that it protects the financial institution if the you become default in your mortgage payments.
Some buyers choose to pay a larger down payment (typically 20% or higher) in order to avoid having to pay mortgage insurance.
However there are some benefits to having mortgage insurance:
Your rate is usually lower than without mortgage insurance (in some cases it can offset most of the premium)
The maximum amortization is 25 years (instead of up to 30)
You can work with the insurer (CMHC, Sagen or Canada Guaranty) if you are experiencing financial difficulty. They will review your situation and oftentimes can work something out with you and the lender so you can continue to enjoy your home
So with that in mind, some buyers choose to still have mortgage insurance even if they put more than 20%.
It really depends on the home you are purchasing, what the Lender requires and how much you are comfortable putting towards your down payment. It's a good idea to discuss if you need/want mortgage insurance with your Bank/Mortgage Agent when considering putting in an offer on a house.
Some buyers consider representing themselves in a real estate transaction. This can be a costly decision unless you are well-versed in the legalities of real estate and trained in negotiation. Additionally you may miss out on some great opportunities, since REALTORS® have access to new listings typically 1-2 days before the general public.
One of the most commonly misunderstood aspects of the real estate industry is who pays for the REALTORS® commission. So let's clarify...the Seller does!
If you buy a house for $500,000 there is no additional amount you have to fork out for your agent's paycheck. The Seller receives that $500,000 and they pay both their Listing Agent as well as your Buyer Agent out of that money that they received. So for you as the Buyer, having a REALTOR® work with you is FREE!
Having a Buyer Agent on your side protects you from being taken advantage of or missing out on opportunities in today's competitive real estate market. Plus, if there's no cost to you, why wouldn't you have an expert in the industry help you with your house search? It really is a no brainer, if you're thinking about buying, choose a knowledgeable REALTOR® that you trust to help you on your real estate journey.
You can, but consider if you want to?
The Listing Agent can legally represent both parties (this is called double-ending) but you need to be sure that is something you are comfortable with before proceeding.
Many buyers simply look online and when they find a house they like, they call up the REALTOR® who listed it, not giving it a second thought. The risk with this method is that the Listing Agent is working first and foremost for the Seller, not for you as the Buyer.
In some cases, the Buyer and Seller agree that they're okay with the same REALTOR® representing them both, in which case, the double-ended transaction can take place.
However, more commonly Buyers and Sellers prefer to have their own representation because things can get tricky when it comes to negotiating price. It's difficult for one agent to effectively work for both sides because they are trying to get the most money for their Sellers, but also trying to get the lowest price for you, their Buyers. Oftentimes it's better if each party has their own agent who can fully represent their best interests in the negotiations.
That's why our team, unless specifically requested by our clients, typically does not double-end deals. If one of our awesome agents has a home listed for sale and you inquire with them about purchasing it, you will likely be passed to one of our other awesome agents so that they can help you submit your offer and protect your interests in the transaction.
Be sure to talk to your REALTOR® about your preferences around double-ending deals before any offers get submitted.
There are lots of REALTORS® out there so how do you choose the right one to work with? Interview them!
Before starting your house hunt, research potential agents you'd like to work with online and then set up in-person or virtual meetings with your top three to see if they are the right fit for you.
You may want to ask questions such as:
How many buyers have you worked with previously and how many of those clients ended up actually buying a home?
Are you familiar with my desired purchase area? (Do they know the nearest schools, where the shopping is, which neighbourhoods are considered nice/sketchy, etc)
How will you send me houses that are for sale and how will showings be arranged?
What makes you different from other REALTORS® / why should I choose you to help me on my house hunt?
Add in any other questions that are important to you to have answered.
Once you've interviewed your potential REALTORS® give some serious thought as to who you connected with best, who offers the service you're looking for, and who you trust to help you find and purchase your dream home. Then call that agent and let them know you are ready to sign on with them as a client and get the house hunt started!
Know what you can afford, understand what you are looking for and be ready to take action.
Homes in the Niagara Region are highly sought after. We are conveniently located between Toronto and the US Border and boast many amazing attractions and amenities and employment opportunities. So when houses come up for sale in this area, they often don't last long.
Knowing your financial abilities, having a clear wants/needs list and being in a mindset where you are ready to take action when the right property pops up, will give you an edge over other buyers in a competitive market.
And of course having a great REALTOR® helping you with your purchase is a great idea!
It's a good idea to start off your home search by making a wants and needs list.
When it comes to making a "wants" list for your future home, think about your lifestyle. If you love to cook, a chef's kitchen might make your wish list. If you love to entertain, a big dining room perfect for dinner parties might be the dream. If you have kids you may want a certain number of bedrooms or a play area where they can run around and have fun. If you have fur-babies, maybe a fully-fenced backyard is a priority. Take some time to think about your lifestyle now (as well as what your life will look like in the next 5 years) and make a list of the features that would make the place you buy really feel like home.
Those are your wants, but what about your needs? These are even more important to think about because these are the non-negotiables for you. Perhaps you need a bungalow because stairs are a challenge for you. Perhaps you need to be in a certain neighbourhood so your kids don't have to change schools. Perhaps you need an in-law suite because your aging parents are moving in with you. Be sure to give some serious thought to what you absolutely need in your future home.
Having a trusted REALTOR® on the house hunt with you will also help because they will look out for things that you may not think to look for (ex. the condition of the roof, the age of the furnace and A/C, etc).
Once you've been pre-approved and have signed on as a Kesh Group client, you are ready to officially starting looking for your dream home! To make it easy and seamless, your REALTOR® will set up a "Client Portal" for you. Basically this is an online system where your agent will send you any houses that are for sale which meet your criteria.
You can conveniently browse through these listings on your phone or computer from anywhere and if any of them peak your interest, just let your REALTOR® know and they will set up an in-person showing time that is convenient for you.
It's time to put in an offer!
Ultimately the offer price you submit to the Sellers is your choice, but your REALTOR® will do research about the property and the current market to help guide you when deciding on your offer price. You want to ensure that the price you are offering is competitive without being too high or too low to give you the best chance of having your offer accepted. Having a REALTOR® who is knowledgeable about the real estate industry, up to date regarding the current market, well-informed about the specific property you want to purchase and trained in negotiation will help to make your offer successful.
A home inspection is a visual examination of the physical condition of a home. A home inspection should be conducted by a professional Home Inspector who has the training and certifications to perform the inspection.
A home inspection will usually include an examination of the foundation and basement, roof, attic, heating and water systems, electrical and plumbing systems, as well as the general condition of the structure itself.
The Home Inspector will provide a report on the condition of the home which explains their findings and notes any repairs/updates you may want to considered getting done. This way you can make an educated decision about whether or not to move forward with the purchase of the home.
Whether or not you put a Home Inspection Condition into your offer is up to you, but we'd recommend discussing it with your REALTOR® before you offer to purchase a home.
When you buy a home there are a few additional expenses that you should be aware of and save up for.
When people refer to "closing costs" that typically includes paying for things such as:
Legal Fees (i.e. paying the lawyer to complete the deal)
Land Transfer Tax (i.e. a fee paid to the government since the land is changing ownership)
Title Search (i.e. a legal search that ensures there's no leans on the property among other thing)
You'll also want to keep in mind that you will have some moving expenses (whether that is hiring professionals with a big truck, or buying pizza and beer for your friends) so you will want to budget for that as well in order to avoid surprises.
Talk to our team to find out more about associated costs with home purchases.
Yes, you will need a lawyer in order to purchase a home as there is legal paperwork that needs to be processed. You can ask friends/family for a reference, Google search to find a local real estate lawyer or ask your REALTOR® to connect you with our team's trusted associates who can handle the legal aspects of your purchase.
BUYERS
Experienced
If you've purchased a home before but are ready to upsize, downsize, purchase a vacation home or add an additional rental property to your real estate portfolio, we can help. Our team will work tirelessly to find you a property that meets your unique needs and make your real estate dreams come true.
We strongly recommend getting pre-approved before starting your house hunt.
To do that, start by making an appointment with your Bank or Mortgage Agent to review your finances (if you don't have a Mortgage Agent or Bank that you currently work with you can reach out to our team and we are happy to recommend the services of our trusted associates).
This initial meeting is a very important first step because it helps you understand if you have the financial resources at the moment to make home ownership a reality.
If you are in a good financial position, that's great! Your Bank/Mortgage Agent will let you know the amount you're pre-approved for and you can then communicate that amount to your REALTOR® so that they can search for homes that best suit your wish list and your financial abilities.
If you aren't quite there yet with your finances, that's okay, don't get discouraged. Knowing your numbers accurately allows you the opportunity to make a solid plan to get your finances to where you want them to be. Focus on cutting back unnecessary expenses, prioritize saving and work on building a good credit history and before you know it, you'll have your down payment saved up and have lots of Lenders interested in working with you.
That depends...is the house you're buying going to be your principal residence (i.e. you are going to live there yourself) or is it an investment property (i.e. you're going to rent it out)?
If it's a Principle Residence then typically the down payment is 5% of the purchase price (for example: if you are offering to buy a house for $600,000, your down payment would be $30,000).
If it's an Investment Property then typically the down payment is 20% of the purchase price (for example: if you are offering to buy a house for $600,000, your down payment would be $120,000).
This is a general rule, but of course there are exceptions. For example: If you're buying a vacation property you may be able to pay only 5%, if you are buying a second family home that you are going to occupy (ex. for school) you may be able to pay 5%, some lenders may require a specific percentage for the down payment.
It is always a good idea to discuss what type of down payment will be required for the specific property you are looking at with your REALTOR® and Bank/Mortgage Agent to make sure you understand everything clearly. But if you're just looking to start saving up for a future down payment, you can use the general 5% and 20% rule as a guideline.
A mortgage is a loan that is used to buy a home or other property. Rather than you having to save up a large sum of money to purchase a home, a Lender (usually a bank, B-Lender or Private Lender) provides that large payment upfront and the home owner repays the amount in monthly installments over many years. The years over which the loan is paid back (typically between 25-30 years) is called an "amortization period". The monthly payments are made up of two parts, payments that go towards the principal balance (i.e. the amount of the original loan) and interest payments (essentially additional money you pay to the Lender as a "thank you" for loaning you the money).
In simple terms mortgage insurance is insurance that you as the home owner pay to the financial institution. In most cases, you pay a mortgage insurance premium when you have less than a 20% down payment for your home purchase. The main objective of mortgage insurance is that it protects the financial institution if the you become default in your mortgage payments.
Some buyers choose to pay a larger down payment (typically 20% or higher) in order to avoid having to pay mortgage insurance.
However there are some benefits to having mortgage insurance:
Your rate is usually lower than without mortgage insurance (in some cases it can offset most of the premium)
The maximum amortization is 25 years (instead of up to 30)
You can work with the insurer (CMHC, Sagen or Canada Guaranty) if you are experiencing financial difficulty. They will review your situation and oftentimes can work something out with you and the lender so you can continue to enjoy your home
So with that in mind, some buyers choose to still have mortgage insurance even if they put more than 20%.
It really depends on the home you are purchasing, what the Lender requires and how much you are comfortable putting towards your down payment. It's a good idea to discuss if you need/want mortgage insurance with your Bank/Mortgage Agent when considering putting in an offer on a house.
Some buyers consider representing themselves in a real estate transaction. This can be a costly decision unless you are well-versed in the legalities of real estate and trained in negotiation. Additionally you may miss out on some great opportunities, since REALTORS® have access to new listings typically 1-2 days before the general public.
One of the most commonly misunderstood aspects of the real estate industry is who pays for the REALTORS® commission. So let's clarify...the Seller does!
If you buy a house for $500,000 there is no additional amount you have to fork out for your agent's paycheck. The Seller receives that $500,000 and they pay both their Listing Agent as well as your Buyer Agent out of that money that they received. So for you as the Buyer, having a REALTOR® work with you is FREE!
Having a Buyer Agent on your side protects you from being taken advantage of or missing out on opportunities in today's competitive real estate market. Plus, if there's no cost to you, why wouldn't you have an expert in the industry help you with your house search? It really is a no brainer, if you're thinking about buying, choose a knowledgeable REALTOR® that you trust to help you on your real estate journey.
You can, but consider if you want to?
The Listing Agent can legally represent both parties (this is called double-ending) but you need to be sure that is something you are comfortable with before proceeding.
Many buyers simply look online and when they find a house they like, they call up the REALTOR® who listed it, not giving it a second thought. The risk with this method is that the Listing Agent is working first and foremost for the Seller, not for you as the Buyer.
In some cases, the Buyer and Seller agree that they're okay with the same REALTOR® representing them both, in which case, the double-ended transaction can take place.
However, more commonly Buyers and Sellers prefer to have their own representation because things can get tricky when it comes to negotiating price. It's difficult for one agent to effectively work for both sides because they are trying to get the most money for their Sellers, but also trying to get the lowest price for you, their Buyers. Oftentimes it's better if each party has their own agent who can fully represent their best interests in the negotiations.
That's why our team, unless specifically requested by our clients, typically does not double-end deals. If one of our awesome agents has a home listed for sale and you inquire with them about purchasing it, you will likely be passed to one of our other awesome agents so that they can help you submit your offer and protect your interests in the transaction.
Be sure to talk to your REALTOR® about your preferences around double-ending deals before any offers get submitted.
There are lots of REALTORS® out there so how do you choose the right one to work with? Interview them!
Before starting your house hunt, research potential agents you'd like to work with online and then set up in-person or virtual meetings with your top three to see if they are the right fit for you.
You may want to ask questions such as:
How many buyers have you worked with previously and how many of those clients ended up actually buying a home?
Are you familiar with my desired purchase area? (Do they know the nearest schools, where the shopping is, which neighbourhoods are considered nice/sketchy, etc)
How will you send me houses that are for sale and how will showings be arranged?
What makes you different from other REALTORS® / why should I choose you to help me on my house hunt?
Add in any other questions that are important to you to have answered.
Once you've interviewed your potential REALTORS® give some serious thought as to who you connected with best, who offers the service you're looking for, and who you trust to help you find and purchase your dream home. Then call that agent and let them know you are ready to sign on with them as a client and get the house hunt started!
Know what you can afford, understand what you are looking for and be ready to take action.
Homes in the Niagara Region are highly sought after. We are conveniently located between Toronto and the US Border and boast many amazing attractions and amenities and employment opportunities. So when houses come up for sale in this area, they often don't last long.
Knowing your financial abilities, having a clear wants/needs list and being in a mindset where you are ready to take action when the right property pops up, will give you an edge over other buyers in a competitive market.
And of course having a great REALTOR® helping you with your purchase is a great idea!
It's a good idea to start off your home search by making a wants and needs list.
When it comes to making a "wants" list for your future home, think about your lifestyle. If you love to cook, a chef's kitchen might make your wish list. If you love to entertain, a big dining room perfect for dinner parties might be the dream. If you have kids you may want a certain number of bedrooms or a play area where they can run around and have fun. If you have fur-babies, maybe a fully-fenced backyard is a priority. Take some time to think about your lifestyle now (as well as what your life will look like in the next 5 years) and make a list of the features that would make the place you buy really feel like home.
Those are your wants, but what about your needs? These are even more important to think about because these are the non-negotiables for you. Perhaps you need a bungalow because stairs are a challenge for you. Perhaps you need to be in a certain neighbourhood so your kids don't have to change schools. Perhaps you need an in-law suite because your aging parents are moving in with you. Be sure to give some serious thought to what you absolutely need in your future home.
Having a trusted REALTOR® on the house hunt with you will also help because they will look out for things that you may not think to look for (ex. the condition of the roof, the age of the furnace and A/C, etc).
Once you've been pre-approved and have signed on as a Kesh Group client, you are ready to officially starting looking for your dream home! To make it easy and seamless, your REALTOR® will set up a "Client Portal" for you. Basically this is an online system where your agent will send you any houses that are for sale which meet your criteria.
You can conveniently browse through these listings on your phone or computer from anywhere and if any of them peak your interest, just let your REALTOR® know and they will set up an in-person showing time that is convenient for you.
It's time to put in an offer!
Ultimately the offer price you submit to the Sellers is your choice, but your REALTOR® will do research about the property and the current market to help guide you when deciding on your offer price. You want to ensure that the price you are offering is competitive without being too high or too low to give you the best chance of having your offer accepted. Having a REALTOR® who is knowledgeable about the real estate industry, up to date regarding the current market, well-informed about the specific property you want to purchase and trained in negotiation will help to make your offer successful.
A home inspection is a visual examination of the physical condition of a home. A home inspection should be conducted by a professional Home Inspector who has the training and certifications to perform the inspection.
A home inspection will usually include an examination of the foundation and basement, roof, attic, heating and water systems, electrical and plumbing systems, as well as the general condition of the structure itself.
The Home Inspector will provide a report on the condition of the home which explains their findings and notes any repairs/updates you may want to considered getting done. This way you can make an educated decision about whether or not to move forward with the purchase of the home.
Whether or not you put a Home Inspection Condition into your offer is up to you, but we'd recommend discussing it with your REALTOR® before you offer to purchase a home.
When you buy a home there are a few additional expenses that you should be aware of and save up for.
When people refer to "closing costs" that typically includes paying for things such as:
Legal Fees (i.e. paying the lawyer to complete the deal)
Land Transfer Tax (i.e. a fee paid to the government since the land is changing ownership)
Title Search (i.e. a legal search that ensures there's no leans on the property among other thing)
You'll also want to keep in mind that you will have some moving expenses (whether that is hiring professionals with a big truck, or buying pizza and beer for your friends) so you will want to budget for that as well in order to avoid surprises.
Talk to our team to find out more about associated costs with home purchases.
Yes, you will need a lawyer in order to purchase a home as there is legal paperwork that needs to be processed. You can ask friends/family for a reference, Google search to find a local real estate lawyer or ask your REALTOR® to connect you with our team's trusted associates who can handle the legal aspects of your purchase.