A home inspection gives potential homebuyer’s the opportunity to have a professional inspector evaluate a home and give an assessment of its condition.

Usually, homebuyers get an inspection done before they purchase a home - but sellers sometimes opt to have one completed as well before listing their home for sale, whether by themselves or a professional. 

If you’re selling a home, you’ll want to make sure the inspection goes as smoothly as possible, so you can close on the sale sooner rather than later. Here are 5 easy tips on how to prepare for a home inspection.

1 - Keep It Clean

This one seems pretty obvious, especially if you’ve gone through the process of selling a home before, but be sure to keep everything clean and tidy! How clean your home is doesn’t necessarily play into the inspection itself…but a dirty/messy house may make the inspector suspicious that other areas of the property also aren’t properly taken care of.

2 - Provide Easy Access

Related to the point above, you want to make a good impression on the professional carrying out the home inspection. So, make sure that they have easy access throughout the property. If an inspector can’t get into an area, they can’t inspect it - and that will be a red flag for buyers! Make sure to clear away any clutter impeding access such as basements, attics and furnace rooms.

3 - Remember: The Little Things Matter

Ideally, you want everything to be perfect for your home inspection. The better shape things are in, the more likely you are to close on the sale. There are lots of easy things you can do to help woo your potential buyers. Simple things like repairing faulty cabinets, replacing any bulbs that are out, making sure your toilets are functioning properly and ensuring all doors are in working condition can help develop a trusting relationship between you and the buyer.

4- Double Check For Leaks

One thing a home inspector is definitely going to check for is signs of leaks or water damage. It’s best you beat them to it and get any water-related issues sorted prior to the inspection. When looking for leaks, be sure to check under sinks, around faucets, around the base of your toilets and bathtubs and/or showers, and under any appliances that may leak, such as dishwashers and refrigerators. In terms of water damage, examine walls, ceilings, and floors, looking for signs of warping, sagging, or buckling.

5 - Don’t Forget The Roof!

The roof is a key part of the home inspection, so be sure to check it during your preparations. Get out a ladder and clean moss and debris from the gutters and check for damaged/missing tiles. If you find damage on the roof, you’ll want to get it taken care of prior to the home inspection - as this can really spook potential buyers.

First-Time Tip: If you get an alarming inspection report on a home you’re selling, don’t panic. Until you see the whole picture clearly, you’re not in a position to determine whether you have a major problem to deal with or not. Keep in mind that there is an element of subjectivity involved in the inspection process. For example, two contractors might disagree on the remedy for a dry-rotted window: one calling for repair and the other for replacement.

Did you know that building permits help ensure renovations and construction projects comply with local bylaws, health and safety standards as well as building codes? Well, if you didn’t, now you do!

So, why do they matter?  Keep reading to find out.

What Is A Building Permit?

As you prepare to start a project, considering a building permit is a great first step. After all, you’re required to obtain the relevant permits before you can even start tackling any renovations.

As the expectations and rules for every municipality differ, it’s crucial you understand your cities requirements – it would be a waste of time adhering to standards that don’t even apply to your given area! And, some cities are actually more vigilant than others in enforcing permits, so the work required can differ from place to place. To determine what your city needs from you, you can always visit your town's building department website, as they typically offer an overview. 

The Building Permit Process

In order to obtain a building permit, the process might look a little something like this:

You can start by contacting your local building department and explaining what you have in mind for your project. If they determine that a permit is required, you’ll be given an application form outlining the relevant requirements. Keep in mind that not all renovations require one single permit, you might have to apply for multiple. For example, perhaps your project requires quite a bit of work, leaving you to apply for a plumbing and electrical permit. 

As you prepare your permit application, make sure to include any materials that will be used and keep in mind that you may have to submit drawings of your project plan, depending on the proposal. 

You can then submit your application, which is often when you pay whatever necessary fees. Afterwards, the licensing office will provide you with an official permit certificate.

 Once you begin working on your project, you’re required to post the building permit, which could mean taping it to the door closest to where work is being done.

As you continue to work and see progress, make sure to call the inspection office, so they can send an inspector to review the quality of work as well as the worksite. If the inspector instructs you to make any changes, complete them and have the instructor return to make sure they were done accordingly.  

When you receive approval from the inspector, you’re no longer required to display your building permit. 

Oftentimes people skip these steps because they don’t want to spend the time or money on them, but the price of righting your wrongs is often far more costly.

Why Do Building Permits Matter

If you decide to bypass the official building permit process, you might run into the following problems:

• You might decide down the road it’s time to sell your home. A buyer’s inspection might reveal work that was done without proper permits or that isn’t up to code. You’ll then be faced with the task of undoing all your previous work and starting over again, this time with a permit. 

• You might face steep fines, which can reach thousands of dollars, depending on where you live and the work that was done. For structures that violate requirements, you could actually receive fines for every day that the structure fails to meet standards.

• If work that was done poorly or without a permit leads to a structural issue, a fire, or even a major plumbing problem, your homeowner’s damage and liability policy might not cover the costs of the damage.

• If an injury occurs during your project and you’re without the proper permits, you could be liable for the injuries. 

• Perhaps during your DIY construction, you accidentally damage your neighbours property or pollute a nearby stream. This could lead to a serious lawsuit. 

It’s important that you do the relevant research before starting a project to stay informed of any required permits. In doing so, you can rest assured that your project is being done in the safest way possible. You’ll also save yourself the headache, time and money that comes with fixing any mistakes.

Defining A Comparative Market Analysis

CMA is a real estate acronym that stands for “Comparative Market Analysis”. It’s a report your real estate agent prepares that provides you with the relevant data for comparing your property to other similar properties in the market.

Essentially, a CMA is a method for evaluating your properties worth by comparing it to others, which helps with setting a listing price.

A CMA Is Not An Appraisal

While it might seem like a CMA and an appraisal are quite alike, there are a few differences worth outlining.

The main difference between the two concerns the personnel involved – a CMA is conducted by a real estate agent, whereas an appraisal is completed on behalf of the bank or by a licensed appraiser.

A CMA is used to outline the value of your property, and the value is typically listed as a range. Conversely, appraisals offer a defined value for your property.

Obtaining A Comparative Market Analysis

In order to obtain a CPA, the following steps are required.

First, your real estate agent will come by to inspect your property. Don’t worry, this inspection won’t be super tedious or exhaustive so no need to prepare for an open house! There definitely won’t be any crawling under your home to examine the foundation, so don’t fret.

Regardless, you should ensure your home is in good condition so your agent can make an accurate assessment of its worth. If you have any plans to make changes to your place before selling, this would be the time to inform your agent.

The following step involves your agent obtaining important and relevant information, like collecting data on comparable properties, for example. This data is typically available through MLS, which is a Multiple Listing Service, and when using a qualified agent, they will also include other properties on the market or that have sold without MLS. Gathering this information informs the agent of your properties worth in the current market. You should complete the CMA process prior to your home being listed as it’s a good assessment of what your house could potentially sell for.

Why A Comparative Market Analysis Matters

Considering that acquiring a CMA from your real estate agent is often one of the first steps to take when listing your home, it should come as no surprise that it’s important!

Not only are CMAs useful for prospective sellers, but for buyers as well! A buyer could request a CMA for a property that they are interested in, which would help them understand whether or not the asking price reflects the current market.

For owners that are upgrading or remodeling their space, they could also benefit from a CMA. It can be used to determine if the intended changes will “over-improve” their property compared to others in the neighborhood.

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In conclusion, a CPA assists sellers in choosing the best listing price for their property by comparing it to others that are similar in size, features and location.

To obtain your Comparative Market Analysis, connect with the professionals at the Property Exchange Group Inc. today.

If you’re overwhelmed with the thought of buying a home, you’re not alone! Afterall, purchasing a property is one of the biggest transactions you can make, so it’s no wonder you might be feeling intimidated. To help calm those nerves, keep reading for important tips & tricks to making the right decision the first time.

Preparation Is Key

If you want to negotiate with home sellers, it starts with being prepared. Potential home buyers should consider the following questions before they begin their negotiations.

Questions To Consider

WHY IS THE HOMEOWNER SELLING?

You should always ask why the current homeowner is selling because you never know what you might learn. For example, you might discover they’re leaving because they find the area undesirable, which is something you’ll most definitely want to consider when thinking about putting in an offer.

HOW LONG HAS THE HOME BEEN ON THE MARKET? 

It’s important to know how long the property has been on the market for. If it’s been up for a while, there might be something negative about the property you need to know!

HOW MUCH DID THE SELLER PAY FOR THE HOME COMPARED TO THE CURRENT ASKING PRICE? 

If the seller paid more for their home than they’re listing it for, you should find out why they’re listing it for less.

WAS IT A GENERAL REAL ESTATE TREND, OR DID PROPERTY VALUES IN THAT PARTICULAR NEIGHBOURHOOD GO DOWN?

Building on the previous question, these are some factors you can consider when looking at the change in listing price. 

WHAT IS THE SELLER’S TIME FRAME FOR SELLING AND MOVING? DOES IT FIT WITHIN YOUR NEEDS?

You’ll want to know how much time the seller needs before the property truly becomes yours. As the timeline differs for everyone, you’ll want to make sure it aligns with yours.

ARE THERE ANY DEFECTS IN THE HOME OR PROBLEMS WITH THE SURROUNDING NEIGHBORHOOD?

In asking this question, you might discover an older roof in need of repairs that could’ve left you with leaks during the next storm. Or, you might learn there’s a power plant nearby, which could affect your decision of wanting to call a certain neighbourhood home. 

IS THERE A NEW CONSTRUCTION PROJECT IN THE AREA THAT WILL LEAD TO MAJOR TRAFFIC CONGESTION?

While construction can breathe new life into a community, it can also lead to loads of traffic and plenty of noise underscoring the importance of this question.

A Buyers Advantage

Being positioned as the potential buyer, you want the advantage. While it’s important to ask the questions above, it’s also important to reveal very little about your circumstances to the seller.

Avoid giving out personal information, such as your income, the maximum you are able to pay for a down payment or the home, or when you want to move.

You should let your agent know that you wish to keep this information confidential from the seller or his/her agent.

Try to keep your emotions in check when meeting with the seller or listing agent! If you reveal just how desperate you are for the place or come across as overly enthusiastic, it puts the seller in a stronger bargaining position. That’s where you want to be, not them!

Establish a Timeline

It’s important to find out if the seller needs to have the sale closed sooner rather than later. If the seller is feeling pressured to sell, you can use that to your advantage in negotiating!

If there’s a timeline you wish to stick to, or if you are the one with the deadline for purchasing a home, don’t let yourself be rushed into making concessions or a purchase you may regret later.

Lastly, using a realtor you can trust is paramount to the whole process.

Connect with the professionals at Property Exchange Group Inc. to benefit from their expertise and to help you get started with your homeowner journey.

Getting an offer accepted is definitely one of the most exciting parts of the process when you’re buying a home - so congratulations, you’re now well on your way to owning your very own home!

Now things get really serious, but if you follow these suggestions (and your realtor’s advice), closing will go as smoothly as possible.

Deposit Check

You have been asked to give a deposit check with your offer, make sure that there are sufficient funds in your account to cover this check which gets cashed upon acceptance of your offer.

The deposit check may be held by an attorney or in the broker’s trust account and forms part of your total purchase price. Assuming the sale goes through, this money will be applied to the purchase price of the home.

If for any reason the sale is not consummated, you may be entitled to receive all of your deposit back, less standard cancellation fees. In certain instances, the seller may be able to retain this money as liquidated damages.

Down Payment & Lawyers

You will be asked for a downpayment on the home you are purchasing. You can choose to put down as much or as little as you want (depending on your mortgage), but remember, the more you put down toward the total price of your home, the less time it will take you to pay off and the less your mortgage payments will be every month.

During this period of purchasing your home, you are going to need a Lawyer to act on your behalf, they will make sure title to your new home is clean and to transfer the title to you, the purchaser.

You probably have conditions in your offer, such as financing or home inspection.

During this time, each item specified in the contract must be completed satisfactorily. By this time you have an agreement with the seller on the closing date and the contingencies. Each contract is different, but most include the following...

Inspection Contingency

This should be completed as soon as possible after the contract to purchase is signed as unsatisfactory results of the inspection may mean that you will want to cancel the contract.

Financing Contingency

Once the contract is signed, you have a period of time to secure funding. If, for any reason, you are unable to secure funding during the period of time granted to you by the contract (and the seller will not provide a written extension of time), you must decide whether you want to remove the contingency and take your chances on getting a loan. You may choose to cancel the purchase contract.

Insurance

Once all of your conditions have been satisfied and removed! Well congratulations – you now need to obtain homeowners insurance and must present to your lawyer before you get possession of your new home.

Contact local utility companies to schedule to have service turned on when you take possession.

One Last Inspection

Schedule the final walk-through inspection.

At this time, you should make sure that the property is exactly as the contract says it should be. What you thought to be a “permanently attached” chandelier that would come with the property might have been removed by the seller and replaced with a different fixture entirely.

Congratulations!

Yes! You’ve made it!

Once the sale has closed, you’re the proud owner of a new home.

Congratulations!

Fortunately for buyers, there are a variety of mortgages to choose from. It is in your best interest to investigate each of them to determine which is the best for your situation. You probably won’t qualify for all of them. In fact, you may only qualify for one. But if you do qualify for more than one, you may save yourself money (and worry) in the long run if you do your homework before signing on the dotted line.

Fixed Rate Mortgages

Consider a fixed rate mortgage if either of the following describes you:

- You plan on living in your new home for many years, and/or

- You are not a risk-taker and prefer the stability of knowing how much your payment will be each month.

Since most home loans are for a period of 25 years, if you want a payment you can count on for that long of a period of time, a fixed rate mortgage may be what works best for you.

Once your loan amount and interest rate are calculated and locked in, a fixed rate mortgage will guarantee that you will have the same payment over the life of the loan. Making extra payments to principal will allow you to pay your loan off sooner.

This may not always be the best choice, however. If interest rates are very high at the time you take out your loan, with a fixed rate mortgage you’ll be stuck with that high interest for the life of the loan (unless you choose to refinance).

Conversely, if interest rates are very low, you’ll come out the winner with interest rates that will stay low no matter how high interest rates go in the future.

The following are the advantages and disadvantages of the varying lengths and terms of fixed-rate mortgages:

15-Year Fixed-Rate:

Pay off the loan in half the time of a 25-year loan.

Equity builds up more quickly than in a 25-year loan.

Payments are higher (which may be a problem if you lose your job or become unable to work).

20-Year Fixed-Rate:

Pay off the loan in 2/3 the time of a 25-year loan.

The overall interest paid is considerably less than for a 25-year loan.

25-Year Fixed-Rate:

The most common choice, especially for first-time homebuyers, as it’s the easiest of the fixed-rate loans to qualify for.

Monthly payments are lower than for 15-year and 20-year loans. This can prove especially helpful if you do not have a lot of “padding” between the amount you can afford to spend and the monthly payment for your desired property.

More desirable if you plan on staying in the same home for years, since equity builds more slowly than for shorter-term loans.

For income tax purposes, this term provides the maximum interest deduction.

Naturally, you want to get the best deal for the least amount of money. This holds true for mortgage rates as well.

A lower interest rate means a lower monthly mortgage payment, which can save you money in the long run. Also, it is easier to qualify for a lower payment than a higher one.

You basically have two routes to finding the best rate. The first is to do all the research on your own. The second is to use a mortgage broker.

Do-It-Yourself

With the advent of the Internet, much of this information is readily available online. Once you have educated yourself sufficiently about real estate loans, all it takes is the time and energy to sift through online resources to find the information you need.

Rates change quickly. That great rate you find today might not be there tomorrow. Once you find the rate you are looking for, submit a loan application and lock in that rate.

Some sources for interest rates on the Internet include: Rate Hub (http://www.ratehub.ca/)

Mortgage Broker

If you do not have the time or experience to “do it yourself,” look for a qualified mortgage broker that can assist in finding the right mortgage for you. Ask friends and associates who have refinanced or purchased recently if they have a broker they can recommend – or ask us!. You’ll want to find a broker who is energetic, flexible and knowledgeable about finance and loans and someone who has your best interests in mind.

Pro Tips

- Work On Your Credit Score

Your efforts to secure the best interest rate for your mortgage should begin with checking your credit scores and reports.

You should absolutely review your credit reports to check for inaccuracies or issues that may be dragging down your score. If your score is low, it’s worth the effort to improve your credit score by taking steps to pay down your balances and make all your payments on time. Having excellent credit will make you eligible for the lowest mortgage interest rates.

Read more: How Your Credit Score Affects Your Mortgage Rate

- Save Up for a Bigger Down Payment

This might seem pretty obvious, but it’s a very important tip.

When you make a small down payment on a home, banks consider you a higher-risk borrower than someone who makes a larger down payment.

So, the more of your own money you’re willing to invest in the property, the less risky you’ll be for the lender...making them more likely to offer you a lower interest rate!

- Decrease Your Debt

This sounds easier said than done, but decreasing your debt can help out massively when it comes to mortgage rates.

According to the 2020 National Association of Realtors Home Buyer and Seller Generational Trends report, over 40% of homebuyers cut back on spending, canceled vacations or reduced monthly payments on bills.

Lowering your debt-to-income ratio isn’t the only way having less debt can help you get the best mortgage rate. This is because carrying less debt also can improve your credit score - and, as we mentioned in our first tip, this makes you eligible for lower mortgage interest rates.

• Pre-Qualification: Meet with a mortgage broker and find out how much you can afford to pay for a home.
  
  
• Pre-Approval: While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. You’ll also avoid being disappointed when going after homes that are out of your price range. With Pre-Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming the home you’re interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property. Costs for pre-approval are generally nominal and lenders will usually permit you to pay them when you close your loan.
  
  
• List of Needs & Wants: Make 2 lists. The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house if accessibility is a factor, etc.). The second list is your wishes, things you would like to have (pool, den, etc.) but that are not absolutely necessary. Realistically for first-time buyers, you probably will not get everything on your wish list, but it will keep you on track for what you are looking for.
  
  
• Representation By A Professional: Engage a REALTOR® with whom you feel comfortable with.
  
  
• Focus & Organization: In a convenient location, keep handy the items that will assist you in maximizing your home search efforts. Such items may include:
  
  
  1. One or more detailed maps with your areas of interest highlighted.
  2. A file of the properties that your agent has shown to you, along with ads you have cut out from the newspaper.
  3. Paper and pen, for taking notes as you search.
  4. Instant or video camera to help refresh your memory on individual properties, especially if you are attending a series of showings.
     
     
• Location: Look at a potential property as if you are the seller. Would a prospective buyer find it attractive based on school district, crime rate, proximity to positive (shopping, parks, freeway access) and negative (abandoned properties, garbage dump, source of noise) features of the area?
  
  
• Visualize the house empty & with your decor. Are the rooms laid out to fit your needs? Is there enough light?
  
  
• Be Objective: Instead of thinking with your heart when you find a home, think with your head. Does this home really meet your needs? There are many houses on the market, so don’t make a hurried decision that you may regret later.
  
  
• Be Thorough: A few extra dollars well spent now may save you big expenses in the long run. Don’t forget such essentials as:
  
  
  1. Include inspection & mortgage contingencies in your written offer.
  2. Have the property inspected by a professional inspector.
  3. Request a second walk-through to take place within 24 hours of closing.
  4. You want to check to see that no changes have been made that were not agreed on (i.e., a nice chandelier that you assumed came with the sale having been replaced by a cheap ceiling light).

All the above may seem rather overwhelming. That is why having a professional represent you and keep track of all the details for you is highly recommended. Please contact us to discuss any of these matters in further detail, or how a Realtor can help you find your dream home.

Real estate deals can be long, drawn-out exercises... often filled with boring procedures and stress-inducing formalities!

You may be keen to get the whole selling process over and done with, but are you truly ready to make the sale? Maybe not just yet.

Be sure to keep these factors in mind before you secure the deal! 

Make Sure The Price Is Right

You won't be surprised to hear this is the most important factor that comes into play when selling a home. Look at it this way, every house is “sellable” if it is priced accordingly - so be sure to price it accordingly!

That means you should be realistic about the home’s true market value, and avoid misinterpreting market data. You should only be factoring in SOLD homes in your area, of similar size, similar number of stories, similar features, and within a close year built range. 

There's also the temptation to issue a high asking price in the hope you can maximize profit, but that doesn't always go according to plan! Pricing too high to make room to negotiate probably backfires more often than it is effective. What happens is you price yourself out the buyer’s radar and never get the showing in the first place?

Be Showtime Ready

When buyers have options, they will often choose the house that “felt like a home” - so be sure the home you're selling is showtime ready!

Buyers are much more likely to go with a house after a viewing that has been staged perfectly. So, ensure the house is clean, smells great, appliances are working and any minor damages have been fixed.

It's worth paying extra special attention to areas of the home that that buyers will notice first, like the front yard, porch, and foyer. 

Remember, have your home looking as nice as possible and keep it that way until it’s sold - it will pay off in the long run!

Expect The Unexpected

Sometimes unforeseeable issues arise just prior to closing the sale. Hopefully, with good negotiation, most of these have a workable solution. 

For example, say your prospective buyers want to turn the unused attic as a playroom for their kids. However, before closing the deal, they request an inspection to see if it’s safe and if they will be able to install a skylight. This inspection reveals that under the shingles that are in good condition is a roof that will only last another year or two.

The prospective buyers immediately balk, not wanting to incur the time and cost of replacing the roof. At this point, you sit down with the prospective buyers and calmly discuss the situation and how it can be solved to the benefit of all. First, you agree to get another professional opinion on what really needs to be done. Inspectors are only human, and are not infallible. Once the extent of the damage is agreed upon, you can jointly decide what to do about it.

While the buyers hadn’t planned on that expense, you show them that instead of a limited roof life that they would get with most existing homes, they’ll have a new worry-free roof that won’t cost them in repairs for the next decade or so. Since the roof wasn’t in as good shape as you had thought, you agree to lower the purchase price to help offset the cost of the new roof.

By negotiating calmly and looking at all possibilities, what could have been a “deal breaker” can be turned into a win-win situation for both the buying and selling parties.