Orangeville Real Estate Buyer FAQ's

We've been in the business for many years and these are some of the important questions that Buyers frequently ask.  If your questions are not answered here, please submit your question below and we'll get an answer for you and anonymously add your question to this site.   
      
Q:  I am buying my first home.  Where should I start?
A:  Taking the time to meet with a Realtor is the best place to start.  It's important for you to feel comfortable in the process and you can't do that unless you have the whole process and the costs explained to you.   You'll want to choose a Full Time real estate professional who knows the market.  Don't be afraid to ask questions.  No question should be an embarrassing question.

Q: Can I buy a FSBO (For Sale By Owner) on my own?
A: Yes, you can but it's risky in more ways than one.  Many times an owner will sell privately because agents don't want to take a listing that is over-priced.  They've heard from the real estate professionaals what it's worth, but they still want to try to find a sucker so they try privately!       

Q:  Do I need a Buyer's Agent?
A:  No, but it's in your own best interest.  That way the agent can represent you instead of representing the Seller.  When the agent represents you, you are treated as a client and the agent works with your best interest in mind.
When the agent represents the Seller, you are treated as a customer, where you must be treated fairly and all material facts about the property must be disclosed, but you must keep in mind that the agent has a duty to represent the Seller.
So, as you see, the agent is able to work in either circumstance.  The agent can work for you or work with you.  The only difference is what can be said and to whom.

Q:  Do I need to sign anything.
A:  Yes.  When you decide to work with a real estate professional and before preparing any offer, you must sign an acknowledgement that the different forms of agency have been explained to you because all parties to a transaction must know who is working for whom.  That's the law!  This disclosure is not a contract!
Should you wish to have the agent work for you rather than the Seller, then you must so authorize it by way of a "Buyer Agency Agreement."  In the absence of this agreement, by law, the agent must work for the seller, thereby offering you customer status (the agent works with you, not for you).

Q:  Deposit Money - How much do I need and what happens to it?
A:  Deposit money is basically a show of good faith to the Seller, and is generally a few thousand dollars.  This money is counted as money towards the purchase price of the home and is generally paid to the listing broker which must be held in their Real Estate Trust Account until there is an accounting of the money on closing.

Q:  How do I go about selecting a lender?
A:  That is personal preference.  You may wish to use the services of your own bank, however, some people prefer to use the services of a mortgage broker who submits you application to several financial institutions in order to get you the best rate.  Typically, the mortgage broker is paid by the financial institution who gets your business

Q:  Do I need a home inspection.
A:  Not necessarily, but in most cases it is best to do so, if not only for peace of mind that there are no hidden defects that would be costly to fix.

Q:  What is meant by a "conditional offer"?
A:  Certain conditions must be met before the offer becomes a legal and binding contract.  The most usual conditions pertain to the buyer being able to obtaining financing or perhaps a building inspection.

Q:  How much does an agent charge?
A:  As a buyer, the services are at no cost to you.  Even when the agent is acting as your Buyer Broker, there is no cost to you because the agent is paid by the Seller out of the proceeds of the sale.