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Steps to Buying Private

Step 1: Determine Your Budget

Before searching for a home, it's crucial to establish a clear understanding of your financial situation.

● Get Pre-Approved for a Mortgage: Reach out to banks or mortgage brokers to
secure a mortgage pre-approval. This will not only clarify how much you can afford but also make your offer more attractive to sellers.

● Consider Additional Costs:
Factor in other expenses, such as:
○ Land Transfer Tax (varies by province)
○ Legal Fees
○ Home Inspection Costs
○ Property Taxes
○ Moving Expenses
○ Utility Set-up Fees

Step 2: Research the Market

Understanding the real estate market is key to finding the right home.

● Online Resources:
Use property listing websites like Realtor.ca, Zillow, or local classified sites to find homes for sale by owner (FSBO) and traditional listings.

● Check Local Listings:
Look through newspapers or drive around neighborhoods you're interested in to spot
"For Sale by Owner" signs.

● Market Trends:
Research local market trends to get an idea of property values in the area. Websites like HouseSigma or Zoocasa provide insights into recent sales and pricing trends.

Step 3: Visit Properties

Once you've found homes you're interested in, reach out to the sellers directly.

● Schedule Viewings:
Contact the homeowner to arrange a time to view the property. Take the time to
thoroughly inspect the home and ask the owner any questions you may have.

Take Notes:
Bring a notebook or use your phone to take pictures and document important details
like property condition, neighborhood, and any potential issues.

Step 4: Hire a Real Estate Lawyer

A lawyer specializing in real estate transactions is essential to protect your interests throughout the process.

● Contract Review:
Your lawyer will draft, review, and negotiate the terms of the purchase agreement to
ensure your rights are safeguarded.

● Title Search:
They'll perform a title search to confirm that there are no outstanding liens or legal issues tied to the property.

● Closing Process:
Your lawyer will oversee the closing process and ensure the transfer of ownership is
legal and binding.

Step 5: Make an Offer

Once you've found the right property, it's time to make an offer.

● Research Comparable Sales:
Look at recent sales of similar homes in the area to make an informed offer. You want to offer a fair price while considering room for negotiation.

● Offer Letter:
Your offer should include:
○ Purchase price
○ Closing date
○ Deposit amount
○ Conditions (e.g., home inspection, financing)

● Your lawyer can help you draft the offer and ensure it's legally sound.

● Negotiations:
Be prepared for counter offers from the seller. Your lawyer can help you negotiate terms that are favorable to you.

Step 6: Get a Home Inspection

Before finalizing the purchase, it's crucial to hire a professional home inspector to assess the
condition of the property.

● Inspection Report:
The report will reveal any underlying issues, such as structural problems, roofing issues, plumbing, or electrical concerns. You can use this report to negotiate repairs or a price reduction with the seller.

Step 7: Finalize Financing

Once your offer has been accepted, submit the purchase agreement to your mortgage lender to finalize the loan.

● Home Appraisal:
The lender will typically require an appraisal to confirm the property’s value aligns with the mortgage amount.

● Insurance:
Arrange for home insurance to be in effect from the day of closing.

Step 8: Review Legal Documents

Your lawyer will work with you to review all the closing documents, including:

● Mortgage Agreement:
Confirm all terms are accurate and that you're comfortable with the loan details.

● Title and Deed:
Ensure all paperwork is in order and the property is being legally transferred to you.

buyers guide

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