BRENDA KIELBRATOWSKI, REALTOR® - THE COMPLETE GUIDE TO BUYING A HOME

THE COMPLETE GUIDE TO BUYING A HOME

BRENDA KIELBRATOWSKI, WSKI, REALTOR®

Table Of Contents

Deciding To Buy

Owning Vs. Renting

Buyers' Needs And Desires

Real Estate Horror Stories To Learn From 35

Searching For The Right Home

Buying A House: Negotiation Dos And Don'ts 49

What To Know About Home Inspections

Conditional Period To SOLD

Organizing Your Move

About Brenda K Brenda’s love and passion for real estate is only surpassed by her love of Halifax! A military transplant at two years old Brenda is proud to hail from Dartmouth (Halifax’s baby sister until amalgamation in 1996). Brenda has watched Halifax grow and bloom over the years, giving her a unique perspective and invaluable knowledge of the area. Brenda Kielbratowski is a top-producing Realtor ® in the vibrant city of Halifax, Nova Scotia . Brenda is proud to lead a dynamic group of agents at Brenda K’s Halifax Home Selling Group . Brenda prides herself on her commitment to customer service and excels in buying and/or selling real estate on your behalf. We work with you to truly understand your needs and the unique challenges that come with buying or selling a home. Brenda K's Halifax Home Selling Group brings almost forty-five years of combined real estate experience and consistently strives to empower and support each other. We continually strive to be at the forefront of real estate buying and selling services in any market. With over 25 years of experience in sales and marketing, Brenda has honed her skills and branding techniques, building the Chris Brothers wholesale division from to become a household name across Atlantic Canada. As President of the Chris Brothers Division, Brenda led the team to great success, and she brings that same passion and expertise to her real estate career. Brenda's personal passion for real estate started over 40 years ago when she and her husband bought their first home, and traded in and out of five more personal properties in under a decade. In 2008, Brenda turned her love of real estate into a professional career as a licensed realtor. Brenda’s success as a realtor is based on her foundation of personal customer service,

marketing, powerful negotiation skills and intense work ethic. She leads her team of dynamic women to guide their clients through the home buying and selling journey focused solely on their needs, wants and dreams. It’s win, win or no deal! Using the same foundation that she used to build the Chris Brothers brand, Brenda has successfully established Brenda K's Halifax Home Selling Group as a reputable name in the Halifax real estate market. Her extensive experience in all cycles of the real estate market, combined with her keen statistical knowledge and passion for the industry, has allowed her to negotiate hundreds of successful real estate trades. Brenda's empathetic approach and unwavering commitment to placing her clients' needs above all else have earned her a reputation as a trusted and respected agent in the Halifax community. Brenda is committed to providing the best possible experience for her clients, and she is constantly striving to improve her skills. She keeps up to date with the latest marketing trends, maintains a strong social media presence, and engages in personal communication with her clients on a daily basis. Brenda's dedication to professional growth is further demonstrated by her authorship of our Ultimate Selling Guide: Selling with Confidence: Your Halifax Home Selling Guide to Top Dollar, and our Home Improvements that Improve Values book. In addition, she has created over one hundred informative videos on her YouTube channel, @HalifaxRealEstate, to help her clients navigate the real estate market with confidence. It’s very important to her to consistently offer real estate information through various media outlets and she's proud to be a strong voice in our industry. Our team is also very present on everything from Facebook, Instagram, YouTube, LinkedIn, TikTok, Twitter, Google Business, Point2Homes, and everything in between!

Brenda prides herself on her services being 100% committed to what is best for her clients, working in a relaxed, well informed atmosphere. Real estate buying and selling can be very intimidating; Brenda and her team, using their market knowledge, educating her clients, and her patience, understanding, makes her client’s buying or selling journey as pleasant and uncomplicated as possible. If you're considering buying, selling or investing in our beautiful province of Nova Scotia, we are here for you!

“REAL ESTATE IS A J TE IS A JOURNEY AND WE ARE HERE T Y AND WE ARE HERE TO NAVIGATE THE J TE THE JOURNEY WITH YOU”

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Testimonials & Reviews working with Brenda K

We take great pride in providing personalized service and expert guidance to each and every one of our clients. From first-time homebuyers to experienced investors, our team has helped clients of all backgrounds achieve their real estate goals. Our clients have trusted us with their most important investments, and their testimonials speak to our commitment to providing excellent service and results. We're proud to have helped so many families find their dream homes. Below you'll see what our clients have to say about their experiences working with our team. We always say, it's never too early to start planning your real estate goals. If you're thinking of making a move, contact us today, and let's get started!

Best Regards,

✮✮✮✮✮ ”Brenda K is a reliable agent in the Halifax real estate market with several years of experience. Brenda, Alison and their team have guided us in buying our first property here in Halifax, their in depth knowledge of the market has helped us in dodging the highs and lows of the market. You can surrender yourself to them and they will handle the rest for you, doesn't matter if it's ix

your first or 10th property, they will give you the best. They are professionals, but with a personal touch” - Mayank V. ✮✮✮✮✮ “Absolutely amazing experience! Brenda and her team helped in every step while searching for a house remotely. She guided us to buy the right house. Brenda is honest, friendly, helpful and very knowledgeable about neighbourhoods and what makes a good home. Thank you so much for everything” - Mahmood C. ✮✮✮✮✮ “We are from out of province and Came across Brenda K through internet searches. She was very quick to respond to our inquiries. We were sorta all over the place in what we were looking for but in the end her patience and professionalism helped us choose and purchase a piece of land to build our dream retirement home on. Brenda and her team were excellent to work with. From beginning to end our questions and concerns were addressed day and (sorry) night too. She will be forever our Nova Scotia agent” - Lori J. ✮✮✮✮✮ "Brenda and her team are amazing! We could not be happier with our experience. Brenda made our first time shopping for a home easier and less stressful. She is truly a professional! She is very knowledgeable and we felt we could really rely on her and her team to look after us. Thank you!"- Brian & Erica ✮✮✮✮✮ "Brenda and her team helped us find the perfect house for our family in less than one month. We had a wonderful first meeting where she explained the whole process for buying a home but she did something more . She tried to understand who we are and what we are looking for with her famous 20 Questions. Her

expertise and fair feedback were expressed whenever we visited a house. In the end, we made the best selection for our budget , our needs and house quality. We warmly recommend Brenda not only because she offers top notch services but she cares also about her customers. Thank you Brenda K and Team!" - Alex & Cornelia ✮✮✮✮✮ "Brenda K and her team are are absolutely amazing, from the outset the professional performance of Brenda and her team was remarkable, we constantly felt we had made the right choice in Realtor and comfortable we were in good hands. Brenda is very knowledgeable, honest and hardworking she and her team go the extra mile, we have no hesitation in highly recommending Brenda K to sell your property" - Haylee & Andries ✮✮✮✮✮ "Brenda was so kind, and made the whole process easy. Any issues that came up, she took care of immediately and her team was always available to help. Brenda had enough connections everywhere that nothing was left to chance. The housing market these days can be treacherous and confusing, but having Brenda by my side made it seamless from first viewing to having the keys placed in my hand." - Amanda M. ✮✮✮✮✮ "I've worked with Brenda two times now and have had nothing but positive experiences. I have the utmost respect for her work ethic and dedication to her clients. She is always attentive and accommodating and consistently shows support for her clients, going above and beyond her line of duty. Thank you, again, Brenda K!" - Brittany A. ✮✮✮✮✮ "Brenda & her staff made selling my house very easy , Brenda is

so friendly and answered all my questions . My house was sold the first day on the market.. I would use her again and tell anybody that is looking to sell their house to just call Brenda." - Rose D. ✮✮✮✮✮ "The first house I bought with Brenda there was questions about the septic she fought and got a new tank and septic field installed saving us $17000. Days before moving in she got another 15 hundred in cash due to the damage to the lawn while installing the septic. The second house I just bought with Brenda was seamless her team is excellent knowledgeable and do everything for you they make it easy and worry free. When it comes to real estate Brenda K is one of the best in the business a boss you want working for you." - Peers K. ✮✮✮✮✮ “Brenda an d her team worked hard and fast to find us our new, beautiful home in an excellent neighbourhood. We were very impressed with the entire experience! Brenda goes above and beyond, and it is clear that she puts her clients first and takes the time to answer questions. Clearly she is a leader in the industry and brings a wealth of knowledge to the entire process” - Diana S. ✮✮✮✮✮ “Working w ith Brenda was an absolute pleasure. From the moment we connected we knew that we were in the best hands possible. I immediately referred her to friends and they were equally satisfied. Five stars!” - James & Amber ✮✮✮✮✮ “Wow! I ne eded a quick sale of my house and Brenda delivered beyond all expectations. She was on top of issues before I was even aware of them. She’s easy to work with and you know she has your back. Thank you Brenda K!“ - Brian K.

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✮✮✮✮✮ “Brenda and her team have helped us with two purchases in the last few years. They most recently helped us obtain our forever home and we couldn't be more grateful! Working with Brenda is like working with a friend or family member as she has your best interests at heart and is constantly going above and beyond for her clients.” - Lindsey & Steven ✮✮✮✮✮ “I have nothing but wonderful things to say about Brenda and her team. They were all efficient, super knowledgeable, supported me through each question and concern. Their strategies were effective for the turn of the market and naturally allowed for the least amount of inconvenience regarding show times. I told Brenda what my hope was for an asking price and what I ultimately got exceeded that.” - Janice C. ✮✮✮✮✮ "We have used Brenda a few times on buying and selling our homes. She is always quick to respond, to any calls or question- no matter how trivial. She always makes time for you. She is accommodating and shows you what you want to see, knows details of area, homes, builders etc. Loves her work and it shows! You will not be disappointed in this amazing agent. Call her!" -Della D. ✮✮✮✮✮ "Very professional, very quick to solve whatever comes up, would recommend to anyone looking to buy or sell" -Alden B. ✮✮✮✮✮ "This was my first time buying a home and I couldn’t have asked for a better real estate agent. She was kind, courteous, and extremely knowledgeable. Because of her I was able to find my

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dream home just days after our first meeting (in this crazy market). I explained what I was looking for in a house and she nailed it! If it wasn’t for her I likely would have stetted for something far worse. Brenda and her team really took their time explaining the process to me, and they helped me out at every step. Buying a house is typically something that’s incredibly stressful, but knowing I could call or text Brenda and her team anytime really removed a lot of that stress. No question was a dumb question with this group! And believe me, I asked a lot of dumb questions. In all honesty I can’t recommend Brenda and her team enough! You would be hard pressed to find a real estate agent that is more knowledgeable or one who will work harder. I’m still shocked how easy they made buying a house feel." -Mike H. ✮✮✮✮✮ "Brenda K has been my realtor for 15 + years. I’ve always appreciated how helpful she was in every sale experience I had with her. My family and friend also use Brenda to sell their homes through my recommandation to them. Brenda never left questions unanswered and always responded promptly. I know from experience as we were able to sell our home in a day using Brenda. She deserves the highest praise. I would definitely recommend her." - Kris M. ✮✮✮✮✮ "Brenda is responsive, professional and lets you take your time. She is honest and walks you through the home-buying process without feeling too rushed or pressured. I also appreciate her pleasant attitude and demeanour!" - Yasmeen M. ✮✮✮✮✮ "Helped me get my first home in a market where it shouldn't have been possible!" -Dan P.

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"Brenda K made the entire process of selling my mother's house so easy and with very little stress. She was professional and communicated with me step by step through the entire process. I would highly recommend her to others." - Janice G. ✮✮✮✮✮ "We have been so impressed with Brenda and her team. Although it is stressful selling a home, we appreciated all the support and guidance this group has shown to us throughout this process. Top notch service, excellent communication and response time, efficacy and that extra personal touch that sets this group apart from the rest.We have already been raving to family and friends about the service we have received and will be sending anyone who is looking to sell or buy to this team. We have never had such good service and have been through a few previous home sales in the past. What stood out for us with how comfortable Brenda and her team made us feel, the offering in doing a personal walk through video to show case our property (very well done and focused on the personal side of what we love about the property and community as well as highlighting the features) and even arranging a home pre- inspection that gave us confidence before listing. This team works very hard and has been an absolute pleasure doing business with Brenda K and her team." -Tanya & Paul ✮✮✮✮✮ "Brenda K is a wonderful Realtor! Great to work with and a beautiful person this is the second time she has help us in selling. She has a wonderful team that is very helpful. Always happy and welcoming person that's made you feel special. I would very highly recommend them!" -Starylene

CHAPTER 1 Deciding to Buy

Real Estate is more than “doing a deal!” I look at real estate as more than just buying a house. It most often signifies a major change in our lives. No matter what stage of life we are in as local buyers or you’re a buyer relocating to Halifax it an exciting time. It can also be a bit intimidating and that’s where we come in! As a home buyer you are inviting us into your lives, sharing your home ownership dreams. The time frame can range from several

weeks to several months. During this time a relationship of trust, guidance, and at times emotional support, is part of the realtor/client relationship. We are here to make a complex transaction appear simple. Real estate is a journey and as your real estate professional we are here to navigate that journey with you, and at times, for you

TYPICAL SEQUENCE OF STEPS IN THE TEPS IN THE HOME BUYING PROCESS

Typically the home buying process begins with a mortgage PRE-APPROVAL. It is important to get pre-approved for two 1

reasons. Knowing the budget you have to work with. It’s very disappointing looking at homes you love and want only to find out they are over your budget. The second reason is to know what the monthly payment will be. Do not just focus on what the mortgage broker says you are approved for on paper. Also ask what the approved budget is based on the monthly payment. Add the payment, the taxes and two hundred dollars for heat. If the total is an amount you are comfortable with your budget is confirmed. Another important step when buying a home is getting your credit report. The purpose of getting the credit report is not just to give you a chance of getting the best bargaining terms, but helping you know where you stand. It’s important because you might find that you aren’t creditworthy, and that will torpedo the deal. If you find yourself in that situation, it might be a good idea to use a credit repair company. Search for a reputable credit repair company because there are credit repair companies that are either not good enough or charge too much. The company will help you repair your credit, as well as assist in correcting any mistakes that might be in the credit report. As a new homeowner, it would be wise to remember that monthly mortgage payments aren’t the only expenses that you’ll be paying. You will be paying property taxes, homeowner’s insurance, and maintenance costs. Therefore, you should ensure you have budgeted for all these issues. Understand that once you have the house, it will become the focal point in your life. That means when you purchase that house, you’ll be investing in the surrounding community, as well. You’ll be commuting to work from that house; your kids will be going

to school in that community and any other activities that your family will be involved in will revolve around that community. All these considerations should be in your mind before closing the deal. The buyer should also make a point of being involved. Real estate agents have a complicated job in getting their clients the best deal. Therefore, as a buyer, you should also make efforts to ensure you’re also part of the whole process and that you’re involved in every step of the deal. Research has shown that most people spend more time shopping for cars than they spend thinking about mortgages. As a result, many people seeking to buy homes end up paying more in closing costs, or a higher interest rate than they might have because they didn’t bother doing enough research or they didn’t adequately shop the mortgage market. The real estate mortgage interest rates can move up and down quickly, due to various financial and market factors. The ever-changing rates can confuse almost anyone, and timing is important. For instance, one day, the rate might be 5% and the following day it could rise to 6%. Many people overlook the shopping aspect and tend to approach a single lender. As a result, these people will probably get their “dream” home, but it may come with a substantially higher monthly mortgage payment than if appropriate and adequate research had been done.

CONSIDER THE COSTS

The decision to buy a home puts you into a realm full of things you have not dealt with prior, especially if you used to rent your home. Owning a house brings a whole new experience. For example, consider taxes and mortgages. When you’re looking to purchase a home, it’s important to understand what can be

deducted and what can’t. A powerful piece of

information many home buyers overlook is the effect of mortgage interest on their federal income tax payments. Mortgage interest is a powerful financial planning tool. Calculate the amount of mortgage interest deduction and include that in your annual

financial planning.

Some of the nondeductible items include home repairs, general closing charges, as well as property hazard insurance premiums. Once you own a house, you’re a property owner, with the attendant obligation to pay property taxes. The usual method of paying property taxes is to include the amount of annual taxes within the mortgage payment. The mortgage servicer will pay the taxes as they are due. When buying a house, your lender will calculate the total amount of real estate taxes, as well as the number of days in a property tax year that you were the owner of the said property and add that amount to the mortgage payment. People have been known to spend months looking for the best possible home and eventually find a good one. However, many of these individuals fail to understand the importance of finding a good loan. In the end, the new homeowner has a nice home, but a bad deal when it comes to the mortgage. Not many people have the capability to buy a house for cash; most people will require a mortgage. Therefore, you not only need to go shopping for a house — you also should go shopping for the best loan deal. There are different types of loans out there, and it’s best to check several and then compare them. That way, you’ll have better chances of securing a mortgage that won’t be a burden in the future. It also means you’ll have an opportunity to

save some money at the end of each month.

Shopping for the best loan on your own can be a daunting experience, and it might be a difficult task to accomplish by yourself. To overcome that hurdle, it’s recommended that you hire a mortgage professional for many of the same reasons you should engage a real estate professional. If possible,

you should engage the professional before you even start searching for the house.

Another task you should work on before you begin looking for a house is organizing your credit issues. It’s important to ensure your credit is in order, because making any mistakes at this juncture can take months to correct and might even end up sinking your chances of owning a home. After getting your credit in order, the next step is to do research on the houses that you can afford. This is simple today, since many online tools can help in doing these calculations. These tools will give you a rough idea of what you’re getting yourself into by calculating income, expenses, and mortgage affordability. However, don’t forget to involve the mortgage professional because he or she is the one who will help determine the best loan for your needs after the calculations are done. Finding the best mortgage deal is made even more complicated by the fact that the mortgage rates change daily, or even several times in a single day. One can get a good mortgage deal from a mortgage broker, a bank, or a mortgage lender. It’s up to the buyer, depending on the situation. To find the best mortgage professional to guide you through the process of buying a home, seek advice from real estate agents, colleagues, or friends. Banks are generally known for having the

fewest mortgage options because their products are tailor-made to suit the bank’s interests. However, they can also be more flexible, as they are the ones lending the money. If the buyer owns other substantial assets, making a deal with a bank will not be a complicated process. Mortgage brokers are known to offer the largest amount of options. Working independently and with several financial outlets, brokers can find the best loan for the buyer from different lenders. Now that you’ve identified the house that you want to buy, and you have a professional mortgage advisor, how do you get the best mortgage deal? The first step is a comparison of different interest rates. It’s easy to get quotes from companies, since most of these companies offer these services online. However, you, as the buyer, should be careful to not just compare interest rates. The best option is to compare the interest rates, as well as all the fees, including origination fees, points, and any other fees that the lender might include in the deal. Any loan regarded as a no-fee loan means that all the fees have been included in the rates and as the buyer, you should make a point of noting that. You have the responsibility of ensuring you understand every aspect of the mortgage deal. Therefore, it’s upon the buyer to interview the person handling the loan.

LOCATION, LOCATION, LOCATION

Now you have your budget and a decision on the location that best suits your needs. What do you like to do when not working, do you have children, do you have educational needs for

children, what sports do you or the children play and where you work are the main questions to determine which neighbourhood suits your life style. This decision is very important so having a realtor that asks these questions are important. Any realtor can show you twenty or thirty homes, a good realtor knows what to ask and answer this question for you especially if you are new to Canada.

INFORMATION ERA

Technology has changed the way homes are sought and bought today. In this “Information Era,” most buyers are first introduced to the home they eventually purchase via the internet, through sites like ViewPoint.ca and Realtor.ca. So that means there’s no real need for a buyer’s real estate agent, right? The reason to use a real estate agent is to find a home and show homes available for sale, right? If a buyer can find and visit a home on the web all on their own, why involve another party?

AGENCY RELATIONSHIP IN NOVA SCOTIA

“If the Seller’s agent is working for the Seller, who is working for you?”

Your buyer agent is working for you! In Nova Scotia we have Buyer agency referred to as a client relationship. Entering into a Buyers Designated Brokerage Agreement does not obligate you to purchase a home. It establishes an agency relationship between you (the buyer(s) and

your realtor.

An agency relationship consists of the fiduciary duties of: Disclosure, Competence, Confidentiality, Obedience, Loyalty an Accountability. The seller’s agent is working to get the most money on the best terms for the seller so doesn’t it make sense you would want the same. This is the largest purchase of your life at this time, make sure you are comfortable with your agent.

WHY HOME BUYERS NEED A REAL ES UYERS NEED A REAL ESTATE AGENT

Ah, not so fast, friend. The reasons to use a real estate agent today are as valid as yesterday. The ease of online transactions and proliferation of services to assist buyers in handling their own real estate transactions came about recently, throughout the last decade. This has caused buyers to wonder if using a real estate agent is no longer necessary or if it's an expense that can be avoided. While doing the work yourself can save you money if you buy a “For Sale By Owner” (FSBO) house and the seller agrees to reduce the price by 2% (half of what a listing agent would receive), for many, a do-it-yourself home purchase might be pricier than a real estate agent’s commission in the long run. Besides, a buyer generally doesn’t directly pay any commission to an agent on a house purchase. On most home sales, there is a listing agent (the agent engaged by the seller to

sell the property) and a selling agent (the agent who introduces the eventual buyer into the transaction). The selling agent is sometimes called the “buyer’s agent” because he or she is often working on a certain buyer’s behalf, and it’s easier than explaining that the selling agent is not the listing agent but really the buyer’s agent. The buyer’s agent's commission is paid by the seller, except in rare cases by the sellers lawyer or by the seller directly. They either get paid directly by the seller or set up the transaction so that the seller provides a “credit” to the buyer for how much the real estate commission is — then the buyer pays the commission. A maxim in real estate is, “No matter how it’s set up, the buyer still walks away with the house and the seller still walks away with 95% of the purchase price.”

MORE ACCESS TO THE REAL ES O THE REAL ESTATE MARKE TE MARKET

A real estate agent will have better access to the market and a special knowledge of local conditions. The agent is a full-time liaison between sellers and buyers. An agent will have ready access to other properties listed by other agents. Buyers’ and sellers’ agents know how to put a real estate deal together. A real estate agent will track down homes that meet your criteria, contact sellers’ agents, and secure appointments for viewing the homes. On their own, buyers have a more difficult time with these things. This is even more so the case when a buyer is moving due to relocation or employment opportunity and does not engage a buyer’s agent to handle matters.

NEGOTIATING IS HARDER ON YOUR OWN

A real estate agent will keep the transaction “at arm’s length,” such that personalities and emotions do not become involved.

Price negotiations take a special skill and understanding of the psychology of offering and counter-offering. Agents keep the transaction dispassionate and rational. For example, a buyer (you) might like a home but despise its wood- paneled walls, shag carpet, and lurid orange kitchen. When you work with an agent, you can express your opinions on the current owner’s decorating skills and complain about how much it will cost to upgrade the home without insulting the owner. Your agent will translate that to the seller — that you very much like the property but can see having to spend a certain amount in decorating costs, and thus can offer that much less.

CONTRACTUALLY SPEAKING…

There are many contracts and documents involved in purchasing a house. The stack is more than an inch thick. Unless you’re a real estate lawyer or title agent, these documents will be foreign to you. Yet, they require detailed and accurate

completions. Buying a property is not necessarily a “fill-in-the-blanks” transaction. One mistake, let’s say in title work, could haunt the buyer well down the line after purchase. This very situation happened. A property that sat on a double lot was put on the market. The neighbour bought it to carve off a bit of the second lot to expand his own yard.

The seller then put the home back on the market, and it sold. Months later, through a property tax notification, it came out that, in preparing new deeds for the properties, the expanded yard area was correctly in the name of the neighbour; however, the house had been transferred to the home buyer. The new homeowner now owned both houses, and the neighbour owned his expanded driveway and yard.

Fortunately, they were good neighbours and settled the matter with a few signatures. An experienced real estate agent deals regularly with these contracts, conditions, and unexpected situations and is familiar with which conditions should be used, when they can safely be removed, and how to use the contract to protect you.

YOU WON'T NECESSARIL N'T NECESSARILY SAVE MONEY

The point of not using a real estate agent would be to save money, right? Otherwise, why would someone turn down professional assistance in finding a home? However, it’s unlikely that both the buyer and the seller will reap the benefits of not paying real estate agent commissions. It works like this: An owner selling on his own (FSBO) will price the house based on the sale prices of other comparable

properties in the area. Many of these properties will be sold with the help of an agent; therefore, the seller profits in getting to keep the percentage of the home’s sale price that might otherwise be paid to the real estate agent (usually 6%).

Buyers looking to purchase a home sold by owner without an agent may believe they can save money on the home by not having an agent involved, and so they look solely at FSBO houses. They might expect money to be saved and make an offer accordingly. Unless the buyer and seller agree to split the savings, they can’t both save the commission — and that’s if the listing price was not already lowered by near the commission amount to make it more market-attractive. Here’s a short list of the advantages that using a real estate agent can bring to your buying experience:

• Education and experience • A buffer between you and the seller • Neighbourhood knowledge • Price guidance • Market conditions information • Negotiation skills and confidentiality • The ability to handle paperwork • The ability to handle closing questions • Relationships for Future Business

It’s extremely important to know the “ins and outs” of real estate agents before you bring one along with you to help in your search for a home, just so that you might know what to expect, and what will be expected of you.

GIVE THE “WHAT ELSE” TEST

A good agent will know about all the other properties for sale in the area. Also, a good agent always does their research regarding the events in the current market, and those homes that are out there for the taking. In short, you want an agent who’s an expert of the current market, and someone who always stays on top of things.

RESEARCH THEIR BUSINESS ACTIVITY

Learning the type of market presence that a real estate agent has is the best way to figure them out. Ideally, you’re going to want an agent who specializes in one or two real estate markets, and who understands which types of homes and amenities are available within your price range. You can unearth this information by asking them or researching their online presence.

GOING THE BUYER'S AGENT ROUTE

So, you’re ready to take the plunge and look for a place to call “home.” To get the most out of it, use a buyer’s agent to avoid a flurry of paperwork, stampedes of buyers competing for the same property, and other challenges. Home buying can be exciting and exhilarating, but it can also be complex and stressful — which is why having a pro by your side can make an enormous difference. As discussed, you’ve probably heard of buyer’s agents, seller’s agents, listing agents, and so on. You’re a buyer, so what’s a buyer’s agent? True to the name, buyer’s agents assist home

buyers every step of the way; they can also save you both time and money on the road to homeownership. When you find the right one for you, these real estate

agents will work day and night to ensure all your needs and requirements are met when it comes to finding the right home.

WHAT BUYER'S AGENTS DO FOR YOU

Your buyer’s agent will have a vast knowledge of the current real estate market for the area, which will include neighbourhood amenities and conditions, the law, zoning issues, price trends, negotiations, taxes, financing, and insurance. Once you meet with the buyer’s agent, they’ll generally help you determine your needs and wants when it comes to finding a home and a neighbourhood. The agent will teach you what you can afford, help you set a budget, provide some insight on the current conditions of the market, and explain what you should expect while shopping for a home. During the shopping period, you’ll meet with your agent for tours of homes in which you might be interested.

They will give your insight into the floor plans, the home’s pertinent selling points, and the overall crime rate of that neighbourhood. They will also give you the rundown for local activities, restaurants, shopping centers, and schools nearby. Your agent is responsible for ensuring inspections of the homes are complete, as well as the disclosures therein. They’re also in charge of ensuring coordination and completion is done through the roof inspector, lawyers, lenders, and all other professionals involved with the purchase of the home. If bargains need to be made over the price, you won’t have to negotiate yourself. Your buyer’s agent will do that for you, along with signing the final closing documents. They will be present whenever there are documents to go through and sign.

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THE ROLE OF THE LAWYER

The first role of the lawyer is the legal review clause of the purchase and sale agreement. As your realtor we will send a copy of the agreement to the lawyer of your choice along with

the real estate cut sheet and the taxes. They will search for leans, encroachments, right a ways, restrictive covenants or any other interests associated with the property. All subsequent amendments to the purchase and sale are also sent to the lawyer.

The second role of the lawyer is to complete the closing of the 14

property including preparing the deed, issuing and collect closing day adjustments, requesting and receiving the tax certificate from municipal offices, registering the deed, receiving the mortgage instructions and funds from the lender and most importantly sending the funds to the seller’s lawyer and giving permission for the buyer’s agent to release the keys to the home to the buyer.

LEGAL TERMS

DEED TRANSFER TAX This is the tax that must be paid to the county in which the property is located. Halifax Regional Municipality charges a Deed Transfer Tax of 1.5% of the purchase price. (i.e. tax on a $200,000.00 purchase price would be $3000.00). The tax is payable before the deed can be registered and this amount is part of the closing day adjustments. RECORDING FEES AND D G FEES AND DISBURSEMENTS These are the fees payable to the Registry of Deeds/Land Registration Office for registering your Deed to the property and if applicable, your mortgage(s). In addition, there are charges for clearance certificates, photocopying and courier charges. LEGAL FEES These are the fees payable at closing for the legal work involved in representing your interest in the transaction. They do include all aspects of the transaction including preparation of all documents, ordering all statements and the preparation of final adjustments. TITLE INSURANCE Title Insurance guarantees your interest in title against many hidden risks and undisclosed interests that may not be covered

by the investigation searches. In addition, the policy protects against claims resulting from encroachments of the structure onto neighbourhood lands or municipal property, with the exception of retaining walls and fences.

INSURANCE

MORTGAGE INSURANCE All financial institutions offer life insurance and disability insurance on their mortgage products. This insurance is to payout the amount owing on your mortgage in the case of death to the beneficiary in your will or your partner of joint tenancy. The illness/disability insurance varies by lending institution and should cover your mortgage payments for a period of time while you recover. Outside of the lending institution mortgage, illness and disability insurance life insurance companies offer very good products usually at a substantial lower rate. The difference between carrying life insurance tied to your mortgage outside of the bank is you are insured for the amount of the mortgage taken. The payout will not reduce as the mortgage is paid down. HOME INSURANCE Fire insurance must be in place on the day of closing or the bank will not release the mortgage funds. During the conditional time frame, arranging insurance is confirmed with the home information being given to the insurance company and a letter confirming insurance will be issued on the property is received and sent to the lawyer. Prior to closing it is up to the buyer to meet with the insurance representative. to sign anything forms needed and ensure an insurance certificate will be sent to the lawyer.

Understand what you have on your policy for flood, sewer backup, replacement or rebuild cost and personal items including jewellery or other valuables you want to make sure are insured.

CHAPTER 2 Owning vs. Renting Owning your own home might be one of the defining qualities of the “Canadian Dream” the set of ideals that includes opportunity for prosperity and success and an upward social mobility for the family and children, achieved through hard work. Home ownership is surely ingrained as one of the strongest representations of that vision — 68% of Canadians own their own home, and more hope they will or wish they did. Something about home ownership plucks a strong chord with Canadians. Financial security, permanency, status, and pride are values many of us seek. Lifestyle plays a big role in the decision to own versus rent. Home buying is most often driven by household formation, such as marriage and growing family. Less than 40% of people under 35 years old own homes, 60% of people over 35 years old own homes, and more than 80% of people 65 years old or over own homes. Interestingly, for the millennial generation, the primary reason for buying a home? Owning a dog. The Canadian homeownership rate has fluctuated between 62% and 70% since the 1950s. Most young people begin their independent lives renting an apartment, maximizing lifestyle flexibility and minimizing the hefty upfront costs associated with purchasing a home. As they build careers, save money, and start families, many choose to buy a home, recognizing that home ownership, as opposed to rental living, is more appropriate to their growing family needs.

At the other end of the age spectrum are homeowners nearing retirement who may desire to sell their homes, downsize, avoid the maintenance and other obligations, and go back to renting.

WHICH IS BEST?

Is it better to rent or buy a home? Most adults ask themselves this at some point as they form their goals and plan for the years ahead. Before you answer the question, here are some things to ask yourself. Owning and renting each have their advantages, but what’s best for you depends on your circumstances. What will be the duration of your stay in the home? Each market is different, but whether the time you plan to spend in the house warrants its purchase is possible to predict. In general terms, it takes four to seven years to break even on a home (i.e., where there has been enough appreciation to pay back the cost of the transaction and cost of ownership). If you’re thinking about buying a home and selling it in two years, buying is very unlikely to be cheaper than renting. Do you think of or need your house as an investment in your retirement plan? Canadians are used to their homes being a store for wealth to liquidate in retirement when downsizing their lifestyle. According to Jacob Passy, a recent study from the Federal Reserve Bank of New York examined consumer preferences toward being a homeowner and how their perceptions have changed over the course of the COVID-19 pandemic. Survey participants were asked to rate which was the better investment—a home or stocks. The results showed that over 90% of the respondents preferred owning their residence rather than investing in the stock market. Majority of the survey participants also

favored the idea of being a landlord to buying stocks, with more than 50% of the participating households preferring to own a rental property. Are you financially ready? Owning a home is a financial commitment that requires planning how home ownership fits into where your life is headed. Ask yourself what your budget is and if either buying or renting would require you to stretch your finances. Crunch all the numbers. A frequent mistake of first-time home buyers is comparing a month’s rent to a month’s mortgage payment. Many people don’t have all the numbers. There are many additional fees necessary to include to make a fair comparison: principal interest, property taxes, property insurance, and ongoing maintenance. Are you prepared for the down payment? This is the lump sum payment that funds your equity in the property (how much of the property you actually own). Down payments vary; 20% is preferred and gets the best rates. There are some loans that allow down payments as low as 3%. Sometimes relatives help

with the down payment. If you have a choice, take a gift rather than a loan because lenders will add the loan debt to other monthly obligations and potential mortgage payments to determine your debt-to-income ratio, which generally can’t top 43% to qualify for a home loan.

Can you afford the monthly mortgage and its components? Generally, a mortgage includes loan principal and interest plus property taxes. These items can affect the monthly loan-only payment by several hundred dollars. Are you emotionally ready? Can you handle the stress? A big factor to consider when buying a home is stress. The Holmes and Rahe Stress Scale, a landmark stress study, ranks many events that go along with buying a home in the top 43 most stressful

circumstances in life. Four events are specifically

home-related: change in financial state (No. 16), large mortgage or loan (No. 20), change in living conditions (No. 28), and change in residence (No. 32). If someone has recently made other life

changes, such as marriage (No. 7), switching careers (No. 18), or having a child (No. 14), it might be wise to postpone buying a home. Stress overload can lead to missed payments, which can result in destroyed credit or even losing the home. It’s better to rent if your life is in flux and then buy when your stress levels are lower. Are you ready for commitment? Are you ready to make lots of decisions, from picking a real estate agent to picking paint colours? Are you confident enough to choose a neighbourhood where you believe home values will continue to appreciate and that will serve your needs (i.e., proximity to schools, shopping, recreation, etc.)? Are you ready for devoting the time and attention to maintaining a home (i.e., leaf-raking, grass-cutting, appliance maintenance and repair, etc.)? Taking care of your biggest investment can be gratifying, but only if you’re ready.

ADVANTAGES OF BUYING YOUR HOME

Control over housing expense. By selecting a fixed-rate mortgage, the homeowner assures that the housing cost will not increase for the next 5 years. Mortgages are renewed after 5 years at the current rate of interest. You build equity. Some of each monthly mortgage payment goes toward the loan’s interest. Other portions may go toward property taxes to the city. The remainder pays down the loan principal. Every dollar put toward your loan’s principal

represents a dollar of equity — actual ownership of the property. Further, the property should appreciate in value each year, further adding to equity (what the house could be sold for versus

what is owed on it).

Improvements increase your home’s value. A homeowner can also increase a home’s value through home improvements, thus both making your home more comfortable and enjoyable while growing its loan-to-value (LTV) ratio. For instance, adding a bathroom or finishing a basement substantially increases the property’s functionality and appeal, while potentially boosting its value. Tax advantages of home ownership. There are significant tax benefits associated with buying a house, both at the time of purchase and for the duration of time you own the home: Current mortgage rates are relatively moderate. Interest rates vary through the years. In the last few years, interest rates dipped quite low, and for a little while it was less expensive to obtain a mortgage. While these costs have increased, good rates are available to borrowers who are ready to become homeowners. Ownership rights and creative freedom. Your decorating and home-improvement choices are just that — yours, provided they don’t break building codes or violate homeowners’ association rules. You can paint walls any which way, add fixtures, update or finish your basement, or build a patio or deck. Changing your environment to suit whims is a freeing aspect of homeownership. A sense of belonging to the community. Homeowners tend to stay in homes for longer than renters and are more likely to grow roots. They might join a neighbourhood association,

volunteer at a nearby community center, join a school group, or align with a business improvement district. Renters might not do any of those things, particularly if they know their lease is up in a year and they might move.

There’s an intangible pleasant feeling attached to owning your own house — a sense of freedom and independence. The home you live in belongs to you, and you can do what you want with it. You aren’t daunted about increases in rent or losing the lease. You’re free to make improvements and changes. Also, owning your home gives your children the guarantee of attending the schools in the area on a more permanent basis; you never need to worry about a notice from the landlord to vacate your rented house or apartment for a variety of reasons over which you have no control.

ADVANTAGES OF RENTING

It seems a shorter list, but one man’s pro is another man’s con, and there certainly are advantages to renting to factor into your buy- or-rent decision. No responsibility for maintenance. Admittedly, this is a big one. As a renter, you’re not responsible for home maintenance or repair costs. If a toilet backs up, a pipe bursts, or an appliance stops working, you don’t have to call an expensive repair person — you just call your landlord or superintendent. Renters in condos, townhouses, or apartments also don’t have lawn and grounds care obligations. Relocating is easier. When renting, relocating for work is easier. Though a sudden move may require you to break your lease, you can partially offset the cost by subletting your apartment or talking with your landlord. On the other hand, selling a home takes time and effort. If you have a short timeline to sell your

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