MELCOM Real Estate
BUYERS GUIDE
ABOUT MELCOM GROUP P R O V E N S U C C E S S . S E R V I C E T H AT S TA N D S O U T !
WALE ‘JAY’ JOHNSON With well over a decade in the business, Jay’s positive attitude, integrity, energy, and creative service is exemplified through every real estate transaction. He has worked in all aspects of the industry, representing sellers, buyers, investors and banks. His ability to facilitate smooth real estate transactions, employ peace of mind & an enjoyable experience is his ultimate goal.
“As a MELCOM GROUP Agent and member of CIR Realty and Leading Real Estate Companies of the World™, my goal is to ensure that you have the best real estate experience possible. Whether you are looking to sell your current home, or purchase a home locally or around the world, I have the resources and expert knowledge to make sure that you get the best service and the best possible price for exactly what it is you are looking for. I have received the best training and technological support in the industry to make sure that I can deliver high quality service using the best tools possible. I am 100% committed to my Clients and am honoured to be able to help them with their most important asset - their home.”
AGENCY + LEGALITIES
As your REALTOR® and representative, your best interest is always my f irst priority and as such I owe you six important legal duties:
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UNDIVIDED LOYALTY
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FULL DISCLOSURE
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OBEDIENCE
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REASONABLE CARE & SKILL
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CONFIDENTIALITY
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FULL ACCOUNTABILITY
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NEEDS + ASSESSMENT Do you currently rent, own or lease? What is your biggest motivation for buying? What type of home are you looking for? (eg: bungalow) How many bedrooms do you need (want)? What other rooms are important to you? What is your ideal floor plan (eg: open concept)? Is room location important? Which rooms and where? Is a yard a requirement? (Perfect home vs yard) Do you know if there is a payment penalty? What is important about the location of your home? What recreational amenities are important to you? Are you willing to do a little work? (renos, repairs, develop basement)? Is the age of a home important? If so, what age? Ideally, when would you like to take possession? Is there a vacancy date which needs to be considered? How much do you intend to put down? How much can you put as a deposit? Have you been pre-approved for your mortgage? If so, from whom? How Much?
What are your concerns about purchasing a new home? Who needs to be present during showings? What is the most important quality you look for in a REALTOR®?
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CHECKLIST + BUYER INFO MORTGAGE & LAWYER The following checklist is a guideline to help you finalize your mortgage and provide all necessary information and documentation to your Mortgage Broker and Lawyer. Specifics of documents will vary depending upon the lender conditions. FOR THE LENDER Signed mortgage commitment Signed consent form Signed acceptance or waiver of the life disability form Employment letter Current pay stub Down payment verification Closing costs Self-employed income verification Purchase agreement MLS® listing Lawyer information Void check FOR THE LAWYER Insurance confirmation with all the purchaser names Void check Bank draft Two pieces of identification one with photo BUYER INFORMATION: Name:
Work Phone:
Address:
Fax Number:
Cell Phone:
Email:
Home Phone:
Instagram:
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BUYING PROCESS STEP 1: INITIAL CONSULTATION TO IDENTIFY YOUR WANTS AND NEEDS As REALTORS®, it’s our job to educate our clients. By understanding your wants, needs and timeline, we can suggest your best plan of action. This is an excellent time to answer any questions you have and to make sure you are comfortable working with your agent. You don’t want to skip this step. You can rest assured that we have a team that is ready to help you secure the best home at the price and terms that are suitable to your budget. Keep in mind, your wants and needs will most likely change as you view homes. The real estate market is also constantly changing and you must be aware of where you stand. We highly recommend meeting face-to-face to assess your situation, express your goals and determine an appropriate action plan to fit your unique situation so that you can confidently move forward. When we meet our clients, we also take the time to explain and fill out our Buyers Agreement, Fintrac Form, and Consumer Relationship Guide. STEP 2: PRE-QUALIFICATION Understanding how you will be funding the purchase of your home well in advance will strengthen your negotiating position and give you the opportunity to make smart decisions suitable to your lifestyle. Meet with your bank or a mortgage broker and discuss your situation to determine what type of mortgage would work best for you (there is no cost to you to have a mortgage broker work for you). Then find out how much you can get pre-qualified for. Once this amount is determined, figure out where your comfort zone is. You might qualify for more than what you are comfortable spending right now. Decide how much of a monthly mortgage payment you are comfortable with. We have great relationships with financial experts who will be able to assist you in discovering your options, and would be happy to refer you to one of these professionals.
TRUSTED ADVICE 10
MARKET FACTORS There are a number of factors that will affect a home’ s price. These factors play a huge role in helping you get the best value when searching for that ideal home. Factors such as market conditions, area influences, condition of the home, economic and social influences.
BUYING PROCESS STEP 3: STARTING THE SEARCH This is when most of the excitement really starts to happen! We will already know your requirements from our initial consultation. We will then set up a property search to notify you (typically via email) when a new property enters the market that matches your criteria. Once you have identified some potential properties, it’s time to hit the pavement. How will you find my new home? We use “the Funnel Process” to help find you the right home, for the right price. What this means is we look at all the possible sources for a new home that fits your needs; the MLS, new builds, and for sale by owner. We take all of those properties and slowly start to weed out the ones that just won’t work for you. This way we’ll go from 1000’s of properties to 100’s and then dozens as we begin to eliminate the ones that aren’t a fit. Once you choose your favourites we will create a simple market analysis showing you sold properties to help you get a feel for value. Our goal is to make sure you don’t pay too much but you still get the home of your dreams. Showings We will organize home showings for you at a time that is most convenient for all, and provide information on the homes that you may have interest in. Although we are not home inspectors or contractors, we will do our best to point out any potential benefits and problems that we see. We do not set any limits on the number of homes we will show you, and we will work with you until you find the right one! Open Houses / New Homes We highly recommend that if you are interested in looking at new construction that you go with your Realtor to visit showhomes. However, if you are out and about and decide to view some open houses or show homes without your Realtor, that’s okay. Out of professional courtesy, upon entering the open house or show home, let the Realtor/salesperson know that you are already working with a Realtor. This way you will be able to enjoy looking at the open house without being pressed with a lot of questions. As well, if it’s a property you like, you won’t have released information to the listing Realtor that might work against you in a negotiation. When viewing show homes, you should register yourself and state who your Realtor is. This will ensure that you get representation when working with a new home builder. Let me be clear, the listing agent/salesperson works for the builder, not for you, and their goal is to look after their client’s best interest.
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BUYING PROCESS STEP 3 (Continued): FOR SALE BY OWNER If you are having a difficult time finding a home through our MLS system, you might be tempted to search on “for sale by owner” sites. This is perfectly fine, however it is still important to use a Realtor. Ask your Realtor to schedule viewing appointments and to join you for viewings. Even if the listing says “no Realtor,” a real estate agent can usually work something out with the seller to pay commission for his/her services and for bringing a buyer who would prefer to have representation. Most for sale by owners do not have an issue paying the buyers agent commissions; they are usually just trying to save on the listing side of commissions, and most for sale by owners will cooperate with an agent representing buyers. STEP 4: YOU’VE FOUND THE PERFECT HOME! WHAT NEXT? (Comparative Market Analysis) Once you have found a home that you are considering purchasing, we will prepare a current market analysis to show you what the market value of the home is. This compares your selected home to similar homes in the neighbourhood that have recently sold. This information will help you know what a fair market price is so that you do not overpay for your home. STEP 5: THE OFFER Once you find the right home and decide to purchase it, you’ll want to move quickly. With our help, we will write your offer on your terms. With our professional guidance, your offer is correct and all of the conditions and terms you require are included. If you need it, you will get the time to consult with banks, appraisers, building inspectors, and family - without pressure. Offers are normally written with conditions to meet your needs. Common conditions include, but are not limited to: • Financing Condition • Home Inspection Condition • Condo Document Condition With these conditions written in for your protection, you can move quickly and confidently, knowing that your best interests are being looked out for.
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OFFER + CONDITIONS STEP 6: NEGOTIATING THE OFFER We pride ourselves on our ability to negotiate favourable deals for our clients. Most people list their homes expecting to negotiate, so room for negotiation is usually available. Knowing how long a property has been on the market and neighbourhood prices is valuable when negotiating. We assist you through the entire buyer experience, making sure you have all of the information at hand to make the right decisions. We provide you with a current market analysis to ensure you do not pay over market value for your new home. The result: You get the best purchase price for your new home. STEP 7: SATISFYING CONDITIONS It is important to feel comfortable with your purchase, and conditions are a vital part of that home buying experience. Feeling comfortable has to do with several factors. Securing the right financing is one of them. The right financing can save you thousands of dollars over the life of your mortgage. Another factor contributing to your comfort is hiring a professional home inspector. Hiring the right home inspector is a way to gain peace of mind and guard your pocket book. A proper inspection will cover all areas of the house both structurally and mechanically, and give you an objective view of the property. A qualified home inspector will provide you with a written report indicating areas of concern. If you are purchasing a condominium, a condominium document inspection is recommended so that you are fully aware of the condition of the corporation that you are buying into. Conditions are only removed once you are comfortable moving forward. If conditions cannot be satisfied, the contract is terminated and your deposit will be returned within two to four weeks. Your deposit cheque has to clear at the bank before the listing brokerage will issue you your deposit back. When satisfying conditions, we are happy to recommend partners we trust in all areas such as financing, home inspection and document review. STEP 8: FIRM SALE You now have a firm sale and you will need a real estate lawyer to complete the transfer of funds and to transfer your name on title. It is important that you have a lawyer who deals with real estate transactions on a regular basis. In the event that you do not have a lawyer, we have a list of professionals who we would happily recommend. STEP 9: PREPARING FOR POSSESSION Typical possessions are 30-60 days, however they may be quicker; much quicker. Please refer to our “Moving Checklist” for a list of items that need to be completed as soon as possible; this will alleviate a large amount of stress.
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POSSESSION DAY + AFTER STEP 10: POSSESSION DAY Typically, possession happens at 12:00 pm on the agreed upon possession day. The seller’s lawyer will contact your Realtor to notify them when keys can be released to you and to provide you with permission to access the property. From time to time, your Realtor can negotiate (at the offer stage) to have a walk-through of the property completed a few hours before, or the day prior to possession. If you and your Realtor discover any problems during the possession, these are communicated to the lawyer who will then advise on the next best course of action. It is a good practice to not schedule your entire move at 12pm on the possession day because small delays are not uncommon. This day can be very exciting and very stressful, so proper planning of your move well in advance is critical. Congratulations On Your New Home!
STEP 11: AFTER SALES SERVICE Real estate transactions are significant and rarely a single event in one’s life. Our main goal is for our clients to be so satisfied with the service we provide that they are comfortable recommending us to friends and family. We look forward to hearing from you for market updates, home evaluations, advice on renovation, investment, and any other queries you may have. We look forward to connecting with you in the following ways: • • • • •
Rank My Agent Check in to see how you are enjoying your home Our monthly market report helps you keep track of the value of your investment Invitations to client appreciation events Annual real estate reviews
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FEES + CLOSING COSTS Don’t forget these costs when buying a home – not all are applicable. Buying a home is a milestone, whether it’s your first, third or fourth. In addition to the price of a home, there are some other costs you’ll incur. Some of these costs are one-time fixed payments, while others represent an ongoing monthly or yearly commitment. Not all costs apply to every sale or purchase. However, when you are aware of the following items you won’t be hit with any surprises on closing day. INSPECTION FEES An inspection performed by a professional inspector is a sound investment. For $400 - $800, you’ll receive a written report on areas that are structurally sound and those where repairs are required. CONDOMINIUM DOCUMENT REVIEW FEE When purchasing a Condominium it is important to get a professional to review all the documents associated with the condominium so that you feel comfortable in knowing that there is healthy management and reserve fund. Budget approximately $300 - $500. Make sure you keep all these documents after possession. LEGAL FEES A lawyer should review every real estate transaction. Fees are determined by the complexity of the issues involved. Lawyers deal with financial transfers, title transfers, real property reports and all aspects around the closing. Budget approximately $900 - $1400 APPRAISAL FEE When you apply for a mortgage, your lending institution may ask for an appraisal of the property. Budget approximately $300 - $500. SURVEY/ REAL PROPERTY REPORT (RPR) When you purchase a resale home, you are also required to have a Real Property Report which is a legal document that clearly illustrates the location of significant visible improvements relative to property boundaries. The seller is required to provide this in which case it costs you, as the buyer nothing. Your lawyer should review this with you and provide you with a copy. PROPERTY INSURANCE Insurance on your home covers the replacement value (structure and contents). To protect their investment on their loan, financial institutions require this coverage. Allow for $500 $2,500 and up. Don’t forget these costs when buying a home. SERVICE CHARGES There may be an installation fee for utility services, including telephone, water, electricity, gas and cable. Hookup fees range from $25.00 - $175.00 depending upon the service.
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TAXES + OTHER FEES MORTGAGE LOAN INSURANCE FEE If your Down Payment is less than 20%, lending institutions require mortgage loan insurance. Budget between 0.6% - 3.85% of the total amount of the mortgage. This will be added to your Monthly/Bi-Weekly mortgage payment. MOVING COSTS Costs for professional movers range from $65.00 - $150/hour for a van and two movers. Prices may be higher during peak moving times. LOCAL IMPROVEMENTS In some cases, the cost of local improvements made in your area (sewers, sidewalks, alleys) could be added to your tax bill. HOME OWNERS ASSOCIATION FEE (HOA) Some Communities require you pay a yearly fee to live in that community. The money is used for Club houses, community beautification, lake maintenance or parks. Your Realtor should inform you if the community you are buying in has this kind of fee and how much it is. CLOSING COSTS With the purchase price of a resale home, the closing is always “subject to usual adjustments.” This means that any amount that the seller has already prepaid will be adjusted so that the home buyer pays the excess amount back to the seller, and vice versa. These adjustments can include: municipal property and school taxes, monthly condominium maintenance fees, first and last month’s rental for rental properties where renters may be in the home, and utilities such as hydro, water and fuel oil, including GST. INTEREST ADJUSTMENT COSTS Most lenders expect the first mortgage payment one month after closing the purchase, however, if you close mid-month, some lenders expect the first payment at the beginning of the next month, two weeks before you would normally expect Or they charge a prorated interest to make up the difference. TITLE INSURANCE Title insurance works like a standard insurance policy. It protects against future discoveries about a property, some title-related and some non-title-related. It is a form of indemnity insurance for a mortgaged property that covers the loss of an interest in a property due to discovered legal defects. As an insurance product, title insurance doesn’t “fix” problems. It provides insurance coverage for them. In other words, the title insurer has no obligation to do anything until a problem actually arises. When a problem does arise, the insurer can pay damages or actually fix the problem. Speak with your lawyer to determine if Title Insurance is for you. PROPERTY TAXES - TIPS Property taxes are payable to the City of Calgary and are due on June 30th for the year. A very popular option is to utilize the City of Calgary’s Tax Installment Payment Program (TIPP) Your installment amount is calculated by dividing your most recent annual tax levy by 12, rounded up to the nearest dollar. This amount is paid through automated withdrawals from your bank account the first day of each month. This is simply set up through the City of Calgary.
MOVING CHECKLIST It is important that you use this checklist in order to be well-prepared when buying a home. The last thing you would want to happen is to move into a home without the necessities in life such as electricity, gas, water, or work/school related services such as Internet/phone, etc. Be sure everything is in order to keep things running smoothly during the buying process. If you need assistance, we are always here to lend a helping hand. It`s what we do!
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UTILITY PROVIDERS • Electricity Providers • Telephone Providers • Cable & Internet Providers • Gas Providers
CLUBS & MISCELLANEOUS • Country Club • Health & Fitness Club • Recreation Club • Book Club
GOVERNMENT INSTITUTIONS • Canada Revenue Agency (CRA) • Post Office • Schools • Provincial Licensing • Library
BUSINESS ACCOUNTS • Banking Institutions • Cell Phone Providers • Department Stores • Financial Companies • Credit Card Companies
INSURANCE COMPANIES • Accidental Insurance • Auto Insurance • Health Insurance • Benefits Provider • Home Insurance • Life Insurance
PROFESSIONAL SERVICES • Broker • Accountant • Doctor • Dentist
IMPORTANT DATES BEFORE YOU JUMP IN THE MOVING CHECKLIST, PLAN YOUR NEW HOME. For most of us, this is the fun part. Planning your new home is a great project full of dreams and possibilities. Are you getting a big TV, your dream kitchen or a baby room? Are you planning on painting or doing renovation at the new place to make it your own? This is the first thing you need to plan since it will impact your moving date, the furniture you need to buy or sell, the professionals you want to hire and the logistics to do it all. If possible, try to do all renovation and painting prior to moving in, otherwise you’ll have to live in your boxes for a few days or weeks. Once the planning is done, moving preparation starts. STEP 1 - Early preparation - Thinking ahead of Moving Day: • Do a complete cleaning of your home. • Create a folder on your computer to store all the checklists, spreadsheets, and estimates • Make an inventory of your belongings! • Take measurements of the dimensions at your new address • Make a list of things you want to give away or sell • Make this day fun for the kids • Take care of your animal(s) on moving day STEP 2 - Booking your moving team - How to choose the best mover Book your movers or your truck in advance. When choosing a mover, evaluate their BBB rating, Google reviews, pricing and insurance policy to decide whether or not they are right for you! STEP 3 - Checklist of supplies for packing and more STEP 4 - Packing and preparing the house: • Clean and take pictures of your stuff to sell • Mark your boxes • Take photos or videos of every complex electronic connection • Pack a bag containing some clothes and toiletries so that they’re easily accessible • Empty your fridge and disconnect it at least 24 hours before you move it STEP 5 - When moving, don’t forget to: • Leave the key with your landlord or bring it with you to the lawyer’s office • Take everything with you .(Don’t leave anything behind!) • Bring cash to tip the moving company or its drivers STEP 6 - Moving Day, it’s time! STEP 7 - Set up the new home and explore the neighbourhood Take the time to set up all appliances, electronics, furniture, advanced technology (wi-fi, cameras, alarm systems, etc.), remote, cable, furnace filters, etc. Be sure to explore the community and find local coffee shops, stores, restaurants, recreational facilities, bus stops, grocery stores, parks, playgrounds and more.
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THE BUYING PROCESS START Bu ye r I n te r v iew
U n de r standing C lie n t N eeds
Client Educ ation
Loan P re - approval
Loan A mount $_______
S how P ro pe r t y
C MA
Agency Relationship
S ell C ur rent P roperty
Denied
O f fer
Counter O f fer Acceptance
THE BUYING PROCESS STARTS HERE This is a guide and timeline to the entire buying process and what you should expect from an experienced, professional, elite real estate group such as ourselves. From start to finish, we ensure you are taken care of thoroughly throughout the entire process.
S atisf y Conditions
•F inanc ing •I nspec tion •Condo Doc
Wave Conditions
Rev iew •O ther
Home Insurance/ Utilities
Sign Paperwork & Lawyers
Walk Through
POSSESSIO N
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TESTIMONIALS “Happy Thanksgiving Wale! One of our greatest reason to be thankful was meeting you and working with you to buy our 1st home. You understood what we wanted from the get go and guided us accordingly. You patiently obliged our many viewing requests and questions, we also got an incredible price. (what a negotiator). We absolutely love our home and we look forward to working with you again for our future purchases. We are thankful for you.” - NNA & SESE “Jay Johnson of CIR Realty is such an amazing real estate agent! He is incredibly professional, knowledgeable, hardworking, fair, and humbly kind with a very positive upbeat demeanour. I can honestly say that Jay always goes the extra mile, and it is remarkable to see how dedicated he is to his clientele. One way Jay shows his care and consideration is by making himself readily available to his clients, night and day. He truly goes above and beyond, working relentlessly to ensure his clients are happy and content with their purchase and/or sale. Whether you are buying or selling a home Jay’s priority is laser focused on his client’s best interest. Jay has assisted me with the buying and selling of several properties, and I know for certain there is no one else I would ever want in my corner. I highly recommend Jay Johnson as he is a very decent one-of-a-kind person, but above all he is truly the best real estate agent in the business!” - DR. MARTHA H. “As a first-time homebuyer, buying a home can be challenging. I had very little knowledge about how to find the right home. However, working with Wale made the process enjoyable and stressfree. Wale was honest, hands-on, and he walked me through the process. From the start, he was extremely responsive and had great suggestions for homes to view based on what I was looking for. His extensive knowledge of the real estate market made me feel like I was making the right decision buying my first home. I could not ask for a better realtor. Thank you, Wale, for all your help, support, and being such a pleasure to work with.” - CHINELO OGBUE RN, BSCN (HONS) “Absolute amazing and fabulous experience for a first time home buyer.” Wale is very patient and committed to making sure his clients get the value for their money and also very knowledgeable about the real estate market in Calgary. One stop shop for all your housing needs. I would definitely recommend Wale J for any housing enquires in Calgary.” - ANDREW S.
MELCOM Our Heart. Your Home.
Real Estate
Wale ‘Jay’ Johnson REALTOR & TEAM LEADER
C I R R E A LT Y C A L G A R Y
403.400.2700
walej@melcomgroup.ca