Useful Tips

Useful Tips

Resale home buying process.

In most of the cases when buying a resale home there are cross-actions taking place between you, your mortgage professional, your real estate agent, seller/seller’s real estate agent, your lawyer and seller’s lawyer.

Mozaic Realty Group has one of the strongest resale real estate teams in Edmonton that can support you during the entire process.

USUAL STEPS

  1. Get pre-qualified with a mortgage broker or financial institution
  2. Find a REALTOR® who is right for you
  3. Examine exclusive market data
  4. Examine options within your price range
  5. Book showings and find the right home
  6. Make an informed offer through your REALTOR®
  7. Prepare for a counteroffer
  8. Set up a home inspection and satisfy/waive conditions
  9. Closing/possession day – final walk-thru

USUAL COSTS

You will need to consider the following up-front costs and have some cash reserves to get started:

  1. Deposit: $1,000-$5,000. Can be “Initial” and “Additional” depending on the case.  Going toward your down-payment, negotiable and variable with the value of the property.
  2. Inspection fee: $400 – $700
  3. Lawyer fee: $1,100-$2,200
  4. Tax adjustments: depends on how the seller pays taxes – can result in reimbursement to the seller.
  5. Moving and new utility set up costs.

Brand new home buying process.

In most of the cases when buying a new home there are cross-actions taking place between you, your mortgage professional, your real estate agent, the builder, and your lawyer. Mozaic Realty Group has developed a unique set of services that makes those cross-actions work efficiently for all the parties involved in the transaction.

USUAL STEPS

  1. Get pre-qualified with a mortgage broker or financial institution
  2. Find a REALTOR® who is right for you
  3. Examine exclusive market data
  4. Examine features and options of different builders within your price range
  5. Book showings and find the right home
  6. Make an informed offer through your REALTOR®
  7. Prepare for a counteroffer
  8. Finalize the contract with the builder and your lawyer
  9. Set up a home inspection and satisfy/waive conditions (optional, since the builder provides a pre-possession walkthrough)
  10. Follow the walk-thru and warranty instructions received from the builder
  11. Closing/possession day – final walk-thru

 

USUAL COSTS

You will need to consider the following up-front costs and have some cash reserves to get started:

  1. Deposit: $1,000 upon offer acceptance and 5% of the purchase price after all conditions removed.
  2. Inspection fee: $400 – $700
  3. Lawyer fee: $1,100-$2,200
  4. Moving and new utility set up costs.

How to choose between buying a new or resale home?

Whether you buy a brand new home or opt to buy a resale home, it is important to feel confident that you can live there comfortably and you are undertaking the most suitable purchase process for you. See below some pros and cons when it comes to this debate:

NEW HOMES

Pro: WARRANTY

The law in Alberta requires every builder to provide a warranty for every produced new home. Under the Alberta New Home Warranty Program, you are getting coverage on the following with your brand new home.

  • Labour & Materials for the first 12 months.
  • Distribution Systems (heating, electrical etc.) for the first two years.
  • The Building Envelope (e.g. the roof and exterior walls) for five years.
  • Key Structural Components (e.g. the foundation and frame) for 10 years.

Con: NO WARRANTY FOR YOUR DAMAGE

You scratched the floor when moving. Your kids broke your window glass when playing soccer. Warranty does not cover the mechanical damage that is not connected to the home manufacturer.

Pro: PERKS FROM BUILDERS

Many of our partner-builders provide incentives and perks that pleasantly influence your experience. It can range between cash, landscaping, appliances, upgrades, furniture, and more.

Con: CONSTRUCTION IN PROCESS

When buying your home while it is still under construction, you should be aware of some potential timeline interruptions, since you are dealing with a human and seasonal influenced process. For that reason, the builders ask for more flexibility with possession days.

Pro: CHOICE

The builders have to stay competitive by creating products that greatly meet the needs of the current consumers. They try to provide choice to all segments of the society, and there is definitely a good way of benefitting from this choice.

RESALE

Pro: QUICK POSSESSION

It is way easier to make decisions when you have tangible objects and more certain dates. You visualize and get the feeling of the home instantly when entering the property.

Con: OLDER SYSTEMS & APPLIANCES

In most of the cases you inherit the appliances and a variety of other items that the previous owner leaves behind. This can result in additional expenses after buying the home. The same applies to the infrastructure systems that have wear and tear history before you.

Pro: ESTABLISHED NEIGHBOURHOOD

Most of the resale homes are located within already established communities. You have more location options for choosing schools, amenities, routes that better serve your needs and similar.

Con: RENOVATIONS & REPAIRS

While you may choose a resale home because of its location, there might be things that you’ll want to change in the home. Whether it’s as simple as a fresh coat of paint or an extensive renovation, your will need to budget more after the home purchase.

SUMMARY

Before you buy a home, you need to ask yourself what your needs and wants are and whether a new or resale home best meets those needs. We are here to help ask, and more importantly, find answers to those questions.

 

Why should you use a real estate professional?

A real estate professional is more than just a “salesperson.” They act on your behalf as your agent, providing you with advice and guidance and doing a job – helping you buy or sell a home. While it is true they get paid for what they do, so do other professions that provide advice, guidance, and have a service to sell –such as Certified Public Accountants and Attorneys

The Internet has opened up a world of information that wasn’t previously available to homebuyers and seller. The data on listings available for sale is almost current – but not quite. There are times when you need the most current information about what has sold or is for sale, and the only way to get that is with an agent.

If you’re selling a home, you gain access to the most buyers by being listed in the Multiple Listing Service. Only a licensed real estate agent who is a member of your local MLS can get you listed there – which then gets you automatically listed on some of the major real estate web sites. If you’re buying or selling a home, the MLS is your agent’s best tool.

However, the role of an agent has changed in the last couple of years. In the past, agents were the only way home buyers and sellers could access information. Now agents are evolving. Because today’s home buyers and sellers are so much better informed than in the past, expertise and ability are becoming more important.

The real estate agent is becoming more of a “guide” than a “salesperson” — your personal representative in buying or selling a home.