Frequently Asked Questions: Buyers

Buying a home is one of the biggest purchases a person does in their lifetime. Because it is such a large purchase, there are a lot of legalities involved and steps to complete from start to close. We have compiled a list of the most common questions we receive from our buyers here to help you have the information available to succeed!

Should I talk to my bank before looking at homes?

Talking to your bank or mortgage broker should always be the first step in the home-buying process. Getting pre-approved before home shopping will make the entire process run smoother: you will have a budget for what you can afford, you will be able to keep realistic expectations, you will seem serious to both sellers and real estate agents, your offer will more likely to be accepted, you will meet your conditions dates with ease and it helps you budget for your closing costs. We believe that it is almost impossible to seriously shop for a home without pre-approval. If you do, you may fall in love with a property you cannot afford, or have a hard time getting an offer accepted. If you do not already have a mortgage broker, we recommend working with our trusted partner, Neil Keeping at The Mortgage Group!

How much does it cost to work with a real estate agent?

Your real estate agent is paid for their services by splitting a percentage of the sold price of the home with the seller’s agent. Therefore, when you purchase your home, you do not owe your REALTOR® any money directly. In simple terms, when you are shopping for a home, the price you pay for your new home includes your REALTOR®’s fees, so you do not have to set aside extra money to pay your agent.

How many homes should I look at submitting an offer?

There is no set number of homes you should view before submitting an offer. Some fall in love with the first home they see, while others can take years to find the right one. According to realtor.com, the average buyer will view 10 properties before they submit an offer, but the site notes that this number varies greatly. Since COVID-19 began, there has been a large surge in virtual tours and searching for homes online. This allows buyers to see more homes than ever before. It’s always a great idea to inform your REALTOR® of your critical wants and needs in your future home, so they can use their professional resources to find homes that match your criteria. This will save you time in the long run and allow you to view a few great homes instead of tens of “okay” ones. 

How do I make an offer?

When you find the home of your dreams, it's time to make an offer. Your real estate agent will prepare the documents necessary to submit an offer. Your agent will require your legal name, the amount you wish to offer, what will be included in the purchase price, the date you would like to close the sale, the documents you need to review before finalizing the deal, and when you would like to leave the offer open until. You will also need to be prepared to make a deposit on the home. The deposit goes against your closing costs and downpayment. This deposit is cashed upon delivery to the listing brokerage, so, make sure you only offer a deposit you can afford. Your REALTOR® will work with you to ensure you have the best price, and conditions and review the necessary documents needed for a successful sale. If you are not satisfied with something that arises with the home, your REALTOR® can, later on, negotiate a price reduction, repairs to counter the issues or terminate the deal. 

How long does the seller have to respond to my offer?

You and your real estate agent will decide on an amount of time in which the offer is “live”. The seller’s agent may request that, for example, all offers be left open for 24 hours. It is usually best practice to follow what the seller’s agent requests. You are technically allowed to go against the seller’s request, but it may lower your chances of your offer being accepted. Your REALTOR® will advise you on the best “timeline” for the offer so that you have the best chance of success.

What if my offer is rejected?

It is never a good feeling to hear that your offer was rejected, however, in the current market we are experiencing in Halifax, this is often the case. In a competitive seller’s market, buyers typically have to go through the offer process a few times on a few different homes before getting one accepted. Your offer may have been rejected due to the sellers receiving a higher offer, the sellers believing your deposit was not enough, due to you stating too many conditions, etc. There is no penalty to you if your offer gets rejected, you just have to keep on with your home search. If the seller rejects your offer and has not accepted any other offer, your REALTOR® can then find out why your offer was rejected and can help you prepare a new one that corrects the issue. 

What happens after my offer has been accepted?

After your offer has been accepted, you need to meet the conditions that you specified in the agreement. You must provide your deposit, secure your financing with your bank, perform a home inspection if indicated (your REALTOR® will arrange this, however, it is at an extra cost to you), notify your lawyer, and book your pre-closing walkthrough. When you work with a real estate agent, they will be by your side through most of this and inform you of deadlines. They can forward documents to your banker and lawyer for you, and supervise the inspection too. There are a lot of moving parts to make it to the finish line, but having a REALTOR® on your side keeps things flowing and organized. It is in your and your REALTOR’s® best interest that you meet all of your conditions.

If you have any questions that didn’t make this list. Be sure to reach out! We would be happy to help you succeed in buying Halifax Real Estate!

Author: Jordan Gunn
Licensed Real Estate Assistant
The Andrew Perkins Real Estate Team
Keller Williams Select Realty

House or Condo? Which is Better?

The two most popular property choices when purchasing are, a single-family home or a condominium. Most wonder, which is better? If you ask around, you will likely receive a different answer from each and every person. That is because the truth is, neither is better. Condominiums work great for certain wants and needs, and single-family homes work great for others. So, which is best for you? We decided to dig into the pros and cons of both so that you can learn which would suit you best. 

Single Family Home

Pros:

 

Private Yard

When you own a single-family home, you own the land that it is built on as well. This means you are able to customize your yard to your liking. It’s true that some condo buildings have common outdoor spaces, but they are all shared. You cannot guarantee that other residents will not be occupying the shared spaces when you feel like using them. With a single-family home, you can decorate your yard in any way you wish, use it to host family nights, play with your pets and more. You never have to worry about other people using it because it is yours and yours only. 

Control over the Property

When you own a home, you can customize the inside however you like as well. If you feel like tearing down a wall to expand your master bedroom, you do not need anyone’s approval. With a condo, customizations may require board approval. If you want full control over the design of your home, it would be wise to search for a single-family home. Single-family homes work great for families that may need to alter the layout of their space to accommodate growing children.

More Storage Space

With a single-family home, you tend to have more storage space. Some have garages, basements, extra closets and more. Condos typically have storage units that you can either rent or are part of your condo fees, however, they are not nearly the size of a basement or garage. If you are someone who needs added storage space for your family, your hobbies or both, consider a single-family home. You may be able to even build additional sheds on the land of a single-family home if zoning permits it for additional storage.

Easier to Sell

Since single-family homes are the more traditional approach, they are typically easier to sell. They make great investments for multiple property owners too as they can act as move-in homes or investments. Condo popularity is on the rise, but it seems that single-family homes always stand the test of time. Also, banks are usually more comfortable lending for single-family homes rather than multi-family homes in terms of investing. 

Cons:

More Expensive

Because of the added land and space, Single-family homes are often more expensive than condos. So, if you are a first-time home buyer, a single-family home may be priced higher than your budget. In Halifax alone, the average price for a condo in the past twelve months was $343,383, while the average price of a single-family home was $421,891! That is around 80K more! All of that added space, yard and storage comes with an added cost!

Renovation and Maintenance costs

When you own a single-family home, you are in charge of any needed renovations and maintenance. If your foundation needs repair, if your hot water heater malfunctions or you get termite damage, it is money out of your own pocket. If you are thinking of purchasing a single-family home, make sure you have savings for these unexpected costs.

Utility Costs are All Yours

When you live in a condo, some of the utilities, such as water, may be included in your condo fees. With a home, you are responsible for all utility costs. This can be an additional 500-1000$ per month depending on how much energy you use, and your internet package. With single-family homes being typically larger than condos, their energy bills are usually higher too.

No Amenities

Even though you do get your own yard when you own a home, the land and maybe a garage are the only added “amenities”. Some condo buildings have a large variety of amenities that can make living feel luxurious. This can include gyms, pools, rooftop terraces, common rooms for parties, dog wash stations and more. 

Condos

Pros:

Cheaper Insurance

Because you are only insuring the four walls in which you live in for a condo, home owner’s insurance is typically cheaper for condo owners. The condominium building has its own insurance to cover the building, therefore you are liable for much fewer moving parts than a whole single-family home. 

Amenities

As we spoke about in the cons of owning a single-family home, condo buildings can offer many amenities to add luxury to your life. Condo buildings often include gyms, swimming pools, underground parking, concierge service, on-site management, snow removal, landscaping and more, making living a breeze. If you are not someone who likes to maintain the exterior of their home, condo living is for you. These amenities are also most beneficial for retirees who would rather not be responsible for added maintenance.

Location

Condominium buildings are normally situated in downtown areas of cities, or at least close to downtown. This gives condo owners great access to the best areas of the city. If you enjoy being just a walk away from a cafe, grocer or bar, then condo living is for you. This feature makes condo living great for working professionals who would rather walk to work than have to commute. 

Less Space/Downsize

Sometimes, extra space is not always the best thing. If you are looking to downsize, live alone or are just a family of two, you may not want extra space. In fact, having to keep extra space clean and maintained may overwhelm you. In this case, a condo would be a great choice as they are typically smaller. Think of a couple whose children have all grown up: perhaps they do not want to upkeep an entire house anymore. 

Cons:

Harder to sell

Condos are not necessarily hard to sell, but they typically are a little harder to sell than single-family homes. Condos have gained popularity in recent years, however, there are still always more buyers looking for single-family homes. If we look at the Halifax market over the past twelve months, Single Family Homes have sold in on average 39 days, while condos have sold in on average 49 days. Both have sold fast, but as you can see, condos tend to take a little longer.

Condo Fees

Each condo building has a corporation in which owners must pay dues to monthly. These fees go towards the maintenance, amenities and major repairs or improvements of the building. These fees also give owners access to all of the common elements in the building. They are an added expense, however, they may sometimes include your parking and some utilities, which helps offset the cost. 

Limitations

One of the main issues with condos that owners face is the limits on how units can be customized. When shopping for a condo, make sure you are very happy with its layout and style, as many renovations must be approved by the condo board. There are also many added rules when living in a condo building that must be respected in order to provide a healthy atmosphere for all condo owners.

Less Privacy

Living in a condo building means sharing walls with your neighbours. This can foster a great community, however, it means less privacy as well. You must also be mindful of your neighbours when living in a condo building, meaning you need to be conscious of your noise levels in the late hours of the night. If you are someone who often throws parties or enjoys entertaining, you may want to consider a single-family home.

There are many other pros and cons we could list here, but I think we got the point across: there is not a clear cut answer on whether condos or single-family homes are best. If you are still stumped, you can always give us a call! We would be happy to point you in the right direction! 

Andrew Perkins

902-488-0012

andrew@andrewperkins.co