Know your budget

Before looking for properties you like, first speak with a mortgage broker to get an idea of what kind of mortgage you can qualify for. A good mortgage broker will help you navigate the financing portion of buying a house. 

Need a mortgage broker referral? Our partners are connected to hundreds of lenders and will do all the work for you. Ask us for a referral: sales@honestdoor.com / 780-860-8400

Make a List

You should be able to find a lot of information about properties online now, such as the last sale price, how old it is, the layout. Make a list of things that you are certain you want. These would be deal breakers if you can’t get them. For example: a yard (for your pet to run in), a driveway or garage (for parking), number of bedrooms, location. If you’re buying with someone else, like a partner, you should each make a list and then discuss them together to make sure you’re on the same page.

Start your online search 

Start your online search on your own. Realtor.ca features all the properties that are listed for sale on the MLS in Canada. If you’re looking to buy properties that are privately listed, check out Kijiji, Facebook Marketplace, or other real estate websites. Try to narrow your search and rule out properties based on the information and photos. 

Understand how real estate commissions work 

If you buy a house with a real estate agent, most likely your agent will get compensated out of the transaction. This means that money doesn’t really leave your pocket to pay for your agent. It may feel like you aren’t paying for your agent, but technically, their commissions are baked into the sale price. In theory, in a world with no real estate agents, all house prices should be lower. 

Agents get paid when their clients buy or sell. Most agents do not get paid a salary. Standard commission prices vary from place to place, but generally, commissions are around 5% of the closing price, which is split between the seller’s agent and the buyer’s agent. 

Generally, your agent, as a buyer, will help you: 

- Set up showings 
- View properties with you 
- Communicate with the listing (seller’s) agent 
- Write offers 

Book / Schedule Showings 

It’s a challenge to view properties without a realtor. It is common to never get a response if you reach out to the listing (seller’s) agent to book a showing. That’s because they are accustomed to communicating to other realtors (representing buyers). You may find it a challenge to buy a house without using a realtor. 

Questions to ask when choosing a realtor:  

- Are you a full-time agent? 
- How many properties have you helped clients buy? Sell? 
- What neighbourhoods are you most familiar with? 
- What types of properties do you have experience with? 

Avoid just going to the listing agent since it’s not necessarily in your best interest to work with a realtor who is representing the seller. In all cases, always read the fine print in any contract you might sign with a real estate agent. 

HonestDoor’s agents give cash back. That means that when you purchase, we give you 25% of the commission that we would earn representing you. Check out our buyer’s savings calculator. 

Key considerations when doing a walk-through: 

Viewing properties takes time. Before you view them, make sure you’re doing research to ensure that you really want to see it. 

Research properties online before you ask to view them. Below are a list of questions you should be able to find online on your own (or from your realtor) before viewing a property: 

- Are you okay with the location? Is it on a main road? 
- What is the crime like in the neighbourhood? 
- What is the asking price relative to other properties listed close by? 
- How long has it been on the market? 
- If you have kids, what are the local schools? How are their ratings? 
- What are the property’s historical sales/transactions? 
- What are property taxes? 
- How old is the house? 
- Are there other fees, like a Homeowners Association Fee? 
- Are there any planned developments or changes in the neighbourhood that could affect the price? 
- What is the demographic makeup of the neighbourhood? 
- What are rental prices like in the neighbourhood? 

Top 10 questions to ask when buying a property (assuming you plan to move into it and that you’ve narrowed the list down):

- Have there been any insurance claims or history of water damage, mold, or asbestos? 
- Are there any known issues with the foundation or structure? 
- What investments / maintenance work have been made in the property? Or, when were the roof, windows or other major appliances last replaced / repaired?
- What is the condition of the plumbing, electrical and HVAC systems? 
- Do all the additions or modifications have permits? 
- Are there zoning restrictions on the property? 
- How much do the sellers pay for property insurance? 
- What are the neighbours like? 
- Have there been previous attempts to sell the house? If so, why did the deals fall through? 
- Why are the sellers selling? 

Making an offer: 

Offer to purchase or real estate purchase contracts are generally standard templates. They contain: 

- Date of the offer
- Address and legal description of the property you want to buy 
- Amount of deposit
- Purchase price you are offering
- Possession date 
- Conditions (such as financing period, inspection, document review, holdbacks) 
- Down payment 
- Your name and address
- Name and address of seller
- Subject-to clauses
- Conditions
- Closing dates
- Inclusions and exclusions 
- Time for acceptance / expiry of offer 

If the seller accepts your offer, make sure you have a real estate lawyer to help you with the closing. 

If the seller rejects your offer, you can either submit a new offer to purchase or walk away. 

If the seller provides a counter offer, review it to see if it’s acceptable. You can also counter the counter offer.

Finalizing the purchase

If you have an accepted offer and it is conditional, you need to satisfy your conditions. 

Most common buyer conditions:

Financing: You need to confirm your financing before waiving the condition. A pre-approval is not the same as confirming financing. Your lender (or mortgage broker) will need documents related specifically to the property such as the accepted Offer to Purchase, the listing sheet, current title. The lender will do due diligence to ensure the property is worth what you’re paying for it. 

Home inspection: Hire a home inspector and carefully review the written report. Most inspection clauses in the Offer say the results of the inspection must be to the satisfaction of the buyer; however, you can also specify a dollar amount in your home inspection condition. If the home inspection uncovers issues that require more money to remedy than the amount specified in the condition, you may not want to waive the home inspection condition. 

Document review (for condos): These documents relate to the operation of the condo corporation. Make sure it is financially stable, managed well, and that the property is well maintained. There are professionals who can review these documents if you want. 

If you meet all of your conditions and are prepared to proceed with your purchase, you will have to sign a waiver. Your real estate lawyer will handle the paperwork. 

If you do not waive all of your conditions, your accepted Offer to Purchase is null and void. 

Contact us for any questions: sales@honestdoor.com / 780-860-8400