Scott Carr North Bay Real Estate Agent Century 21 Blue Sky Region Realty
Understanding Market Conditions

Buying a home

Table of Contents [scroll down or click topic of interest]

Buyer representation
Determining what you can afford
Typical one-time expenses
Understanding market conditions
Obtaining a pre-approved mortgage
 Finalizing your mortgage
Elements of an offer
How to make an offer
Hire a legal professional
Have the home inspected

Your choice of representation as a buyer.

 You may choose to be represented as a customer or as a client
At Century 21 Blue Sky Region Realty Inc. we can provide you with both types of representation. He will point out to you the advantages of all types of representations.

Determining what you can afford

Purchasing a home involves one-time costs and monthly expenses. The largest one-time cost is the down payment. It usually represents between 5-25% of the total price of the property. In addition to the actual purchase price, there are a number of other expenses that you might be expected to pay for. These are listed in the following table:

Typical one-time Expenses

Item When money is required Approximate amount
Initial Deposit When submitting offer $500-$1,000
Mortgage Application & or Appraisal Fee When arranging financing $150-$225
Home Inspection (optional) Acceptance of Conditional offer $200-$400
Home and Property Insurance Closing and On-going $300-$500
Legal Fees Closing $500-$650
Legal Disbursements Closing $400-$600
Mortgage Interest Adjustment (if Applicable) Closing Varied
Adjustments for Fuel, Taxes Etc Closing $100-$900
Land Transfer Tax Closing Varies
Property Survey if not provided Closing $600 & up
Moving Expenses Date of Move $200 & up
Mortgage Insurance (if applicable) Closing Varied

The above is your normal monthly costs incurred with home ownership include mortgage payments, maintenance, insurance, condo fees, property taxes and utilities.

Understanding Market Conditions

The real estate market is always changing. It helps to understand how market conditions can affect your position as a buyer.
Century 21 Blue Sky Region Realty Inc. can provide you with current real estate market conditions and explain their impact.

Obtain a pre-approved mortgage

Having a pre-approved mortgage will give you the confidence of knowing exactly what you can spend on a home before you start looking. You will also be protected against interest rate increases while you look for your new home.

Let us do the shopping for your mortgage - usually I have a good working relationship to all lending intitution and with our recommendations Interest rates obtain by us on your purchase may be 3/4% to 1% lower than the rates quoted to you. I will answer your questions and help you determine which financing terms and options are right for you. Scott Carr will give you numerous lending institutions as well as Mortgage Brokers to choose from.

Finalizing Your Mortgage

Once you've found the home you want to purchase, there are some documents you'll probably be asked for in order to finalize you financing. They will include:
  • A copy of the real estate listing of the property. If the home is still to be built, the mortgage lender will need to see the architect's or builder's plans and details on lot size and location.
  • A copy of the offer to purchase or the building contract, if this document has been prepared.
  • Documents to confirm employment, income and source of down payment (if not provided at pre-approval).

The Major Elements of an Offer

1. Price
Depending on local market conditions, your choice of representation, your opinion of value and market information provided by Scott Carr , the price you offer may be different from the seller's asking price.
2. Deposit
The Deposit shows your good faith and will be applied against the purchase of the home when the sale closes. I can advise you on an appropriate amount.
3. Terms
Includes the total price offered and the financing details. You may arrange your own financing or ask to assume the seller's mortgage, especially if it has an attractive interest rate.
4. Conditions
These might include "subject to home inspection", "subject to you obtaining financing" or "subject to you selling your property".
5. Inclusions and Exclusions
These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors.
6. Closing or Possession Date
Generally, the day the title of the property is legally transferred and the transaction of funds finalized unless otherwise specified.

How to make an offer

 When it comes time to make an offer, Scott Carr can provide current market information and will assist you in drafting your offer.

Scott Carr will communicate your offer, sometimes known as an Offer to Purchase, to the seller, or the seller's representative, on your behalf. Sometimes there may be more than one offer on a property coming in at the same time. Scott Carr can guide you through this process.

Offer to Purchase is a legal document which specifies the terms and conditions of your offer to purchase the home.

The offer can be Firm or Conditional.

  • Firm Offer to Purchase: usually preferable to the seller, because it means that you are prepared to purchase the home without any conditions. If the offer is accepted, the home is yours.

  • Conditional Offer to Purchase: means that you have placed one or more conditions on the purchase, such as "subject to home inspection" or "subject to sale of buyer's existing home". the home is not sold until all the conditions have been met.
Acceptance of the Offer

Your Offer to Purchase will be presented as soon as possible. The seller may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, the closing date, or any number of variables. The offers can go back and forth until both parties have agreed, or one of you ends the negotiations.

Hire a Lawyer

A lawyer is there to represent your interests and to process the legal documentation required.


Scott Carr can provide you with the names of numerous Lawyers who specialize in real estate.

The legal process differs from city to city. Your Lawyer will advise you on the steps to be taken before the keys to your new home are presented to you.

Have the Home Inspected

Having the property inspected by a qualified home inspector may give you the added confidence that you've made the right decision.

When the procedure is complete, you will likely receive a full written report plus estimated costs for any necessary repairs.