Real Estate Toronto, Toronto Lofts, Toronto Condos, Yorkville Real Estate

The benefits available at each level can be easily understood when viewed from the seller's perspective. Imagine you're a seller in receipt of multiple offers to purchase your property. A complete stranger (buyer) is asking you to take your property off the market for at least the next three to seven days while they apply for a loan. As the seller, lets consider the type of buyer you'd prefer to deal with.

Neither pre-qualified nor pre-approved - This buyer provides no evidence that they can afford to purchase your property. You may wonder how serious they are since they're not at least pre-qualified.

Pre-qualified - This buyer has met with a mortgage broker (or lender) and discussed their situation. The buyer has informed the broker regarding their income, expenses, assets and liabilities. The broker may also have seen their credit report. The buyer provided you with a letter from the broker stating an opinion of what the buyer can afford.

Pre-approved - This buyer has provided a broker written evidence of income, expenses, assets, liabilities and credit. All information has been verified by a lender. As a result, much of the paperwork for this buyer's loan has been completed. This buyer will probably be able to close quickly. They provide you with a letter (pre-approval certificate) from the lender. You're as certain as possible that this buyer can close.

As a potential buyer, you can see that being pre-approved will give you the best chance of getting your offer accepted. This is critical in a competitive situation.

Mistake#2: Making verbal agreements. If you're asked to sign a document containing instructions contrary to your verbal agreements--don't! For example, the seller verbally agrees to include the washing machine in the sale, but the written purchase contract excludes it. The written contract will override the verbal contract. More importantly, your state may require that contracts for the sale of real property be in writing. Do not expect oral agreements to be enforceable.

Mistake #3: Buying a home without professional inspections. Unless you're buying a new home with warranties on most equipment, we strongly recommend that you get home and termite inspections. This way you'll know what you are buying. Inspection reports are great negotiating tools when asking the seller to make needed repairs. When a professional inspector recommends that certain repairs be done, the seller is more likely to agree to do them. If the seller agrees to make repairs, we will verify that they are done prior to close of the transaction. I never assume that everything was done as promised - close follow up is the key.

Mistake #4: Visiting a new home or condo sales office without a buyer's agent. Many consumers are unaware that the representatives onsite may not be licensed and work solely for the builder's best interests and NOT for the buyer. If licensed, these representatives do not trade full-time in the resale market and cannot give you adequate advice about the property's potential resale value. It is imperative to have a licensed buyer's agent attend sales sites in order to assist you in choosing the best property (for resale) and negotiate the best price.

Mistake #5: Signing documents without reading them. Whenever possible, review in advance the documents you'll be signing. (Even though some specifics of your transaction may not be known early in the transaction, the documents you'll sign are standard forms and are available for review.) It's unlikely that you'll have sufficient time to read all the documents during the closing appointment with your lawyer.

TOP FIVE MISTAKES

Mistake #1: Looking for a home without being pre-approved.

As a potential buyer competing for a property, you'll have a better chance of getting your offer accepted by being as prepared as possible. Consider this hierarchy of preparedness:

Neither pre-qualified nor pre-approved

Pre-qualified

Pre-approved

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