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Everyone has questions about real estate, as it’s likely the largest financial investment we’ll ever make in our lifetime. While the experience of buying or selling a home is no doubt exciting, it can, at times, become overwhelming. This is why we’ve turned to the experts. We collated some of the most frequently Googled real estate questions and asked REALTORS® for their answers. Think of this article as your go-to guide for a more in-depth understanding of the most popular questions related to buying or selling a home.
Common questions asked when selling a home
Why do I need a home inspection?
“A pre-purchase home inspection is always a good idea whether it is required by your lender or not,” says Elisha Roberts, a salesperson and REALTOR® in Red Deer, Alberta. “It allows you as a buyer to ensure the house you have written an offer on doesn’t come with any unforeseen issues—often of great expense.”
“Home inspectors look for structural issues, the condition of mechanical systems and much more. If something is discovered, it provides you with an opportunity to address the issue to your satisfaction before proceeding with the purchase, such as amending the purchase price or asking for the seller to repair the issue and provide proof. Once an issue is uncovered, the seller will have to disclose to any other interested parties if your offer does not go firm. In my experience, most sellers are willing to work together to ensure a fair outcome for everyone involved in the transaction.”
Why can a seller reject my offer?
“Sellers are not obligated to accept an offer,” says Jessica Kee, a salesperson and REALTOR® from Toronto, Ontario. “There are a number of reasons why a seller may not find an offer acceptable to them—price, closing date, conditions in the offer. They may, however, counter back or politely decline if the gap is too far apart.”
How do REALTORS® assess a home’s value?
Nick J. Kyte, a salesperson and REALTOR® from Ottawa, Ontario, lists the top five ways a home’s value is assessed.
- Location, location, location: neighbourhoods and streets vary in value, so understanding these pros and cons is vital to accurately assessing value.
- Size of home: homes with more livable square footage are generally worth more.
- Age and condition of the home: a well-kept and maintained home is typically more desirable for buyers.
- Recent updates or upgrades to the home: do buyers have to worry about an old roof, windows and heating, ventilation and air conditioning? If not, and in general, the fewer major items that require replacement or repair, the greater value held in the buyers’ mind.
- Supply and demand for homes and neighbourhood: what are the recent comparable sales in the neighbourhood, specific street, etc.? Are there trends that suggest the area is in more demand? If so, this can be a factor that assists in a higher assessed value.
Curious how your REALTOR® prices your home to sell? We’ve covered that!
What is a conditional sale?
“Simply put, a conditional offer is certain conditions that must be met by the buyer during the conditional period and, if not met, the deal becomes null and void and the deposit is returned to the buyer,” clarifies Kyte. “Common conditions placed in offers to protect buyers and allow time for proper due diligence are; financing, inspection, insurance, solicitor review and, for condominium properties, the solicitor’s review of the status certificate. As a general note, anything can be added as a condition or clause, to an agreement of purchase and sale, as long as parties to the agreement agree.”
How long will it take to sell my home?
“Selling timeframes vary from province, city and local market,” Kyte points out. “Knowing the average days on the market it takes to sell similar properties is information that needs to be provided to sellers and buyers, to ensure their expectations are in line with their current market.”
As an example, Kyte details that, “in the Ottawa real estate market, the average days on market for residential properties in December 2022 was 38 days. This can vary based on the property’s list price, location, condition of home, and marketing. The number of days it takes to sell a home has dramatically increased from 12 days in 2021, the peak of the market, and is now climbing to a more “normal” range that is consistent with pre-pandemic ranges.”
When is the best time to sell my home?
Rashedy Lewis, a salesperson and REALTOR® from Toronto, says, “Most sellers believe the best time to sell their home is between May to July. However, in my opinion, there’s no ‘best time’ to sell your home. Each homeowner has a different reason why they want to sell.”
Lewis continues, “Once you’ve decided to place your home on the market, you should check to see what improvements can be made prior to selling, as this can help you get more money for the resale value.”
Need some inspiration? Here are some renovations that could be worth doing before selling.
Lewis suggests beginning the process by “decluttering and cleaning the home and once these are done, inspect your floors, walls, bathroom(s), and kitchen as these are the main selling features of the house. Homeowners should also check windows, doors, furnace, and their roof to ensure that they are in good working condition.”
Lewis concludes that “in my view, once these are accomplished, it helps to attract buyers and sell at a good price.”
If you’re thinking of selling your home in the winter, we’ve gathered some tips on how to make the most of selling your home in the winter months.
What do I need to qualify for a mortgage?
“In order to qualify for a mortgage, you’ll need to have the necessary down payment, show proof of employment, and proof of income along with your credit score,” says Lewis. Above all, you’ll need to be able to prove to the lender you can afford the amount you’re asking to borrow and all future monthly payments. Your income stability, as well as your debt service ratio, will be assessed.
In fact, there are four Cs when it comes to navigating the road to obtaining a mortgage and these include capacity, capital, collateral, and credit. What’s your capacity to pay back the loan on time every month? What money, savings, or investments do you have readily accessible? What is the value of the property you’re wanting to purchase and will it be enough to cover mortgage debts if payments are missed? Do you have a good credit score and a history of paying bills on time? Again, lenders want proof of stability.
Common questions asked when buying a home
How much of a down payment do I need to buy a home?
Kee explains, “The minimum down payment requirement for anyone buying a home to live in is 5% on a home up to $500,000. Anything after that is 10% on the portion above $500,000. So, if it’s a $600,000 home, the minimum down payment is $35,000. For someone looking to buy an investment property, it’s 20%.”
There are different savings plans and incentive programs available to those looking to buy a home, especially if you’re a first-time home buyer. Get in touch with a financial planner to understand your options and see what you’ll need to do to save for a down payment.
How long does it take to buy a home?
“The time required to purchase a home varies,” says Roberts. “I always recommend that my clients obtain a pre-approval prior to initiating their home search. Once the perfect property is found it can take anywhere from about one week to several months for the closing process and for you to take possession. The variance is based on the seller’s limitations around possession date or acceptance of a proposed possession date in the offer to purchase.”
“Any conditions that need to be satisfied prior to a firm sale like a home inspection or financing condition will add to the transaction time,” Roberts adds. “It’s important to note the lawyers required to complete the transaction may require some time to complete this on your behalf, so it’s a good idea to check in with them to determine their required lead time based on their current workload.”
Do I need a REALTOR® to buy a new-build?
Kee explains using a REALTOR® when buying pre-construction “isn’t mandatory, but it’s highly encouraged”—especially since, as a buyer, you don’t pay commission, meaning having a REALTOR® on your side is a free benefit.
“Builders may have their own sales people, but don’t forget their number one goal is to sell the project for the builder and often with the terms favourable to the builder,” he says. “Your REALTOR® will guide you through the process, may show you other options, and negotiate the contract most favourable for you.”
Why should I work with a REALTOR®?
Asking the right real estate questions, and seeking answers from a trusted team of professionals will put your mind at ease.
“Experienced REALTORS® provide a lot of value to their clients whether buying or selling a home,” Roberts explains. “We know the market area and can help you avoid costly mistakes in regards to contract errors/omissions and provide relevant market data. We also have networks of trusted professionals who are used time and time again that we know will do an exceptional job. I’ve narrowed down my lists of professionals I recommend to my clients and I provide that information to them depending on their area.”
An online search can be a great starting point to get information, but you can trust the expertise of REALTOR® when it comes to the entire home buying or selling experience! Find a REALTOR® in your area, or get a referral from someone you trust, and they’ll be happy to answer all your real estate questions.
