Toronto

1
Torontos Real Estate Team Smart Home Buyer
Consultation
Helping You Make Educated Decisions !
2
10 Simple Steps To Buying Your Home
Become The Smart, Educated Buyer You Need To Be!
1. All About You 2. Determine Your Wants
Needs 3. Comfort Zone Financial Assessment 4.
Find Your Ideal Move-In Date 5. Go Shopping
Online The Better Way 6. Marketplace
Experience Go On A Tour Of Houses Or Condos 7.
How The Home Buying Process Works 8. Why We
Work By Referral Only 9. How A Professional
Buyer Agent Protects You 10. Whats Next And Some
Final Insights
3
Step 1 - All About You
Before we get started Id like to know more about
you !
Tell me about your lifestyle and family
4
You Will Have Four Options At The End Of Our
Consultation

• You could decide to do nothing
• You could do it on your own
• You could use a traditional salesperson
• You could work with me a By Referral Only
  consultant

5
Whats The Toronto Real Estate Market Like Right
Now?
A Smart, Educated Buyer Understands Whats
Happening In Todays Market

• Is it a buyer or sellers market?
• How many houses or condos are available right now
  to look at?
• How does this affect us?
• Beware of media reports
• Keep up-to-date via our Blog

Better Market Knowledge A Better Buying
Decision
6
Step 2 What Do You Want In Your Next Home?

• Lets Look At Your Wish List
• Neighbourhoods youd consider?
• Determine which TREB Districts to search
• Important Must Have features for your new home
• Optional Would Like features
• Whats important about each of them to you?

7
Step 3 - A Comfort Zone Financial Assessment
Are You Practicing Safe Real Estate?

• Lets take a look at your personal numbers
• What does your Budget say you should spend on
  shelter cost?
• What does the Bank say theyll lend to you?
• A Cash Flow chart puts it all together
• What about the hidden costs?

8
Step 3 - A Comfort Zone Financial Assessment
Getting A FULL Mortgage Pre-Approval

• Why is it SO important?
• Gathering the necessary documentation
• Proof of income
• Proof of down payment
• Authorizing a credit bureau report
• It MUST be unconditional AND in writing !!
• A copy for each of us
• Getting a second opinion at zero cost

9
Step 4 Whats Your IDEAL Move-In Date?

• If everything went perfectly, when would you like
  to be moved in to your new home by?
• What down payment will you have saved by that
  date?
• Whats important about that date to you?

10
Step 5 Lets Go Shopping ONLINE
According to your Wish List, Budget and Financial
Assessment

• What Toronto neighbourhoods should we look at?
• What price range do we consider?
• There are only 3 variables in real estate
  price, location and condition
• What compromises may be necessary?

11
Getting Some Marketplace Experience Is Crucial !
Smart, Educated Buyers Get The Best Deals And Are
More Confident

• Well go out to see homes on a Marketplace
  Experience Tour days, evenings or weekends
• Get an understanding of what your price range
  offers to you
• Creates a less stressful environment when you do
  find the right home
• Never miss out on a great deal because you will
  know it right away
• Never overpay because youll know its true value!

12
When Selecting Which Homes To View

• Pick several different types and styles of homes
  that appeal to you
• Drive by the areas or neighbourhoods first
• Know the difference between your Wants and Needs
• Select a maximum of 6 homes to visit on your
  House or Condo Market Experience Tour at one time
  (4 is best)
• Schedule time after the showings to sit down over
  a coffee and discuss the homes merits and to
  help focus the search

13
7-Step Smart Home Buying Process
14
Step 7 - Heres How The Home Buying Process Works
In Toronto

• We start you on our Preferred Buyer Program
  sending you targeted listings
• Make sure you have your written FULL mortgage
  pre-approval
• Arrange your deposit funds to accompany any offer
• Set a time to go and see your favourites
• Do you have other decision makers who should
  come too?
• Youve seen 3 or 4 homes or as many as 8 to 10
  and you find one you really like what happens
  next?

15
During The Offer Process, We Will

1. Do the background CMA value research before
   preparing your offer so you wont overpay for
   your home youll have all the information you
   need to make an informed decision
2. Prepare an offer that protects you, following
   your instructions and matching your financial
   budget
3. Explain the details of the offer and your options
   for specialized clauses, making sure you know
   what you are agreeing to
4. Present and negotiate the offer on your behalf to
   get you the home you want at the price you want

16
Youre Offers Been Accepted What Now?
The Final Steps

• Deliver a certified cheque or bank draft to the
  listing agents office the very next business day
• Select a lawyer and a home inspector (if
  applicable)
• Well send your offer to your mortgage lender
• Sign waiver(s) to remove any conditions in your
  offer once weve satisfied them
• Congratulations NOW youve bought your new home
  !!

17
Step 8 - Why We Work By Referral Only
Benefits Of Referring Us
Why would you want to refer me? You would
consider it if I Build your trust and Deliver
beyond your expectations
18
Im Often Serving Two Clients

• The person who referred you to me
• And you !

You Compensate Me In Two Ways

• First I get paid by the seller
• A second compensation comes from you in the form
  of your referrals

19
Our By Referral Only Philosophy
The Total Experience Scoreboard Where we want YOU
to be!
20
Benefits Of Working With Our Team

• Almost 60 years of combined experience
• Like lawyers, doctors and accountants, we are
  knowledgeable professionals and have a fiduciary
  duty to protect our clients best interests at
  all times
• Much of our business is from past clients
  referring their friends and family
• RE/MAX Hallmark is the top brokerage in the
  Toronto Real Estate Board with over 550 agents
• Continuous, ongoing training to improve our
  market knowledge and skills to serve our clients

21
Step 9 - How A Professional Buyer Agent Protects
You
Buyer Agent VS The Traditional Sub-Agent To The
Seller

• Today an agent is either working FOR you or
  AGAINST you
• Client VS customer AND
• Confidentiality VS Disclosure differences
• When you are my client, I must look after your
  best interests above my own
• As your Buyer Agent, I cannot reveal anything
  about you to anyone else

22
Agency Rules The Listing Agent MUST Follow

• The Listing Agent can only prepare a CMA for a
  buyer client upon request
• They cannot provide advice to the buyer in any
  price negotiations
• Principal fiduciary duty of the listing agent is
  to the seller

These rules clearly show that the listing agents
first LOYALTY is to the seller NOT the buyer !!
23
What A Buyer Agent CAN And CANT Do For You

• I Cant make decisions or personal choices for
  you thats your responsibility
• I Cant promise to get a property for you at
  below market value
• If I see any defects in the home, I CAN point
  those out to you too!
• I CAN do a CMA market analysis to determine what
  the true market value is for the home youre
  interested in

24
What A Buyer Agent CAN Do

• If I see a red flag, I CAN recommend a
  professional to check it out (structural issue,
  termites, etc.)
• I CAN promise to negotiate strongly on your
  behalf to get you the best price
• I CAN recommend other professionals to assist our
  buyers (home inspectors, lawyers, lenders,
  insurance agents, contractors, etc)
• Well review the Buyer Contract and our Easy
  Exit Buyer Guarantee at the end of todays
  Consultation

25
The Offer Presentation

• A time will be set to present the offer where
  should you be located?
• You sign 4 offer copies or well do it by fax
  (see sample offer in your
  HOMEWork booklet)
• Bring your cheque book...a deposit of 5 of the
  purchase price is required with the offer
• Rememberbeing nervous is normal behavior
• What is a Starbucks signback?

26
The Offer Presentation

• Well be finished the offer presentation and all
  signbacks typically in about 2 hours
  successfully or not
• What happens if there are multiple offers? How
  does our negotiating strategy change?
• Once any conditions have been satisfied, waivers
  are signed to make the offer firm and binding
• Heres what happened to one of our buyers
  recently

27
What Happens At The Home Inspection?

• Home inspection times are typically 9 am, 12 noon
  and 3 pm and it takes about 2.5 hours
• Carson Dunlop inspectors are all graduate
  engineers (see Carson Dunlop brochure)
• Important!! Book time off work for this the
  inspectors encourage you to follow them around
  and ask lots of questions

28
What Happens At The Home Inspection?

• At the end the inspector will take 20 minutes to
  write up his findings, give you a verbal summary
  and send you a link to a PDF with your complete
  report
• Carson Dunlop has Errors Omissions Insurance
  if they miss something they should have seen,
  theyll pay for the repair!
• Take some time at the end to measure for blinds
  or take photos/videos to show your family ?

29
The Inspection Is All Finished What Happens Now?

• If the inspection report is OK, youll sign a
  waiver to remove the condition
• If a major problem is found that we DIDNT know
  about prior to our offer negotiations, well try
  to arrange a credit on closing from the seller
  to cover a portion of that expense

30
What Is Your Lender Doing NOW ?

• We immediately fax your lender a copy of the
  offer and the listing for your new home-to-be
• He submits it to his central lending unit for
  final approval (CMHC, GE etc)
• The lender sends us a written unconditional
  Mortgage Commitment Letter
• Once weve reviewed the Commitment Letter and
  its all OK, youll sign a waiver to remove that
  condition from the offer ?

31
Condo Status Certificate Condition

• Gives us a financial snapshot of the condo
  corporation
• Tells us the amount of money in the Reserve Fund
• Are there any special assessments contemplated or
  pending?
• Financial statements and budget
• Have your lawyer review the Status Certificate
• Sign a waiver to remove that condition if theyre
  OK

32

Title Insurance

• How does it protect you? (Title errors, fraud,
  unknown encroachments or building code
  violations)
• What costs does it eliminate? (Survey, zoning
  clearances, utility and tax clearances, lawyer E
  O insurance fee)
• How much does it cost? Net cost to you?
• Where do you get it?
• Most lenders require it now!

33
The Buyer Contract

• Have you already reviewed the sample Buyer
  Representation Agreement (BRA) contract?
• Average length of time for the contract
• Your geographic boundaries
• The commission rate is 2.5 or greater as offered
  on the MLS listing
• The seller pays this commission through the
  listing broker on closing

34
The Buyer Contract

• What if the listing agent is offering less than
  2.5? What are our choices?
• Buyer can elect not to view those homes OR the
  buyer agrees to pay the difference out of their
  own pocket IF we are not able to negotiate the
  commission up to 2.5
• Future referrals are acceptable ?
• Best of all, in 99.5 of all buyer purchases by
  our Team

35
How Much Does All This Cost You?
As a valued client of Torontos Real Estate
Team, it does NOT cost you anything to have me
working for you!
36
Our Easy Exit Buyer Guarantee
37
The Buyer Representation Agreement

• The essence of the BRA contract I am being
  authorized to represent you and look out for your
  best interests throughout the home buying process
• The dollars sense of it whats my motivation
  to get you the best price?
• Any questions about the Contract or our
  Guarantee?
• Would you like to sign the Buyer Contract today
  for 6, 9 or 12 months?

38
Now That Youre A Smart, Educated Buyer, What
Should You DO Next?

• You review the custom Preferred Buyer listings
  as you receive them from me
• Get your FULL Mortgage Pre-Approval in writing
  and fax or email me a copy
• Well set up a Market Experience Tour right away
• Call or email me with a list of homes youd like
  to see on your Tour
• Following proper procedure if you see an
  interesting For Sale sign or walk into a
  weekend open house

39
Now Were Seriously Looking

• We set an appointment to go and view the
  interiors of the homes youve selected
• If you find one you like, we put an offer in If
  you dont, we do it all over again
• Well review your Wish List periodically to see
  if there are any additions or deletions we need
  to know about

40
Where Do We Go From Here?

• Read over your Smart, Educated Buyer HOMEWork
  booklet at home
• Decide to set up your RRSP Home Buyers Plan
  account and make a deposit
• Arrange where your offer deposit funds are coming
  from bank account, line of credit etc
• Lets go have some fun ?

41
Some Final Paperwork To Complete
Do you want me to help you buy your next home?
Lets get the paperwork all done!