Top 5 Home Buying Questions
At the MOE Real Estate Team we get asked lots of questions. In terms of buying a home in Surrey, Langley and White Rock we usually get the same questions over and over again. Here are the top 5 questions we get answered by our team and by Zach from the Silverman Mortgage Group.
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Q1. I’m thinking about buying a home. Where do I start?
Get pre approved! You need to know how much you can afford before you start looking. Talk to a mortgage professional like Zach and his team at the Silverman Mortgage Group. They’ll consult with you on down payments required, and all of the different mortgage options available to you. Every mortgage is not the same. Make sure you investigate your options thoroughly.
Q2. Is there a best time of the year to buy a house?
Not really. Prices depend on a number of factors like supply, demand and other housing market conditions. These can vary from one neighbourhood to the next. Rather than season, the numbers of days on market is the biggest indicator of your negotiating power. If the home was recently listed, the seller will have had less time to test the market and gauge buyers’ response to the price, and will be less likely to negotiate. So given this, sometimes it’s best to buy in the winter, sometimes the summer, spring, etc. It depends on a lot of factors.
Q3. What are the closing costs for buying a home?
The biggest one is the property purchase tax which is 1% on the first $200,000, 2% on the balance up to $2M, 3% up to $3M, and 5% over $3M. For example, using this formula a $600,000 townhouse would be $10,000. And a $1M home would be $18,000. The other fees are lawyer/notary which is usually around $1,000 and any disbursements which are things like property taxes, utility bills that the current owner has already paid that you owe them for. Your lawyer or notary will calculate these costs for you.
Q4. Does it cost money to use a Realtor when buying a home?
No. The way it works is the Seller lists their home and pays a fee to do so. This fee is then split in half basically with half going to the listing agent and the other half going to the selling agent (the buyer’s realtor). So essentially you are getting our knowledge and expertise for free!
Q5. I’ve got a house to sell. Should I sell first or buy first?
It really depends on the market conditions. In a fast moving market where homes are selling fast you’ll need to sell first so you are in a strong position to buy. The seller of the home you are wanting to buy in this type of market usually won’t look at a subject to sale offer because there are usually other offers coming in that don’t have a subject to sale clause. In a slower market when homes are sitting for longer, a subject to sale will likely work but you are still better to sell first as your negotiating position is much stronger and you’ll likely get a better deal.
Buying a home in Surrey, Langley or White Rock is a complex process but when you work with real estate professionals like the MOE Real Estate Team it becomes much easier. These are some of the buying questions we get asked most often.
If you have more questions please feel free to reach out to us or you can also download our buyers guide which answers even more questions.
To reach out to Zach at the Silverman Mortgage Group visit them here.