What To Expect From Your Team Members Real Estate Representatives A good real estate representative should be able to save you time and trouble. You can deal with the vendor's real estate agent or you can enlist one to work on your behalf. There is no charge to you if the real estate representative takes his or her commission from the vendor. If, however, you wish a salesperson to act exclusively for you, there may be a cost involved. Make sure you are clear on who is paying the real estate representative and you understand your obligations once you've signed an agreement. When discussing your need with a representative, be as specific as possible about the kind of home you're looking for and your price range. If you're not certain, set aside sometime for your representative to help you determine these. He or she will know what is on the market, in which neighbourhoods and at what price, and can save you time by prescreening home listings-screening out the ones that don't meet your needs or budget. Then he or she can make appointments for you to see the homes that suit you. A real estate representative can also assist you in making an Offer to Purchase. Representatives are aware of current market conditions, what price offers are realistic and what conditions to include in any offers. Builders/Contractors You may deal with a builder or contractor if you buy a new home, have one custom built or require renovations to a resale home. To ensure a builder's credibility and quality, ask for references, talk to other customers about the builder's work or check with the new warranty program. If you're buying a new home from a developer or builder, visit other housing developments that the company has built. You can also ask builders or contractors if they are a member of a local home builders association, or ask for a provincial license number to ensure your contractor is registered. If you're building a custom home, you may also want to hire an architect. Standard architect's fees are 10% of the total project cost. Builders of custom homes and renovators usually work on either a fixed-price or a cost-plus formula. Your contract should outline what the payment type is. All contracts with a builder should be as specific as possible about construction details, right down to the brand name or model number of any finishes. Any changes to your contract should be initialed by you. Appraisers You may wish to have an independent appraisal done of a property before you offer a price. It can keep you from paying more than the market value. You can still make an offer, conditional on completion of an independent appraisal. If the appraised value is lower than the asking price, you may be able to negotiate a new price. If your lender requires a recognized appraisal to complete a mortgage loan, having one completed up front may save you time and money. The appraisal should include an unbiased assessment of the property's physical and functional characteristics, and analysis of recent comparable sales and an assessment of current market conditions affecting the property. This information provides you with an expert second opinion as to the property's market value. Real estate appraisal is an unregulated business in most provinces and a number of different appraisal organizations exist. Lenders The key to finding the right lender is to shop around. Many different institutions lend money for mortgages, including banks, trust companies, credit unions, caisses populaires, pension funds, insurance companies and finance companies. You can even find a private lenders listed in your local newspaper. It will save you money to speak with more than one lender in each category because the terms and options of each will vary. Some lenders, such as credit unions, deal only with members. But don't be shy about approaching new institutions. For example, if you'd like to get your mortgage at a trust company, you don't need to have a savings account there. Mortgage Brokers Mortgage brokers don't usually lend money but rather put you in touch with others who do. For example, brokers are aware of private lenders that you may not be able to find on your own. Brokers are independent, which means that they are not affiliated with any specific lending institutions. Their role is to find the lender with the terms and rates that will best suit you. In some cases, the mortgage broker will charge you a fee for services. This charge is more likely if you have a poor credit history and will probably be a small percentage of the value of the mortgage, for example, 1%-2%. But, in most instances, the broker's fees are paid by the lender. Lawyers/Notaries Hiring a lawyer (or notary in Quebec) is one way to ensure that your legal interests are being protected when you buy your home. Your lawyer will review any contracts you need to Purchase. If you make an Offer to Purchase that is accepted, your lawyer will be responsible for many of the closing arrangements. Lawyers' fees range widely and depend on the complexity of the deal, but will probably cost a minimum of $500 plus disbursements. You can check for a lawyer referral service in your community or call the law association for the names of lawyers who specialize in real estate law. Home Inspectors It is always a good idea to have the home inspected. An inspector should supply a detailed written report on how well-built the home is, and whether any repairs are necessary and their estimated cost of repairs and the priorities-what should get fixed first and how soon. You can find a home inspector through a local professional association of home inspectors or by asking your real estate representative. Inspectors are unregulated in most provinces, so you should inquire about the inspector's credentials and ask for references. Ensure that the inspector has errors and omissions insurance. This means that if, for example, you buy a home that requires a costly repair that the inspector didn't report, then the inspector can be held financially responsible for the cost of the repair. Home inspectors' fees can range from $150-$350 for a home that costs $300,000 or less. If you have made a satisfactory home inspection a condition in a Offer to Purchase a home, the inspector's fee are paid by you. With older homes, you may also ask an inspector to check for termites, lead paint, asbestos or other problems. Insurance Brokers An insurance broker can provide you with all your insurance needs, including property insurance and mortgage life insurance. Lenders insist on property insurance because your property is their security for your loan. Property insurance covers the replacement cost of your home, so premiums vary depending on your home's worth. Your lender may also suggest that you buy mortgage life insurance. This is often available through your lender, who then simply adds the premium to your regular mortgage payments. But lender-supplied insurance can be more expensive than from a broker. Don't confuse property of life insurance with mortgage loan insurance which is mandatory for high ratio mortgages.