| QUESTION: |
Who pays the company that sells the property? |
| ANSWER: |
When you buy a home, the real estate company you are
working with gets paid a percentage of the commission that the listing company gets. In
other words the home SELLER pays ALL the commission. |
| QUESTION: |
When making an offer to purchase, should I start low and
then work up from there? |
| ANSWER: |
I have found that if a buyer makes a realistic first
offer, it puts the seller in a better frame of mind and they may look at your offer
in a more positive light. Remember, in any negotiation both parties must feel that
they have won something. |
| QUESTION: |
If I make an offer to purchase subject to getting finance,
then change my mind about the purchase, can I claim I did not get financing and get out of
the deal? |
| ANSWER: |
NO. So when you make an offer to purchase, be sure
it is on the home you really want. |
| QUESTION: |
Does my deposit cheque actually get deposited and cleared
or is it just held until closing? |
| ANSWER: |
It gets deposited in the listing real estate company's
trust account. The money is held in trust until closing and then becomes part of the
purchase funds. But the money does leave your account. |
| QUESTION: |
If I am working with a real estate salesperson but go into
an open house on own, am I committed to buy that home through that salesperson at
the open house? |
| ANSWER: |
No. However, you should tell the real estate salesperson
at the open house that you are working with another REALTOR®. You should also put your
REALTOR® name on the sign-in sheet, as well as your own. |
| QUESTION: |
If I am working with a real estate salesperson from one
company, can he/she show me properties listed by other companies? |
| ANSWER: |
Certainly. Most properties are listed on the Multiple
Listing Service (MLS®) Each member-company has the right to show and sell the other's
listings. |
| QUESTION: |
As a buyer, can I ask my real estate salesperson to supply
me with information such as what similar properties are selling for or how long a home has
been the market? |
| ANSWER: |
Yes indeed. You should ask for and get all the information
you need to help you decide whether you should buy the home and how much you should pay
for it. |
| QUESTION: |
Do I have to pay GST on my home purchase? |
| ANSWER: |
Not on existing resale housing, except if there is
substantial renovation (major and comprehensive structural changes). GST is applicable to
newly constructed homes, but a builder's rebate will lower the actual tax to be
paid. |