Patrick (Pat) Dardis

Purchasing a home can be a stressful experience for anyone, but especially for first-time buyers who may not be aware that there are a host of costs associated with buying a home other than the actual purchase price and real estate commissions. It helps to know what those costs are in advance rather than get an unexpected surprise at closing and add to an already stressful experience.

Many of the costs are a factor of the purchase price, the value of the home and/or the amount of financing you are obtaining.

Closing costs. These generally refer to legal fees, property tax and utility adjustment costs and, in some provinces, land transfer taxes.

Legal costs go to cover lawyer (notary in Quebec) fees and legal transactions such as reviewing the terms of the offer, preparing and signing a mortgage, conducting a title search on the property, registering a new title, obtaining relevant documentation and determining appropriate adjustment costs.

You should consider hiring a real estate lawyer to handle your transaction. If you don't have or know of a lawyer, your best referral source is family or friends, or through the law society in your area.

Land transfer tax. In some provinces this tax is levied when property changes hands. It varies with the purchase price of the property.

Other costs. Costs other than closing costs can include but are not limited to the following:

Property Survey. This is undertaken to verify the location of property's boundaries, measurements and structures and identify any easements, rights of way or encroachments on your, or adjacent properties. Title insurance is often an alternative to a property survey.

Interest Adjustments. This covers any interest accrued between the closing date of the purchase and the first regular payment date of the mortgage.

Goods and Services and Sales Taxes. GST and sales taxes will depend on the type of property being purchased. Always ask if either or both of these taxes apply before signing an offer to purchase.

Service Charges. These are charges to hook up utilities such as electricity, gas, and telephone service.

Home Inspection. It can be a good idea to have an inspection done before completing the purchase to evaluate the structural and mechanical condition of the property. This could save you lots of money in future repairs.

Appraisal fees. Some purchasers want to ensure they are paying a reasonable market price for the home they are purchasing. You may want to condition your offer subject to a satisfactory appraisal by a member of the Appraisal Institute of Canada.

Mortgage Life Insurance. Special insurance coverage to cover the cost of discharging your mortgage in the event of death or severe illness is available from most lenders.

Moving costs. Although it may sound obvious, purchasers may not consider moving as a cost of buying a home. Moving costs will depend on the distance of the move and the amount of furniture and goods to be transported. Get several movers in to give you an estimate before choosing one.

Appliances. Check to see whether appliances are included in the purchase agreement. If not, you will need to go out and buy them.

Landscaping, Fencing, Decks, etc. If purchasing a newly constructed home, keep in mind that there will likely be a need to landscape and fence the yard in the first year or two.

Annual maintenance. Homes like other possessions require care and maintenance to maintain their value. You need to plan for future painting, and replacement of any needed items like roof shingles, appliances, furnaces, depending on the age of the home you are buying.

CLOSING COSTS SAMPLE CALCULATION FORM

To assist you in preparing for closing costs, Dominion Lending Centres has created this document so that there won't be any surprises come closing time. Please contact me with any questions you have regarding any of the below items. Costs will vary.

Not all real estate practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics. Here's why it pays to work with a REALTOR®.

1. Navigate a complicated process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multipage settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.

2. Information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They'll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

3. Help finding the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties.

4. Negotiating skills. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Property marketing power. Real estate doesn't sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner's contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

6. Someone who speaks the language. If you don't know a CMA from a PUD, you can understand why it's important to work with a professional who is immersed in the industry and knows the real estate language.

7. Experience. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. Even if you have done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

8. Objective voice. A home often symbolizes family, rest, and security - it's not just four walls and a roof. Because of this, homebuying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they'll every make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.

For you Real Estate needs in Fort McMurray, Alberta please call Patrick Dardis 780 215 7355 or visit my web site at www.McMurraysBestHomes.com

· One of the easiest ways to cut your heating and cooling bill is to make sure that your attic has 7 inches (R-22) or more (up to R-49) of fiber glass or rock wool insulation.

· A simple step we often ignore-replace or clean your AC vents once a month.

· Don't leave your bathroom ventilator running longer than necessary, as it can drain your entire house of cooled or heated air in about an hour!

· During the summer keep your drapes closed in the heat of the day. In the winter keep the south facing window drapes open.

· Make sure all windows are caulked and weather-stripped to save 10% off your H/AC bill.

· White window shades or blinds will deflect the heat away from your house.

· Lower hot water costs by installing low-flow shower heads and faucets.

· Insulate your water heater and set its thermostat at 115o F.

· You can cut up to 50% off your lighting costs by replacing 25% of the bulbs in your main-use areas with fluorescent lighting. Fluorescent lights are more expensive but also last 6-10 times longer than incandescent bulbs.

Patrick Dardis is a Realtor working for Royal LePage True North Realty in Fort McMurray, my personal web site is www.McMurraysBestHomes.com

1. Create a HOME MARKETING BOOK, even if you do not currently have a listing. Use an expired listing, another agent's listing or your own home. You must have a sample to show prospective sellers during the presentation.

2. Every listing you take, with few exceptions, should have a HOME MARKETING BOOK.

3. Use a high quality binder, with a color photograph of the exterior of the home on the front. The more obvious the quality, the less likely it will disappear from the listed home.

4. Once completed, the HOME MARKETING BOOK should be placed in a conspicuous place within the home. In the entry, on a dining or other table or kitchen counter, etc. are best. It should be very visible to prospective buyers.

5. Your name, along with your company, should be printed on each page.

6. You may want to slip each page in an individual plastic, non-glare sleeve to hold the paper pages, rather than three hole punching them.

7. Make an attempt to use all the pages of the HOME MARKETING BOOK contained within this packet of material. The more comprehensive it is, the better image it projects to your seller and prospective buyers.

8. Once the home has sold and closed, you should ask the seller if they wish to keep the HOME MARKETING BOOK. If they choose not to keep it, then it makes a nice gift for the new owners. Depending on local procedures, you may give it directly to the new owners or their selling agent.

Pat Dardis is a Realtor in the province of Alberta, working in the Fort McMurray area. I am presently working for Royal LePage True North Realty. My personal web site is www.McMurraysBestHomes.com