The YEGHome Buyers

Guide

Associate Broker/REALTOR®

ThomasHarrington.ca

780-918-8036

Thomas Harrington

REVERE

IndexWhat this guide contains

Ultimately my goal is to make this acomprehensive guide so you know and understand the homebuying process. Working Together

The Pre-Approval

Defining Your Search

Home Buyer Incentives You Should Know About

Searching For Homes

Viewing Homes

Making an Offer

Using A Lawyer

Complete The Transaction

FAQs

I)

II)

III)

IV)

V)

VI)

VII)

VIII)

IX)

X)

Testimonials“Thomas took the time to

explain everything to us. He understood our busy schedule and

was able to accommodate.

Thomas was knowledgeable and professional but

always made us feel comfortableduring the process.”

“He made himself available 7 days a week at almost any time and

was always punctual to meetings. I am a first time home buyer and Thomas

was very organized and providedstep by step instructions from the

viewing stage to all of thefinal paperwork.”

“We found our first house with ease. He made our experienceas first time home buyers so

effortless and seamless.

Everything was explained in away we understood.”

WorkingTogether

WorkingWith Me

Plain and simple, this is one of the largest purchases - let alone decisions - in your life.

Ultimately my goal is to get you into the home that fits your needs. I’d encourage you to read my reviews online -the writing is quite literally on the wall.

We’ll be there to assist with the more analyticalportion of the home search process. A large portion ofthis job is being an objective 3rd party and additionalvoice of reason.

As Ryan Serhant has said; “Buying a home is not ashopping spree, but rather a process of elimination.”

There’s no pre-determined set number of homes you need to see before you find the one, let’s hash out yourcriteria and see what is out there, more on that later withbuyer’s questionaire.

I make myself available 7 days a week to my clients.

Anyone can open the door and just view a home.

The job of a great agent is not just to open the door, but provide a world class buying experience and make sureyou’re getting the right home for your needs.

We bring negotiation skills, valuation skills, technical legal knowledge, and a breadth and depth of the home purchase process that will provide a seamless home buyingexperience to you.

You need a professional.

One you can trust, who knows the market, and won’t stop untilyou’re in your dream home.

REVERE

On top of world class service & my proven experience, we also offer cash back to buyers.

This is our way of saying thank you. As well as a bit of a kick back for working together. The real goal of cash back is to assist with covering the closing costs of purchasing a home (more on that later).

Cash back is awesome, but if you overpay for a homethese buyer savings are useless. The real goal is findingthe right home and at a fair price.

$500 cashback if you buy a home from us.

$1000 if you buy and sell a home.

ThePre-ApprovalAfter 5 years of experience I can say a huge chunk ofbuyers are doing the home search process entirely backwards.

The true first step in any home search is a mortgage pre-approval.

Most buyers start their home search without even doing a soft pre-approval.

HUGE Mistake.

I see a lot of other agents out there harping on this pointto the point that it has almost become a cliche, but, it’s true.

Truly there is no worse feeling and nothing more crushingthan finding your dream home and then failing to getapproved on financing.

Shopping without checking your bank accountGenerally speaking when you go into any kind of store youprobably know how much money is in your bank account,and there’s a good chance you have some sort of budgetfor yourself

Aside from all these benefits to you - there are several practical reasons to get pre approved

Knowing with peace of mind and 100% confidence in what you can afford and can comfortably shop within your price range.

Strengthen your offer.

With recent mortgage rule changes home buyers qualify for significantly less than they did just a few years ago, and therefore a larger number of pending deals fall through due to financing.

Presenting an offer where a client has a full pre-approval will increase the seller’s chance of accepting as well as potentially make them more flexible on terms and price as well.

Tighten your focus.

There are no shortage of listings in our market. Without a refined search, the right home could pass you by.

I have a great network of Mortgage Brokers & Mortgage Advisors who can find you great rates & terms, will work around the clock, and are located nice and close to you. In fact, many of them are mobile and can arrange to meet at your convenience.

What are yousearching for?It's important to consider how many beds, bathrooms,and square footage you need. Not just for what fits yoursituation right now, but also what will fit your futureneeds.

It's important to ask yourself; how long do you seeyourself in this home? It's also important to think aboutthe additional area factors on the next page.

Factors to considerParks & Playgrounds

Schools

Transit

Grocery, Convenience, and Amenities

Cafes/Restaurants/Entertainment

Proximity to Work Nightlife/Bars/Lifestyle

Fitness Facilities

Price

Choosing a Neighborhood/Area

Ideal Move-In Date:

Why?

What’s Plan B?

The credit will provide up to $750 in income tax relief.

Please ask your accountant about the details of thistax credit.

The First-Time Home Buyer Incentive

The first-time buyer incentive helps qualified first-timebuyers reduce their monthly mortgage costs via ashared-equity loan.

The qualifiers for this incentive are:

You have the minimum (5%) down payment to be eligibleYour maximum qualifying income is no more than $120,000Your total borrowing is limited to 4 times the qualifiying income

Through the First-Time Home Buyer Incentive, theGovernment of Canada will offer:

5% for a first-time buyer’s purchase of a re-sale home

5% or 10% for a first-time buyer’s purchase of a newconstruction.

BuyerIncentives

Let’s have a discussion regarding the pro’s and con’sof this program.

Please contact your mortgage professional regardingthe details of this program.

The First-Time Home Buyer’s (FHTB)Tax Credit is afederal tax credit you may apply for as a home buyeron your income taxes.

The Canadian government’s Home Buyers’ Plan (HBP)

Allows first time home buyers to borrow up to $25,000from your RRSP for a down payment, tax-free. If you’repurchasing with someone who is also a first time homebuyer, you can both access $25,000 from your RRSP for a combined total of $50,000.

Please ask your Mortgage Professional and FinancialAdvisor for details about this program.

Since the HBP is considered a loan, it must be repaidwithin 15 years.

Don’t forget about our Home Buyer Cash Back as well!

The YEGHome Buyers Guide

Costs that cover the maintenance of the building, typicallyinclude SOME utilities, common property insurance, andsetting aside money in the reserve fund for larger capitalcosts down the road.

Condo Fees

Amenities

What is important to you? Typically the more amenitiesthe more expensive the maintenance, what is a priorityto you?

vAre there nearby gyms, cafes, etc so you don’t need oneINSIDE your building?

Parking

A big consideration is parking in a condo. Edmonton is acity that definitely favours having a vehicle. A large numbercondos come with 1 stall included. If you need 2 stalls this isimportant to consider as it will affect your search.

Building/Developer

Not all buildings are created equal. A reputable developercan save headaches down the road. Additionally, “trendy”buildings tend to build up a bit of a stronger demand anda following as well. As Edmonton’s downtown continues togrow, and frankly become cooler, this is something tokeep an eye on for condo buyers.

Roofs can last for many many years but eventually need tobe replaced. Important to know the age of a roof particularlywhen you’re shopping in any area with older homes.

Age of Roof

Same as above, windows are a large project and keep youinsulated from the outside world. Age of windows is important,and, if they have been upgraded it is important to notewhat type were used.

Age of Windows

It’s no secret, Edmonton is cold! Knowing the age of thefurnace, if it is in good working order, and if it has beenregularly maintained is crucial for any home.

Furnace

Garage, street, pad, etc - it’s important to know where youcan and can’t park around your home. Also many people inEdmonton favour garages, knowing the type of garage you’dlike will affect your search as well.

Parking

Particularly older ones - it is important to lookat the “bones” of the home, as well as the mechanicalcomponents. Trendy renovations are great but all of theitems mentioned above can be very costly to replace.

Overall With Homes

Please note - a home inspection will cover most of these itemsand give you a more clear picture of where any given Home

stands on these potential considerations.

Townhomes can be a great mix between condosand homes. They often combine and provide some of thebetter features of a detached house vs a condo.

Townhomes typically have more and better parking thana condo, typically coming with a garage.

Less maintenance

Condo fees are typically lower but includeLESS. Utilities are very rarely included in the condo fees ofa townhome, and you have more maintenance responsibilityas an owner.

Condo Fees

I’d recommend viewing my blog post/podcast on thepro’s and con’s of Condos vs Houses at

http://themillennialhomeowner.ca

Buying a new home or condo can be very lucrative option

Many builders require your full down payment as a depositonce the deal is firm. Meaning you’ll pay your full downpayment upfront, then move into the home 6-8 monthslater on average.

Deposit/Downpayment

These are important questions depending on your currentliving situation.

Occupancy/completion timeline

How long until the building is complete?

If you are building a house

How long will it take the builder to complete?

I’d recommend viewing my blog post/podcast on thepro’s and con’s of Condos vs Houses at

http://themillennialhomeowner.ca

We have the ability to sendcustom property updates straight

to your inbox.

We can build a search for you basedon your criteria - as specific or

vague as you’d like to be!

CustomPropertyUpdates Our listing alerts let you know the MOMENT a new home

hits the market. It will also alert you if the price is reducedon any current listings that meet your criteria.

You will also get a convenient portal to the MLS® that willshow all the homes that meet your criteria in real timeand you can favourite, reject, comment on, and sort themin various ways

OurWebsiteOurWebsiteYou can also use our site, RevereHome.io, to browsehomes. Our intuitive search and responsive websitemakes searching easy.

We are currently working on a deeper search than anyother home search website. Soon, with the help of A.I.and Machine Learning, you will be able to search bykitchen cabinet colour, architecture style, and much more!

Revere Home PricingOur development team has built a proprietary and exclusivehome pricing model. Using real time data, our algorithm isable to give prices on most homes.

My personal site has many convenient pre-made searchesif you’re unsure of where to start!

ORThomasgharrington.comThomasHarrington.ca

ViewingHomes

Once you’ve gotten your pre-approval and we haverefined your online search, it’s time to actually startlooking at homes.

I make myself available 7 days a week to view homes.

I know everyone’s schedule is different and ensuringwe make time to view the homes you want to see ismy priority.

All I ask is that you provide at least 1-2 days noticeif you’d like to book a private tour of a home.

Generally speaking the maximum number of homes youwant to view in any one outting is around 5.

Any more and they will all start to blur together

Neighbourhood InfoThe Edmonton Real Estate Board has some great info onthe various communities in Edmonton if you’re stillnarrowing down your desired area:

https://yegishome.ca/communities

School DisctrictsIf you’d like to know the catchment area for any particularhome we recommend checking the following sites:

https://schoolmap.ecsd.net

https://epsb.ca/schools/findaschool/fast/

Revere Home PricingOur company has developed a proprietary algorithm that cangive a strong estimate of the market value of a home. This canbe a great tool to cross reference the listing price of a home.

https://reverehome.io

Making anOffer

We will provide comprehensive sold data for the areaso you can make an informed offer.

Check The Revere Price.

Offers are reaching out your hand and saying “nice to meet you”.

It’s important to evaluate the area to determine the marketvalue range for the property and figure out what you’rereasonably willing to pay.

it’s time to make an offer.

Once you’ve found a house you’re ready to make your home,

Your offer will have several conditions. These are for yourbest interest and to allow you, the buyer, to do your duediligence on the home before the purchase is firm.

123

For the average priced home the magic number is around$10,000 - though it can be lower or higher. You then split thisdeposit between your initial and additional deposit.

For example:

$1000 initial deposit, $9000 additional deposit

$2500 initial deposit, $7500 additional deposit

$5000 initial, $5000 additional

- Home Inspection Condition

- Financing Condition

- Condo Document Review Condition

- Country Residential-Related Conditions

Generally your condition period is around 2 weeks/10business days. Once your offer is accepted, you are now“Pending” on that home purchase, and you will havethe duration of the condition period to complete yourdue-diligence.

Deposit amounts are somewhat arbitrary.

Typically you will be required to give a deposit on yourpurchase. This is held in trust by either the listing brokerageor seller’s lawyer. Your deposit is divided up into two parts:

Initial Deposit - The initial deposit is delivered shortlyafter offer acceptance. Your initial deposit is fully refundableshould you not waive your conditions.

Additional Deposit - The additional deposit is deliveredafter condition removal. At this point the deal is firm andyour deposit only becomes non-refundable at this point.

We will guide you on the best course of action here

Technically there are no restrictions on conditions. Depending on the property you may require more or less.

Typical conditions include:

So on and so forth. The amounts here don’t matter muchbut we mention it should you need to move some moneyaround to be able to deliver this deposit once you find thehome you love.

How long do I have to deliver my deposit?

InspectionIf at some point during your condition period you findsomething that is not to your satisfaction (based on yourconditions), you can send in a non-waiver to the sellers.

A non-waiver informs the sellers you will not remove yourconditons, and the deal is at that point void and we are backto your home search.

All that aside, if you fulfill your conditions to your satisfaction,you are then ready to send in a waiver and proceed with thehome sale!

Once your waiver is sent in, the home is officially sold! Youwill take possession typically 1-2 months after this date.

If your total down payment is $20,000 and yourdeposit is $5,000, you only have to pay the remaining balanceof $15,000 to complete your down payment.

Your lawyer will provide you further instructions on this item.

Typically the window to deliver a deposit is 2-3 business days.You will need to drop off a certified cheque, bank draft, ormoney order at the listing brokerage. Your agent will give youfurther details on this when the time comes.

It is recommended that you get an independent inspection onthe home you plan on purchasing, even if it is new or newer.We can refer you to some great local inspectors.

You reserve the right to use any inspector you wish.

Inspections are not a pass/fail inspection but rather to bethought of as more of a “maintenance report”. They are veryinformative for any new homeowners, and keep you in the loopof the upkeep that is recommended for that home.

Some minor deficiencies are to be expected in any inspectionon any home. Your inspector will inform you of the degree ofurgency of these.

In the event the inspection uncovers a particularly largedeficiency, you can ask the seller to remedy these issues priorto closing. We will then insert a new term in the contract forthese items to be addressed.

Deposits are part of your down payment.

Using aLawyerA lawyer is required for the final stages of the homepurchase process. The lawyer will meet with you 1-2weeks before the closing date and complete the finalclosing paperwork and handle the official transfer overon the possession date.

The way it works on closing date is:

Buyer’s lender sends money to buyer’s lawyer & buyer’slawyer sends funds to the seller’s lawyer & seller’s lawyerreceives funds and pays out the seller’s mortgage andany other disbursements & the seller’s lawyer releases thekeys to us and the deal is officially closed.

Completing theTransactionJust to recap the left. Once a deal is pending you will needto complete the following:

Closing Checklist

Your agent ensures the lawyer and mortgageagent receive a final copy of the deal along withthe condition waiver

Meet with the lawyer to sign off on all finaldocuments and pay balance of closing costs(rest of down payment, legal fees, etc).

SomeImportantQuestions

FREE

Who Pays?

You may be thinking;

“Thomas, this is all awesome, and this snazzy booklet is great,but how much does this all cost me?”

It’s a bit of a cliche, but buyer’s agent services are entirely to you.

In Alberta, the seller pays commissions. The seller pays a feeto their agent, and that agent shares the fee with the buyer’sagent. The MLS® is a cooperative system, meaning, everysingle listing is offering a cooperating commission to buyer’sagents.

In my 5 years of experience I have proudly collectedin commission from my buyer clients.

Working with us - Cash Back!

Transaction Costs

Even better, we actually pay you to work with us.

Did you know you earned $500 by downloading this guide?

Or simply by meeting?

Or simply by breathing and having a pulse?

Our company offers $500 in cash back to anyone whobuys a home through us. Have a home to sell as well?

Awesome, we kick that cash back up to

Aside from all this free stuff, the only other hardtransactional costs you will have as a buyer are:

Please note that all amounts are approximate and estimates based on our experience. For an exact quote/exact costplease contact the relevant service provider.

Home InspectionLegal FeesCondo Document Review

| $500| $900 - $1000| $250 - $400

1000$