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Home Buyer's Guide
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Let's Get Started
Buying a home is an extensive process. There's so much to know and so many things to do, we know it can get overwhelming. Our team made this guide to serve as starting point in your homebuying journey. Learn the process of buying a home and find answers to questions Buyers often ask us.
If you come up with any questions as your read through this guide, give us a call or send us a message. We're here to assist you through every step of this process.
CENTURY 21 All Points is a small, family-owned real estate brokerage serving all of Halifax Regional Municipality. Teamwork is one of our core values. Every individual on our team works together to ensure our clients receive excellent care from the first meeting, to Closing Day, and beyond.
With over 53 years of combined experience in real estate sales and customer service, nobody knows the HRM real estate market like our team.
A Note from David
In my more than three decades of selling real estate in the HRM area, I have discovered some interesting constants in the process!
The question is frequently more important than the answer. By this,
I mean that a well framed question literally forces a well thought out answer. But here is the problem, even if you are an experienced home buyer, or a first time buyer, each transaction is different; things and times have changed.
For example...
“Is there internet access available?”
“Is there High Speed internet access available?”
“What type of High Speed internet access is available?”
Asking the right question is crucial! Our job is to help you ask the right questions, not just give answers to the questions that you ask.
The following pages should help you ask “better questions” on the way to buying your new home.
It should be mentioned, that if you have to ask a question more than once, it is not your fault. On the contrary, it is our fault,. It means that we did not answer the question properly or in such a way that you were able to understand it…”Our bad”
Always Remember, You Have Questions...We Have Answers.
Getting Pre-Approved
WHEN to get pre-approved is a very important factor when thinking about buying a new home. In order to know the WHEN, you need to understand the market & the number of homes currently on the market.
You need to know the condition, style and features of those homes, where other buyers are looking, what they are looking for, and WHEN they're looking.
You also need to be certain that you are ready to buy! Look at your financial health critically; have you “de-cluttered”? Have you removed unnecessary items, so that your credit score looks better. Are there some minor repairs or touch-ups that could be done to improve your credit score's appearance?
We can assist you with all of the details after your offer is accepted - inspections, legal, financing, renovations, etc, etc, etc.
Time is of the essence; we are in a busy and active market. The market in real estate doesn’t start based on a calendar…. People are buying now!
MLS®
Multiple Listing Service®, or MLS, is a database that provides all kinds of information about properties on the market.
This means, quite simply, that we can show you any listing out there, it doesn't matter which company has it listed!
Should I Call the Listing Agent?
In a word, NO!
Here's the thing, the listing agent is working FOR THE SELLER!
Talking to a listing agent as a buyer means that you could disclose information about you and your motivation to buy... and you probably disclose way too much!
Will you get a deal if you use the listing agent to purchase?
In a word, NO!
The seller will benefit, but you probably won't. The listing agent is in a “Fiduciary Relationship” with the Seller, and as such, owes all of their loyalty and best efforts to the Seller!
I can represent you and your best interests, to get you the best deal...for YOU!
Private Sales
I can also show you private sales, as almost every private seller will co-operate with REALTORS®.
There are usually only two reasons why they are selling privately…
1. To keep the commission in their pocket (not your pocket)
2. To try and fool an unsuspecting buyer into paying more than the property is worth!
In addition, most private sales have tried to sell before and were unsuccessful because they were asking too much for their properties, hardly worth the risk!
Assessed Value vs Market Value
Market Value: According to the Province of Nova Scotia
The Nova Scotia Assessment Act states that all properties in Nova Scotia must be assessed at market value. This approach is considered the most equitable and widely accepted system in North America and throughout the world. All provinces in Canada use this approach.
Market Value:
- Is the most probable price, not the highest, lowest or average price
- Is expressed in terms of money
- Implies a reasonable exposure time to the market
- Assumes an “arm’s length” transaction in the open market, which is assuming a willing buyer and a willing seller with no advantage being taken by either buyer or seller
Market Value: According to the Real Estate Industry Worldwide
The price that a willing buyer will pay, and a willing seller will sell at, assuming that neither party is acting under undue influence (e.g. transfer, divorce, death, etc).
Almost all property in Nova Scotia is sold at prices higher than the “assessed value”. So then how can you use the “assessed value” to determine the market value of a home...in a nutshell, you can't!
Two identical homes on the same street in all probability have a different assessment based on when they sold last!
If you asked most Nova Scotians “Would you sell your property for the assessed value by the province?”, the answer would probably be “NO”. Homes sell for more than the assessed value every day, and in the cases where that doesn't happen, it usually means that the home has been “over assessed” and was never appealed by the owner!
Market value is made up of supply and demand, current economic conditions, time of the year, and many other factors. It is current, right now, and reflects what people are actually paying for property that they are going to live in.
Buyer Brokerage Agreement
In Nova Scotia, buyers that are receiving agency service from a REALTOR® are required to sign a Buyer Brokerage Agreement (BBA). This is mandated by the Nova Scotia Real Estate Commission (NSREC), which exists to protect consumers in real estate transactions.
The BBA seeks to provide transparency to the consumer on their relationship with a REALTOR®. How much the REALTOR® is paid, the term of the agreement, the obligations of a buyer to the REALTOR®, and the obligations of the REALTOR® to the buyer are all outlined and agreed upon in this document.
This does not mean that you call up on a house, and BAM! you have to sign a Buyer Brokerage Agreement.
Select a REALTOR® that you feel confident and comfortable with, then ask questions about the agreement.
How long is it for?
How does it obligate you, the buyer, and us the REALTORS®?
At the end of the day, it is all about your comfort level and transparency!
REALTORS®, no matter who they represent, either the buyer or the seller, get paid by the seller when the transaction closes.
When a property is listed, the split of the commission is determined at that time, a portion going to the listing REALTOR® and a portion going to the selling REALTOR®.
Mortgage Brokers on the other hand, are paid by the lending institution that the mortgage is placed with. Their primary objective is to match the buyer with the mortgage product that best suits the buyer, usually a combination of rates, terms, and conditions.
Mortgage Brokers are able to source mortgage funding from a wide variety of lenders, as opposed to going to your bank for their “Posted Rate”.
Mortgage Brokers can frequently get a better rate for you at the bank that you already deal with (strange but true!).
Who Pays for What?
Deposits 101
What is a deposit, and why do I need one?
A legally binding contract requires three main elements: an offer, acceptance and consideration.
While the terms “offer” and “acceptance” are fairly straightforward - an offer is made, and either rejected or accepted - “consideration” refers to something of value that is being gained through the contract, i.e. the “deposit”
A deposit can be as little as one dollar in order for it to be a legally binding contract. Practically speaking, a seller will not accept one dollar as a deposit.
What happens to my deposit?
The deposit is part of your down payment and goes toward the purchase price of the property you are buying. The deposit is usually held by the listing company of the property, and it is held “in trust” in a separate trust account that is audited regularly by the Nova Scotia Real Estate Commission.
The lawyer handling your purchase of the property accounts for all monies that form part of the transaction.
Part of your agreement calls for a “due diligence” period that protects you, the buyer, to have time to do whatever inspections you require, arrange financing, have a legal review of all agreements that you have signed. This period is usually 10 days, but can be specified as more or less time on the contract.
If you decide to terminate the agreement for whatever reason, within the 10 day due diligence period, the deposit is returned to you in full without interest or penalty.
If you terminate outside of the due diligence period, you may be liable for loss of deposit or other damages awarded to the seller by the courts.
Property Taxes
Approximate Annual Property Taxes = Assessment Value of Property x Tax Rate
Let's calculate the approximate annual property taxes on a $350,000 home in HRM, where the mill rate is 1.24%, or $1.24 per $100 of assessed value.
$350,000 x .0124 = $4,340.00
Mill Rate
The mill rate is the amount of tax payable per dollar of the assessed value of a property. The mill rate is based on “mills”, French for “thousand”. It is a figure that represents the amount per $1,000 of the assessed value of the property, which is used to calculate the amount of property tax
So, using the example above, the mill rate is $12.40 per 1,000
Bank Mortgage Life Insurance
...Not a great deal!
Bank mortgage life insurance is an example of a questionable service offered in the banking industry. Banks sell life insurance, which we strongly recommend to our clients to NOT purchase through the bank.
Know why? It costs more and you get less. It tends to be higher priced than private insurance bought through an arms-length insurance agent (you know, so banks can boost their profits) and is offered right there as an up-sell when you’re “already” getting something done.
It’s so easy and convenient, but it pales in comparison to that of an independent insurance policy.
The bank is in it to make money, not to safeguard your future.
The result can be insurance that only covers whatever is outstanding on the mortgage at the time and in the event of death or injury.
You pay, pay, pay premiums for years (premiums that only increase with each passing term, by the way) and your actual pay-out coverage goes down, down, down, as your mortgage balance goes down.
The bank gets theirs, and you, well, whatever. That’s not their problem. It’s your problem.
Building Inspections
Even if your home is a new home, it will not be perfect, there are always issues, some major, some minor.
The inspection is designed to do a couple of things: let the buyer know the condition of the home at that point in time, and to let them know what they can expect in the short term future.
Inspectors do not have crystal balls, though. Wooden decks, by their very nature, do not last forever, and neither does brick or vinyl. Note that inspectors view the home as it is right now.
Houses need to be maintained, and improved upon. We frequently talk about the “nominal age vs the effective age” of a home, for example, if the major systems have been replaced, ie wiring, plumbing, heating etc, then while a house may be 50 years old, nominally, but the effective age would be much newer.
Inspections are also about not having any surprises, so approaching the inspections in this frame of mind is a good thing, and the buyer will usually be in attendance at the inspection as it gives them an opportunity to speak with the inspector and understand, rather than simply read the inspection, and have no specific frame of reference.
Types of Inspections:
- Building Inspection - Including thermal camera imaging.
- Sewer-Septic Video Inspection
- Radon Gas Test - We recommend this test if you have living space in the basement or lowest level
10 Questions to Ask When Hiring a REALTOR®
Homeowners should interview a few potential REALTORS® before deciding on one to sell their home. Here are some smart questions to ask:
1. How Long Have You Been in the Business?
A freshly-licensed REALTOR® can do a wonderful job and will have up-to-date training; those in the business longer bring more practical experience to the table.
2. What is your average list-to-sales price ratio?
A competent listing REALTOR® should hold a track record for negotiating sales prices that are very close to list prices.
3. How will your marketing plan meet my needs?
Specifically, how will you sell my home? How will your “Marketing Plan” maximize the price and timing of the sale of my home? Will you show me a sample flyer? Explain your “Online Presence”
4. Will you provide references?
Ask if any of the references are related to the REALTOR®. Ask if you can call their references with additional questions.
5. What separates you from your competition?
Key phrases to listen for: assertive, available by phone or e-mail, analytical, professional, reliable, and able to maintain a good sense of humour under trying circumstances.
6. May I review documents that I will be asked to sign?
A good REALTOR® makes forms available to you before you are required to sign them. Ask to see agency disclosure, the listing agreement and seller disclosure.
7. How will you help me find other professionals?
Ask for a written list of referring vendors. Get an explanation if you see the term “affiliated”. It could mean the REALTOR® is getting compensation from vendors.
8. How much do you charge?
You don’t have to ask if the fee is negotiable, since all real estate fees are negotiated. It may be a good idea to ask what their commission fee is for your reference.
9. What kind of guarantee do you offer?
If you sign a listing agreement with the REALTOR® and later find that you are unhappy with the arrangement, will the REALTOR® let you cancel the agreement?
10. What haven’t I asked you that I need to know?
Pay close attention to how the REALTOR® answers this question, because there is always something you need to know - always.
Canada's Foreign Buyer Ban
On January 1st, 2023, Canada's Prohibition on the Purchase of Residential Property by Non-Canadians Act came into effect. This new law has had many people looking to make Canada their new home concerned, but it is a lot to do about nothing...REALLY.
The new law is designed to protect both current Canadians and soon-to-be Canadians like you from wealthy people who see real estate as just an investment, and have no intention of ever moving to Canada. They may just want to hold the property as an investment, which a lot of the time is being left vacant.
If you are a foreign worker, sponsored by a Canadian employer...
If you have, or are applying for a Permanent Residency (PR) Card (you can't purchase unless you already have the PR Card if you need a mortgage)...
If you are an International Student (You will not qualify for a mortgage if you do not have an income to support the mortgage)
Then this law does not apply to you!
*The Foreign Buyer Ban was amended in March 2023. Learn more here.
Buyer Viewings: Rules of Engagement
We will CONFIRM all appointments with you. No Confirmation = NO Appointment
Property Viewing Availability
If you've requested to view a particular house at a particular time and we cannot schedule it, it's usually because the home is not available, not that I or another REALTOR® on our Team is not available. There are a number of reasons why a property would be unavailable for viewing at a particular time:
- Tenants require 24hrs written notice
- The Sellers many have small children
- The Seller may have animals that have to be removed
- Other agents may have already booked a viewing for the time you requested
When Are We We Available?
Because we operate as a Team, there is usually at least one Team member available, however...(please see Property Viewing Availability above)
Scheduling Appointments
NO FLY ZONE is generally daily 3:30-6pm. It simply takes too long to get anywhere around HRM during “RUSH HOUR”. A single property can be an exception, but a number and depending on location can be a problem.
Be On Time for Viewings
Why? Viewings are scheduled for a specific time and possibly only 15 minutes long. If our appointment is for 1:00pm to 1:15pm and you show up at 1:10, that means that if another agent with a 1:15 shows up at 1:15, we HAVE to leave, sometimes we have no control on the length of available appointments due to the market conditions!
Shoes/Footware
If we take ours off…you take yours off! In fact, oil from feet does more damage than your shoes do when it is dry out. If it's raining or snowing though, shoes off!
Watch how we place our shoes after we remove them - Ready for a quick exit, and avoids the wet spots!
Number of People Allowed on Viewings
The number of people allowed to attend a viewing is limited to those who will be on title. No excess people, unless authorized in advance by the Listing Agent.
Keep Kids Under Control At All Times
If you bring your kids along for a viewing, please keep them under control at all times - no touching!
Limit of Homes in One Viewing Schedule
We can visit up to FIVE properties in one viewing schedule, depending on location and travel times between viewings.
Parking in Driveway
We don't park in the driveway to ensure there's enough room for you to park in it. Rural properties are an exception as they usually have longer and wider driveways.
Photos/Videos
Be careful of what you say while on a viewing, you may be on camera! If you are viewing a house as a potential buyer, there is NOT a requirement for your permission. There could be cameras or even hidden cameras videotaping you and what you say and do can be live-streamed directly to the seller. Chatting about how much you love the place or anything else that would reveal your motivation on a particular property could seriously undermine your negotiating position.
Information deemed reliable, but not guaranteed. Not intended to solicit sellers or buyers under written contract with another REALTOR®.
David Yetman
Broker - Owner - Realtor ®
Century 21 All Points
Independently owned and operated.
Independently owned and operated.
1212 Hollis St Unit 608, Halifax, NS B3J 0B3