Your Real Estate Journey, Explained: Top FAQs Answered
Buying or selling a home can feel complex. Our goal is to make the process transparent, enjoyable, and successful. Below are the most common questions we hear, broken down into buyer and seller essentials.
Buyer Essentials: Your Path to a New Home (40 FAQs)
We've compiled 40 of the most essential questions every buyer asks, covering everything from the first step to getting the keys.
Initial Preparation & Financial Clarity
1. What is the real cost for me to work with a REALTOR®?
In the vast majority of cases, working with one of my buyer agents comes at no direct cost to you. The fee for the buyer's agent is typically covered by the listing brokerage (the seller’s side), meaning my expert representation protects your financial interests throughout the negotiation process.
2. Should I get Pre-Approved or Pre-Qualified for a mortgage?
Always aim for Pre-Approval. Pre-qualification is a quick estimate, but Pre-Approval is a formal commitment from a lender based on your verified finances. Being Pre-Approved gives you a serious competitive advantage and proves your offer is strong.
3. How much money do I need for a deposit, and when is it due?
The deposit is a sign of good faith and becomes part of your down payment. A typical deposit is 5% of the purchase price, usually due shortly after your offer is accepted (within 24 hours). It is held securely in a lawyer's trust account until closing.
4. What are "Closing Costs," and what should I budget for them?
Closing costs are the expenses you pay on top of the purchase price to finalize the sale. Major costs include land transfer taxes, legal fees, and title insurance. We typically advise budgeting 1.5% to 4% of the purchase price to cover these essentials.
5. What is the minimum down payment required to buy a home?
The minimum down payment is generally 5% for homes under $500,000. If you put down less than 20%, you must also pay for mortgage default insurance (CMHC/Genworth).
6. What is a "Stress Test," and do I have to pass it?
Yes, every federally regulated lender requires the mortgage stress test. It ensures you can still afford your mortgage payments if interest rates rise. You must qualify at a higher rate than your negotiated rate.
7. Can I use my RRSPs for a down payment?
Yes, through the Home Buyers’ Plan (HBP). First-time buyers can withdraw up to $35,000 tax-free from their RRSPs to put toward the purchase of a home.
8. How does a lender determine how much I can afford?
Lenders primarily use the Gross Debt Service (GDS) and Total Debt Service (TDS) ratios, analyzing your income versus your total debt obligations to ensure you can comfortably manage all your payments.
9. What credit score is needed to buy a house?
While standards vary, a score of 680 or higher is generally considered good enough to qualify for the most competitive mortgage rates.
10. Do I need a lawyer when buying a home?
Yes, absolutely. A real estate lawyer is mandatory. They are responsible for conducting the title search, transferring ownership, adjusting taxes, and registering the new mortgage.
The Search & Market Dynamics
11. What personal information will your team need from me to start a serious search?
To comply with regulatory requirements (such as FINTRAC) and begin the process of representing you, we must verify your identity upfront. We require a copy of your driver's license or other photo ID. Additionally, to ensure we can move quickly and negotiate effectively when the time comes, we will need the necessary documentation for your lender, including employment details, a clear understanding of your financial pre-approval, and banking information required for processing an offer deposit.
12. How quickly will I find out about new listings?
You will be the first to know. We set up automated notifications directly from the MLS system that match your exact criteria. As a client of Fayez Shehab, you also gain exclusive access to private, off-market properties that haven't hit the public sites yet.
13. Can your agent show me every home on the market, even those listed by other companies?
Absolutely. When you sign a Buyer Representation Agreement with us, we are fully committed to helping you purchase any home that catches your eye.
14. If I find a property online or drive past an Open House, what should I do?
Contact us immediately—before anyone else. This protects your interests. Once you have the address or the MLS number, share it with us. We will handle all communication, ensuring you are professionally represented.
15. Can I attend Open Houses without my agent?
Yes, you can, but please be sure to always tell the hosting agent that you are already working with Fayez Shehab's team. This simple step is vital to protecting your agency relationship.
16. What is the difference between a "Buyer's Market" and a "Seller's Market," and how does it affect me?
A Seller's Market has few homes for sale, leading to competition. A Buyer's Market has many homes, giving you more negotiating power. I analyze the market daily to craft the best strategy for you.
17. How long does the home buying process usually take?
It often takes buyers 4 to 8 weeks of active searching to find the right property. Once your offer is accepted, the process to closing usually takes 30 to 90 days.
18. When is the best time of year to buy a house?
Statistically, fewer buyers are active in the winter months (late fall to early spring), which can mean less competition. However, the most inventory generally appears in the spring, offering more options.
19. What should I look for during a viewing besides aesthetics?
Focus on the structural and mechanical systems: look for signs of water damage, check the age of the furnace, air conditioner, and hot water tank, assess the state of the roof, and note any strange odours or noises.
20. What if I am unhappy and want to change agents?
I believe strongly in open communication. If you are unhappy for any reason, please talk to me first to resolve the issue. If not, we can discuss the options for a mutual termination of your agreement.
The Offer & Negotiation Process
21. What happens after my offer is accepted?
This is the conditional period. We start the due diligence process, where you work to remove all conditions such as inspection, financing, and lawyer review. Once all conditions are waived, the sale goes firm.
22. What makes a strong offer in a competitive market?
A strong offer is about more than just price. It includes a high deposit, few or no conditions if comfortable, a flexible closing date to suit the seller, and proof of pre-approval to demonstrate financial solidity.
23. Can I include conditions in my offer?
Yes, and you should if they provide peace of mind. Common conditions include a home inspection condition and a financing condition. We will discuss which conditions are necessary versus those that might weaken your offer.
24. What is a "bully offer," and should I submit one?
A bully offer is one submitted before the seller's planned offer presentation date. It is often high and has a short expiry time. We may consider this strategy if the house is a perfect fit and we want to preempt a bidding war.
25. Can your team represent both the buyer and the seller?
Yes, this can happen, but we handle it with strict professionalism. We implement a clear firewall between the two agents to ensure your best interests are always protected.
26. What is the "cooling-off period" in a real estate transaction?
In some jurisdictions, there may be a statutory cooling-off period, allowing a buyer to back out of a sale for a short time after acceptance, often with a small penalty. We will advise you if this applies to your purchase.
27. What is a "Chattels and Fixtures" list?
Fixtures are items permanently attached to the home and are usually included. Chattels are removable items such as appliances and furniture. We make sure the offer clearly specifies what is included.
28. How many homes should I view before making an offer?
There is no magic number. Some buyers know what they want after five viewings, while others take fifty. We will keep viewing homes until you feel confident and excited about submitting an offer.
29. What is an "escalation clause"?
This is a clause that states you will automatically increase your offer by a certain amount (for example, $1,000) above any competing offer, up to a defined maximum price. It is a strategic tool used only in bidding wars.
30. What kind of questions should I ask the listing agent at a viewing?
Focus on information not easily found in the listing: why the seller is moving, how long the home has been on the market, the seller's preferred closing date, and whether there have been any recent price adjustments.
Due Diligence, Documentation & Post-Offer
31. What happens if something is discovered on the home inspection?
The inspection is your safety net. If a major issue is found, we have the right to negotiate a repair, a price reduction, or a credit, or the clause allows the offer to become null and void if an agreement cannot be reached.
32. What exactly is a "Title Search"?
A title search is the lawyer's review of the property's legal history. It ensures that the seller legally owns the home and that there are no outstanding liens, claims, or easements on the property that could later impact your ownership.
33. What is the benefit of a "Status Certificate" when buying a condo?
This is a crucial legal document for condo purchases. We use it to check the condo corporation's financial stability, see if any special assessments are planned, and ensure the building is well-managed.
34. Who chooses the Home Inspector?
You do. It is important that you choose a qualified, impartial professional whom you trust. We can recommend several inspectors who have proven to be thorough and reliable.
35. What is the purpose of a final walkthrough?
The final walkthrough is done just before closing, usually 24 to 48 hours prior. Its purpose is to ensure the property is in the same condition as when you purchased it and that all agreed-upon chattels and repairs have been completed.
36. When do I get the keys to my new home?
You receive the keys on closing day, once your lawyer confirms that the title has been successfully transferred and the funds have been released to the seller. This usually happens in the afternoon.
37. How do property tax and utility adjustments work on closing day?
Your lawyer handles the adjustments. If the seller has pre-paid taxes or utilities past the closing date, you must reimburse them for that portion. If the seller has not paid, the cost is deducted from the sale proceeds.
38. What is the importance of homeowner's insurance?
It is mandatory. Your mortgage lender will require proof of home insurance before they release the funds on closing day. We advise getting this arranged well in advance of closing.
39. Do I need to be present for the closing?
Generally, no. Your lawyer handles all the final paperwork and closing procedures on your behalf using the Power of Attorney you provided them, allowing you to focus on moving.
40. What should I do right after I get my keys?
The first things you should do are change the locks on all exterior doors for security, and then arrange for the transfer and setup of all your utility accounts, including hydro, gas, water, and internet.
