Get an experienced Agent in Your Corner

A professional agent works with his clients, helping them avoid pitfalls and risks and providing useful expertise at every step towards their goals. So whether you decide to work with me or not, pick an agent you feel comfortable with and enlist the services of that agent as your Buyer Agent. Then you're no longer just a ‘tire kicker’ and you become a client with clear legal rights and protection. When your agent hears of a great buy, he will then be sure to call you first, because he is working on your behalf. I always recommend that you appoint your own agent to avoid risks and get the most out of your home buying position.

Don’t Rush into Anything

Your agent should take the time to show you everything available that meets your requirements..

In a hot market it is well advised to make a timely decision on your prospective home as there are often multiple competitive offers for the best properties

However, in a buyer’s market you should not feel that you are under time-pressure, unless a home is truly under-priced, and a good Buyer Agent agent will know which ones are below today’s market value and which ones are not.

Get "Pre-Approved" Not just "Pre-Qualified!"

Make sure you are in the strongest negotiating position possible. Price is only one element in the negotiations, and not necessarily the most important one. The strength of your offer and closing dates might be the most important things to the seller.

The way to make the strongest offer today is to get "pre-approved". Pre-approval occurs after all of your personal information has been verified. You are actually APPROVED for the loan and the only thing left to do is the appraisal on the property. While a pre-qualification can be obtained in a few hours, a full pre-approval only takes a few days and because It's  a VERY IMPORTANT TOOL   I recommend it to anyone interested in getting the best price.

Sell First, Then Buy

If you have a home to sell, sell it before finalizing a house to buy!  If you are asking a seller to accept your offer contingent upon the sale of your property, you are not in a position of strength and  the seller will either by-pass your offer and accept one that is not contingent on the sale of property or will hold out for a high enough price to cover  the risk. Buying before selling can cost you thousands of dollars

If you're concerned about the availability of homes for sale, talk to your Buyer Agent then do some drive bys. You can identify whether there is a good supply of suitable homes and locations. This will make you confident enough to put your current property on the market.

Alternately you can sell your exiting home conditional for a period of time on ‘the seller finding a suitable new property’. If you do not find something suitable within the agreed time-frame the deal is off and you do not have to sell your current home.

 ‘Foreclosures’ or ‘Power of Sales’

Beware of watching too much U.S Television !   Canadian Law is entirely different then U.S Law and these are not nearly as attractive in Canada as they are in the US

1/ Canadian Lenders are not allowed to sell properties at a knock-down price just to recover the loan. They are legally obliged to seek FULL MARKET VALUE and to expose the properties on MLS for a normal period of time before even reviewing Offers. If the Price is low for the neighborhood it will be largely due to poor condition so by the time it is fixed you will seldom be ahead

2/ There is ABSOLUTELY NO WARRANTY by the Seller or the Lender. If the entire structure collapses due to some disguised defect the day after you take possession, it is 100% your problem

3/ Your Solicitor will confirm what your Buyer Agent should tell you, namely that the ‘Form Offer’ which the Lender insists upon is one-sided and while it covers the Lender against any eventuality, it provides absolutely NO PROTECTION FOR THE BUYER.

4/ Fridge, Stove, Dishwasher, Washer, Dryer, Light Fixtures ,Window Treatments and any other ‘movable’ items or CHATTELS ARE NOT DEEMED TO BE INCLUDED WITH THE SALE.

5/ In Canada, the DEBTOR HAS THE ‘RIGHT OF REDEMPTION” up to the very minute that the new owner takes possession.

If one was buying such a property to fix up and re-sell or renovate and then rent, this would be an inconvenience with your time and energy squandered and wasted expense for Legal Fees, Home Inspection Costs and Appraisal Fees

However, imagine if you were buying it with the intent of moving in

Then between the date of the agreement right up to the completion date, the debtor has won the Lottery, received help from family or friends, or more likely secured a new job and worked out a payment schedule with the Lender.

Meanwhile, you have sold your previous home, you have nowhere to live, and in addition to Legal Fees, Home Inspection Costs and Appraisal Fees you have also  incurred substantial Selling Costs and and booked Movers !

Again ,you are 100% on your own with absolutely no recourse against either the Debtor or the Lender

6/ Knowing  you are buying a foreclosure or more likely a ‘power of sale’ as those are far more frequent in Canada, your own LENDER WILL BE MORE CAUTIOUS on the both appraisal  and the ‘loan to value’ ratio than on a regular transaction.

Lastly, when you see someone who allegedly makes millions of dollars buying distress properties with ‘no money down’ and ‘instant positive cash flow’ and ‘money back on closing’ you might want to ask yourself why they don’t just spend their time doing that and why they need your $99 for sharing their ‘secrets’ !