Determining the selling price for your Toronto home is fairly easy to do. All it takes a bit of research to find comparable properties, which are called “comps” for short. The idea is to find homes that are a similar as possible to the one you want to sell.

Real estate lenders and appraisers go through this same process to create a valuation for a home. Finding three comps is the minimum requirement for a valid appraisal.

Step One — Make a List of Characteristics

Start by listing the characteristics of your home and include in the list these items:

1. The number of bedrooms and bathrooms.

2. The size of the home in square meters or square feet.

3. The year the home was built.

4. Adjust the price to take into account any special amenities that the home has, such as a wine cellar or a swimming pool. Deduct the cost of making any repairs that the buyer must do.

5. The quality of the neighborhood.

Step Two — Let a Professional Do the Work Working with a professional real estate professional, like those found at Lilford & Taylor, is an easier way to get information about comps. They have access to a searchable database of all the homes currently listed for sale. All they have to do is put in the characteristics of your home and search the database.

Real estate agents also have easier access to the prices that homes sold for and their sales history. This information is now legally allowed to be made available to the public but not yet easy to access in Ontario.

Step Three — Find Prices of Similar Homes

Historical selling prices are not such an important data point when determining the selling price for your Toronto home because homes are selling for an average of 102% of their asking price in Toronto. This means that the current asking prices for recent listings are likely to be very close to their selling price.

After finding three comps to use as a logical basis for making a decision, the next step for determining the selling price for your Toronto home is to think about your motivation.

Step Four — Are you a motivated seller?

A motivated seller has a powerful need to sell a home. It might be the need to buy another one, to relocate for a new job, or some personal challenge, such as going through a divorce. Motivated sellers can sell a property very quickly in a hot market like Toronto by simply discounting the listing price from the average price found for the comps.

Step Five — Discount to Sell Fast

The discount does not have to be much to sell a home in a market like Toronto. Sales statistics show that there are only 17 days for the median number of days, which homes are listed for sale. A 2% discount from the market value of the home will likely attract offers for the listing price and maybe even more.

Conclusion

If you are not highly motivated, just list the home for its actual value and it will probably sell in the first month that it is listed. If you are only trying to gauge the market, and do not care if the home sells quickly, list it for 10 % higher than its value to see what purchase offers come in.

Source

Where to find real estate sold data in Canada https://www.zolo.ca/news/sold-data-canada

Everyone has priorities when they’re purchasing a home. Because the home-buying process is complex, takes time, and it's easy to get off-track, Making a List of Home Features you Want should be your first priority. Not only will this list help keep you organized, but it will also help your real estate agent understand how you’re prioritizing things.

The Home's Location

If the home doesn't have easy access to where you work, your children attend school, and everything else you do, then it isn't ideal. The location should have good access to main roads where the traffic flow doesn't have too much congestion.

Some people also prefer locations where the lot is close to recreation areas, parks, and community pools. Others would rather be at the end of a cul-de-sac where it's quiet. So, be sure to check the neighborhood out to ensure it meets your requirements.

The Property's Size

While the size of the home is a priority ranking high on many people's lists, the size of the lot or property should also be taken into consideration. If you're looking at a neighborhood, lot sizes will probably be similar.

Once you start looking at homes and properties, you'll discern if you want a small or large lot. You'll also determine if you prefer one on the corner or interior. It all depends on how much privacy, lawn, and driveway you want

.

Number of Bedrooms You Need

Families moving into a new home already have an idea of how many bedrooms they need. Typically, if there are no children, two bedrooms are ideal. However, if there are children, that number increases. Some families have their children share rooms while others have separate rooms to accommodate privacy and different bedtimes.

If you have visitors staying regularly, then adding a guest bedroom is ideal. The extra room could double as an exercise room, office, or playroom. You could also use the extra room to accommodate a hobby or for storage.

Number of Bathrooms You Need

You may have a preference for how many bathrooms your future home should have, as well. If you're looking at older homes, you'll find that they'll have one, and you'll need to add one in the future if you can't live with that.

The bathroom's size and style are also factors to consider. Are you looking for a bathroom with a shower and tub combination, or do you want them to be separate? Do you want another half-bath, or do you need another shower? Consider these things when Making a List of Home Features you Want.

Final Thoughts

Your real estate agent will appreciate the time you take when you’re Making a List of Home Features you Want. These details will help keep you on track and prepare you for homeownership.

A seller is so happy to receive a decent offer on a home for sale, accept it, sign the purchase agreement, and then enter into the escrow period. That is when the nerve-wracking waiting begins until the escrow closing is scheduled and the sale is finalized. The wait can be excruciating.

The close is not always on a certain date because so many factors are involved. Sometimes, there are delays in the paperwork or processing delays at the title company, which slows the process.

The home escrow process in Toronto can take 30 days or less if everything goes very smoothly. Nevertheless, allow up to eight weeks if there are challenges along the way.

Here are four ways to stay calm:

1. Understand the process and help complete each step.

2. Practice daily meditation.

3. Take anti-anxiety medication prescribed by a doctor.

4. Enjoy a stiff drink.

The most helpful of these four ways is to know what actually has to happen for the sale to close.

The Home Escrow Process in Toronto

1. Open the Escrow Account — After the purchase agreement has been accepted by the parties, an escrow account is opened with the earnest money deposit from the buyer that is specified in the purchase agreement.

2. Bank Appraisal — The bank providing the mortgage financing will conduct an appraisal that normally the buyer pays for. This is to make sure the purchase price matches or exceeds the appraised value. This is a critical part of the process. If the appraisal is lower than the purchase price, either the buyer will have to come up with the difference or the seller will have to come down in price or a compromise must be made between the two. If this is not possible, then the appraisal may be challenged by giving more information, getting another appraisal, or a new lender may be sought to see if their appraisal may be more favorable.

3. Financing is Secured — The buyer should have been pre-approved before the purchase agreement is accepted, so this is just the formal process of getting the money from the bank.

The bank gives a detailed loan commitment in writing stating the terms of the loan that the buyer must accept in writing.

4. Seller’s Disclosures Approved by Buyer — If the Seller made any disclosures to the buyer, such as part of the construction does not meet building codes, these must be accepted in writing by the buyer

5. Inspections — Any inspections of the property are conducted, repairs if any are made, and the buyer accepts the inspection process is completed. Who pays for the repairs is determined by the terms of the purchase agreement.

6. Insurance — Home insurance is obtained. Flood insurance is obtained if required by the mortgage lender. Title insurance is obtained for the title report that shows the property is free and clear of any liens or other encumbrances.

7. Final Walk-Through — The Buyer inspects the property personally for the last time to make sure no damage has occurred that happened at the last moment.

8. Escrow is Closed — The buyer signs the closing documents. The seller gets the proceeds from the sale less the real estate commissions paid to the agent. The buyer gets the keys. Everyone celebrates.

Summary

It is not easy to stay patient throughout this process; however, being impatient does not make the home escrow process in Toronto go any faster. Usually, after the financing is secured and committed by the bank, the rest of the process goes forward without much delay unless the inspections uncover something seriously wrong.

Source

Understanding the Escrow Process https://www.investopedia.com/articles/mortgages-real-estate/08/closing-escrow-process.asp

Under most circumstances, when you're trying to figure out what kind of home you can afford to buy, mortgage lenders use the 28 percent rule. The rule means you're not spending more than 28 percent of your monthly income on your mortgage before taxes. We're going to address four simple ways to be honest regarding, “What type of home I can afford in Toronto?”

1: Look at How Much You Can Afford to Borrow

Many future homeowners benefit from using the 28/36 rule. That means your monthly housing costs shouldn't be exceeding 28 percent of your gross monthly income. Regarding your monthly debt payments, those shouldn't exceed more than 36 percent of your gross monthly income. Working with these percentages helps you avoid getting into mortgage payments that are too high.

2: Determine How the Amount You Can Afford for a Down Payment

If you can put down a larger down payment, then you'll be able to purchase a bigger house. Typically, your down payment will come from two sources. They include a savings account or equity in your current home. You can avoid paying mortgage insurance if you put down at least 20 percent. Some loans only require a 3 percent down payment. Remember, though, the lower you go to higher, your monthly mortgage payments will be.

3: Think About What's an Affordable Price

Calculate what you have for your down payment and add it to the maximum amount you should be borrowing. That number is the total you can afford to spend on a home. Continue revising this number as you shop for mortgages and houses. For example, if you find a fixer-upper, it's wise to lower your down payment and put that money toward renovations. That way you’re not surprised with the need for funds after making the purchase.

4: Understand the Local Housing Market

Are you researching homes during a seller's market? Or, are you purchasing during a buyer's market? Knowing this information may be the difference between being pressured to commit more than 28

percent of your income to housing or not. Speak to your realtor about what you should be planning for, so you're not hit with surprises.

Final Thoughts

When it comes to asking yourself questions about the type of home I can afford in Toronto, you must be honest. Otherwise, you will find yourself having issues with debt, looking at houses you can’t afford, or setting unrealistic goals. Working with a real estate agent will solve or eliminate the majority of these issues. They’ll talk to you about how to figure out how much you can borrow, down payments, pricing, and the local market’s conditions

After years of renting a place to live, you may feel ready to make the leap from tenant to homeowner. The advantages of owning property in the city can be numerous, including the opportunity to build equity, set down roots and have something to call your own. But before making the leap to buying property, it's important to be sure you are actually ready. Buying a home isn't a decision you should make impulsively. Assessing a few important areas of your life will help you determine if you are ready to buy a home in Toronto.

1. Make an honest assessment of your financial situation

Buying a home is a large financial commitment that you can't take lightly, and neither will the bank when you apply for a mortgage. You'll need a regular, stable source of income to be sure you can pay your mortgage each month, and savings to help you secure the property you want. Not only should you have a down payment, you'll also want to have some extra money saved in case of unexpected home repairs once you move in.

2. Look at Your Long Term Life Goals

If you truly aren't sure what your future holds, tying yourself to a property long term might not be the right move. Take some time to assess whether you'll be happy staying the in the same spot long term or want to move on quickly. Even if you don't anticipate staying in the same place long term, you can still purchase a home and make money on your investment by selling it for more than you paid. However, if you plan to sell quickly, you'll want to invest in a property that is likely to appreciate quickly.

3. Determine Where You'll Get Your Down Payment

If you don't have money saved to put down for a home purchase, you can look into assistance programs, cash in investments you may have made, or approach family members to help you get the initial amount together.

4. Narrow Down Your Search Area

As you enter the process of looking for a home, the entire process will be made easier if you have an idea of what you are looking for and in what part of the city. This will save you time and energy as you begin your search.

If you've determined that you are ready to buy a home in Toronto, Lilford Taylor can help you with the rest. Our experienced team can help with every part of the process from listing to accepting an offer for your property. Contact us today to get started.

Finding and buying a home can be an exciting time, but before you sign the contract you’ll need to have your down payment and mortgage in order and ready. When it comes to choosing your mortgage, it’s important to keep in mind that there are several mortgage payment options and home loan types in Toronto to choose from. It’s important that you assess each option and review the pros and cons of each as well as choose the best option for your budget. You’ll need to determine how much you can actually afford each month, including the cost of insurance and taxes. A good tip to remember is to borrow as little as possible, which will prevent you from getting buried under your mortgage. Here are

some of your options when it comes to payments and home loans in Toronto.

Home Loan Types in Toronto

There are several mortgage options for homebuyers in Toronto, including a fixed-rate mortgage or an

adjustable-rate mortgage as well as an interest-only mortgage.

Fixed-rate mortgage:

This is the most common and typically the best option for homebuyers. This type of mortgage locks in your interest rate and payment for the life of your loan, which means your interest rates cannot increase, so your mortgage payments can’t expectedly go up.

Adjustable-rate mortgage: This type of mortgage means your interest rates can be periodically adjusted according to the changes in current rates. This also means your payment amount can change, so it’s important to keep in mind that should you choose an adjustable-rate mortgage, although your payments may decrease, they can also easily be increased, sometimes unexpectedly.

Interest-only mortgage: 

An interest-only mortgage means you pay only the interest on the loan for a specified amount of time, which is typically 5-7 years. After the interest-only term is complete, you can choose to refinance your loan or begin paying the principal balance. It’s important to note that if the rates rise, you can expect to have a higher monthly payment even if you refinance your loan for another interest-only loan.

Mortgage Payment Options:

During the mortgage process, you’ll have to decide which payment option is the best for your needs. The option chosen will determine the amount you’ll pay and how often you will pay it. There are usually

5 payment options to choose from:

Monthly-This is the most common option. Monthly payments means that you will be required to have your mortgage payment paid to the lender on the same day each month, so you will make 12 equal payments to your mortgage each year.

Weekly payments:

Weekly payments can either be mailed or taken directly from your bank account every week-52 weeks a year. The amount of the weekly payments is calculated by dividing the yearly mortgage payment by 52.

Bi-weekly payments: This payment option means you will make a payment to the mortgage

lender every two weeks, so the payment amount is found by dividing the yearly mortgage

payment by 26.

Accelerated bi-weekly payments:

This type of payment allows you to pay the mortgage off quicker, so you’ll save on interest. The way this works is instead of payment amounts being the expected amount for a bi-weekly payment, you will pay half the monthly mortgage payment every two weeks.

Accelerated weekly payments: This is similar to the accelerated bi-weekly payment, except you divide by 4 (the weekly payment) and multiply by 52, so you will be making weekly payments instead of bi-weekly payments.

Reviewing mortgage payment options and home loan types in Toronto can be overwhelming, so it’s

important that you discuss your options and financial situation with a mortgage professional. Discussing

your options with a professional will allow you to find the best option for your specific needs and

budget.

Understanding the Basics- Home Foundations 101

The true strength and durability of a building restfully on its foundation. The main purpose of the foundation is to hold any building or structure that is above it and to keep that structure upright and stable. A strong foundation keeps everything balanced and supported whereas a poorly constructed foundation is actually dangerous and puts any occupants or people in the neighbouring area at risk! This is why a foundation is so important to any home or building and is also why it is important to understand the basics of foundation development and support.

Home Foundations 101

The very first part of any home that is designed and constructed, the foundation is the single most important piece of the puzzle and is the key to having a home that is durable and supportive. While it is not seen once the home is built, the foundation affects every aspect of home design, maintenance, support, durability, and safety. “Building a good foundation requires a lot more than digging a hole and pouring some concrete into forms. It must be tailored to its site like a custom suit, taking into account soil conditions, water tables, even the quality of the backfill. And as with a custom suit, every detail must be perfect: the base properly compacted, the formwork set up right, the concrete free of voids” (This Old House). Disregard just one of these key aspects of the foundation, and the best designed and prepared design for your home can fail. Investing the time and money and resources necessary to make a strong and durable foundation are well worth it both in the short-term and long-term views!

What is the Purpose of a Foundation?

A foundation has three key roles that it plays when it comes to the construction of buildings:

- The basic piece under the ground that is designed to support the structure above it and support the weight of the entire building.

-  Well-built foundations are designed to absorb the abuse of Mother Nature and to stand strong during earthquakes, hurricanes, and other disasters.

- The foundation has to be designed and built in such a way that it keeps the ground moisture from seeping in and damaging structural components.

Weight Bearing Considerations for Home Foundations 101

The final thing to consider when looking at what role a foundation plays, it must be able to withstand what is known as dead load weight and live load weight. “The dead load is the weight or the load of the basic structure itself. This is called dead load as it remains constant. On the other hand, the live load is the weight of the people and other objects that they bring with them. The foundation must be firm and must be able to channel the weight of the entire building to the ground. If the building is being constructed on sloping regions or moist ground, the foundation has to be customized and durable” (SA Homes). It is easy to see how these two weight loads work- the building itself may weigh 20 tons but there could be an additional 2 tons coming in and out at any time. The foundation must be able to hold all of this weight safely day in and day out. A good foundation will deliver all the support and stability needed to keep the building and its occupants safe and stable!