The buying process, step by step.

Before we start looking

Buying a home in London, explained covers these first conversations in more detail. In short, before searching seriously, we:

• establish whether you're already represented, or have entered into a representation agreement with another agent or brokerage;
• make sure the financing groundwork is in place with your mortgage professional or lender, so we're searching in a realistic price range;
• talk about what you're looking for: location, the type and style of property, your plans, the purpose of the purchase, and your must-haves and nice-to-haves;
• set up an initial property search.

Before I provide real estate services or assistance, Ontario rules require me to provide you with the RECO Information Guide and explain it to you. You can also read it yourself at any time.

Read the RECO Information Guide↗ (opens in a new tab)

Source: Real Estate Council of Ontario↗ (opens in a new tab), RECO Information Guide (Residential) (December 1, 2023)

When you're ready to see some homes

When you're ready, we agree on a time and I book the appointments, allowing reasonable time to see each property and to travel between them. Once the appointments are confirmed, you'll get the address where we'll start. Sometimes the first time I meet a buyer in person is outside the first house.

Style, colours and personal taste are yours to judge. I pay particular attention to things that may affect future costs, ownership or the overall decision. The goal is to give you practical context as you decide whether the property makes sense for you.

Looking beyond first impressions

First impressions matter, but they don't always tell you the whole story. Something you don't like at first may turn out to be relatively straightforward to change, or not much of an obstacle to owning the home. Something that looks great may deserve a closer look, to understand what's underneath or how the work was done. Looking more closely is about understanding what you're actually considering buying.

There's no rigid pass-or-fail checklist. I look at the property as we walk through it together, and explain what's relevant as it comes up. Depending on the home, that might include:

• the flooring: what it's made of, its condition and sometimes how it's built, which can mean lifting a heat register, where appropriate, to see more of it;
• the windows: their type and apparent age, including any manufacturer or date information that's visible;
• the kitchen: the counters and cabinetry, and whether updated doors may be covering older cabinet construction;
• the fireplace: what type it is, and whether it raises other questions;
• bathrooms: visible water marks or anything else worth a second look;
• the basement: its finishes and flooring, and the basement windows;
• the mechanical side: the furnace or heating and cooling equipment, the electrical panel and the water heater;
• outside: how the roof appears, the window wells, trees or branches that may affect the property, and the fencing, yard condition and privacy.

These are examples of things that may lead to another question, not diagnoses.

I can draw on my renovation and property experience to give practical context. I'm not acting as a home inspector, electrician, heating and cooling technician, engineer or other specialist, and I'll tell you when something needs one.

The first few houses teach us something

The initial search is a starting point. Seeing homes in person helps you understand room sizes, layouts, finishes and property types, and how the information in a listing translates into the actual house. Listing photos are meant to present a home well; seeing real homes gives you reference points for reading them.

Buyers often refine their priorities after seeing a few properties. That's useful information, not a sign the original search was wrong.

When a house becomes a serious possibility

“I like this house” doesn't automatically mean “let's write an offer.” Sometimes a buyer knows quickly. Sometimes they want to go home, talk it over and think.

Once a property becomes a serious possibility, I'll do a deeper dive into the information around it: relevant comparable properties and recent sales, the neighbourhood, the style and type of property, the asking price, how long it has been on the market and other listing details. The purpose isn't to produce a mechanical answer. It's to give you more information for the decision.

If you decide you'd like to go ahead, the next step is building the offer.

Building the offer

An offer is made up of several decisions:

• the price;
• the deposit;
• the closing date;
• any appropriate conditions;
• what's included, such as appliances and other chattels;
• where relevant, the offer's timing, including how long it stays open (the irrevocable).

Together, these pieces form the offer and the overall strategy. A change in one can affect the others, and there's no universal formula.

The deposit

A deposit and a down payment aren't the same thing. The deposit is money provided as part of the purchase agreement, and is typically held in trust. The down payment is the part of the purchase price you're providing yourself; the rest generally comes from a mortgage or other financing.

There's no standard deposit amount. We'll discuss it in the context of the property, your circumstances and the offer strategy.

Source: Real Estate Council of Ontario↗ (opens in a new tab), Consumer deposit insurance

The closing date

The closing date isn't just a blank on a form. It may need to work around:

• the notice you need to give if you're renting;
• time you'd like before moving in, to paint or do other work;
• the sale of a home you already own;
• financing and carrying costs.

Think about when you actually want to start using the property, not only the date you want to own it. If you want to start moving, painting or having contractors arrive on a particular day, consider whether closing the day before gives you a more practical buffer. When keys become available on closing day can vary, so it's worth planning with some flexibility.

Offer timing

When the offer is submitted, and how long it stays open, are decisions too. They can depend on the listing instructions, the time of day, the circumstances and the strategy.

Signing and understanding the offer

Once we've made those decisions, I prepare the Agreement of Purchase and Sale. Most of my offer paperwork is now signed electronically.

Electronic signing doesn't mean just sending documents and telling you where to click. I walk you through the important parts of the agreement and make sure it reflects what we discussed before you sign it.

Which conditions make sense depends on you, the property and the circumstances. That's a conversation about your particular purchase, not a standard list.

Submitting, negotiating and competing offers

Once the offer is signed, I submit it, confirm it was received and, where it's appropriate and you've authorized it, can give the listing agent useful context about the offer. The seller may accept the offer, decline it or respond with changes, otherwise known as a counteroffer. If the seller counters or declines the offer, we'll discuss what happened and what you want to do next.

When there are competing offers

Competition adds emotion and pressure. But by this point, you've already done the work to understand the property and what it may be worth to you.

One useful exercise looks at the decision from two directions. The figures below are round, illustrative numbers, not market guidance:

• If you offered $500,000 and later learned the home sold for $505,000, would you wish you'd offered more?
• What if it sold for $510,000?
• Now turn it around: if you offered $505,000 and later learned another offer was considerably lower, would you still be comfortable with the price you chose?

RECO explains the rules for competing offers, including what buyers are told.

Read RECO's information for buyers on competing offers↗ (opens in a new tab)

Source: Real Estate Council of Ontario↗ (opens in a new tab), Competing offers

Congratulations: your offer was accepted

There are practical responsibilities right away. The agreement sets out the deposit requirements, including when it's due, and that deadline matters.

I handle the transaction paperwork through my brokerage and help make sure the right information gets to your lawyer and, where applicable, your mortgage professional. If you need a lawyer, home inspector or other professional, I can suggest some options; you choose who you work with.

Financing, inspection and the conditional period

Where an agreement includes both a financing condition and an inspection condition, and the timelines and circumstances allow, I generally try to have satisfactory financing in place before you pay for the inspection. That's a practical approach, not a rule.

Once you've chosen an inspector and the appointment is set, I strongly recommend that you attend. It's in your best interest, because you'll have an opportunity to learn a great deal about the house you're considering buying. You should generally allow two to three hours for the inspection, although a larger or older home may take longer.

The inspector is the professional conducting the inspection. I attend with you and help you understand how what you're learning fits into the purchase decision. If something questionable comes up, I want to understand as much as reasonably possible while everyone is still at the property: asking questions, looking at the surrounding information and drawing on my renovation experience where it's useful. I don't diagnose defects or replace the inspector or another qualified professional.

If new information raises a concern, you and your REALTOR® may need to discuss what the agreement allows and what options are available. That depends on the agreement and how its conditions are worded.

Once the conditions are fulfilled, the required paperwork has to be completed within the timelines in the agreement.

From a firm purchase to getting the keys

Once the purchase is firm, attention shifts to getting ready to own and move into the home. Depending on your situation, that can include:

• any continuing requirements from your lender;
• meeting with your lawyer;
• arranging insurance where it's required;
• setting up utilities;
• booking movers and packing;
• visits to the property, if the agreement provides for them;
• measuring and planning for furniture;
• planning any work or contractors;
• a final walkthrough shortly before closing;
• closing, and getting the keys.

Your lawyer handles the legal side of closing. The final walkthrough is a chance to see the property again shortly before closing and make sure things appear substantially as expected. If something doesn't, what happens next depends on the issue, and may involve your REALTOR® and your lawyer. When keys become available on closing day can vary, so plan with some flexibility.

One decision at a time

There is no perfect house, and there is no buying process that removes every unknown. The goal is to understand the information available, recognize the decisions in front of you and work through them one at a time.