Working with a Realtor and Your Buying Team

There are two rules of thumb for first-time condo buyers: Don’t go too fast and don’t do it alone.

There are good great reasons to educate yourself and gather insight from real estate professionals at every step of your journey to condo ownership. In this chapter of our First Time Buyer's Guide, we explain the roles that a Realtor, mortgage broker, and lawyer play in evaluating and buying your first home. 

Working with a Realtor

There's a difference between an 'outcome' and success when you're buying a condo. An outcome is buying something just to get in the market. Success is feeling confident at every stage of the process and well after the purchase. It’s having every shred of information and insight at your disposal. It's knowing you saved thousands.

A good agent will help you make an informed, educated and successful decision.

What does a real estate agent do for a buyer?

They do your bidding (cue evil laugh)! Well, not really. But you’re a first-timer, so a great agent will help you understand the buying process and give you information about buildings and areas that you couldn't find on a screen. Here are some examples of how they act as your 'condo minion'. They know:

• Why a condominium that seems like a great buy would actually be a bad decision

• When a neglected neighbourhood is on the rise

• When a new condo (also called ‘pre-construction’) might be the best option for you

• Which building developers have great reputations

•  The value of a great lawyer or mortgage broker - and can introduce you to one

• When a price is set artificially low to start a bidding war. (Like eBay, only with way more zeroes)

They also:

• Negotiate with the selling agent like they were buying the condo for themselves

• Scour a seller’s deal for shifty language that you didn't agree to and terms that don’t work for you

• Make sure all the paperwork is complete and legal 

• And pops a bottle of champagne when your nerve-wracking offer is accepted and the deal is done.

A great Realtor gives you a big advantage.

What makes a Condos.ca Realtor better?

Our agents are condo specialists. We call them Condo Pros because we evaluate and train the professionals who carry our card.   

Condominiums have unique neighbourhoods, price points, features, trends, developers, and secrets. Our agents work together and share information, which means your Condo Pro will have the inside scoop on buildings and their units. 

For example, a condos.ca agent can tell you if a building has had problems with wonky elevators, flooding or bedbugs. Or if the condo board is involved in a lawsuit or has special assements looming. 

We also bring the most comprehensive understanding of condo price trends in Toronto based on price-per-square-foot data analysis.

Questions to ask a real estate agent

The best real estate agent is one who understands you, not just what you’re looking for

Here's a few questions:

How long have you been a real estate agent?

Get a sense of their experience in dealing with other agents, developers, and the neighbourhoods where they say they do business. 


 

What brokerage do you work for?

There are hundreds of real estate brokerages in the GTA, ranging from franchised to independent, full-service to limited service brokerages that might only work with sellers. You want to make sure your agent is working for a committed brokerage with values that align with your own. 


 

What neighbourhoods do you specialize in?

A local neighbourhood specialist is way better than a generalist agent swinging from sale to sale.


 

How well do you work with other real estate agents?

A sign of a good agent is one with a strong network of other agents and industry professionals who trust them. Maybe they work with a team of agents.


 

What is a condo assignment sale?

Asking an industry-based question can help judge their knowledge and show how well they’ll be able to help you.


 

What can you tell me about condominiums X, Y, and Z?

The best agent will be the one that gives you an honest, informed answer, even if that answer is that they don't know too much about condo Y and that you shouldn’t buy in building X. 

Signs of a bad real estate agent

A bad real estate agent will show their true colours pretty quickly.

Watch out for things like:

 

Poor communication: 

An agent should be attentive, understanding, and available. If an agent isn’t listening to you, you’ve got a rotten realtor.


 

Pushy:

A classic red flag when it comes to real estate agents. A pushy agent might still get you a great deal, but pushiness is a sign they are chiefly after the quick buck. We're back to Outcome vs. Success. Your day-to-day process won’t be enjoyable and buying comes with enough stress, so find someone you like and trust. 


 

Too agreeable:

If your agent is agreeing with everything you say then they aren’t bringing any real value to the table. You want to find a real estate agent who is an expert at what they do and ready to challenge you.


 

Lacks a network:

An agent who lacks a professional network might be someone you want to avoid. Ask them about their relationships with other real estate agents, lawyers, mortgage brokers, and home inspectors. If they have no network to speak of, they might have a history of shady deals that ruined past relationships.

Working with a real estate lawyer

When you buy a condo, a real estate lawyer is needed to review all the final documents at closing like the Purchase Agreement and the condo Status Certificate. They don’t replace your agent. Like your agent, they are there to look after your interests and raise red flags. 

The costs of working with a real estate lawyer in Toronto are usually in the range of $1500-$2000. Budgeting $1800 is a smart idea.

 

Working with a mortgage broker

First time buyers often have smaller down payments and lower credit, which means they pay higher rates and face higher monthly bills when they get a mortgage. Mortage brokers are like Real Estate agents. They represent you and fight for your interests. 

 

Mortgage brokers can help you buy more at better rates 

Banks don’t have your best interests in mind when looking at your mortgage application and it’s easy to get locked into a costly decision.

A good mortgage broker does three important things:

  1. They review your financials and mortage application to make sure you're making the best case for a great loan with a low rate.
  2. They know which lenders will look at your application favourably. That is, the lenders who fit your. This is particularly true for people who are self-employed or new to Canada. 
  3. They have relationships with numerous lenders. Not just banks.  The stress test can be hard on first time buyers. Not every lender is required to stress test, however, and a good broker can connect you to one.   

A mortgage broker is like a Realtor in that they go to bat for you and navigate the ins-and-outs. They don’t only help you get a mortgage—their experience and relationships carries right to the last minute complications that sometimes arise with buying a condo.

Mortgage brokers aren’t banks. At the end of the day you're still getting your mortgage from a lender. A mortgage broker puts your finances in the best possible light and helps see your deal through to the end.  

Can a realtor in Toronto represent both buyer and seller?

This practice is called “double-ending”. Technically,  an agent can do this, but it’s frowned upon. Agents and brokerages can face heavy fines if they are caught manipulating a double-ended deal for higher profits.

 

Once you've found a realtor that you trust and conversations with your bank or mortgage broker have helped you understand what you can comfortably afford, your focus can shift into The Where, What, and Why of Buying.

In this chapter we cover how you can evaluate and compare different buildings and neighbourhoods, to considering resale and pre-construction condos.