Buying Real Estate In Barrie

Determine What You Can Afford

Purchasing a home involves one-time costs and monthly expenses. The largest one-time cost is the down payment. It usually represents between 5 – 25% of the total price of the property. In addition to the actual purchase price, there are a number of other expenses that you might be expected to pay for. These are listed in the following table:

Typical One-Time Expenses


Typical monthly costs incurred with home ownership are mortgage payments, maintenance, insurance, condo fees, property taxes and utilities.

Understanding Market Conditions

The real estate market is always changing. It helps to understand how market conditions can affect your position as a buyer. The Johnston Team can provide you with current real estate market conditions and explain their impact.


Buyer's Market:

The supply of homes on the market exceeds demand.

High inventory of homes. Few buyers compared to availability. Homes on the market longer. Prices tend to drop.

Seller’s Market:

The number of buyers wanting homes exceeds the supply or number of homes on the market.

Smaller inventory of homes. Many buyers. Homes sell quickly. Prices usually increase.

Balanced Market:

The number of homes on the market is equal to the demand or number of buyers.

Demand equals supply. Sellers accept reasonable offers. Homes sell within an acceptable time period. Prices generally stable.

Obtain a Pre-Approved Mortage

Having a pre-approved mortgage will give you the confidence of knowing exactly what you can spend on a home before you start looking. You will also be protected against interest rate increases while you look for your new home. Your Mortgage Specialist will answer yourquestions and help you determine which financing terms and options are right for you. Your Mortgage Specialist and Realtor work as a team to help you find the right home and select the best financing.

Finalizing Your Mortgage

Once you've found the home you want to purchase, there are some documents you’ll probably be asked for in order to finalize your financing. They will include:

1 A copy of the real estate listing of the property. If the home is still to be built, the mortgage lender will need to see the architect’s or builder’s plans and details on lot size and location.

2 A copy of the offer to purchase or the building contract, if this document has been prepared.

3 Documents to confirm employment, income and source of pre-approval. If you have a Pre-Approved Mortgage, it’s a simple matter of finalizing a few details, which your Mortgage Specialist will explain to you.

The Major Elements of an Offer


Depending on local market conditions, your opinion of value and marketing information provided by The Johnston Team, the price you offer may be different from the seller’s asking price.


The deposit shows your good faith and will be applied against the purchase of the home when the sale closes. The Johnston Team can advise you on an appropriate amount.


These might include “subject to home inspection”, “subject to buyer obtaining financing” or “subject to buyer selling their property”.

Inclusions and Exclusions

These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors./p>

Closing or Possession Date

Generally, the day the title of the property is legally transferred and the transaction of funds finalized.

How to Make an Offer

When it comes time to make an offer, The Johnston Team can provide current market information and will assist you in drafting your offer. The Johnston Team will communicate your offer, sometimes known as an Offer To Purchase*, to the seller, or the seller’s representative, on your behalf. Sometimes there may be more than one offer on a property coming in at the same time. The Johnston Team can guide you through this process.

*Offer To Purchase: a legal document which specifies the terms and conditions of your offer to purchase the home.
The offer can be Firm or Conditional.

Firm Offer To Purchase

Usually preferable to the seller, because it means that you are prepared to purchase the home without any conditions. If the offer is accepted, the home is yours.


Conditional Offer To Purchase

Means that you have placed one or more conditions on the purchase, such as “subject to home inspection”, “subject to financing”, or “subject to sale of buyer’s existing home”. The home is not sold until all the conditions have been met.

Acceptance of the Offer

Your Offer to Purchase will be presented as soon as possible. The seller may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, the closing date, or any number of variables. The offers can go back and forth until both parties have agreed or one of you ends the negotiations

Have the Home Inspected (optional)

Having the property inspected by a qualified home inspector will give you the added confidence that you’ve made the right decision (costs vary). When the procedure is complete, you may wish to ask for a full written report plus estimated costs for any necessary repairs.

Hire a Legal Professional

A legal professional is there to represent your interests and to provide the legal documentation required. The Johnston Team can provide you with the name of legal professionals who specialize in real estate.