Frequently Asked Questions

Helpful Home Buying & Selling Tips in Kitchener Waterloo

Buying a Home

What is a pre-approval and do I need one?

A pre-approval is when a lender reviews your income, debt, and credit to determine how much they are willing to lend you.

It gives you:

• A clear budget
• Locked in interest rate for a period of time
• Stronger position when submitting an offer

While it is not legally required, it is strongly recommended. Sellers take your offer more seriously when you are pre approved.

What are closing costs and how much are they?

Closing costs are expenses paid on top of your down payment when the purchase is finalized.

They typically include:

• Legal fees
• Land transfer tax
• Title insurance
• Adjustments for utilities or property taxes
• Home inspection

In Ontario, buyers should budget approximately 1.5 to 4 percent of the purchase price.

Should I buy or keep renting?

It depends on your goals and financial position.

Buying allows you to build equity and gives you control over your space. Renting offers flexibility and less responsibility for maintenance.

If you are planning to stay in one place for several years and are financially ready, buying can help you position yourself for long term stability. If flexibility is more important right now, renting may make sense.

What does conditionally sold mean?

Conditionally sold means the seller has accepted an offer, but certain conditions still need to be met.

Common conditions include:

• Financing approval
• Home inspection
• Sale of the buyer’s current home

If the conditions are fulfilled within the agreed timeframe, the sale becomes firm.

What happens after my offer is accepted?

Once your offer is accepted:

1. Any conditions need to be completed.
2. Your lawyer begins preparing paperwork.
3. Your lender finalizes your mortgage.
4. You arrange home insurance.
5. Funds are transferred on closing day.

On closing day, ownership officially transfers to you and you receive the keys.

What is the difference between freehold and condo?

Freehold means you own the home and the land it sits on. You are responsible for maintenance and repairs.

Condo means you own your individual unit, but share ownership of common areas like hallways, parking, or landscaping. You pay monthly condo fees for maintenance of those shared spaces.

Freehold offers more independence. Condo living can offer lower maintenance responsibility.

Selling a Home

What are typical realtor fees?

Realtor fees are paid from the proceeds of the sale on closing day.

In Ontario, commission is typically a percentage of the sale price. It is often between 4 to 5 percent total, which is usually split between the listing brokerage and the buyer’s brokerage.

Every brokerage sets its own rates, so it is always worth having a conversation about what is included in the service.

How do I prepare my home for showings?

Preparation makes a big difference.

Focus on:

• Decluttering and removing personal items
• Deep cleaning
• Letting in natural light
• Keeping counters and surfaces clear
• Simple staging to highlight space

The goal is to help buyers picture themselves living there, not to make it look like a showroom.

What increases home value the most?

The biggest value drivers are:

• Location
• Overall condition
• Kitchen and bathroom updates
• Functional layout
• Curb appeal

You cannot change location, but you can improve presentation and maintenance. Small improvements often create a stronger first impression than expensive upgrades.

How do bidding wars work?

A bidding war happens when multiple buyers submit offers on the same property.

The seller may:

• Review all offers at once on a set date
• Negotiate back and forth
• Ask buyers to improve their offers

The highest price does not always win. Conditions, deposit size, and closing date can all influence the final decision.

Preparation and strategy matter in competitive situations.