Frequently Asked Questions
Do I need an agent to buy a home?
To buy a house listed through the PEI Real Estate Association, yes. There will be an agent representing the seller of the house, and one representing the buyer. Often buyers will contact the listing agent directly, and the agent will end up representing both parties in the deal. However, it is more advisable for a buyer to find an agent that they can trust, can get to know their needs, and can negotiate on their behalf. Every agent has access to every listed property on PEI.
What does it cost to work with an agent?
As a buyer, you should not have to pay your agent. Agents are compensated by the seller of the property, and it's all decided on at the time of listing. This does not affect the price of the house, and so you don't get a better deal by avoiding working with a buyers agent.
How long does it take to buy a house?
This can vary depending on the needs of the buyer and seller, but the most typical time is about 4-6 weeks from offer to closing. After an offer is accepted, the buyer usually has a week or two to sort out conditions. Once they are complete, there is period of a few weeks where the lawyers do the title search, the banks prepare the mortgage, and of course, the sellers move out.
Are there hidden costs that I should be aware of?
There sure are. Unfortunately buying a house costs more than just the price tag on the house. Besides your downpament, you will want to budget for an offer deposit, home inspection ($500-600), lawyers ($2000+). fuel adjustment ($900), utility hookups, and home insurance. If you've owned property before, there will also be a 1% land transfer tax on the sale.
Do I need a home inspection?
Home inspections are not required and are at the discretion of the buyer. However, I cannot recommend them enough. Most of the time they will bring up small problems and maintenance, but they might discover serious issues that could save you thousands. I also like to think of them as your home owner's manual, and they'll give you confidence knowing that you've made a wise purchase.