THE ULTIMATE GUIDE TO BUYING & SELLING A HOME IN THE GREATER TORONTO AREA

1. THE ULTIMATE GUIDE TO BUYING & SELLING A HOME IN THE GTA

2. INTRODUCTION INTRODUCTION Welcome! For most people, buying or selling a home is the biggest financial transaction of their lives. Whether it’s your first time or not, the information in this ebook will help you make more educated decisions, avoid common mistakes, and could even help you save a great deal of money! Great advice for navigating the residential real estate market Better understanding of the process Unique tips for buying and selling a home Common pitfalls Who knows - you might even have some fun along the way!

3. TABLE OF CONTENTS PART I TABLE OF CONTENTS EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA A. Buying a home in the GTA B. Finding the right agent C. Budget D. Your mortgage a. Mortgage pre-approval b. Finalizing your mortgage E. Online resources for finding your home F. Choosing a home G. How much should you offer? H. Special features of homes and impact on value I. Making an offer J. Negotiating tips! K. Home Inspections L. The role of a lawyer M. Getting the keys! N. The New Construction Option O.The Justo Advantage 6 7 9 11 11 13 15 16 19 20 22 27 30 33 34 35 37 3

4. TABLE OF CONTENT PART II TABLE OF CONTENTS EVERYTHING YOU NEED TO KNOW ABOUT SELLING A HOME IN THE GTA A. Finding the right agent B. Valuation C. Special features of homes and their impact on value D. Costs of selling your home E. Your sales strategy F. Preparing your home for sale a. Staging b. Virtual staging c. 3D virtual tours d. Photography e. Digital and traditional marketing G. Accepting an offer H. The role of a lawyer I. Closing the deal! J.The Justo Advantage 40 43 44 46 47 49 49 52 52 54 54 55 56 57 57 4

5. PART I R Y E YOU NEED TO KNOW ABOUT BUYING A HOME V E T H I N G IN THE GTA

6. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA A. BUYING A HOME IN THE GTA Before we get started, here’s a short list of considerations to get you thinking about what you truly want and need in a home. Grab a pen and paper and put these factors in order of importance from 1 to 10 in order of importance: 1. SIZE OF THE HOME 2. QUIET/PRIVACY 3. PROXIMITY TO FRIENDS AND FAMILY 4. PROXIMITY TO WORK 5. PROXIMITY TO SHOPS AND RESTAURANTS 6. QUALITY OF NEARBY SCHOOLS 7. AGE OF HOME 8. UPDATES AND RENOVATIONS 9. BACKYARD/GARDEN 10. LOW MAINTENANCE REQUIREMENTS Justo understands that learning their clients’ priorities at the start will save valuable time finding them their perfect place. 6

7. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA B. FINDING THE RIGHT AGENT HERE ARE SOME THINGS TO CONSIDER WHEN CHOOSING AN AGENT: 1. How experienced are they? You’ll be relying on them to guide you, so perhaps the most important question is: Do you trust them? 2. From the 2.5% typically paid to your agent by the seller, how much of it, if any, are they giving back to you? For example, Justo agents split this commission with their clients 50/50, giving them thousands of dollars in cashback. 3. Are you forced to sign a buyer representation agreement with them? At Justo, there is no obligation. 4. How well do they know the neighbourhood you’re interested in? 5. Do they offer free value-added services? For example, Justoagents provide free home inspections and lawyer fees from partners like Mike Holmes Inspections and RealEstateLawyers.ca. OTHER CONSIDERATIONS: It’s likely that you’ve received hundreds of glossy marketing cards from local real estate agents and dozens of shiny “For Sale” signs advertising various agents. It’s a tough business: most agents operate as independent, small businesses and spend most of their time and energy on business development, leaving little time to actually service their clients. 7

8. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA Justo takes a collaborative approach, hand-picking experienced agents who are eager to be part of a fresh new approach to real estate in a rapidly changing industry. As mentioned,Justo’s full-service, experienced agents split their commission with their clients 50/50. This means that on a $1 Million transaction, clients receive ~$12,500 in cashback. This is the person helping you through the biggest purchase of your life, so make sure to make a thoughtful decision $1 Million transaction ~ $12,500 CASHBACK 8

9. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA BUDGET C. Great news: You’ve been pre-approved for a mortgage. Time to start shopping! But before you do, consider the additional monthly costs that you’ll be paying to maintain your home, on top of your mortgage. First of all, if your down-payment is less than 20% of the cost of the home, you will be required to pay Canadian Mortgage and Housing Corporation (CMHC) insurance. This protects the lender in the event that you are later unable to make your payments. The bigger your down-payment, the less you’ll have to pay for CMHC, but it will range from 3.1% to 4% of the mortgage amount. This cost is added to your mortgage - it is not required to pay this amount up front. You’ll also be responsible for the Land Transfer Tax. If you’re buying in the city of Toronto you’ll be paying this twice—once to the city and once to the province. You can calculate your land transfer by visiting https:/ /www.realestatelawyers.ca/ Landtransfercalculater.php. There are also additional closing costs such as adjustments to prepaid taxes or utilities, title insurance, lawyers fees and more. Then there are monthly carrying costs to factor in, including: • • • • Property tax in Toronto Utilities Insurance Phone, cable and internet Finally, it’s always best to have some funds set aside for unanticipated repairs. The point is, even though lenders might approve you for a certain amount, it’s important that you consider costs beyond your mortgage payment to determine actual affordability. 9

10. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA Once they have this information, the lender will offer you an amount and interest rate, which will be available for a specific period of time, typically 60-120 days. This amount will vary, but a general rule of thumb is that buyers will be approved for three to five times the amount of their annual salary, depending on their debt levels and down payment. 10

11. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA YOUR MORTGAGE D. MORTGAGE PRE-APPROVAL Before you begin the search for your dream home, you’ll need to fi nd out how much you’ll be able to borrow to determine your price range. This is called mortgage pre-approval. Pre-approval for a mortgage can be granted by giving details of your fi nancial situation without providing documents to support it. Be honest with yourself and the lender when doing this application so that you don’t set yourself up for disappointment. A platform like Homewise (www. thinkhomewise.ca) enables you to apply for a mortgage online in minutes, doing all of the heavy lifting to fi nd you options. Homewise or any other lending institution will ask you some simple questions and then use this information to fi gure out how much money they want to lend you. Total salary of applicant(s) Assets THEY WILL CONSIDER: Type and length of employment (i.e., full-time vs. freelance or self-employed) Credit score Debts and liabilities (e.g., cars, student loans, credit card balances, etc.) 11

12. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA Once they have this information, the lender will offer you an amount and interest rate, which will be available for a specific period of time, typically 60-120 days. This amount will vary, but a general rule of thumb is that buyers will be approved for three to five times the amount of their annual salary, depending on their debt levels and down payment. 12

13. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA FINALIZING YOUR MORTGAGE After you find your dream home, it will be time to make things official. At this point you’ll need to decide: 1. LOAN AMORTIZATION This is the length of time it will take to pay off the total amount owing plus interest. Most mortgages are 25 years, but if you can afford payments with a shorter amortization (like 15 or 20 years), it will provide substantial savings over the life of the mortgage, possibly saving you tens or even hundreds of thousand of dollars. A mortgage specialist like those atHomewise can help you make the best decision. 2. TERM Once you have set the amortization, there is then a term for your mortgage. The term is a shorter period of time within the amortization during which the interest rate is set, as are the options for paying your mortgage off. The term can range from 6 months to 10+ years depending on you comfort with risk and ability to afford payments over time. Mortgage rates are always fluctuating as economic conditions change so this gives you the opportunity to reevaluate your payment structure along the way. 2a. TYPE OF MORTGAGE I. An Open term allows you to make additional payments or pay off partially or completely at any time. II. A Closed term typically offers some annual prepayment options of specific amounts (usually up to about 10% of the original amount); however, you would not be able to pay off the mortgage in full without a penalty being incurred. 2b. VARIABLE VS. FIXED RATE I.A variable rate will fluctuate along with national prime interest rates. If you can handle some ups and downs in your monthly payments, a variable rate will likely save you money over the long term. If rates become uncomfortably high, you’ll always have the option to convert to a fixed rate. II. A fixed rate is best if you need a predictable monthly payment and can’t tolerate potential rate increases, either financially or emotionally. $ 13

14. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA To finalize your mortgage approval, you’ll need to confirm your income with your lender by providing: TAX NOTICE OF ASSESSMENT for the previous two years TAX T4 DOCUMENTS STATEMENT Depending on the length of time since your pre-approval, you may need to submit to a second credit check. You will also need to provide a copy of the purchase agreement to the lender so they can complete their due diligence on the property. This may involve doing an appraisal of the property. 14

15. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA E. ONLINE RESOURCES FOR FINDING YOUR HOME Technology has made access to information much easier for prospective buyers. It used to be up to the agent to find potential homes for their clients. Today, with technology continuously evolving, a whopping 80% of buyers start their home search online. Justo.ca and realtor.ca are both great resources and are fully integrated with MLS, allowing you to search the site to find almost all properties that are available for sale. Justo.ca also shows the amount of cashback you can receive on any given property, as well as comparable sold data to help buyers determine the right price to offer. 15

16. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA F. CHOOSING A HOME As the saying goes, “There’s a lid for every pot.” There is also the perfect home for every buyer. Everyone has unique needs and wants in a home, so here are some questions to ask yourself when picking the perfect property: 1. HOW MUCH CAN I COMFORTABLY AFFORD? As we already reviewed in our Budget section, you need to factor in carrying costs in addition to your mortgage. 2. WHERE DO I WANT TO LIVE? Are you a cyclist who loves the hustle and bustle of downtown, or do you crave the wide streets and relative quiet of the suburbs? Is access to public transit critical, or is your car your second home? All of these factors influence where to focus your search. 3. HOW MUCH SPACE DO I WANT OR NEED? Is bigger really better, or do good things come in small packages? It depends on the buyer! Different people have different needs; your personal tastes and circumstances will guide you to find a home that’s the perfect size for you. 16

17. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA 4. WHAT AMENITIES ARE NEARBY? Great schools. Nearby grocery stores and malls. Your gym. Community centers or places of worship. Thriving nightlife. What’s nearby will largely influence where you focus your search. HOW MUCH WORK WILL THE HOME REQUIRE? Everyone wants to move into a sparkling, fully updated home, but the reality is that many homes may require varying degrees of renovations. The more work required, the lower the price is likely to be, but you need to be comfortable with how much time and energy you want to spend on renovations before you choose that fixer-upper. 17

18. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA TOURING HOMES: Justoagents understand that you might fall in love with a home at fi rst sight, but will still provide guidance to help you make informed, long-term buying decisions, offering strategic advice to help you choose the right home. Before making an offer, visit the home and surrounding neighbourhood at least three times, for a minimum of 30 minutes. This will help you adjust to the space and help you decide if this is the place you want to call home. 1. Be mindful of signs of disrepair before committing to an offer. What may appear as small issues could be signs of serious problems. Some things to watch for include: 2. · Signs of water leakage like stains on the ceiling · Warped walls or large cracks in plaster or drywall · Gaps in between the wall and fl oorboards · Inner doors that don’t close properly (See Section I to learn more about home inspections.) Drive by the property at different times of the day, and on different days, to get a solid understanding of noise levels and traffi c. What may be a quiet street on a Sunday morning might turn into a busy area during rush hour. You don’t want any surprises. 3. PRO TIP If you’re buying a resale home, use the 80% rule: 80% of the home you love, 15% you can change over time and 5% you can’t do anything about, but you can live with it. 18

19. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA G. HOW MUCH SHOULD YOU OFFER? How much is the home you want actually worth? The short answer is, “Whatever you’re willing to pay for it.” The value of a home can fluctuate dramatically from one month to the next. For this reason, home valuation is an art, not a science. It’s important to find an agent who is skilled at providing the most accurate valuation to determine the best price to offer. This valuation should also be provided to you in writing, and you should not hesitate to ask your agent to explain how they came to their conclusion. Factors impacting the valuation of your home: • Current mortgage rates • Historical sale prices • Number of comparable homes on the market • Lot size, ravines, and privacy of a home • Floor, building ammenities and view if it’s condo • Size and appeal of the home • Home condition • Updates/design/decor • Location • Nearby amenities • Age of the home • Time of year To make the process as simple as possible, Justo has created a proprietary algorithm to help users quickly and accurately determine what a property is truly worth. The algorithm uses sold data, market trends, and additional factors to give you the most accurate price as possible. 19

20. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA H. SPECIAL FEATURES OF HOMES AND IMPACT ON VALUE Pros If backing onto green space, a wooded area or a park, there is a premium on the home’s value. Ravine: Potential bump: 7-15% A waterfront home can add a tremendous amount of value to a home. Waterfront: Potential bump: 25-50% The kitchen will always be the heart of the home! A new kitchen with a great layout and equipped with top appliances and fi nishes will have a big impact on value. Kitchen: Potential bump: 5-10% Energy effi cient homes, solar or geothermal heating systems, and low VOC materials are all examples of things that can add value to your home. Green Home: Potential bump: 4-6% Automated blinds, high tech thermostats, hard-wired security and smart systems… Smart features that allow you to control your home’s functions remotely defi nitely add appeal. High Tech Homes: Potential bump: 1-3% Although this means something different to everyone, a great outdoor space defi nitely adds appeal. Whether you like tennis or basketball courts, pools, hot tubs & cabanas, or maybe simply a lovely garden, a private backyard oasis can add value to a home Backyard Oasis: Potential bump: 5-8% 20

21. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA Cons Main Road: Main Road: Heavy traffi c noise and lack of privacy will mean a lower value. However, a home fronting onto a main road could be seen as an opportunity for a buyer Heavy traffi c noise and lack of privacy will mean a lower value. However, a home fronting onto a main road could be seen as an opportunity for a buyer to get into a desirable neighbourhood for a reduced price. to get into a desirable neighbourhood for a reduced price. Potential impact on value: -5 to -10% Potential impact on value: -5 to -10% Home in disrepair or in need up updating: Although a home in disrepair will affect what it will sell for, one man’s trash can be another man’s treasure. There are many people who love a good fi xer upper, but the cost of renovations must be factored into the asking price. Potential Impact on value: -10 to -30% Living All of these things have a negative impact on a home’s value due to potential noise pollution near major highways or train tracks: Potential Impact -3 to -6% Living near major hydro lines, gas lines or wind farms: All come with some health warnings, which impact on the bottom line. Potential impact: -4 to 7% Being close to industrial and or commercial Major industrial or commercial areas bring traffi c, people, rodents and noise, all of which can impact you privacy, along with the price. uses: Potential impact -5 to -10% 21

22. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA I. MAKING AN OFFER You’ve found it! The perfect home at the perfect asking price. But now you need to put in the offer. Your offer will include the cost, along with certain terms and conditions to your purchase. It’s not always recommended to put conditions in your offer - for example when there is a bidding war. However, if you are able to do so, it is in your best interest to include conditions. The two most often included are: The offer is conditional on fi nancing which won’t be a problem for you because you’ve already been pre-approved for a mortgage; a b The offer is conditional on a home inspection. The home inspection is very important as it may uncover some signifi cant issues with the home that could impact your offer. (See Section K to learn more about home inspections.) 22

23. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA Other conditions or warranties may apply or be added to your offer based on the home’s unique features. This will ensure the dream home doesn’t become a nightmare after closing. These include: Pool inspections or warranties Warranties for appliances or any mechanical equipment Knowledge of rental items you will need to take over and the terms of the existing contract(s) including but not limited to hot water tanks, maintenance, furnaces and security systems If you’re purchasing a condo, buyers should review the status certificate to ensure the condominium corporation is operating with a good budget and no additional costs will be charged for major repairs This is where a Justo agent’s expertise can really make a difference in ensuring no stone is left unturned. 23

24. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA COMMON MISTAKES BUYERS AND THEIR AGENTS MAKE: 1. Not taking the time to really get on the same page and understand what you are looking for in a home. 2. Not validating the information on the MLS listing when preparing an offer (room size, inclusions, etc.). 3. Removing key conditions when it is not necessary, such as fi nancing and home inspection. 4. Taking the time to search the previous history of home sales to see if there were any issues or concerns, the number of times it has changed hands, etc. 5. Not requesting a seller’s disclosure statement about the property or asking about a home’s history and any potential latent defects. 24

25. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA Once you’ve determined your conditions, it’s time to make an offer, but the timing may be up to the seller. Some will allow offers anytime, while others may set an offer date if they anticipate multiple offers or a bidding war. For buyers, an open timeline is better, as it gives you the opportunity to negotiate with the seller. In the event of a set offer date, you’ll need to be prepared for some competition. Your agent will be in contact with the seller’s agent to determine how many offers are expected, and will counsel you on how much to offer based on this information. You may also want to consider investing in a home inspection before the offer date if possible to ensure there are no major issues. If there are multiple offers, you may have the opportunity to submit a second, higher offer. This is where things can get tricky. It can be very easy to get caught up in the excitement and emotion of wanting the home, and it may be tempting to increase your offer beyond what you had initially budgeted for. You can find some great advice and negotiating tips in the following section. 25

26. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA Your Justo agent can provide great advice for navigating these situations and ensure you come out on top. 26

27. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA J. NEGOTIATION TIPS The GTA real estate market has moved at warp speed over the last decade, so you need to be sure your agent is well-versed in the art of negotiation. Justo agents are constantly working to expand and improve their negotiating skills for the benefit of their clients. HERE ARE OUR TOP 10 NEGOTIATION TIPS FROM THE PROS: 1. Have your agent talk to the listing agent before beginning the offer process. Many agents know each other and are on good terms, so it’s completely acceptable for your realtor to call the listing agent to get some soft information and gauge how motivated the seller is and if there are any special considerations they may have. This can be helpful in developing your negotiation strategy. 2. Check the sold data.Before you begin talking numbers, your agent should research the data on comparable homes to ensure they have a good sense of what the home is actually worth. You can find sold data onjusto.ca. 3. Use the sold data – not the asking price – as your starting point. Sellers’ agents use different strategies for different homes, and may therefore inflate the asking price. Make sure your agent knows what the fair market value is and start there. 27

28. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA 4. The seller is not the enemy. Many agents approach negotiations like a battle, but the process doesn’t need to be argumentative. When agents cooperate and buyers and sellers are fair, everyone wins! 5. Live conversation, not over texts and emails. Keep the gateways of communication open with your agent. Phone calls keep everything straight to the point, with no room for interpretation. 6. Never go back to what’s already been agreed upon. Take the time to make each negotiation decision carefully. Reopening issues that were previously agreed to may upset the seller, compromise your credibility and minimize your effectiveness in negotiating any other issues. 7. Learn what the other party needs from the deal. Maybe the seller is in a rush and needs a quick closing? Maybe they are willing to take less if you wave some conditions? By getting inside information, you can improve your offer without raising the price. 28

29. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA 8. Make the other party feel good about the deal. Ideally, both parties should complete the transaction feeling like they came out ahead and that the deal is fair. 9. Know your bottom line. It’s very easy to get caught up in the moment and convince yourself that a few thousand more dollars won’t matter, but over the lifespan of your mortgage, a small increase can lead to a large amount of interest. Before you even start negotiating, set firm budget limits. 10. Be prepared to walk away. If you are not getting everything you want from a negotiation, walk away. Either the other party will come around, or you’ll find something better. But if it’s not right, don’t settle for less than what you deserve. 29

30. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA K. HOME INSPECTIONS No matter how great a home looks, there are always small issues lurking behind the walls and under the fl oorboards. This is why a home inspection is critical before fi nalizing your purchase. Getting a proper inspection will give you leverage during the negotiation process, and can potentially save you thousands of dollars and lots of frustration. Mark Diplok of Mike Holmes Inspections explains the process. PICKING A HOME INSPECTOR It is important that you select a qualifi ed inspector, like those atMike Holmes Inspections.A qualifi ed inspector is · credible with required certifi cation and training in home inspection, · a member of the Ontario Association of Home Inspectors, and · Accredited with a Registered Home Inspector designation. It is also helpful (but not required) if your home inspector has a background in home-related trades like plumbing, electrical, and more. 30

31. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA WHAT AN INSPECTION INCLUDES A home inspector will go through the home floor by floor, top to bottom, beginning with the exterior. EXTERIOR INSPECTION: · Windows · Roof → Evaluating the age and condition of shingles · Chimney · Foundation · Overall structure INTERIOR INSPECTION: ·Insulation → Starting in the attic · Looking for signs of past or current leakage · Looking at the condition of mechanical systems including heating, circuits, outlets, electrical system and grounded wiring · Checking if windows and doors operate properly · On new homes, inspectors will advise on cosmetic issues like doors closing properly · Plumbing → Inspector will run a stress test to ensure sinks, tubs and toilets function properly · Room to room, floor to floor, checking for signs of leaks and cracks · The basement is last → Inspectors will look for foundation/structural issues or any major structural changes from renovations · Inspectors will complete inspections with the fuse panel 31

32. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA RED FLAGS A good home inspection will save you a great deal of stress and money in the future! While all homes have varying degrees of issue, Diplock notes that there are some bigger things to look for that may alter your decision to purchase a home: Justo pays for clients’ home inspections and lets them choose from several quality inspectors, so clients can be confident that their home is in great condition. 1. A half-inch or larger crack or horizontal cracking in the foundation could be a sign of major foundation and structural issues 2. A sagging or leaning floor could indicate significant structural problems 3. Grading of house → Be sure to check the lot; if it is graded toward house, there is a possibility of significant water damage behind the walls 32

33. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA L. THE ROLE OF A LAWYER You’re almost a homeowner! But first, you need an experienced lawyer to help you get all your paperwork in order. Mark Weisleder, Senior Partner and Notary Public with RealEstateLawyers.ca, offers the following counsel: If you are arranging a mortgage for less than 20% down, the bank will be adding certain costs, such as mortgage insurance, appraisal fees and HST. Find out early what these costs will be, as you will have to come up with any difference needed to close your deal. Make sure you have provided the lender with all required proof of income, or the down payment well in advance to prevent any delays. (Refer to Section C to review these costs.) 1. Your lawyer will be receiving a statement of adjustments from the seller’s lawyer before closing. This could add to your closing costs if the seller has prepaid some expenses, especially property taxes. Find out exactly what this is, as it can add up to 0.5% more to what you may owe. 2. At least two days before closing, you’ll need to deliver the balance of money needed for your lawyer to close the deal, payable by certified cheque, money order or bank draft. 3. Let the lawyer know how you will be taking title to the property. If you take title as joint tenants and one of you passes away, the other party immediately becomes the owner. If you take title as tenants in common, you can transfer your interest to a beneficiary under your Will. 4. Justo understands the important role a lawyer plays, and covers the cost of their services if you use one of their selected legal partners. 33

34. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA M. GETTING THE KEYS! You’ve done it! You’re a homeowner!At this very exciting time, make sure you tie up any loose ends to make moving day as seamless as possible. Mark Weisleder, Senior Partner & Notary Public with RealEstateLawyers.ca offers the following reminders for the days leading up to closing: 1. Schedule your pre-closing visit shortly before closing, so that you can conduct your final inspection to make sure that the home is in the same condition as when you signed the offer. 2. If you’re moving on closing day, arrange your moving time for late in the afternoon, as that is likely when the seller will have moved out. If it is a condominium and you need to use the elevator, contact the management company in advance to reserve it. 3.Be sure to secure fire insurance for the full replacement cost of the home. If buying a condominium, you need a policy to protect your contents and liability. Do not leave this to the last minute. 4.Arrange for your cable and telephone providers to install service on the day of closing or immediately after closing. 5. Contact the utility companies to make sure they read the meters on closing, so that you are only responsible for charges after you move in. 34

35. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA THE NEW CONSTRUCTION OPTION N. A resale property is one that has been owned and lived in, and is being listed for sale by the current owner. Conversely, a pre-construction property has not yet been built, and is being sold directly by the developer before completion of the project. The latter can be ideal for those looking to dip a toe into the real estate waters, but not yet ready to take the plunge. Maybe they feel like it’s a good time to buy, but are not eager to move immediately. Or maybe they are looking to invest in real estate. With a great deal of development happening across the GTA, buyers have an opportunity to purchase a house, townhome or condominium before they are built directly from developers. There are some risks involved with buying a home based on floor plans, but there are also some great benefits. RISKS • Unless you’re buying the same unit as the model suite, you don’t get to actually see what you’re going to get • The surrounding neighbourhood can change, meaning your planned view may end up blocked, or the street may be noisier than anticipated • Move-in dates may be delayed • When you take possession, it often takes time for the building or neighbourhood to be completed, so it can feel like you are living in a construction zone for a period of time • If the project gets cancelled, you’ll lose out on any interest you could have earned on that downpayment • If it gets cancelled, you’ll be forced to buy in the current market, which is likely more expensive than what you had originally bought 35

36. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA BENEFITS • Options of size, layouts and price range • You get to pick all of your finishes • Potential to make a lot of money upon resale • Great investment opportunity • There is nothing like the feeling of moving into a brand new home that no one has lived in Justohas teamed up with several developers in the Greater Toronto Area to secure VIP access and pre-launch pricing for clients on some of the region’s hottest projects. As with buying a resale home, Justo shares the agent’s commission with buyers 50/50. This could mean as much as 2% or more in cashback after closing the deal. For example, on the purchase of a $500,000 pre-construction condominium, a buyer would receive $10,000 in cashback from their Justoagent. 36

37. PART I · EVERYTHING YOU NEED TO KNOW ABOUT BUYING A HOME IN THE GTA O. THE JUSTO ADVANTAGE High Cashback Savings Discount Brokerage Purple Bricks Redfin Typical Agent No Cashback Savings ( ( Full Superior Service No Service Service Justo Typical agent Agent Compensation All Justo real estate agents are experienced, client-centric and compensated based on a Star Rating System to ensure client satisfaction. The average agent’s compensation does not depend on client satisfaction. Cashback At closing, Justo gives you 50% of the agent’s commission in cashback. The average keeps the entire commission with no cashback. None. Clients have no obligation to sign a contract during the buying process. Typically, buyers are required to sign a “buyer-agency agreement” before shopping for a home. Buyer Obligations Additional Services Justo offers FREE home inspections, legal services and a comprehensive market analysis. Additional services are provided at a cost. Justo brings you advanced technological tools to streamline the transaction process and help you fi nd your dream home at the best price. The current real estate process is antiquated and ineffi cient. Data-Driven Technology 37

38. PART II R Y E YOU NEED TO KNOW ABOUT SELLING A HOME V E T H I N G IN THE GTA 38

39. PART II · EVERYTHING YOU NEED TO KNOW ABOUT SELLING A HOME IN THE GTA FIRST A SHORTCUT In the following pages, we’ll walk you through each step of selling your home. There is a lot of work involved, with each piece adding value to your home. and energy associated with preparing your home for sale. It also saves you 5% in agent commission fees. (Justo charges far less, but more about that in the pages to come!) But for you, if time is money, you may want to forego the whole process and sell your home through an iBuy company. An extremely popular option in the United States, the concept has now landed in the GTA with iBye, a company who will pay you a fair price for your home as-is, on your terms. iBuy fi rms purchase homes, sight unseen, as investment properties, or fi x up and fl ip homes at a later date. Visit ibye.ca for more information, or to fi nd out how much you could get for your property. Such an arrangement lets you close on your own timeline and saves you the time 39

40. PART II · EVERYTHING YOU NEED TO KNOW ABOUT SELLING A HOME IN THE GTA FINDING THE RIGHT AGENT A. There is a lot more to selling a home than putting a listing on MLS and a sign on your lawn. Success is in the details and proper preparation is key. There are a lot of things that can go wrong and having an experienced agent who communicates clearly is imperative. If you are in a rush to get a property on the market, there is a lot of information that needs to be obtained about the property, such as: Surveys Tax bills Rental contracts for things like water heaters or security systems Warranties and/or service contracts for any appliances, mechanical items, or major components like roofs and foundation waterproofing Details of any major issues with the home that occurred during your ownership (e.g. structural, electrical or mechanical) 40

41. PART II · EVERYTHING YOU NEED TO KNOW ABOUT SELLING A HOME IN THE GTA As a homeowner, you are also responsible for disclosing what is usually referred to as latent defects. These are things that could affect the value of the home, sometimes significantly. Attempting to hide such defects could get you into legal trouble. Some examples of defects include: · The home was previously used as an illegal grow-op · There was a death in the home not from natural causes · A major structural issue with the property that you’re aware about but isn’t visible Once all of this information is disclosed, your agent does additional research to validate that everything is accurate and consistent. If you’re looking to get the maximum exposure and the best price for your home, you’ll likely want to sell it on the Multiple Listing Service (MLS) system with the help of a licensed agent. The MLS is a network of virtually all properties available for sale. All licenced agents are members of this network and have access to these properties for potential buyers. The MLS also feeds this listing data to many third party sources (such as Realtor.ca, treb.com) so that purchasers can search for information about the available properties. spend most of their time and energy on business development, leaving little time to actually service their clients. Justo takes a collaborative approach, hand-picking experienced agents who are tired of the status quo and are eager to be part of a real estate revolution. Justo does all of the marketing and business development, then passes on the qualified leads to its agents, allowing them to spend 100% of their time focused on YOU! All Justo agents are rated by clients in a short survey provided at closing, and part of their compensation is dependent on client happiness and satisfaction. OTHER CONSIDERATIONS It’s likely that you’ve received hundreds of glossy marketing cards from local real estate agents and seen dozens of shiny “For Sale” signs advertising various agents. It’s a tough business: Most agents operate as independent, small businesses and 41

42. PART II · EVERYTHING YOU NEED TO KNOW ABOUT SELLING A HOME IN THE GTA Because of their team approach, Justo operates more effi ciently than individual brokers, allowing them to charge only half of the traditional listing fee. If you buy your home using a Justo agent, your commission will be reduced from the standard 2.5% to just 1.25%. On a $1 million home, that’s $12,500 saved. who showed the property or buyers with direct inquiries. Once you have an offer in hand, you want to ensure all people who expressed interest know that an offer has been placed so they can potentially act on it. This is the person helping you through the sale of likely your single largest asset, so it requires you to put a lot of trust in their expertise. Justo agents understand the magnitude of this transaction, and are sensitive to your individual needs and preferences. Your agent should always be advocating for you and your property. They should also keep in close contact with agents HERE ARE SOME THINGS TO CONSIDER WHEN CHOOSING AN AGENT: 1. How experienced are they? 2. How busy are they? Will they have time to dedicate to you? 3. How much commission are they charging for their services 4. What is their listing cancellation policy? Are you free to leave if you’re not happy? 5. Do they offer any free services to assist in the sale like staging or virtual tours? 6. How do they market their listings? 7. How well do they know the neighbourhood your home is in? 8. You’ll be relying on them to guide you, so perhaps the most important question is: Do you trust them? 42

43. PART II · EVERYTHING YOU NEED TO KNOW ABOUT SELLING A HOME IN THE GTA VALUATION B. How much is your home actually worth? The short answer is, “Whatever someone is willing to pay for it.” It’s important to find an agent who is skilled at providing the most accurate valuation to determine the best listing price. This valuation should also be provided to you in writing, and you should not hesitate to ask your agent to explain how they came to their conclusion. The value of a home can fluctuate dramatically from one month to the next. For this reason, home valuation is an art, not a science. Factors impacting the valuation of your home: 1. Current mortgage rates 2. Historical sale prices 3. Number of comparable homes on the market 4. Lot size and privacy 5.For condominiums, the floor, building amenities and view 6. Size and appeal of the home 7. Home condition 8. Updates/design/decor To make the process as simple as possible, Justo has created a proprietary algorithm to help users quickly and accurately determine what a property is truly worth. The algorithm uses sold data, market trends, and additional factors to give you as accurate a price as possible 9. Location 10. Nearby amenities 11. Age of the home 12. Time of year 43

44. PART II · EVERYTHING YOU NEED TO KNOW ABOUT SELLING A HOME IN THE GTA C. SPECIAL FEATURES OF HOMES AND IMPACT ON VALUE Pros Ravine: If backing onto green space, a wooded area or a park, there is a premium on the home’s value. Potential bump: 7-15% Waterfront: A waterfront home can add a tremendous amount of value. Potential bump: 25-50% Kitchen: The kitchen will always be the heart of the home! A new kitchen with a great layout and equipped with top appliances and fi nishes will have a big impact on value. Potential bump: 5-10% Green Home: Energy effi cient homes, solar or geothermal heating systems, and low VOC materials are all examples of things that can add value to your home. Potential bump: 7-15% High Tech Homes: Automated blinds, high tech thermostats, hard-wired security and smart systems… Smart features that allow you to control your home’s functions remotely defi nitely add appeal to potential buyers. Potential bump: 7-15% Although this means something different to everyone, a great outdoor space defi nitely adds appeal. Whether you like sport courts, pools, hot tubs & cabanas, or maybe simply a lovely garden, investing in a private backyard oasis can add value to a home if potential buyers see value in it. Backyard Oasis: Potential bump: 5-8% 44

45. PART II · EVERYTHING YOU NEED TO KNOW ABOUT SELLING A HOME IN THE GTA Cons Main Road: Heavy traffi c noise and lack of privacy will mean a lower value. However, a home fronting onto a main road could be seen as an opportunity for a buyer to get into a desirable neighbourhood for a reduced price Potential impact on value: -5 to 10% Home in disrepair or in need updating: Although a home in disrepair will affect what it will sell for, one man’s trash can be another man’s treasure. There are many people who love a good fi xer upper, but the cost of renovations must be factored into the asking price. Potential impact on value: -10 to -30% Being the fi rst to rebuild or renovate in an area can kickstart a whole neighbourhood’s regentrifi cation. However, if you’re trying to sell a substantially high-value home, it can come with a fi nancial drawback. Most expensive house on the street: Potential impact on value: -7 to -15% All of these things have a negative impact on a home’s value due to potential noise pollution. Living near major highways or train tracks: Potential impact on value: -3 to -6% All come with some health warnings, which impact on the bottom line. Living near major hydro lines, gas lines or wind farms: Potential impact on value: -4 to -7% Major industrial or commercial areas bring traffi c, people, rodents and noise, all of which can impact you privacy, along with your asking price. Being close to industrial and or commercial Potential impact on value: -5 to -10% uses: 45

46. PART II · EVERYTHING YOU NEED TO KNOW ABOUT SELLING A HOME IN THE GTA D. CALCULATING THE REAL POTENTIAL REVENUE Congratulations! You just received a valuation of $1 million for your home. But before you start hunting for that newer, larger house, you need to do a little math, because there are a number of costs associated with the sale of your property: 1. Commissions Typically, sellers pay 5% of the final sale price of their home in commissions; this is usually split between the listing agent and the buyer’s agent 50/50, so 2.5% each 2. Additional closing costs a. Mortgage Penalties: This is a fee to pay off your existing mortgage if it is in a closed term, which will involve a prepayment penalty. E.g. On a $1 million home, the seller pays out $50,000 in commissions. Real estate commissions are subject to HST so that is $57,500 in total. b. Lawyers fees and disbursements c. Penalties to break any contracts that are not being assumed by the buyer or are not transferable. With a Justo agent, sellers pay only half of the typical listing fee, meaning that on the same $1 million home, the seller would save $12,500 It is important to be aware of these costs so you’ll have an accurate idea of how much you’ll net from the sale of your home. Justo agents help their clients fully understand all fees and expenses so they’ll always know exactly what to expect. 46

47. PART II · EVERYTHING YOU NEED TO KNOW ABOUT SELLING A HOME IN THE GTA YOUR SALES STRATEGY E. Your real estate agent will provide you with a valuation based on the criteria outlined in section “D” above, and from there you can decide on the listing price. such as 3D virtual tours, floorplans, etc. You’ll want these in hand from the day your home hits the market, when interest is at its peak. One thing most often overlooked by sellers is the amount of time it takes to properly prepare a home for sale. If you want to sell in the spring, you should start working with your agent about 1-2 months prior to that, depending on the condition of your home. It takes a lot of time and energy to declutter and organize, especially if you have lived in the home for a long time. It also takes time to complete all of the marketing materials, A number of strategies exist for listing your home, and should be discussed at length with your agent: a. Listing price:Depending on market conditions, you’ll need to decide if you want to list your home for less than it’s worth to increase interest, at current market, or above market value with the hopes of getting your desired price. 47

48. PART II · EVERYTHING YOU NEED TO KNOW ABOUT SELLING A HOME IN THE GTA b. When to list: Spring and fall are usually the busiest times for real estate, with the highest number of buyers and sellers. However, if selling at these times, you will usually be competing for buyers’ attention due to more available inventory. d. Updates: You and your agent should discuss if they think there are any updates you should do to the home that may increase its value. Together, you can make a decision about whether to invest a bit into the home in hopes of a better return, or let the new buyer complete some updates to their own personal tastes. c. Open houses or private showings only? An open house can bring more traffic through your home, but can take a toll on your time. You may want to show your home by appointment only. Your Justo agent will be a great resource in helping your build the best plan for selling your home. 48

49. PART II · EVERYTHING YOU NEED TO KNOW ABOUT SELLING A HOME IN THE GTA PREPARING YOUR HOME FOR SALE F. Sure, you love your home, but everyone has different styles and preferences. When marketing your property, you want it to appeal to the most people possible. There are a number of tactics that can help in this area and maximize the price you get. Once you have made the decision to sell, think of your home as a product you are trying to market instead of your own personal haven. STAGING If you’ve ever watched HGTV, one thing is abundantly clear: Most home buyers have no imagination! People want to buy and see homes that are move-in ready, bright and spacious. This is where staging becomes important. When you are living in a home it is to your personal taste and style, but when you decide to sell it, it becomes a product that you are marketing, and you will face competition. Staging shows potential buyers what it could be like to live there, helping you get the most equity from the sale of your property. 49

50. PART II · EVERYTHING YOU NEED TO KNOW ABOUT SELLING A HOME IN THE GTA CLOSETS:Keep what you need for the next 90 days and place the rest of the items in empty suitcases. Buyers are looking for space in their new home, and a roomy, organized closet gives a good impression. A professional stager like Michelle Finnamore from Michelle Finnamore Interiors can do wonders for your home’s appeal. Whether you home is currently empty and requires furniture rentals, or is filled to the brim with too much stuff, Finnamore can help with suggestions to market your home for the greatest return on investment. KITCHEN: Bring all of the tallest items to the front of the food shelf; this makes the cabinet appear very organized. For those wanting to go the DIY route, Finnamore offers room by room detailed tips to instantly add value to your home: CABINETS: White ceramic items are best to display in glass kitchen cabinets as they create a calm and spacious look in listing photos. Pro Tip!! WINDOWS & GLASS DOORS:One of the most overlooked things when selling is the windows. Taking the time to clean the windows and screens inside and out can go a long way towards people’s first impression of the home. This step will make your home appear brighter and cleaner, and better connects the home to the outdoors. Professional staging can increase a home’s worth anywhere from 6% to 15%, and can help sell a home up to 10 days faster than an unstaged property 50