Jatinderbir Bajwa's Home
Selling System
In This Issue:
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Understanding Contingencies in Real Estate Contracts — Decode the key protections that keep deals safe for buyers and sellers, and learn how to manage them strategically to avoid delays or surprises.
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Ask Your Agent for a Customized Market Snapshot — Get clarity on what’s really happening in your local market—prices, inventory, buyer demand, and trends that matter for your next move.
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Appraisal 101: How It Works and How to Prepare — What appraisers look for, how to prep your home, and your options if the appraisal comes in low.
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Understanding Contingencies in Real Estate Contracts
Summary
Contingencies are one of the most misunderstood—and most important—parts of a real estate contract. They protect both buyers and sellers, but can also introduce delays, negotiations, or deal-breakers. This report explains the most common contingencies, what they mean, and how to handle them strategically from either side of the transaction.
In real estate, a contingency is a condition that must be met for a contract to move forward. Contingencies protect buyers and sellers from committing to a deal if something critical changes. But they can also complicate and delay closings.
Understanding how contingencies work helps you negotiate smarter, avoid misunderstandings, and close with confidence.
Common Contingencies in Real Estate Contracts
1. Financing Contingency
- Gives the buyer time to secure a mortgage
- If the buyer is denied financing, they can cancel without penalty
- Usually includes a deadline for loan approval
Tip for buyers: Get pre-approved early to reduce risk
Tip for sellers: Verify buyer pre-approval before accepting
- Allows the buyer to conduct a professional inspection
- If major issues are found, the buyer can:
- Request repairs
- Negotiate a credit
- Walk away (within the time frame)
Tip for sellers: Consider pre-inspections to uncover and fix issues
Tip for buyers: Focus on safety, structure, and systems—not cosmetic flaws
- Protects the buyer if the home appraises below the offer price
- Common when using a mortgage
- May lead to price renegotiation or buyer making up the difference
Tip: In hot markets, some buyers waive this to stay competitive
4. Home Sale Contingency- Buyer’s purchase is dependent on selling their current home
- Riskier for sellers—can delay or derail closing
Tip for sellers: Include a "kick-out clause" to continue showing the home
Tip for buyers: Consider bridge loans if timing is tight
- Ensures the home has clear ownership and no liens
- Buyer can walk away if title issues can’t be resolved
- Allows time to review HOA rules, budgets, and bylaws
- Can trigger withdrawal if terms are unfavorable
- Buyer must confirm the property is insurable at a reasonable cost
- Useful in high-risk areas (flood, wildfire)
Contingencies usually come with deadlines:
- 7–10 days for inspections
- 14–21 days for loan approval
- 30–60 days for home sale contingencies
Delays in fulfilling them can push closing dates or cancel deals.
Should You Waive Contingencies?Waiving contingencies can strengthen a buyer’s offer—but it increases risk. Only waive if:
- You’ve reviewed disclosures and done inspections already
- You have solid financing in place
- You’re willing to walk from your deposit if something goes wrong
- Shorten timelines to keep momentum
- Offer repairs or credits to avoid post-inspection renegotiations
- Use escalation clauses to win offers without waiving protection
- Request extensions early if delays occur
Contingencies aren’t just legal jargon—they’re the safety nets and guardrails of your deal. Whether buying or selling, knowing how to use and respond to them is essential. With smart timing, good advice, and clear expectations, you can use contingencies to protect your interests and close with confidence.
Ask Your Agent For A Customized Market Snapshot
Summary
Whether you’re buying or selling, understanding the current market in your area is key to making smart decisions. This report helps you decode the headlines and focus on what truly matters: local prices, inventory, buyer demand, and where things may be headed. Get a clear picture of what’s happening now and what it could mean for your next move.
National news headlines often paint a dramatic picture of the real estate market, but the real action is local. What’s happening in your city, your neighborhood, and even your price range has a much bigger impact on your buying or selling experience. Here’s how to understand and interpret what’s happening in your local market and what it means for you.
- Home Prices: Are They Rising, Falling, or Holding Steady?
Start by tracking local sale prices over the past 6–12 months. Are they trending up or down? Are prices rising slowly, spiking, or softening? Use median sale price, price-per-square-foot, and list-to-sale price ratios as your key metrics. This helps set realistic expectations whether you’re buying or selling. - Inventory: How Many Homes Are on the Market?
Inventory refers to the number of homes available for sale. Low inventory favors sellers (fewer options = more competition). High inventory benefits buyers (more options = more negotiating power). Watch how inventory fluctuates from season to season and year over year. - Days on Market (DOM): How Fast Are Homes Selling?
Short DOM = a fast-paced market. Longer DOM = more negotiation wiggle room. If most listings are selling in under 14 days, sellers have the upper hand. If homes are sitting for 30+ days, buyers may have more leverage. - Buyer Demand: How Competitive Is It Out There?
High demand shows up as multiple offers, over-asking bids, waived contingencies, and open-house traffic. If listings are attracting bidding wars, it’s a hot market. If sellers are offering credits and concessions, it may be cooling. - Seasonality: Know the Cycles
Most markets follow seasonal trends:
Spring: Peak season, strong activity
Summer: Still active, slightly softer
Fall: Slows down, but still solid
Winter: Slower, but motivated buyers and less competition
Knowing your seasonal context helps you time your move and tailor your strategy. - Interest Rates: What’s the Impact?
Even a 1% rise in mortgage rates can significantly affect monthly payments and buyer budgets. Track how recent rate changes have influenced demand in your area. Lower rates may bring buyers out; higher rates may cool activity. - New Construction and Local Developments
New homes can increase inventory and affect resale demand. Are there major construction projects, zoning changes, or commercial developments nearby? These may influence buyer interest and pricing in the near future. - Economic Drivers
Job growth, major employers, schools, transit, and safety all influence your local market. Stay informed about what’s changing — these factors shape long-term value and desirability. - Where Is It All Headed?
No one can perfectly predict the future, but local trends offer clues. Is your area seeing increased demand from out-of-town buyers? Are prices plateauing? Is new inventory flooding the market? Are homes appreciating faster than incomes? - Ask Your Agent for a Local Market Snapshot
A good agent will offer:
• Comparative market analysis (CMA)
• Inventory trends and days-on-market averages
• Buyer/seller traffic insights
• Neighborhood-specific data
This tailored insight beats any national article or online estimate.
The best real estate decisions come from understanding the local market, not the national news. Whether you’re buying or selling, having current, hyper-local insight gives you an edge and helps you act with confidence. Stay informed, ask questions, and lean on professionals to interpret the data in context.
Appraisal 101 How It Works And How To Prepare
Summary
A home appraisal can make or break your sale—especially when your buyer is financing. This report explains how the appraisal process works, what appraisers look for, and what you can do as a seller to influence the outcome. Learn how to prepare your home, what documents to provide, and how to handle a low appraisal if it happens. Be ready for this crucial step with confidence.
The appraisal is a key part of the home sale process, especially when a buyer is using a mortgage. It’s how the lender determines that the property is worth the amount they’re financing. But for sellers, it can feel like a wild card. Even with a great offer, a low appraisal can throw everything into chaos. Here’s how to understand—and prepare for—this critical moment.
What Is an Appraisal?
An appraisal is an independent, professional opinion of a home’s value conducted by a licensed appraiser. The buyer’s lender orders the appraisal, and the result helps the lender decide how much money to loan.
Appraisals are required for most mortgage loans to protect the lender from over-lending on a property that might not be worth the price.
What Do Appraisers Look At? Appraisers evaluate both the home itself and comparable properties. Their report includes:
- Size, layout, and condition of the home
- Age and quality of construction
- Location, including school district and neighborhood desirability
- Upgrades, renovations, and recent improvements
- Comparable recent sales (usually within the past 3–6 months and 0.5–1 mile)
They do not factor in the décor, furniture, or how “lived-in” your home feels—but presentation still matters.
How to Prepare for the Appraisal
- Clean and Declutter
Just like for showings, a tidy home makes a better impression. While appraisers aren’t judging cleanliness, a clean home helps them assess condition accurately. - Make Minor Repairs
Fix anything broken: leaky faucets, cracked tiles, squeaky doors, burned-out bulbs. Small issues can influence the appraiser’s perception of overall condition. - Boost Curb Appeal
Trim landscaping, clear walkways, and touch up paint around doors and windows. First impressions still count. - Highlight Upgrades
Leave a list of improvements you’ve made, including dates and costs (e.g., new roof, HVAC, kitchen remodel). Include receipts if possible. This helps the appraiser justify a higher value. - Be Present—But Give Space
Be available to let the appraiser in and answer questions, but avoid hovering. Offer your improvement list and let them work.
Common Appraisal Issues That Derail Sales
- The appraisal comes in below the offer price
- The appraiser uses poor comparables
- Repairs are flagged that must be completed before the loan is approved
If your appraisal comes in low, don’t panic. You can:
- Appeal the appraisal (with your agent’s help)
- Request a second appraisal
- Negotiate with the buyer to split the difference or adjust the price
What If You’re Selling to a Cash Buyer?
Cash buyers may still order an appraisal—but it’s optional. In these cases, the process may be faster or skipped entirely. If your deal doesn’t require an appraisal, it’s one less hurdle to worry about.
Conclusion:
The appraisal isn’t just paperwork—it’s a major step that can affect your sale price and closing timeline. By preparing your home and providing helpful documentation, you give your appraiser the tools to see—and report—your home’s true value. Don’t leave it to chance. Take control of this critical moment in your sale.
Difference Between Appraised Value and Current market AssessmentLiving in an “information age,” the answers to nearly every question are just a click away. Problems find solutions, mysteries are solved, and the world seems to spin faster, but how do we verify that the information is correct? A home appraisal is not to be confused with a current market assessment. Typically, a CMA is provided by your local Real Estate Agent during the listing process and is complimentary. This report assists with determining the home’s asking price, using current housing market information such as supply and demand, seasonality and home information like location, age, square footage and more. Although both reports are similar and use relatively the same set of criteria, a CMA is ultimately determined by what current buyers are willing to pay for the home in a range acceptable to the seller. A Home Appraisal is based strictly on the physical attributes of the house. Ensure you are prepared and ready for anything in your home-buying journey. Are you interested in getting a Current Market Assessment on your home?Connect with us today to get started.
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What is Land Transfer Tax?A land transfer tax (LTT) is a tax that is levied by the government when ownership of a property is transferred from one owner to another. This tax is typically paid by the buyer of the property and is based on the property’s purchase price. The land transfer tax is usually calculated as a percentage of the purchase price, and the rate can vary depending on the property’s location and the local government’s policies. In Canada, land transfer taxes are levied by provincial and territorial governments, and the rules and regulations regarding LTTs can vary by location. In addition to the provincial and territorial LTTs, some municipalities may also levy their land transfer taxes. The city of Toronto land transfer tax is one such municipality. The purpose of a land transfer tax is to generate revenue for the government, which can then be used to fund essential public services, such as healthcare, education, and infrastructure. The land transfer tax may sometimes support specific programs or initiatives, such as affordable housing or environmental projects. The property listing price doesn’t include land transfer tax (LTT), which can sometimes catch buyers off guard when calculating their final costs. Since land transfer tax is a government-imposed tax applied at the time of purchase, it’s separate from the listing price and depends on factors like the property’s value and location. This tax can add a substantial amount to your total expenses, especially in higher-value markets. The land transfer tax (LTT) is a fee regulated by the Land Transfer Tax Act. The rates usually range from 0.5 to two per cent, depending on the province, with some regions charging extra for properties valued over $2 million. This tax helps fund local services and can also be used to manage housing demand in high-priced markets. Land transfer tax is a tiered tax, meaning different portions of the property’s value are taxed at varying rates. If you want to know how to calculate land transfer tax, you can use an online land transfer tax calculator. These tools take into account the location of the property, its purchase price, and any applicable provincial or municipal rates. Buyers often ask who pays the land transfer tax. The property buyer typically pays the land transfer tax when the ownership is transferred from the seller to the buyer. The amount of land transfer tax is usually based on the property’s purchase price and is calculated as a percentage of that price. The exact rate can vary depending on the property’s location and the local government’s policies. In rare cases, the seller may agree to pay a portion or all of the land transfer tax as part of the negotiation process with the buyer. However, this is not the norm for who pays land transfer tax, and paying the land transfer tax usually falls on the buyer. Homebuyers need to factor in the cost of the land transfer tax when considering the overall cost of purchasing a property. In some cases, the land transfer tax can be a significant expense, particularly for properties in areas with high property values. Under the Land Transfer Tax Act, the tax is typically due at closing. The land transfer tax payment is made directly to the government, often through your lawyer or real estate agent, who collects the funds along with other closing costs like legal fees, title insurance, and registration fees. Once these payments are made, the legal title of the property is transferred to the buyer, and the deal is finalized. The land transfer tax rates in Canada vary by province and territory, and, in some cases, by municipality. Here are the current land transfer tax rates for each province and territory: Alberta – There is no provincial LTT in Alberta. However, it does charge a Transfer of Land registration fee and a mortgage registration fee. British Columbia – The LTT in British Columbia is calculated as follows: Manitoba – The LTT in Manitoba is calculated as follows: New Brunswick – The LTT in New Brunswick is 1% of the purchase price. Newfoundland and Labrador – The LTT in Newfoundland and Labrador is calculated as follows: Northwest Territories – The LTT in the Northwest Territories is calculated as follows: Nova Scotia – Each municipality in Nova Scotia sets their own land transfer tax, which can vary from 0.5% to 1.5% of the purchase price. Nunavut – The LTT in Nunavut is calculated as follows: Ontario – The LTT in Ontario is calculated as follows: If your new home is located in the city of Toronto, you’ll also pay the following city of Toronto land transfer tax in addition to the Ontario land transfer tax: Prince Edward Island – The LTT in Prince Edward Island is calculated as follows: Quebec – The LTT rates in Quebec are as follows: Saskatchewan – There is no LTT in Saskatchewan. However, they do have a land title fee. Yukon – There is no LTT in Yukon. However, they do have assurance fees, a title transfer fee, and a mortgage fee. In most regions, land transfer tax computation follows these general steps: For example, when calculating land transfer tax in Ontario for a $600,000 property: So, how much is land transfer tax in Ontario? The total Ontario land transfer tax would be $8,475. If the property is in Toronto, you would also add the Toronto land transfer tax calculated using the same method, effectively doubling your tax payment. Using a land transfer tax calculator is the simplest way to determine your exact amount. These online tools are specifically designed to account for all tax brackets in your area, including any additional municipal taxes such as the City of Toronto land transfer tax. You must still pay the land transfer tax as a first-time buyer. However, some provinces and territories offer land transfer tax rebates or exemptions for first-time homebuyers. The eligibility criteria, the amount of the rebate, and the exemption rules vary by location. You can find out what rebates you are eligible for on your provincial government website. Transferring property between family members, such as to a spouse or child, may qualify for exemptions. This can provide major savings, especially in high-tax areas. In a divorce, if one spouse transfers their share of the property to the other as part of the settlement, some provinces offer exemptions from land transfer tax, reducing the financial strain during the division of assets. Some provinces have specific exemptions for unique situations like farmland or homes in designated regions. If you’re unsure whether you’re eligible for these rebates, a real estate professional can help clarify the details so you don’t miss out on potential savings. If you don’t pay the land transfer tax, you could face several consequences. Penalties and interest charges will start adding up, making the total amount owed even higher. The government may also place a lien on the property, which means you won’t be able to sell or refinance it until the tax is fully paid. This lien can also hurt your credit score, making it harder to get financing in the future. In some cases, if the issue remains unresolved, legal action may be taken to recover the unpaid tax. While land transfer tax is a standard part of property transactions in most Canadian provinces, there are some ways to reduce or potentially avoid these costs in certain situations. Land transfer tax exemptions exist for specific circumstances that can save you thousands of dollars. Property transfers between family members through inheritance may qualify for reduced taxes or exemptions, depending on your province. First-time homebuyers wondering how to avoid land transfer tax should look into rebate programs. Although these don’t eliminate the tax entirely, they can significantly reduce your tax burden. Some buyers consider purchasing properties in regions without land transfer tax. Alberta and Saskatchewan don’t have this specific tax, although they have other fees. Before implementing any strategy to reduce or avoid land transfer tax, consult with a real estate lawyer who understands local regulations. Improper attempts to circumvent these taxes can result in penalties and additional costs that far exceed the original tax amount.
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