The search has begun ... what now?
Finding your ideal home can be easy. To be prepared you'll need to know what your looking for and what questions you'll want to ask. Not too mention a good plan.
Finding the house your looking for can seem easy at the start, tough when you get into it, and down right confusing when it comes to buying. We've made it easy. From every aspect, we've got you covered. Take a look below...
1. Develop your Needs vs Wants list,
Everyone has a picture of an ideal home. Although needs can be quite standard there may be some that are a lot more important to you that some of your desires. Get a list together of all of these aspects of your new home. Begin with items like, adequate space, garage and number of bedrooms, finished basement, ensuite bath. With this list, you won't forget what you're looking for once you've seen your tenth property. Always remember, the desires can cost more than you want to pay. Think about things that you with your new home after you've purchased.
2. Get Pre-Approved Prior to Shopping,
Visit your financial or lending institution prior to home buying. Quickly, you will know the amount of mortgage you will qualify for. Be sure to get a mortgage commitment in writing. Most importantly, this tells sellers that your are a serious prospect. Depending upon the market conditions, a seller may lean towards an unconditional offer. You will have less negotiating power if you have to wait for mortgage approval.
Banks and financial institutions have developed many programs especially for home buyers, be that first-time buyers or those with equity in their homes. When you review your needs and objectives with a lending officer, you will be one step closer to purchasing your home.
3. Choose Your Winning Team
Buying a home is a complicated process with many people involved. From choosing the right mortgage, to finding a home inspector, to viewing available properties, there are many steps involved for even the hardiest person. With a professional REALTOR® on your side, you will have access to these services, which are already in place and come highly recommended. A good agent has knowledge and experience developed from many years of helping both buyers and sellers. During this time they have developed a network of professional connections, from lenders, lawyers, home inspectors and movers.
4. Location Location Location!!
You have heard it so many times, that it is probably starting to sound like a broken record. That is because it's true!! A home is not a stand-alone item. Rather the value of a home is greatly affected by the surrounding homes. Do not let your emotions determined your purchase. Think resale. The desirability and resale value of your home depends largely on location more than any other factor. people want a desirable community that includes character, quality of schools, access to work, major transportation arteries, recreational facilities, etc...
On your viewing trips, take a careful look and ask the following questions: How does this home compare to others in the neighbourhood? Are yards fenced? Are there many children playing on the streets? Are front and backyards and the exterior of the homes properly maintained?
Walk around the neighbourhood and get a feel for the people living in the area. you may want to speak with a few neighbours to get their comments. If you like the community, carefully examine the home that you like. Generally speaking, extremely large homes surrounded by smaller homes tend to appreciate less than a large home among other large homes. Alternatively, the smallest home in the neighbourhood tends to stand out from the rest.
Additional factors that affect the property value of a home include traffic, sounds, smells and zoning bylaws. Try your hardest to be objective, although it isn't easy.
5. Check Your Emotions At The Door
When people purchase a home based on emotion, without an objective view of the property, problems may develop later. Shopping for a home is an emotional process. It could be costly. Using your head, along with asking for an objective opinion from your REALTOR® could help you to avoid costly errors.
6. Pay Attention to Red Flags
When evaluating a home, be sure you know the difference between acceptable and unacceptable problems. Cosmetic items like peeling paint, worn carpeting and unattractive wallpaper can be easily remedied. you could use these as negotiating items, as there will be costs involved in updating the home.
Major problems however, are clearly 'red flags.' Look for items such as major foundation cracks, water damage, outdated electrical systems and inadequate plumbing. These items could cost you dearly in the future.
7. Hiring a Home Inspector is a Wise Investment
A home inspection is an inexpensive way to gain peace of mind and guard your pocket book. A proper inspection will cover all areas of the house including foundation, electrical, heating, plumbing, floors, walls, ceilings, attic, roof, siding and firm, porches, patios, decks, garages and drainage. A professional inspector can give you an objective view of the property, with a written report, indicating the present condition and items that will need repair.
8. Be Cautious with Fixer-Uppers
Some people may be inclined towards purchasing a home that needs some work. This could be a challenger and an opportunity to make money. Sometimes a fixer-upper can be purchased below market value. With sufficient repairs made to bring it to a good sale condition, a profit may be realized. however, not all fixer-uppers will bring in the profits you might expect. It depends upon the price of the home, the amount of repairs need and the market conditions at the time of sale. If the home is not priced low enough, you may not recover your investment of time, trouble and money. Once you've had a good look at the fixer-upper and you've made a list of repair costs, your REALTOR® can give you an idea of what you can reasonably expect to recover when the home is put back on the market.
9. Consider Your Future Needs
Take a look at your lifestyle now and in the future. Will you need extra space for a home office, a child or perhaps an aging parent? It may be easier and less expensive if you purchase a home that can meet these needs now, rather than moving up to a larger home a few years later.
10. Proceed Quickly!
When you are ready to buy, move fairly quickly. Good properties usually sell fast. This is especially true when there is a shortage of homes available. When you work with a REALTOR®, you have access to the most current technology. As a part of the MLS network, a REALTOR® has access to properties within hours of when they are listed. To save time and effort, try to only go and see the properties that match your criteria. You will be able to see them the moment they hit the market.
11. Ask For A Written CMA
A Comparative Market Analysis (CMA) is an analysis of comparable homes in the neighbourhood. It shows you the sale prices of comparable homes in the neighbourhood, along with asking prices of other homes in the area currently on the market. A REALTOR® can create this report for any home and neighbourhood in Canada. Ask for this report in writing. With this valuable document, you will have the appropriate evidence for either a too-high asking price or one that is a bargain.
12. Keep Personal Information to Yourself
Conversely, information could be used to your detriment. Information about your mortgage, size of down payment, move-in deadline, or circumstances for buying, could be negotiating factors. While you want your REALTOR® to know these details, do not reveal any of this information to the seller.
13. During Negotiations, Keep Your Emotions Intact
In certain situations, emotion could cost you money. If you let the seller know how interested you are in the property, this might be seen as a financial opportunity. Recognizing that you are highly motivated, you could be an easier target for a higher price. If you absolutely love the home, keep it to yourself. This is a definite advantage of working with a professional REALTOR®. Trained to be non-emotional, they can ensure that you get the best price possible.
14. Exercise Your Negotiating Skills
Even if you prefer not to haggle, it is worth it, especially when it is your home and your future. Most people expect to haggle over the price. That is often why the price is set a bit higher than the actual selling price. There is always room for negotiation. if you want to get the best home possible for the least amount of money, then negotiation is the only way to get a good deal.
15. Be Aware of Your Hidden Costs
There is more to a home than simply the mortgage. you will be responsible for other items including mortgage insurance, appraisal fees, legal fees, inspection fees, transfer taxes, title insurance, inspections, etc... Your REALTOR® can give you a good idea of the costs associated with buying a home that are beyond the final negotiated price of the property you've chosen.
Everyone has a picture of an ideal home. Although needs can be quite standard there may be some that are a lot more important to you that some of your desires. Get a list together of all of these aspects of your new home. Begin with items like, adequate space, garage and number of bedrooms, finished basement, ensuite bath. With this list, you won't forget what you're looking for once you've seen your tenth property. Always remember, the desires can cost more than you want to pay. Think about things that you with your new home after you've purchased.
2. Get Pre-Approved Prior to Shopping,
Visit your financial or lending institution prior to home buying. Quickly, you will know the amount of mortgage you will qualify for. Be sure to get a mortgage commitment in writing. Most importantly, this tells sellers that your are a serious prospect. Depending upon the market conditions, a seller may lean towards an unconditional offer. You will have less negotiating power if you have to wait for mortgage approval.
Banks and financial institutions have developed many programs especially for home buyers, be that first-time buyers or those with equity in their homes. When you review your needs and objectives with a lending officer, you will be one step closer to purchasing your home.
3. Choose Your Winning Team
Buying a home is a complicated process with many people involved. From choosing the right mortgage, to finding a home inspector, to viewing available properties, there are many steps involved for even the hardiest person. With a professional REALTOR® on your side, you will have access to these services, which are already in place and come highly recommended. A good agent has knowledge and experience developed from many years of helping both buyers and sellers. During this time they have developed a network of professional connections, from lenders, lawyers, home inspectors and movers.
4. Location Location Location!!
You have heard it so many times, that it is probably starting to sound like a broken record. That is because it's true!! A home is not a stand-alone item. Rather the value of a home is greatly affected by the surrounding homes. Do not let your emotions determined your purchase. Think resale. The desirability and resale value of your home depends largely on location more than any other factor. people want a desirable community that includes character, quality of schools, access to work, major transportation arteries, recreational facilities, etc...
On your viewing trips, take a careful look and ask the following questions: How does this home compare to others in the neighbourhood? Are yards fenced? Are there many children playing on the streets? Are front and backyards and the exterior of the homes properly maintained?
Walk around the neighbourhood and get a feel for the people living in the area. you may want to speak with a few neighbours to get their comments. If you like the community, carefully examine the home that you like. Generally speaking, extremely large homes surrounded by smaller homes tend to appreciate less than a large home among other large homes. Alternatively, the smallest home in the neighbourhood tends to stand out from the rest.
Additional factors that affect the property value of a home include traffic, sounds, smells and zoning bylaws. Try your hardest to be objective, although it isn't easy.
5. Check Your Emotions At The Door
When people purchase a home based on emotion, without an objective view of the property, problems may develop later. Shopping for a home is an emotional process. It could be costly. Using your head, along with asking for an objective opinion from your REALTOR® could help you to avoid costly errors.
6. Pay Attention to Red Flags
When evaluating a home, be sure you know the difference between acceptable and unacceptable problems. Cosmetic items like peeling paint, worn carpeting and unattractive wallpaper can be easily remedied. you could use these as negotiating items, as there will be costs involved in updating the home.
Major problems however, are clearly 'red flags.' Look for items such as major foundation cracks, water damage, outdated electrical systems and inadequate plumbing. These items could cost you dearly in the future.
7. Hiring a Home Inspector is a Wise Investment
A home inspection is an inexpensive way to gain peace of mind and guard your pocket book. A proper inspection will cover all areas of the house including foundation, electrical, heating, plumbing, floors, walls, ceilings, attic, roof, siding and firm, porches, patios, decks, garages and drainage. A professional inspector can give you an objective view of the property, with a written report, indicating the present condition and items that will need repair.
8. Be Cautious with Fixer-Uppers
Some people may be inclined towards purchasing a home that needs some work. This could be a challenger and an opportunity to make money. Sometimes a fixer-upper can be purchased below market value. With sufficient repairs made to bring it to a good sale condition, a profit may be realized. however, not all fixer-uppers will bring in the profits you might expect. It depends upon the price of the home, the amount of repairs need and the market conditions at the time of sale. If the home is not priced low enough, you may not recover your investment of time, trouble and money. Once you've had a good look at the fixer-upper and you've made a list of repair costs, your REALTOR® can give you an idea of what you can reasonably expect to recover when the home is put back on the market.
9. Consider Your Future Needs
Take a look at your lifestyle now and in the future. Will you need extra space for a home office, a child or perhaps an aging parent? It may be easier and less expensive if you purchase a home that can meet these needs now, rather than moving up to a larger home a few years later.
10. Proceed Quickly!
When you are ready to buy, move fairly quickly. Good properties usually sell fast. This is especially true when there is a shortage of homes available. When you work with a REALTOR®, you have access to the most current technology. As a part of the MLS network, a REALTOR® has access to properties within hours of when they are listed. To save time and effort, try to only go and see the properties that match your criteria. You will be able to see them the moment they hit the market.
11. Ask For A Written CMA
A Comparative Market Analysis (CMA) is an analysis of comparable homes in the neighbourhood. It shows you the sale prices of comparable homes in the neighbourhood, along with asking prices of other homes in the area currently on the market. A REALTOR® can create this report for any home and neighbourhood in Canada. Ask for this report in writing. With this valuable document, you will have the appropriate evidence for either a too-high asking price or one that is a bargain.
12. Keep Personal Information to Yourself
Conversely, information could be used to your detriment. Information about your mortgage, size of down payment, move-in deadline, or circumstances for buying, could be negotiating factors. While you want your REALTOR® to know these details, do not reveal any of this information to the seller.
13. During Negotiations, Keep Your Emotions Intact
In certain situations, emotion could cost you money. If you let the seller know how interested you are in the property, this might be seen as a financial opportunity. Recognizing that you are highly motivated, you could be an easier target for a higher price. If you absolutely love the home, keep it to yourself. This is a definite advantage of working with a professional REALTOR®. Trained to be non-emotional, they can ensure that you get the best price possible.
14. Exercise Your Negotiating Skills
Even if you prefer not to haggle, it is worth it, especially when it is your home and your future. Most people expect to haggle over the price. That is often why the price is set a bit higher than the actual selling price. There is always room for negotiation. if you want to get the best home possible for the least amount of money, then negotiation is the only way to get a good deal.
15. Be Aware of Your Hidden Costs
There is more to a home than simply the mortgage. you will be responsible for other items including mortgage insurance, appraisal fees, legal fees, inspection fees, transfer taxes, title insurance, inspections, etc... Your REALTOR® can give you a good idea of the costs associated with buying a home that are beyond the final negotiated price of the property you've chosen.