Buyers

Home-buying is among the largest investments we ever make. Thinking of it in steps makes it easier to see the big investment picture and takes a little stress out of the process.

Here’s a cheat-sheet short version of the informative seminar I regularly offer in an attempt to make folks more comfortable with the home-buying journey. Click here to learn more about my upcoming Halifax home buying sessions.

1. Make the Choice

Choosing a time to purchase is often a big stressor, but there’s never a wrong time to buy the right home. The keys are having a clear personal financial picture so you find a great budget-appropriate purchase. Remember, a mortgage isn’t a “long-term loan,” it’s a gateway to financial benefits that include equity growth, appreciative value potential, tax advantages, and is essentially an ongoing savings plan (unlike renting, which puts your money in other people’s pockets).

2. Hire a Real Estate Agent

Operating without professional advice is risky when so much hinges on contractual details. Beyond the legal aspects, it’s just smart business to have a REALTOR® in your corner. You pay nothing to hire me, and I don’t receive a penny unless you find the right home. That’s why I’m keen to show you homes you can see yourself living in for years, and it’s why I scour the market, network with other agents, will negotiate a great price, attempt to solve your problems, make sure the paperwork’s in order, and generally make you very happy — because I’m not compensated unless I do. This protects you while motivating me, and I wouldn’t have it any other way.

3. Know Your Money Picture

Don’t just guesstimate your investment potential. Get an accurate financial picture before you start looking at properties, so you can shop confidently when you do. Whether you use a bank or a mortgage broker, make sure you get a pre-approval in place, and know what you’re comfortable paying, long-term.

4. Start Viewing

Now it gets fun! It’s time to look at places with great potential. Whether it takes days, months, or longer, it’s important to have a clear idea of what you really want in a home, since details really matter when it’s where you’ll be living. Things to ask yourself include:

  • What’s more important to me: Location or size?
  • What amenities and places do I want to be close to, and how far away is okay otherwise?
  • How much space do I need today, why, and when might this change?
  • Am I interested in a fixer-upper?
  • Do I need neighbourhood stability?
  • Is value appreciation potential necessary, or does the home just have to be where I see myself enjoying life 15 years from now?

5. Get an offer accepted

This can be less fun, because deciding to buy means we usually become emotionally invested in the process for real. Having an objective professional whose only concern is in getting the best for you is what can make this experience easier. I don’t just worry about price, but also about all the terms and conditions that can make your purchase successful, while I protect you. I make sure it’s a good price for you, ensure all financial and legal terms, as well as the timeline, are to your advantage, all while setting conditions that allow for your due diligence to get done.

6. Meet Sale “Conditions”

Typically, there are 7 to 10 days to meet “conditions” in a sale contract. During that time, your lawyer should review the documents. It’s also when an inspector should be involved. Home inspectors will typically find faults (sometimes lots) with homes, as they should, and it’s up to you to decide if it’s normal wear-and-tear or indicative of larger issues. Be prepared to consult with specialists about such matters in case you need to reconsider your options, including whether you can absorb maintenance costs that might be down the road. That’s the whole purpose of this time frame. Here’s also where the mortgage lender needs to provide final approval in written form, and an insurance company must deem your property insurable.

Also, keep in mind that there are a number of additional costs involved, over & above the purchase price. Some of these closing costs may include:

  • Deed “transfer tax” – typically 1.5% of purchase price, eg. tax on a $300,000 purchase would be approx. $4500
  • Lawyer / Notary fees – $600-$800
  • Home inspection fees – $350-$500
  • Title insurance (required by some lenders) – $150

7. Closing Time

Now your big day arrives: You become a homeowner. First, though, you’ll do a pre-close inspection to make sure everything’s all good. Then, it’s time to move some boxes and order some pizza.

Wow. You’re a homeowner. Now what?

Now it’s time for you to care for your home, performing regular maintenance and even improvements in order to keep your investment protected and strong. This is an important (and often forgotten) consideration in Step 3, when doing your mortgage calculations. Ensure you don’t just budget for mortgage payments; make plans so you can afford the upkeep, and your home will always be good to you.