Home Buyers Tips

A pre-approved mortgage is the first place to start in the entire home purchasing process.
This accomplishes two things:

• It gives you a guaranteed rate for a mortgage for a specified period of time—usually three months (90 days).
• With a pre-approved mortgage you know exactly what you can afford; therefore you will not be wasting your valuable time looking at homes that you do not qualify for.

Be sure to get a mortgage commitment in writing. Being pre-approved gives you a solid price range, and lets your Realtor® and potential sellers know that you are serious and not just a browser.  mortgage calculator

Everyone can picture their ideal home.  If you haven’t thoroughly prepared yourself prior to viewing houses, chances are that you will find what you think is your ideal home, and will wind up paying too much for it.  It is essential to treat the buying process in a slightly detached manner.  Those who fall in love with houses usually pay too much.

That is why it is recommended that you develop a list of needs and one of wants.  When looking at houses, make sure that they cover all of your needs – things like adequate space, a good neighbourhood, perhaps a garage – and then have fun with items on your wants list.  Treating the process in a regimented manner will help you to make a rational, informed decision.

Another thing to consider is your current lifestyle and consider the future. Will you need extra space for a home office, a child, or perhaps a child moving back home?  Perhaps 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 down the road.

The desirability and resale value of your home depend 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.  This may be something you should consider if you do not plan to live at your house for a long period of time.  The less expensive houses in a better area tend to appreciate faster than the most expensive houses in a less desirable area.  Be objective. Be sure you are completely satisfied with the neighbourhood. If you choose a neighbourhood with problems, you likely will not get as much as you hoped when it comes time to sell.

Buying a home is a complicated process, with many people involved.  Having the right people on your side can make a big difference.  An experienced, dedicated, and knowledgeable Realtor® can put a team of advocates, including mortgage brokers, lawyers, home inspectors and movers, on your side immediately.

Remember to communicate with your Realtor®.  The more you share with your Realtor®, the better he or she will be able to represent you.  Letting your representative know exactly what you are looking for, in terms of needs/wants, price range, and location, can eliminate unnecessary trips to unsuitable homes and that focus can help ensure that you wind up in the right home.

In any real estate transaction, be very clear about who is working for whom, and what the relationship represents. Unless otherwise stated, an agent represents the seller in transactions for the sale of a home. This agent, as part of his or her fiduciary duty, must ensure that the seller’s (and not your) position is represented throughout the entire process.  Get a buyer’s agent on your side, or ensure that someone is acting in your best interests.

Your Realtor® is trained in all aspects of real estate, including understanding supply and demand, economics, and the neighbourhoods of the city in which they practice. A professional Realtor® can do much of the work for you, by reviewing your needs, reviewing available properties, and making an informed match. A comprehensive knowledge of the available homes in your neighbourhood is one of your Realtor’s® strongest assets. With the aid of computerized systems, a Realtor® is notified within hours when a home becomes available.

We will now select homes from our MLS database and give you a list of all the homes that match your criteria.  With this information, you will be in a position to narrow down your selection of homes to view.  The Carl Wilson Team will now set up appointments at the time best suited for you and gather information that is pertinent in assisting you in making an informed decision on properties viewed.

When viewing the homes of your choice we recommend you make a check list of the positive and negative aspects of each home.  This helps to avoid confusion when you are trying to review all the homes you have toured at the end of the day.

We should now have a short list through the process of elimination.  Very crucial point – never, never purchase a home on the first viewing.  From experience, we can tell you that on your second viewing you will see specific things about the property you missed the first time through and you will end up with a more negative or positive feeling about the home.  Remember, we want you to make the right choice for you.

Always obtain a seller’s property information sheet (SPIS) on every property that you are seriously interested in.  This is where the seller gives potential purchasers detailed information about the property in question.  For example, you will be provided with general information in regards to the structure, easements, zoning including environmental issues, etc.  Just remember this disclosure sheet is completed by the vendor to the best of his knowledge.

When evaluating a home, be sure you know the difference between acceptable and unacceptable problems. Cosmetic items like peeling paint, worn carpeting, or unattractive wallpaper can be easily remedied, and can be used as negotiation 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 be too expensive to remedy to make the home a worthwhile investment.

Sometimes, a fixer-upper can be purchased below market value, and once sufficient repairs are made, can be sold at a significant profit. However, not all fixer-uppers will bring in the profits you might expect. 
Consumers often overestimate their level of dedication to doing extensive renovation work, and underestimate the costs associated with such work.  A wall that needs to be replaced can often lead to the discovery of faulty plumbing, electrical, or other major undertakings.  Your Realtor® and home inspector are your best allies when it comes to cost-benefit analyses.

Also ask for a Comparative Market Analysis (CMA).  A CMA is an analysis of comparable homes in a given 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 request this report for any home and neighbourhood.  Ask for this report in writing. With this valuable document, you’ll have solid, reliable information about how fairly a home is priced compared to its real market value.

Understanding a seller’s reasons for moving could work to your advantage during negotiations.  For instance, a seller who has been transferred to another city may be more motivated to sell than someone who is still shopping for a new home.  A vacant house, or a house that has been on the market for several months and has been reduced in price, could also provide the opportunity for lucrative negotiations.

Now you should be ready to make an offer on the property of your choice.  The offer is made up of three components each playing a very important role in bringing the purchase of your home to a satisfying and successful conclusion.

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 trim, porches, patios, decks, garage 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.

While Realtors® often tempt first-time buyers with rent/mortgage comparisons, 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, property tax, increased bills, etc. Your Realtor® can give you a good idea of the costs associated with buying a home that are beyond its final negotiated price.

When you’re ready to buy, act.  Good properties sell.  This is especially true given the current state of most real estate markets. However, when you work with a Realtor®, you have access to the latest technology. As part of the MLS network, a Realtor® has access to properties within minutes of when they are listed.

Even if you prefer not to haggle, it’s worth it, especially when it’s your home and one of your biggest investments. Most people expect to haggle over the price. There is always room for negotiation, and your Realtor® should be a professional negotiator.

The Carl Wilson Team will assist you an Agreement of Purchase and Sale together.  This will consist of, among other things, a legal description of the property, and your offering price.  Other conditions to be included in the offer at your request, for example, financing, a satisfactory building inspection report, survey of the property, potable water test, and adequate flow rate (if applicable), irrevocable date, and time period for which the offer is good.  The Carl Wilson Team will suggest additional conditions for you to consider which we believe are in your best interest and necessary for your protection.

This is the second component and the importance of presenting the offer in a professional and business-like manner cannot be emphasized enough.  This will begin with a verbal introduction of you, the purchasers, to the vendors.  The Carl Wilson Team will do this for you by sharing the specific information that you have agreed to.  The objective here is for the vendors to be comfortable with the potential purchasers of their home.  We are now ready to negotiate the offer on your behalf and through this negotiating process hopefully bring together an accepted agreement of purchase and sale.