Buying your very own home is something that a lot of us dream of. Who would not want to buy a home where we can grow a family and share the love and laughter? Let’s look at our home buyer’s guide for more information.
But here is the deal. Buying a home is no easy task. It comes with a lot of responsibilities and obligations that could probably overwhelm you. So, The Best Homes on Earth Team decided to help you out with the process. With our years of experience as professional realtors in Chilliwack, we bring to you the 8 step guide that would help any home buyer.
Let us take a look at our Home Buyer’s Guide.
| Step 01: Getting Started & Deciding To Buy A Home |
| Step 02: Choosing Your Real Estate Agent |
| Step 03: Know Your Finances |
| Step 04: Finding The “Dream” Home |
| Step 05: Making An Offer On Your Home |
| Step 06: A Few More Things Before Buying A House |
| Step 07: Closing On Your Dream Home |
| Step 08: Moving In |
Step 01: Getting Started & Deciding To Buy A Home
1. Decide What You Want in Your Home
The first thing you need to do is write down your expectations from your home. It can be the number of rooms, the number of storeys, or even the type of property in general: are you looking for a bungalow, multi-storeyed townhouse, or an apartment? In addition to this, you can also decide whether you want any extra features such as a large garden, a pool, a basement, and etc.
2. Know the Different Types of Homeownership
When it comes to homeownership, you need to understand the difference between the ownership types clearly.
- Freehold – You have complete ownership over the home you buy
- Condo – You have ownership of the interior of the home, but you will pay an association to cover the external maintenance (includes common areas as well)
- Co-op – Similar to the condo ownership: but instead of having ownership of the interior, you will own shares of the entire complex and pay a small fee for the maintenance and repairs
3. Know The Market Dynamics
The real estate market often undergoes dynamic changes. Therefore, it is important to keep an eye out and understand the current market conditions. This knowledge will help you go a long way in making a sound decision.
Step 02: Choosing Your Real Estate Agent
If you are looking to make the perfect purchase, the support of professional real estate agents can be extremely helpful. Therefore, it is essential to have a solid relationship with your real estate agent. It is important that your agent understands your needs and expectations to bring the best offers for you.
A real estate agent is bound to act in your best interests, and their responsibilities usually include:
- Educate you about the current market conditions
- Help you sort through your needs and wants against your budget
- Guide you to homes that fit your criteria
- Coordinate the external resource personnel you might need during the process
- Negotiate the property values on your behalf
- Guide you to resolve any obstacles you may come across
- Make sure all the required paperwork is fully completed, accurate and that deadlines are met
However, do remember that you will be the one making the final decision.
Therefore, please pay attention to every detail.
Step 03: Know Your Finances
Real estate purchases are tied up with quite a substantial financial investment. Therefore, you need to be aware of the expenses and plan accordingly. The following are three key finance factors that you need to consider.
- Down Payment – The down payment is the very first payment you make during the purchase. It is usually a percentage of the total cost of the house. But do keep in mind that the more you keep aside for the down payment, the lesser the burden is for your future monthly payments.
- What Can You Afford -This comes down to 3 factors: your monthly mortgage payment, your down payment and the amortization period or length of time it will take to pay off the loan.
- Getting Your Loans Pre-Approved – It is always better to get your loans and mortgages pre-approved since it will help you plan your finances.
Step 04: Finding The “Dream” Home
Once you have sorted your finances, finding the right home for you is next. This solely depends on your needs and expectations. The following are a few factors you can consider when starting off the hunt for the perfect house.
1. The Neighborhood
The neighbourhood should be one of the first things you look into when buying a house. Because this is where you will be living in future, so it has to be convenient for you and your family. Whether it is the distance to your workplace or the appeal of the environment, the neighbourhood surely matters.
2. House Hunting
House hunting is not an easy task. It takes a lot of time and energy because people rarely find their dream home in the first few properties they visit. So, make it a point to go with your friends or family: because their presence can ease and energize the process.
Furthermore, do not forget to clarify any questions you have. May it be about the house or the price, do not walk out without asking all the questions floating in your mind.
3. View Open Houses With Open Eyes
When viewing houses, do look out for the tiny yet important details. Are the doors and windows solid, is the drainage system adequate, do the floorboards sound loose. Do not forget, the exterior outlook is not all that matters: these things matter too.
But worry not! Your real estate agent will be of great help when it comes to finding homes. With their experience and market awareness, they might even bring you better options you would have never considered otherwise.
Step 05: Making An Offer On Your Home
Once you have found the right home, it is time to make an offer. But remember, you need to have a clear mind when making an offer. You cannot let your emotions control you. You can discuss with your real estate agent and draft an offer that makes sense for both parties. The following are a few factors you could consider.
1. Offers need not always be the same
The main factors on most offers will include price, deposit, terms (which includes financing details), conditions, specific items that are included or not with the home and the closing date. Once these have been finalized, you can decide whether you want to make a firm offer where you will purchase the property or a conditional offer where you will buy the property, given that it has met other conditions such as home inspections and approvals.
2. Negotiations are possible
The seller will either accept your offer, reject it or make a counter-offer based on things like price, closing date or other conditions. Either way, do not panic. Your real estate agent has the necessary knowledge and experience to negotiate on your behalf. It is a good practice not to forget to be collaborative, flexible, polite, and respectful.
Step 06: A Few More Things Before Buying A House
Now that you are almost at the finish line, you need just a few more professional opinions that could be of value. These are the professionals who can help you ensure that you are making a worthwhile investment in the property. Your real estate agent should be able to direct you to these professionals and make the necessary arrangements. Among them, a legal professional and a home inspector are very important, and let us tell you why.
1. A Legal Professional
When it comes to complex legal documents, it takes a lawyer experienced in Canadian real estate law to help make sure that you and your investment are protected. Buying and selling properties are attached to many legal procedures such as title changes, property valuations, and taxations, reviewing the mortgage agreement, and getting all the paperwork ready for closing. This is why it is better to seek the services of a real estate lawyer who can go through all this documentation and make sure that the sale is happening according to the law. Furthermore, with their sound knowledge of real estate law, they will be able to support and guide you in ensuring that the transaction happens without any unforeseen bumps.
2. A Home Inspector
A home inspector plays a crucial role in property purchases because they will look beyond the exterior appeal to determine whether the home you are going to buy is of appropriate standards. Ranging from the electricity supply, heating system to the core structure of the house, a home inspector will do a thorough examination before approving the house.
Step 07: Closing On Your Dream Home
Closing day is the day you officially take ownership of your new home. Yes, it is just as exciting as it sounds. But do not forget, there are quite a few costs and logistics you need to handle on closing day as well. Closing costs usually include mortgage fees, legal fees, property registration, and insurance fees. But do not worry; your real estate agent should be able to guide you through the closure and make sure that everything is settled without a hitch.
Step 08: Moving In
Well, yay! You did it! Now that you are the proud owner of a new home, up next is the move. As tedious as moving sounds, here are a few tips and tricks to help things go smoothly.
- Start a few weeks early and make a checklist that includes every task you need to attend to for the move.
- Have a clear packing plan and ensure that your movers also know about it. This will help them direct the boxes to the respective rooms: thereby making the process easier for you
- Check on the moving packages offered by different moving companies. Also, look into other options such as hiring just the moving trucks and doing the move yourself. Then compare and choose what suits you best
- If you are the owner of your current home, make sure to deal with the electricity, telephone, and cable connections. At the same time, look into setting up the utilities at your new home as well
- Do not forget to tell your friends and other important contacts about the move. They might need to be aware of your address change.
So, there you go! Congratulations on settling in at your new place.