Helpful Hints Before Buying

 

Why are you Buying a home ?

 

            Ask yourself this question. It will help you focus on exactly what your needs are and help you set guidelines and deadlines to meet those needs.

 

            In most cases someone without a purpose will not accomplish a goal. Make sure you have a reason to buy a home or it may turn out to be a long frustrating process.

 

Get Preapproved for a Mortgage

 

            If you will require a mortgage on the home you are going to purchase, this is an important step. It will be an upsetting day if you find your dream home and then go looking for your mortgage and run into problems.

 

            The process of getting qualified for a mortgage “Preapproved” , is free, it aligns financing with your goals, gives you an idea of your monthly payments and it generally protects the interest rate for you (generally 90-120 days) while you shop for a home. I can’t think of any downside to getting preapproved for a mortgage.

 

            As first time buyers it helps you establish monthly costs and a price range of homes to be looking at. It shows your Realtor you are serious about the house buying process and it will also allow your Realtor to add some strength and leverage to any offer you submit, by telling the home owner and their Realtor that you have been preapproved and are not wasting anyone’s time.

 

            If you are someone who is buying and selling , the Preapproval process helps you understand terms like “portable mortgage” , “prepayment penalties” (which can be $1,000’s of dollars) “bridge financing” and it helps you budget mortgage costs and a house price range as well. Without all this knowledge you could be stuck owning 2 homes and costing yourself lots of money.

 

            First time or seasoned house buyer , do yourself a favour and get preapproved for financing before you get involved in house hunting.

 

Make a “WISH LIST”

 

            Before getting involved in house hunting, make yourself a list of “wants” and “needs” (a WISH LIST ).

 

            Stick to your needs list or you may end up unhappy with the home you select. Your wants list may often have to be flexible. For example you may say that you NEED a 4 bedroom home with a 2 car garage, in a specific neighbourhood, for a price no higher than $250,000. Research may show that 4 bedroom homes with a 2 car garage in that area start at $300,000 and go up in price from there. In this example to get what you NEED you will have to be flexible on some of your WANTS .

 

            To determine if something is a WANT or a NEED , ask yourself this question. What must a home have in order for me to buy it? In other words if a home does not have that criteria I will not buy it. (those are NEEDS ) . If you can live without it, it becomes a WANT .

 

            In the example given above, if you decide that you would rather be in that specific neighbourhood, but could settle for a 3 bedroom home vs a 4 bedroom home, then your NEED for a 4 bedroom home is really a WANT .

 

            The reason it is so important to understand what your true NEEDS and WANTS are, is that it will help to quickly determine the homes you should and shouldn’t see and make your house hunting trip more productive and successful.

 

            Show your Realtor your “WISH LIST” and together you can work towards that home that best suits your NEEDS and WANTS .

 

 

Selecting a Realtor

 

            They come in all shapes and sizes and there are literally thousands to choose from. To some people at first glance all Realtors are the same, so how can they choose ?

 

            Well I wish I could tell you the exact method to pick the best Realtor to suit your personal needs, but unfortunately there isn’t one. There are no guarantees in the selection process and for many people this can be a very stressful time. One thing I can tell you, is when you decide to buy a home the seller of that home has hired a Professional to represent their interests and you are at an extreme disadvantage if you haven’t done the same.

 

            Since there are no exact routes to follow, I have enclosed some possible suggestions that may help you through the decision process.

 

Pick One Realtor –

           

            Not all Realtors are the same, but they all have access to all the same homes for sale on the MLS system and can gain you access into anyone of them. It can be a redundant and frustrating process using more than one Realtor to do the same job. Anyone looking to work with more than one Realtor generally feels/thinks that their current Realtor is not competent or they don’t trust them. Then why are you working with them at all?

 

            Find one you feel/think you can work with, who you trust will do a competent job for you and let the others go. You will ultimately have a much more productive outcome and not miss out on opportunities to see all the homes that meet your needs.

 

Ask a Friend –

 

            Talk to people you know who have recently bought a home. Find out if they were happy and most importantly would they recommend their Realtor.

 

Internet/Newspaper/Other advertising –

 

            Search the net or real estate advertising for possible Realtors. This will at least tell you who is active within the area you are looking to buy in. Check out Realtor’s personal web sites. If you are an internet browser, you may want a Realtor who is capable of communicating with you via email.

 

Open Houses –

 

            Go visit some OPEN HOUSES, not necessarily to buy that specific home, but to see what the Realtor holding the OPEN HOUSE is like. Are they professional, knowledgeable, someone you could work with?

 

Trust your GUT! –

 

            First impressions can be lasting and often very true. If something doesn’t feel right, move on. You may end up working with a Realtor for a few months, this can be a stressful situation if you find you have an uncomfortable relationship with your Realtor.

 

Make a List –

 

            Decide what kind of person you need, to find your home. What qualities, characteristics, knowledge, and successes must they have? For example, if you are looking for a knowledgeable professional to help you, don’t hire a part time Realtor in blue jeans (even if they are your brother in law).

 

Home to Sell (as well) –

 

            If you are buying a home and also have a home to sell, have a few Realtors in to give you a free Market Evaluation of your home. This will give you an opportunity to see them in action and find out if they are right for you.

 

Michael J. Wilson – Sales Representative

Royal LePage Connect Realty – (905) 683-1790

 

“ Make the Move with Mike “