This is definitely a great time to buy, and in some areas, you can still find great value, at slightly lower prices. With today's mortgage rates, how can you go wrong?
Well, let's see.
What type of property do you want to buy?
Have you decided if you want a
- condo apartment or
- townhouse, or
- freehold?
Have you decided on the neighbourhood?
Don't fall in love with the first house you look at.
It will be very hard, but stay objective.
It may be the one you end up buying, but look at others.
Have something to compare it to - preferably in the same or similar neighbourhood.
How does it measure up?
Does it tick all your boxes?
(Everything you need and most of the things you want?)
OK then ...
Have the home professionally inspected.
Don't skip the home inspection
You may fall in love with the house and you may think it's perfect, and you don't really think it's worth the $500 expense .... but how much more can it cost you, if you make the mistake of not looking deeper, into this lovely home?
If you are ready to buy a house, you definitely should be able to afford the home inspection fee.
If you can't afford this cost, maybe you should wait...
This will be only one of many costs you will have associated with this purchase.
If the home inspection reveals nothing major, this will have been the best $500 you ever spent.
If the home inspection reveals faulty wiring, leaky plumbing, cracks in the foundation, a leaky basement, etc... aren't you glad you had the inspection?
At least now you can decide what, if anything, you will re-negotiate with the sellers... or maybe you'll feel more comfortable walking away.
Will this home be easy to sell, when you're ready to move again?
You have to consider this before you buy.
Is is a good location?
How long does it take other homes to sell in this area?
At minimum, discuss this with your REALTOR. They will be able to give you information on the home and the area, and they can help you with the potential resale value of this home.
Shop around for a mortgage
Your REALTOR can refer you to VARIOUS banks or mortgage brokers, and can help you with the terminology, if anything is confusing ... and if this is your first time, it will be.
How flexible is the mortgage?
Can you make pre-payments without penalties?
How much can you pre-pay every year?
Can you increase your payments when you have extra money?
Can you change the amortization, if you run into hard times, or if you temporarily lose your job? How much service can you expect from the lender you're thinking of going with?
Remember that a good lender is there for you AFTER the deal closes as well, and especially when you run into hard times. You want to work with someone you feel comfortable with, and who is interested in helping you - not only when they want to give you the money, but also when you need to change your payments.
Closing costs
Before you start looking for a home, you must sit down with your REALTOR and go over ALL your out-of pocket expenses - leading up to closing day - as well as those on closing day.
Depending on the type of property you buy, some of the associated costs could be:
- home inspection
- appraisal fee
- title insurance
- legal fees plus disbursements
- land transfer tax
- new home warranty (if buying new home)
- builder's extra costs (if buying brand new home)
- etc.
This is only a guideline.
Depending on the property you're looking for, your REALTOR can give you the list of associated costs.
If you want your best interests looked after, use the services of a REALTOR.
Since you have to pay for the services of a Lawyer in order to close your real estate transaction, it is a good idea to sit down with them as well, early in the process. It won't cost you any more, so you may as well take advantage. They will be searching title, preparing the deed, registering the mortgage, buying title insurance on your behalf, etc., and they can explain the whole process to you. It will make you understand the process better and you will feel more comfortable.
If you're not currently under contract with a REALTOR, and you require additional information, feel free to contact me at your convenience. I'm here to help.
Toronto Real Estate by Sylvie Conde, Broker
Sutton Group-Associates Realty Inc., Brokerage 416-966-0300
sconde@sutton.com
www.sylvieconde.com
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Sylvie,
You've certainly outlined the main things a homebuyer should be aware of and how vital it is to have a good real estate sales rep by their side helping them through the process. Magnificent job!!
Jo