Balancing the Emotional and Practical Sides of Buying a Home
Imagine this scenario...
You're shopping for a new home. You drive to visit a recent listing. As you walk through the front doors, you're impressed. Every room looks fantastic. You see yourself relaxing on the spacious patio, cooking in the modern kitchen, and enjoying evenings with the family in the cozy living room.
Your emotions are on overdrive. This is your dream home!
Should you make an offer? Probably. In fact, you should make that decision quickly in case there are other interested buyers.
However, your decision shouldn't be guided purely by emotion. You want to make sure you take practical matters into consideration too.
For example, you'll want to consider:
· Is the property within your price range?
· Does it have everything you need?
· Do you like the neighbourhood?
· How old is the property? Are there items, such as the furnace, that may need to be replaced soon?
· Will it need any major repairs or upgrades?
· What are the average monthly costs of carrying the home? (Property taxes, utilities, etc.)
Once you've considered the purchase of the home from a practical standpoint, you'll have a lot more confidence in your decision when you make an offer.
When you think about looking for a new home,one of the first questions that probably comes to mind is: "What type of property can I afford?"That's an important question because your price range is a major determining factor in the types and sizes of homes you should be viewing.
You don't want to waste time looking at properties that are beyond your price range. At the same time, you don't want to purchase a less-than-ideal home, only to realize later on that you could have afforded more.
So how do you determine what type of new home you are qualified to purchase?
The first step is to find out what your current property would likely sell for in today's market. I make that calculation for clients all the time. It involves reviewing what homes similar to yours have sold for recently, as well as other data —such as special features your home may have that are likely to boost the selling price.
Once you know the current market value of your home, subtract any outstanding mortgages and estimated selling expenses, and you’ll end up with an amount that can be applied to the purchase of your next home. (You may also have other funds you want to use.)
The next step is to talk to a lender or mortgage broker to see how much of a new mortgage you qualify for. (Call me if you need a recommendation.) It's important to get a Pre- Qualification or Pre-Approval. That makes the offer you make on a new home more credible.
If you want to find out the types and sizes of homes you can get into, give me a call. I'd be happy to show you the possibilities
Home inspections are commonly used to help buyers assess the condition of a house before purchase. However, they can also be very beneficial for homeowners – even if they are not intending to sell in the short term. Getting an informed professional opinion about the state of a home can be invaluable in determining priorities for future renovations or ongoing maintenance decisions. The report will give you an objective opinion on the status of the critical elements of the construction and operation of the house, such as its foundation, structure, roofing and drainage, as well as its HVAC, plumbing and electrical systems.
This thorough checklist can also be used to request and compare contractor quotations when it’s time to act on the inspector’s recommendations. Furthermore, it can provide a basis for discussing the current and potential market value
An Additional Property May Be More Affordable than You Think
Generally speaking, most homeowners give little consideration to the purchase of a second property, often citing economic limitations for either a down payment or for carrying an extra mortgage. But sometimes an open-minded approach to the idea can create true opportunities.
For example, your current property may have enough equity to enable you to secure an additional loan. You may also discover that specific real estate investments have the potential to generate dependable income. It takes homework, but properties in areas where rental units are in demand can generate steady cash flow, that can contribute to their monthly upkeep.
Another option might be owning your own cottage, chalet or resort condo. Rather than taking an expensive family trip this year, imagine using that money towards a vacation property, which can be rented out on long weekends or during the peak season.
Imagine finding a home you love, making an offer, and then finding out there are other competing offers on the table. Ouch.
If you’re looking for a property in a competitive market, it is likely that there will be multiple offers. Even just one can create the risk that you’ll lose the home. So how do you make sure your offer is enticing enough to win over the seller? Here are some ideas:
• Don’t make a low-ball offer. If you do, it might be dismissed and you probably won’t get another chance to bid — especially if the other competing offers are near the listing price.
• Have a pre-arranged mortgage and include that with your offer. This reassures the seller there won’t be any money issues. (Most lenders will provide you with a pre-arranged mortgage certificate for this purpose.)
• Go in with a price high enough that the seller will be interested, but not so high as to be leaving money on the table. This is tricky and requires a savvy knowledge of the current market.
• Have a REALTOR® present the offer on your behalf. A REALTOR® will know how to do so professionally, and in a manner that gives you the best chance of getting the home.
In a competitive situation, working with a REALTOR® who is an expert on the local market — and a skilled negotiator — is crucial.
Figuring out how much time you should spend viewing properties for sale is a little like asking, “How long should I spend trying on shoes?” The answer seems obvious: As long as it takes to make a decision!
Buying a home is significantly more complex than purchasing shoes – and the stakes are higher too! You need to make sure you have all the information necessary to confidently make the best decision.
There are basically three stages to viewing a property:
When you view a home on a macro basis, you’re looking at it from an overall perspective. For example, you may do a general walk-through to get a first impression and determine if the property has the basic features you need, such as the number of bedrooms and the size of the backyard.
Macro viewing is often the fastest stage in the viewing process and can sometimes take just a few minutes. If you like what you see, then it’s onto the micro stage. At this stage you take a closer look at the details of the property. You might, for example, spend extra time in the master bedroom imagining how your furniture would look and fit.
The micro stage takes longer simply because the home is now on your shortlist. You’re interested and are considering making an offer.
Finally, the professional stage involves getting a qualified home inspector to go over the property with a fine tooth comb. That typically occurs after you’ve made an offer. As your REALTOR®, I will guide you through a viewing so you’ll know what to look for and can make a smart, informed decision. Call today.
When you make an offer on a home, it’s a smart idea to have a professional home inspector check it out from top to bottom. This inspection will ensure that the property doesn’t have any unexpected “issues”. After all, you don’t want to buy a home only to discover that the roof needs to be replaced, immediately, for thousands of dollars.
That being said, you might question whether you really need to invest the few hundred dollars it costs for a professional home inspection. “The home we want to buy looks like it’s in very good shape,” you might be thinking. “I can’t see anything wrong with it.”
However, a professional home inspector can see things you can’t. When you view a property that’s on the market, you might be able to notice obvious issues, like a crack in the foundation or a dripping faucet. If you’re experienced with home maintenance, you might even notice roofing tiles that look like they’re overdue for replacement.
But you won’t pick up all the issues a home inspector can.
A home inspector will, for example, use a special device to check for moisture build-up in the washrooms – which can be an indication of mould. He or she will also inspect wiring to make sure everything is safe and compliant with the building code.
That’s not all.
Like a determined detective, a home inspector will investigate the property’s structure, electrical and plumbing systems, insulation, and other components — and then report the findings to you.
In the end, a professional home inspection gives you peace-of-mind and protects your investment. So getting one is highly recommended — even for recently built homes.
A good REALTOR® can recommend a trusted home inspector for you.
Looking for more ideas on making smart decisions when buying a home? Call today.
Say you’re viewing a home and are impressed with how it looks. The walls are freshly painted. Everything seems bright and new. You’re considering making an offer.
Then, while standing on a mat in the kitchen, you hear a squeak below your feet. You lift the mat and see that some tiles are broken. Obviously the mat was there to, literally, cover up that defect.
A few broken tiles are not a big deal. But now you’re thinking, “What else might be wrong with this house?”
There’s no reason to worry that every home will have maintenance issues hidden from view. However, it’s smart to do your due diligence to ensure the home you’re considering is truly as good as it looks.
One way is to have a professional home inspector check out the property as a condition of your purchase offer. He or she will inspect the home from top to bottom, inside and out, and point out any issues you should address.
It’s also smart to ask questions. Find out the age of certain features, such as the roof, furnace, and appliances. Ask about any recent renovations, and determine whether they were done by a professional or by the homeowner.
Most importantly, work with a good REALTOR® who can provide you with information on the property that you would have difficulty getting on your own. Your REALTOR® has a stake in making sure you buy a home with your eyes wide open — knowing all the potential maintenance issues you’re likely to encounter.
When you purchase a home, you’re hoping it will continually go up in value
— just like a good investment.
However, there’s something else that you want to see go up in value as
well: the neighbourhood. In fact, the neighbourhood plays a key role in whatthe home will be worth in years to come. If the neighbourhood goes down in terms of desirability, so will the market value of the home.
That’s why, when shopping for a new home, it’s important to get a feel for the value of the neighbourhood, and whether or not it’s on the upswing.
How do you do that? One way is to simply take a walk. Look at the properties. Are they well maintained? Is the landscaping groomed an attractive? Those are signs of “pride of ownership” — a clear indication that owners value their homes and the neighbourhood.
Another way is to do some research. Has crime gone up in the neighbourhood? Are there improvements planned, such as new parks? Is the neighbourhood attracting the kind of people you want as neighbours?
How does the neighbourhood school rank?
Some of this information may be difficult to get on your own. A good REALTOR® can help you. Call today