5 Important Steps To Buying A Property That All Buyers Should Know
by Ben James
on Tuesday, October 31st, 2017 at 1:49pm.
#1. Get pre-approved: talk to a mortgage specialist, talk to your bank. Make sure you know what you can afford. Lots of Buyers miss this step and try to go buy something and get all excited about the purchase only to find out that they cant buy it. Being pre-approved ensures both you and your realtor are searching and showing the right properties. no one gets let down.
#2. Qualify your realtor: find a realtor that you will trust and know can answer the questions that you should be asking when buying the biggest investment in your life. Do they educate you about the market, about the homes your considering, what steps do they take to get you all the information required to purchase a home? We are all on an even playing field the difference is that 10% of Realtors do 90% of the real estate sales! That 10% spend time knowing the markets, always checking their work, always wanting to learn more. The other 90% in the business think it should just land in their lap, and don't run their job like a business. There are hundreds of REALTORS in the market, so pick wisely.
#3. Know Your Needs VS Wants: We get caught trying to "keep up with the Jones'". So many buyers that I meet don't know what they need vs what they want. All they see is the $$$. It so important for you to stop looking at what your friends are doing or what they have and stop comparing yourself to them. Take a good look at your lifestyle and what type of lifestyle your currently in. If your a single person, never home and when you are home your not because your out fishing, hiking skiing, etc. then maybe a Condo or 1/2 Duplex is actually what you should be owning. Low maintenance, you have underground secure parking. When you are not around you don't have to concern yourself with the furnace failing or things like that. There is little up-keep and you get some pretty amazing views if your on the right floor! So many buyers see the $400,000 pre - approval and go buy a $400,000 home but don't think about their Needs and Wants that they all ready have. That $400k mortgage payment is $1,800/m and before you were renting for less! It puts a lot of people house poor because they don't look at their situation before they buy.
#4 Time Lines: It is very important to communicate this with your realtor. I need to understand what sort of time lines your dealing with.Life throws us curve balls and we have to make decisions quickly based on job opportunities. Just don't forget to tell us what is going on there so that I can plan to make things happen. In Central Alberta I typically cant get you into a home in under 10 business days, once conditions are removed. If your in a hurry we need to make sure we have a game plan that we can execute. Typical time lines are 10 business days for conditions and at least another 3 weeks for possession. This leads up to about 45 days or more from the time we write an offer to the time you get into your new place.
#5 Costs: This is a questions that could go on for ever depending on what type of property your buying, the price range your buying in, and the scope of investigation you put into the property your trying to buy. The important part to understand is that its not just a down payment that you need to buy a house. You need money to pay for lawyer fees and inspections. Inspections again as noted above depend on the scope of your diligence. A typical Property inspection will set you back about $500. But if your buying an acreage you maybe required to do a septic inspection, water well tests. Maybe the house has a wood burning fire place - this requires a WETT inspection, Maybe the house has a wood foundation - banks sometimes require an engineers report certifying the foundation is still in good order - this one is typically a sellers job to acquire the appropriate documentation but not always does it happen that way. Some homes once an inspection is complete needs electricians or plumbers to come in and do quotes to know the costs to fix any issues, they may ask for a small fee to do that quote. Then there are fees that your bank may charge you depending on the mortgage your getting. There are insuring fees, appraisal fees, a lot of these are not discussed but are there.
So lots to consider, and expect to pay another $2,500 in fees above the down payment required to purchase.
There are many other important things to consider when buying a home but these 5 for me are very common conversations and I explain these 5 in some way at some point during my time spent with a buyer every time.