Real Estate Topic: Guide to Buying Your Home – Part 2

Decide What You Want to Buy.


First, decide where you want to live.

Urban – The big city. Sure the prices are generally higher, but you can walk to a restaurant, maybe even to work. You’ll also have the widest range of housing options.

Suburban -Newer schools, newer shopping centers, bigger yards, bigger homes, no wonder so many people love the suburbs. But if you work in the city, be prepared for lots of rush hour traffic. It’s a packaged deal.

Smaller Cities and Towns – There are many wonderful self-contained communities, and compared to the big city, you can save a bundle.

Rural -If you like the idea of owning land, how about a few acres all to yourself? Seclusion is not for everybody, but for some, it’s heaven.

Next, decide what type of home you want.

By now, you probably have a good idea of what type of home is right for you. To familiarize you with the terminology, here’s a quick overview:

Single-family detached

As the name implies, the home is not attached to the home next door. Styles range from a single-story suburban bungalow, to a three-story Victorian.

Semi-detached or linked

Two houses that share a common wall. Typically less money than a fully detached home.

Duplex or Triplex

A two-storey or three-storey home, with each floor belonging to a separate family. Separate entrances are most common.

Town house

Also known as terrace or row housing. Several homes with a common style joined in a row. They usually share walls on both sides. May come with a monthly maintenance fee.

Condo

An upscale version of an apartment. Usually located in high-rise buildings with access to common elements. Maintenance fees usually apply. Condos also make a great first home purchase because they’re often thousands of dollars less than a detached home.

How Condos are owned

You’ll own 100% of your unit, and a share of the common areas. Common areas include the necessary plumbing, electrical systems, hallways and elevators. They may also include lots of fun stuff like a private gym or party room.

Condo fees

Membership has its privileges, and it costs. On top of your mortgage and property taxes, condo owners also pay a monthly fee to operate and maintain the common areas. Be sure to look into condo fees, and how well they’re managed, before signing anything.



New or Resale?

Resale. Previously loved.

Nothing can match the charm and character of an older home. As a bonus, the previous owner may have made improvements and upgrades and you get them with the house, usually for less than the cost of putting them in yourself. However, some may have a little too much ‘character ’ like a leaky roof…know what you’re getting yourself into. You should always work with a knowledgeable REALTOR®, and as we cover in Step 10 never buy a resale home without a Home Inspection.

Ahh…that new house smell.

You will be the very first person to live in your new home. In fact, your new home may be so new, that it’s not even built yet. You have the luxury of customizing your home to your décor tastes. But when you move in, be prepared for constant touch-ups by your builder; dust, mud and unpaved roads if your area is still developing; and shifting and settling of your home (cracks and popping nails) within the first year.

Before you commit to anything, carefully examine the property, the blueprints and visit other homes built by the same building company. Check to see you like the finishes they offer and the craftsmanship and quality of their work. Have your REALTOR® and lawyer review everything before you sign. While your home is being built, stay on top of the process and remember, you have a legal right to make a full inspection of the house before you accept it as complete.

You know what you want, but remember to focus on needs.

Are you getting out of a two-bedroom apartment because it’s too small? Then your new home should have at least three bedrooms, and probably a second bathroom. REALTORS® call these must-have features “needs”. Features you’d like to have are called “wants”.

Your strategy should be to find a home within your price range that fulfills all or most of your “needs”, and as many of your “wants” as possible. Use the Dream Home Checklist to help you decide what you’re looking for in a home.

Find a Realtor® that is Right for You.

You know how much money you have, and you have a good idea of what you want. Now you need the help of a real pro, to make your search a success.

REALTORS®. Highly trained, and continually training.

In Canada, licensed REALTORS® are members of their local real estate board, a provincial association and The Canadian Real Estate Association. This system of membership ensures the highest level of service and that you are always treated with honesty and integrity. This is backed by the REALTOR® Code of Ethics. Take a look at ‘The REALTOR® Commitment’ to learn more.

The Three REALTOR® Relationships

The relationship between a real estate brokerage and a client is called “Agency” and there are three major kinds:

1. Seller (Vendor) Agency

The real estate brokerage and all its REALTORS® represent the seller exclusively and it’s their job to get the best offer on the home. They are legally obliged to tell the seller anything known about a buyer. For instance, if a seller’s REALTOR® knows a buyer will pay more for a property, they must tell the seller.

2. Buyer (Purchaser) Agency

The real estate brokerage and all its REALTORS® represent the buyer exclusively. They seek out homes that meet the buyer’s needs and help assess the merits and defects of potential homes. They keep the buyer’s information confidential and never disclose information like the maximum amount their buyer is willing to pay. You may be asked by your REALTOR® to sign a buyer agency agreement. In fact, in some provinces,

REALTORS® are required to ask you for your own protection. This agreement ensures that the REALTOR® and the brokerage can look after your best interests.

3. Dual Agency

Sometimes, a brokerage may have an agency relationship with the buyer and the seller. Both the seller and the buyer must give their informed consent, and the REALTOR® must always provide full and timely disclosure of all pertinent information to both parties.



SELL AND BUY WITH THE SAME REALTOR®?

Absolutely! Especially if you’re remaining in the same community. Your REALTOR® is already an expert on your needs, so it can save you a lot of time and energy.

Selecting a REALTOR®

There are lots of ways to find a REALTOR®. As you drive through prospective neighborhoods, jot down the names and numbers of REALTORS® on the ‘For Sale’ signs. Open Houses are a great way to meet face-to-face. Maybe friends or family members have worked with a REALTOR® they love. Interview two or three and pick the one you like best.

How REALTORS® help buyers like you.

A REALTOR® will review your list of wants and needs to help you determine your price range.

Answer questions about the markets you’re interested in and help you compare homes and neighborhoods.

Use the local Multiple Listing Service (MLS).

The MLS is the single most powerful tool for buying and selling a home. Your REALTOR® will give you access to exclusive features of the MLS system that the public is not privy to.

Preview properties to ensure you’re only shown homes that meet your needs and budget.

Make appointments and walk you through potential homes, answering all your questions.

Give up-to-the-minute information on financing and explain your mortgage options.

Negotiate with the seller, smooth out any potential conflicts and draw up a legally binding contract.



Stick with your REALTOR®

One dream, one team. The REALTOR® you select will become an expert on your specific needs and tastes.

Scattering your time and energy amongst multiple REALTORS® will work against your goal of finding your best home. And because most REALTORS® have equal access to the same property listings, there’s no real advantage to having multiple REALTORS®.