Wednesday, August 24, 2016

Top 7 Tips When Buying A New Home


Buying a home in today's market? A little delay and it could cost you must. With prices climbing the way they are, low interest rates and bidding wars, your dream home may be a little more distant than you think.

Having been in the industry for more than 10 years, I have come to realize that a little bit of prep work could save you a lot of time and money. When dealing with my buyers I understand that most of them have either never bought a home before and if they have it has only been once or twice before. So prepping them before they hit the market is more important than just the buying process itself. And the best way to prep is to figure out what are the Top 7 Things that they would look for in a house that they would call home.

What kind of neighbourhood is the home situated in? If it is in an older neighbourhood, there may also be older people living in the neighbourhood. As a buyer if you have little kids and if there are no younger kids on the street that may be an inconvenience in the future. Also research to check about the neighbourhood......have there been any crimes reported, murders, grow-ops etc.

2 - AGE
I have heard a lot of excitement in people's voices when they buy a brand new Freehold home from a builder. As nice as it is to move into a brand new Freehold home it does come with its own downfall. For one, there is no reason for the builder to give you a deal. Most pre-construction Freehold homes are priced 20% over current market value. The builder factors in the inflation rate, labour strikes etc when pricing the property. Also most of the pricing only includes the basic stuff and everything else is an upgrade including appliances with most builders.

Of course buying a newer home is definitely the way to go but what about a one or two yr old home instead where all the upgrades, appliances etc are in place already? Besides you know exactly what you're getting as opposed to trying to figure it out off a floor plan. It's not bad to buy an older home either especially one that is renovated and well kept. A well maintained house says a lot about the owners.

If you do have enough money when buying your home to cover renovations as well, you can consider homes that need updating. If you are tight on your budget you may want to consider a home that has most of your requirements in place if not all of them. 

Just because a house is lower priced doesn't necessarily mean that it is a good buy. Before physically looking at a home, research the growth of the neighbourhood in the last couple of years. If the growth matches the current growth rate of the city, go ahead with viewing the house as  there may be potential.

Figure out in advance the type of home that you will be comfortable with. If a three storey home definitely doesn't work for you then avoid those from your search. Similarly if a Townhome doesn't either then why bother looking at them. Of course be realistic to understand what is it that your affordability can buy you in your area of choice.

The first question that most Realtors ask a prospective buyer is " What is the price of the home that you want to buy?" I think the main question though is, "What is your affordability per month?". Consider the various costs involved per month, mortgage, home insurance, property tax, utilities, house maintenance, etc. Work backwards from here and based on your affordability now see what house you can buy for that money.

We're not kidding when we say location matters. Location of a home is critical in so many ways. Look for various things in the location of a home. Is the home located close to a school of your choice? How far is the transit/bus stop from the home. Is the home situated on a busy street / on a main road etc? You may love the home itself but will another buyer like it 5 years from now when you are ready to sell because of its location?

Buying a home is not like buying something from Costco, which you could probably return in 30 days if you're unsatisfied. Do your homework before you even physically see the home, this would save you a lot of time and money. Remember home buying is a process of elimination and then selection. Eliminate criteria that won't work for you, it will definitely help you select better.

If you want to make your home buying process an easier one, don't hesitate to call me for a one-on-one consult. In the meantime wishing you the best, happy house hunting. 

Brian D'costa
Sales Representative
Real Estate
"Impacting and improving the lives of people through real estate".

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