5 tips before buying a home

What to know before buying a house? Many first-time buyers and even long-time second home buyers are wondering what is important to remember before buying a home. Here is a short list of 5 tips that will be of great help to you and to consider before buying a home.

1 - Buy your property with the help of a real estate broker

An obvious fact for many, a questioning for others. Do we have to deal with a broker to buy a house? It cannot be said enough, but doing business with a qualified real estate broker can make all the difference between a successful real estate transaction experience and a real nightmare (It happens too often).

The vast majority of real estate transactions are done through a real estate broker, formerly recognized as a real estate agent. Why? Because buyers have many advantages in dealing with a real estate broker. Here are a few examples.

Saving Time

The real estate broker will facilitate the buying process for the buyer since he will take charge of all the stages of the process. For example, searches for properties, sending legal and financial documents, planning visits, visiting the premises, drafting the offer, the counter-proposal, etc. In addition, and this is very important, to negotiate the right price for the buyer.

Protection and Peace of Mind

The buyer who works with a real estate broker has protection since the latter is governed by the law of real estate brokerage and has a professional liability insurance that protects the public.

Valuable Advice and Strategy

When a person is interested in a property and wishes to make an offer to purchase, his broker will provide him with valuable advice on the actions and strategy to take.

He is equipped to show comparable properties to the future buyer in order to provide him with a more accurate idea of the market value of the desired property. He will also advise him on the strategy of the offer and the presentation to the seller.

Expert Network

Finally, the broker is surrounded by experts in related fields to refer as needed, before, during and after a real estate transaction.

In short, the real estate broker is your guide to ensure a successful transaction. It accompanies you from the start to the end of the purchasing process.

Choosing a broker for the purchase of your future home will undoubtedly be the best decision you will have made. His experience, his network, his knowledge will be essential for the purchase of a property which is the biggest investment of a lifetime. In addition, there are no brokerage fees for a buyer.

2 - Properly assess your borrowing capacity for your mortgage loan

If, like most people, you need financing for the purchase of your future home, the first step is to have your financial capacity assessed. You can apply for a banking prequalification through a financial institution or a mortgage broker.

Mortgage prequalification will be determined by your debt ratio (debts, credit card, suppliers, etc.) and your borrowing capacity. This will allow you and will give you the advantage of being able to reserve a mortgage rate. You will thus be able to better plan your budget.

Did you also know that if you already own a property, your mortgage broker will be able to give you the possibility of buying a second one without taking money out of your bank account but rather using your equity on your current property for a new project. Consult your mortgage broker for more information.

The Down Payment

In general, the down payment for the purchase of a house, a condo or a duplex is 5% of the purchase price. This fact must therefore be taken into consideration before applying for a loan. On the other hand, each file is unique so for any additional information, please contact the Judy Petterson who can refer you to experts in the field.

3 - Also consider the additional costs

For the majority of people, buying a home is a dream. And for many, it is the biggest purchase of their lives. But for this dream to come true in the right way, there are a few realities that must be taken into account. It is smart and preferable to plan ahead and prepare for the unexpected. Here is a small list of things to consider when buying a home that can impact your finances.

Inspection and expertise costs during a promise to purchase (if necessary)

Evaluation fees for financing during a promise to purchase (if necessary)

Notary fees and adjustments at the deed of sale

Welcome tax (also called transfer tax)

Moving costs and furnishings

4 - The Declarations made by the seller of the immovable (Offer to purchase) form

Before writing your promise to purchase, your broker will give you the “Seller's declaration”. He will take time with you to fully understand the content. This will help you shed light on certain elements of the property that can guide you in your choices.

This form is completed by the seller of the property to the best of their knowledge. He will give you more information about the property, such as work done, issues that have been disclosed and others.

This must be completed by the seller during the sales contract with his real estate broker. The building inspector will also read it to give you his professional opinion during the inspection.

However, the importance of reading it carefully could make a big difference.

For example, the seller declares a foundation or contamination problem, would you still visit the property? Would you have investigated before making a promise to purchase? Would you accept a sale without legal warranty?

A good real estate broker will advise you to establish a list of factors, which for you, represents a great risk for your budget. It is important at this stage to recognize if you want a house that does require renovations or not. Hence, the importance of reading the available documents even before requesting a visit.

5 - Sell or Buy First

In the majority of cases, people have to sell before buying a new property. This step should be thought through before making your decision. Here is a Centris article " Buy or Sell First?" who can help you make your decision.