Buying

First Time Home-buyers

Whether you've decided to buy a house or you're still thinking about it, there are many benefits to consider. Financially, owning your own home just makes sense. Why pay rent and coat someone else's pocket when you could be coating your own pocket? Owning a home is basically like living rent-free when you really think about it. If you rent a house for three years and decide to make a move, does your landlord hand you back all the money you paid him in rent? It would be nice, but unfortunately that's not the case. When you buy a house you are making an investment. As long as it holds its value (fluctuations would result from changes in the current market or general upkeep of the home and property itself), you will come out even when and if you decide to move. If you make any improvements or upgrades, chances are that its value will increase and you will make money when you decide to sell!

Why Use a Sales Representative?

Buying your first home can be overwhelming. You could easily drown in all the legal jargon and paperwork, unless you have a skilled sales representative to do the work for you. A licensed real estate sales representative can help take the stress out of your real estate transaction. They know all the rules and can help you find the house of your dreams. With the market moving so fast, it's easy to lose out on the house you want if you don't have someone keeping an eye on the market for you, informing you whenever something new comes up that fits your criteria.

The best part about being a first time homebuyer is that there is absolutely no charge to have a real estate sales representative represent you. They are paid from the commission from the sale of the home that you are purchasing, which means no money out of your pocket.

A sales representative will bring a wealth of knowledge and experience to your buying or selling process as well as negotiating skills and an on-going education program that keeps them up to date on the latest trends, skills and responsibilities to the Buyer or Seller. A sales representative will explain exactly what you can expect from the buying and/or selling process, from start to finish.

sales representatives are members of the Canadian Real Estate Association (CREA) and as such adhere to a strict Code of Ethics and Standards of Business Practice. This enables sales representatives to achieve the highest professional standards in order to better serve you, the consumer.

One of the most important responsibilities of a sales representative is to negotiate to obtain the best possible deal for you while at the same time offering advice and perspective.Why would you not use a sales representative?

Before the Search

Before you begin your search, there is much to consider. What type of neighbourhood do you want to live in? One with lots of children for your kids to play with? Close to schools? Mature? Quiet? How about bedrooms? How many will you need? When buying a home, it is important to look ahead and think about how long you plan on living in this house. Will you eventually be having children? Are your children nearly grown and moving out? What will you do with the extra space when they leave? Asking yourself these questions will help narrow down your options to reveal exactly what you're looking for. Make a list of all the things you would like in a house. Break it down into "must have" and "would like to have" categories. If you give this list to your real estate sales representative, it will give them a clear idea of exactly what you're looking for and you won't end up wasting time going through homes that don't suit you.

Getting Pre-Approved

Once you've made your list, you may want to consider getting pre-approved for a mortgage. This will give you a clear idea of how much you can comfortably afford or what should be done in order to qualify for a larger amount. A licensed mortgage consultant can help you. The lending institution that gives you your mortgage pays the mortgage broker with absolutely no cost to you! However, there are closing costs that need to be considered. By getting pre-approved, you are getting off to the right start and saving yourself both time and money. You can search for the right home at the right price, knowing that you will successfully qualify for the mortgage. This puts you in a very strong position when negotiating with a seller.

The Offer

When you've found your home, you will make a formal, written offer to purchase. This is a legally binding contract outlining what you will give (a combination of price and terms) in exchange for the home. Your associate will probably use a pre-printed form covering all of the legalities and will modify it to cover what you want to offer. Remember, everything is negotiable. You should ask for what you want, but keep in mind what you're willing to give up. Your RE/MAX sales representative will put everything in writing. Of course, the more conditions in your offer, the less attractive it will be to the vendor.

Closing Day

It's a day filled with nervous anticipation. This is the day on which all of the legal and financial promises in the offer are met. It's the day when you get the keys and begin a new phase in your life. Your RE/MAX sales representative and your lawyer will give you all of the details on steps and timings. All of the small details will be taken care of ahead of time, so in most cases it will be just a day of waiting by the phone.

Costs

When buying a home, it is very important to remember that you will have to meet other expenses besides the price of the property. These may include: Home Inspection ($450-$500), Legal fees and expenses, title insurance ($175-$225), adjustments (taxes/fuel), home insurance, and mortgage insurance premiums.

What if I am Unhappy and Want to Change Brokerages?

Let the first sales representative know that you are unhappy and the reasons why. See if you can work out the issues with them. If not, tell the sales representative you no longer want to work with them and find another sales representative.