| A simple guide that no buyer should miss out on
What is the first thing you should do while buying a house? Hire a realtor? Well, you will soon find the answer in this simple and easy-to-understand buyer's guide.
We understand that buying a house is nothing less than climbing a huge mountain. The market is huge, there is high competition, there are chances of you being tricked, too much legal jargon... the challenges won't end. But don't get too worked up over it. We are here to help you out at every step. Go through this guide and if you need more assistance, Realtor Sandhu is just a call away.
Step 1: Know what you need
There you go, now you have the answer. The first thing you should be doing while buying a house is analyzing your needs. Ponder a little over what you want from your real estate investment.
Is it merely an investment or do you plan to live there for years to come? If you are buying for investment purposes, you should choose a location with promising opportunities for further development. For someone moving into their new house, proximity to necessary places and connectivity are some of the important considerations.
Another thing you need to figure out is if you want an under-construction property or are you ready to move in? Both options have their pros and cons, you have to decide based on what you need. If you are thinking about making more money in the future, under-construction is the choice, as it gives great ROI. On the other hand, you get to see exactly what you are going to buy if you go for a ready to move in property.
Consider the size of your family. How many rooms are you going to need? Do you have kids? If so, you will need a property with schools and playgrounds around.
Knowing what you need is really important. The real estate market is huge, the deeper you dig the more options you will find and it will lead to a lot of confusion. That’s why it is better to first know your needs and then move ahead.
Step 2: Study the market
A market study is something you should really invest your time into. The price of your house, the interest rate for your housing loan, everything depends on the market’s condition. Canada has a very competitive market, you should know when to buy a property and when not to.
Now that you know your needs, see at what price similar houses were sold. Compare the prices over the whole year. See when they were low and high.
You can take the help of a realtor if all of this is too complicated for you. We should be able to make these analyses for you and discuss price and market factors too.
Step 3: Finance
It is better to know how much you can afford before you go out hunting for properties. You might think you will easily get a mortgage but it’s not that easy. It depends on your previous debts, your credit score, account balance, interest rates, salary and a lot of other things.
Do you have any savings? This is important because even after you get qualified for a big mortgage, there is some amount that you will have to pay immediately.
Another important thing you should remember here is that you should get a pre-approved mortgage. In many cases, sellers will reject any offer that isn't backed by a mortgage pre-approval letter.
Pre-approving is free and you can get it from multiple lenders. It gives you a chance to understand how much you can afford, what your monthly repayment cost would be and also what interest rates are applicable for you. A mortgage pre-approval is a safe method to get these important details that can help you calculate the limit of your budget.
Look for a few lenders and see what they can offer you. Even if you have sworn loyalty towards your financial institution, there is no harm in checking other options available to you. If you like someone, you can lock the mortgage rate and the lender as well. If you lock in your mortgage rate, even if rates rise, you'll still be able to get the predecided mortgage rate.
We also recommend that you identify a second lender or even a third, if required. You might be qualified to get a loan but if certain conditions of this loan agreement change you will lose that lender. In this scenario having a backup can prove to be a great decision.
Realtor Sandhu can help you have an idea of the mortgage amount you can qualify for. With years of experience in the industry, we can surely help you with any questions you might have regarding financing.
Step 4: Hire a realtor
Buying a property on your own is a time-consuming process, especially if it is your first time. There are a lot of small and big things and legal jargon that might be confusing. Realtors are well-versed in all of this, and they know how to get the job done as well as locate a suitable seller. They've been in the market for a long period of time.
Realtors can speed up the process of buying a home with their huge network and expertise in the market. To discover your dream property at the greatest price, you will have to do a lot of hunting. Realtors have been assisting both buyers and sellers, and as a result, they can quickly connect you with the right seller.
They can also provide very valuable insights related to the market conditions and can help you fetch the best deal. They understand the art of negotiation and can help you get the best bargain for your dream home.
Realtors also have a lot of lawyers in their network, so the paperwork post the deal can be done easily with a realtor on your side.
Realtor Sandhu can guide you through every step of the home buying process. A tedious and time consuming task like buying a house can be made simple with our help.
Step 5: Find a home
The next thing on your list is finding a house. Now that you know what you need, the market condition and your budget, looking for a perfect house will become easy. Most buyers these days like to search for properties online, on listing websites. You can check our listings too.
Getting in touch with a realtor can broaden your perspective. Realtors can show you properties you didn’t even know existed. Most realtors have a huge catalog of different houses and can easily find a few that exactly fit your preferences. In other words, realtors can make the search easy for you.
You might come across a resale property that looks hideous but can be made better by hiring an interior designer. Such properties are usually available at a lower price and have less competition since they appear shabby. There is no harm in buying a cheap house that satisfies all your necessary needs and then upgrading its looks to suit your taste.
Make sure you check out all the available options for you. Compare the houses and find a few that are your top choices. Do not forget your needs while selecting your house. If you need a house closer to your job, filter out the other options and focus on what you need.
Step 6: Make an offer
Once you find your ideal home, it is time to make an offer. If the market is competitive, which is the usual scenario of Canada’s real estate market, you will not be the only one who has made an offer. So you have to make a wise offer that gives profit to the seller and is also within your budget. A realtor can help you propose the right price for the house.
Once you send the offer, the seller and seller’s agent will decide whether to accept it or not. They might even give you a counter offer. Now it is your time to decide. You can counter the counter offer as well. In most cases, both parties keep repeating the process until both of them are satisfied with the offer.
If the offer is accepted, you will have to give a deposit amount as a guarantee that you will buy this house. This is sometimes called a good faith deposit. The buyer pays a portion of the proposed price as a good faith deposit. This money will be added to the purchase price if you go forward with the deal. If the deal doesn’t happen because of the buyer's fault, the deposit is kept by the seller.
Step 7: Request Home Inspection
You should request a home inspection to see the property with your own eyes. You can hire a professional home inspector or ask your buyer’s agent to guide you through. Having a professional by your side reduces the risk of you being tricked by the seller.
Step 8: Deal or No Deal
Post inspection you can work out a deal with the seller. If you didn’t see any issue in the property during inspection you can close the deal. Closing includes a lot of paperwork. You will also have to give the down payment and closing cost.
Another outcome is that you don’t close a deal. In that case, you just have to look for another property.
Conclusion: Long story short
We suggest that you study your needs, budget and the market before your start finding a house. Get a clear idea of how much mortgage you can get. Hiring a realtor can help you speed up the process and be more accurate with every decision that you make. Find a home, make an offer, do a house tour and close the deal.
Anything you might need, Realtor Sandhu is just a call away. We are happy to help you find your dream home.