So, you’ve decided to buy your first home and start a family like you’ve always dreamed of. But, you’re unsure of all the legal terms and procedures necessary to conduct a smooth transaction. You may have thought about hiring a broker to take care of all the formalities but you still have that nagging voice behind the back of your head to proceed cautiously. Worry not! In this blog we discuss some tips that you can follow to put your mind at ease.
The first thing any serious home buyer must do is have a checklist of activities that they must perform with regards to investing in real estate. As a potential home owner, you need to be aware of the processes that are involved in buying your dream house. While a broker or salesperson can assist with the formalities, it is important to educate yourself, as well! This will not only save you time but in some instances also money.
Second, you are probably thinking about hiring a real estate agent. That’s correct. A real estate agent, as discussed, is a trained professional that represents your interests in the purchasing of property. To scout for a reputed brokerage and a well-known professional, you may refer to our other blog on how to select an ideal sales person that fits your needs. You can also verify the broker’s credentials on RECO’s website.
Throughout the process of purchasing or renting a property, you will be presented with numerous documents that require your signature. You might find the process a bit cumbersome understanding the legal jargon and terminologies. However, it’s to your own benefit if you understand the contents of the document before you sign it.
Buying your first home or a dream home can be an emotional experience. There are times when you fall in love with a home that seems like the perfect match but is way over your budget. It is always important to sort out a budget before embarking on the journey. This budget should also include fees such as legal, land transfer tax, mortgage insurance and utility hookups as part of your total cost. There are other fees associated such as home inspection, home appraisal that a prospective buyer needs to be aware of. Don’t forget about moving costs and this can vary depending on the quantity of luggage and the distance you’re moving.
A home on the outside is not always what it may seem within. You will sometimes come across properties that have been spruced up on the outside for the sole purpose of attracting buyers. Be wary! Refer to your broker or sales person to the condition of the property relating to the age, plumbing, electrical and other. Also make sure to verify if the property has all its permits in place. Insist on a home inspection to carefully evaluate the property and take your time.
As somebody who’s looking into buying property in Toronto surely knows the difficulty in finding affordable homes on a budget. As seen in our recent blog, even with the current pandemic situation, property prices have remained relatively stable in the past few months with the number of listings going up in May considering month-over-month listings. As a result, you are ever faced with added stress in closing quickly on a property due to competition from other interested buyers. However, this does not mean that you should buy impulsively!
If you find yourself in a bidding war, always plan ahead. Establish with your self the what you’re expecting from a home and how much you’re willing to spend on it. Once you and your sales representative are aware of these conditions, do not waver but at the same time remain flexible to some extent.
These are just a few tips to get you going when you’re considering investing in a new home. Be sure to read our other blogs on finding a suitable real estate professional and the current market situation in the city of Toronto.