The real estate market has never been hotter. Not only is buying a home a big decision--these days, it's a decision that has to be made quickly, confidently and calmly. To help you make smart decisions, it’s important to think with your head and not your heart. Here are a few tips for being home smart when you’re in the market to buy.
Research and Shop Around
Get informed about the buying process before it begins to save time, hassle and money. Don’t be tempted to hire the first real estate professional you meet. Make sure the fit is right, check their references and visit the RECO website to confirm their registration and ensure there have been no previous disciplinary actions.
Understand What You’re Signing
Before you sign a buyer representation agreement, make sure you know what it means, how long it will be in effect and what the different clauses mean. Ask questions and seek independent legal advice if you’d like a second opinion.
If your real estate professional offers you rebates or incentives, he or she should have no issues providing the details for you in writing.
Keep Budget in Mind
Buying a home comes with more closing costs than selling a home which can be substantial. Remember to include the following fees in your planning:
Bank fees, home appraisal, survey
Legal fees, land transfer tax, mortgage insurance, title insurance, adjustments
Moving costs, home insurance, property taxes, utilities
Protect Yourself
In a typical pre-covid market, buyers would normally make their offer conditional on mortgage financing, a home inspection, the sale of an existing home, and/or other important factors. However, a conditional offer isn’t possible in today’s hot seller’s market if you want a chance at success.
So what can you do to protect yourself? Confirm your financing before going in and make an arrangement to bring in an inspector during a showing to do a non-invasive check in real-time before the offer goes in. But keep in mind a visual check for an hour is not the same as a detailed 3 or 4 hour inspection that may reveal many more deficiencies. Certain other clauses should also be included to ensure a safe transaction and a deal that will close in the end.
Check What’s Inside the Walls
Ask your real estate professional to look into the age and condition of the home’s systems such as the plumbing and electrical. Find out if proper permits were pulled for any renovations.
Be Specific
Make your offer as detailed as possible. Outline what will be included with the sale (e.g., appliances and light fixtures) and be clear if certain requests are being made.
Plan Ahead
Always review a comparative market analysis for your desired property. When you encounter a bidding war, enter with a strategy. Set ground rules in advance about what you want from a home, what you’re willing to spend and what conditions must be met. For example, how high can your price and deposit be, and can you match the closing date? Once your rules are set, stick to them.
Expect the Unexpected
Does your closing date on your new home align with when you need to move out of your existing home? If you want your purchase to close before your sale, did you give yourself enough time and make arrangements with the bank if needed? Always have a contingency plan in place just in case.
Above all, working with a knowledgeable and experienced real estate professional whom you can trust will help you navigate the many steps and decisions involved in the home buying process, and provide you with extra tips that will make your offer the successful one.
Victoria Rodrigues | 416.274.6444 | victoria@simplyrealty.ca
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