10 ways to be a prepared buyer
stories by Janet Lees ❧ illustration by Tara McLellan
Whether you’re a first-timer or a seasoned homebuyer, the house-hunting process can be exciting and fun, but also stressful and frustrating. As we head into another spring real estate market in Southern Georgian Bay, here are some useful hints to consider to help prepare and ensure that your buying experience is both positive and rewarding.
1. Set your Priorities
“Nothing can be more frustrating than arriving to view a home only to discover that a key priority is missing, not available or can’t be included in a potential renovation,” says Keith Hull of Chestnut Park Real Estate in Collingwood. “It is important to have a short, concise list of priorities that can be quickly checked off to ensure you’re making efficient use of your time.” Make sure these “must-haves” are communicated with your realtor.
Are you looking for a large two-storey home, a compact bungalow or a turnkey condo? Is a gourmet kitchen important? Do you need an attached garage? “Not only will you need to review this with your realtor, but you may uncover that you and your spouse had different ideas about what is important,” notes Christine Brennan of Windstone Real Estate. Depending on your stage in life, stairs may be a future concern so a bungalow or main floor master might be ideal. If you have young kids, yard size, rec room space and number of bedrooms will become key considerations.
Be sure to consider future needs as well as current priorities. Is it likely that an elderly parent or adult child will move in? If this is a transitional home (weekends for now with plans to live there full-time within the next few years), look at homes with your long-term plan in mind.
2. Get Pre-approved
For first-time buyers this should be a top priority before setting foot in a potential new home, to avoid both personal disappointment and needless inconvenience to the current property owner. “Mortgages are not all the same and it is important that you take the time to not only shop for the best rates but know the terms,” says Hull. “You can avoid costly future financial mistakes today by understanding the contractual obligations of the lending terms.”
For those looking for a recreational property it is important to be pre-approved (or at least have a comfort level that you will be approved) in advance of your property search, since some lending institutions (including chartered banks) will not provide traditional financing for certain types of recreational properties. “Properties including some at the base of the Escarpment or those with large acreage in the country may not qualify for traditional mortgages or terms,” notes Hull. Working with a realtor, financial institution or mortgage broker who is experienced in these markets is key.
“Meet with your banker or mortgage broker to understand how much you can afford,” advises Brennan. “They will determine the amount of mortgage you qualify for, provide scenarios for monthly or bi-weekly payments and different amortization periods. If you happen to be buying a home without the need for financing, talk to your banker about timeframes for closing and ensure that your money is placed in short-term investment options or cash so that you can access it quickly if needed.”
A deposit will be due at the time of your offer or shortly after acceptance. Plan your deposit in advance and set aside cash to ensure that funds are readily available when you’re ready to make an offer. “The amount of your deposit can also indicate your level of seriousness or commitment to a buyer,” says Brennan. “This is especially true in a multiple-offer scenario.”
3. Seeing is Believing
Buyers can and will fall in love with a particular property or home before seeing it in person. “As a result, I have heard from buyers on several occasions who arrive at a property only to say with disappointment, ‘This doesn’t look anything like what I saw online,’” says Hull. “Often times rooms presented online through photos or a virtual tour will look larger or more spacious than they will appear in person.”
Viewing a home online often doesn’t allow you to see many of the hidden features, including closets, cold storage rooms, garage, attic or even exterior sheds. While at the property, be sure to open closet doors, the pantry, cold storage etc. Make sure that these features (often not part of the listing) are adequate in size and meet your requirements.
On the flipside, Hull says one of the most challenging aspects of buying a home is not to get put off by the items that can be changed. “Flooring, paint, wallpaper, lighting, window treatments are all items that for most part can be changed quite easily and at a reasonable cost,” says Hull. “Instead, focus on the physical layout of the home, the condition of both the interior and exterior, direction as it relates to natural light, etc. You want to be certain that the space, layout and natural lighting will work for you.”
Be sure to take measurements, and if you are viewing multiple properties, don’t hesitate to take additional photos (but be sure to ask for permission).
4. Know the Issues
One of the many attractive qualities of the Southern Georgian Bay area is the wide variety of choice in terms of product, price points and communities. Collingwood is very different from Thornbury in the same way that Thornbury is different from Heathcote. “Each contribute in a way that makes the region such a great place to call home,” says Hull, “however, you need to know what is happening within each of these communities and their respective neighbourhoods. What issues both positive and negative are taking place that could impact your purchase both short and long-term?” For example, Short-Term Accommodations (STAs) have been a thorny issue in the Blue Mountains for years, while the prospect of wind turbine installations have been a fear both in Clearview Township and Grey Highlands. Neither of these issues shows up on a feature sheet.
In addition to larger issues such as wind turbines, there are many other equally crucial issues to be aware of, including those related to the operation of a condominium corporation, new home warranties, well and septic systems, water and beach access, and regulations via governing bodies such as the Niagara Escarpment Commission, conservation authorities and heritage districts.
“Each of these matters can be complex and may have significant impact both short- and long-term based on your intended use of the property that you are looking to acquire,” warns Hull. “Local knowledge can help you navigate these issues, ensuring you are making an informed decision, and could save you from unforeseen issues that could arise in the future.”
Make sure your realtor is well versed in all of the issues that could affect your purchase, or the enjoyment or value of your new home. Better yet, talk to your local planning department.
5. Know the Neighbourhood
Your ideal area for a home is often determined by lifestyle. Do you want to live in town or in the country? Close to the ski hills or on the water? Considerations like school district, access to parks, trail systems and proximity to services such as the hospital, YMCA, shopping and dining can also help determine the most appropriate locale for you. “Once you establish your lifestyle needs, share them with your realtor, who may have ideas for a neighbourhood you had not previously considered,” advises Brennan.
If a particular school or program is on your wish list, it is important to ensure that your new home falls within the boundaries. Don’t make assumptions; information is readily available online or through the school boards. “In the past I have worked with clients who initially assumed that Wasaga Beach had a high school or that properties at the base of Blue were in Simcoe County and therefore part of the Collingwood school system, when in fact they are in Grey County and therefore part of the Bluewater district school board,” recalls Hull.
Take the time to find out what amenities are located in prospective neighbourhoods, including local parks, trails, community centres, recreational facilities, municipal services, etc. “The more you learn about the neighbourhood, the more comfortable you will feel when comparing similar homes,” says Hull.
Once you have zeroed in on a particular home or two, don’t hesitate to spend some time in the neighbourhood. “We often perceive a particular street to be quiet only to discover after the fact that it is on a municipal or school bus route,” says Hull.
Brennan suggests driving past the home and around the neighbourhood at different times of the day and week. “This can identify traffic flows, street lights, and it will allow you to ensure you’re comfortable with the comings and goings in the community.”
6. Get Professional Advice on Renovation Projects
Taking on a renovation project can often be rewarding and lucrative, but it requires a lot of time, dedication and patience. It’s best to have an idea of the cost and timeframe of any renovations before you buy the home. “Reality shows often make renovations look easy, but that’s not always the case,” says Brennan. “You can uncover unwanted surprises once you open walls.”
Before taking on a major fixer-upper, make sure you have the resources to handle it. Consult with a builder or contractor first. In addition to a standard home inspection, you can also make your offer conditional on having professionals evaluate the possibilities before you buy.
7. Know the Process
Buying a home is not easy. It can be stressful and disappointing at times even if the final outcome is positive. Understanding the buying process is crucial, especially for first-time homebuyers. Don’t hesitate to ask your realtor the following questions:
• What is the role of a realtor?
• Why am I being asked to sign an agency agreement?
• What happens if there are multiple offers?
• What if my agent is also the listing agent of the home I want to buy?
• Who pays for commissions, solicitor fees, home inspections, land transfer tax, HST, etc.?
Asking these and other questions will help ensure that you are an educated consumer and that you feel confident in your choice of a realtor and the information they are providing you. For more information about finding a realtor and asking the right questions, go to www.crea.com.
8. Understand the Costs of Maintenance
If you are considering a standard condo or common element condo purchase, the listing should clearly spell out the maintenance fees and what those fees cover. However, if you are buying a freehold single family home, it is wise to get a sense of what the monthly carrying costs are. “Don’t hesitate to ask for a one-year summary of utility costs from the seller,” suggests Brennan. “While usage will not be the same for everyone, if the sellers have a family of four and so do you, it should give you a good indication of how much it will be to run the house.” If you intend to outsource maintenance such as lawn care, snow removal or gardening, ask if the current owners have done the same and are willing to provide contacts and costs for their trusted suppliers.
9. Weigh the Importance of Green Features
Green features run the gamut from increased energy efficiency to water conservation using low-flow toilets and faucets, to alternative heating and cooling systems such as geothermal. “Not only can an energy efficient home help you reduce your carbon footprint, buyers looking to lessen the impacts of allergies and asthma have lots of options these days with high-end HVAC and air exchange systems,” notes Brennan. “Plus features such as low VOC paints and hard wood floors can be beneficial.”
10. Know your Closing Costs
When it’s all said and done, you have bought the perfect house and have waited with anticipation for the moment when you get handed the keys to your new home. Don’t dampen the excitement with the stress of unexpected costs. “Be prepared for closing costs that include legal fees, land transfer tax, and moving expenses,” advises Brennan. “Discuss them with your realtor in advance.”
Buying a home is likely the largest and most important purchase you will ever make. Doing your homework ahead of time will protect your investment for years to come. So enjoy the process. Stay positive. And remember that every “wrong” house you see is one step closer to finding the perfect one.
