The 9 Steps of Home Ownership

Step1. Make the Decision to buy.

Obvious right? Not always that simple. Consider the reasons you want to buy and write them down. Where you want to live? How long you plan to live there? And can you afford a home that fits your list of “Must Haves?’

Step 2. Build your Team

Two people you should have on speed dial and meet with well before you start looking at a home:

            Real Estate Professional.

When we meet for the first time we will go over your list of wants and needs, discuss neighbourhoods, schools, and the longer term economic factors that affect the market today and potentially into the future.

Mortgage Broker.

Being pre-qualified for a mortgage serves a couple of purposes, first of all it provides you the assurance a bank is willing to lend you the money to buy a home, and secondly it gives you an idea of the maximum you can afford.

Other important members of the team:

Lawyer

Home Inspector

Property Manager (If buying and investment property)

Step 3. Begin the Hunt

After our initial meeting we will have a fairly good idea of what you are looking for. When possible, I will preview homes for you during “Agents Opens” to eliminate those that don’t meet your criteria, allowing you to focus energy and time on those that do. Where possible I will schedule viewings at times more convenient to your schedule (no need to spend every weekend end in open homes!) As we tour homes together we will get a better sense of your likes, dislikes and what is available within your target areas and price range. This is also an opportunity to amend your needs and must haves as you gain more knowledge of the market and pricing.

Step 4. Know the Market (Education)

Up-to-date knowledge of the market is essential to your Real Estate search. I will let you know when the market in a particular neighbourhood is hot and would require your attention and where an opportunity may exist to get in the door prior to a market really taking off. A Realtor’s intimate knowledge of sub markets and areas give you the advantage required to get the jump on others looking for similar homes.

In a seller’s market it is not uncommon to see multiple offers on a property, full price offers or offers above asking price. On the flip side, during buyers markets there’s more inventory available and can provide more negotiating room as homes can take longer to sell.

It is most important that you physically get into the homes listed for sale... you cannot judge the quality of a home or the appropriateness its price by looking at pictures or the internet.

Step 5. Find your Dream Home

When we find the home that is right for you I will put together a Contract of Purchase and Sale (an offer) that is tailored to your specific needs and requirements. Stated in the offer will be; items included in the sale (appliances, washer/dryer, window coverings etc), Subjects to your benefit (financing, inspection, strata documentation) and finally dates and price.

The offer is presented with a “goodwill Deposit “this consideration is an important element of any contract and should typically represent 5% of the purchase price and paid upon subject removal or a firm offer.

Step 6. Negotiate the Deal

It is not unusual to receive a counter offer after the original offer is made. This should not discourage you, often sellers (like buyers) want to “play the game” and not accept the first offer that comes along. We will discuss the counter offer and decide whether to accept it, submit our own counter offer or reject it and move on. Current market conditions will play a major role in how aggressively we negotiate on a particular property. It’s best to know your limits and stick to your plan. Real Estate is a very emotional process and it’s easy to become caught up in the excitement of the moment.

Step 7. Get a Loan

During the closing process you will be working with your mortgage broker to close the loan. Since you were pre-approved before starting your house hunt you will be ahead of the game here and be well positioned to complete your deal. The mortgage broker and I will work together to obtain all the documentation and property information required by your lender.

Step 8. Close the Deal

Once you have satisfied all your subjects (financing, inspection, documentation etc) it is time to sign off and make the property yours. This is when the deposit of 5% of purchase price is payable. This deposit is held in trust by the Real Estate Brokerage and forms part of the purchase price paid on completion.

Step 9. Move In

Congratulations on your new home. The time has come to move in. I will collect keys from the selling agent and pass them over at the agreed time of possession.