Top Ten Tips from one former First-time Buyer to another

Whether you were building tree houses or decorating the interior of your Barbie dream house, from a young age most of us have dreamed of white picket fences and a desire to own a home of our own. It should be no surprise then that buying your first home is one of the most exciting steps you’ll take in your life, but it can be one of the most intimidating.

I remember the process of buying my first home like it was yesterday. I started, as most buyers do, by scanning the listings on Realtor.ca. Then, I selected 7 properties I wanted to see, called a local Realtor, and ended up buying the first one I looked at. I was lucky enough to have had good representation and advice from my Realtor and I ended up with a nice starter home. However, I was naïve and didn’t do my research in selecting my agent or my home. So, as our parents often tell us: Do as I say, not as I Do.

One good thing that came out of process was my new found interest in real estate. I ended up registering for my first real estate course before the house had closed and now have the ability to advise and guide other first timers on finding their dream homes.

So here are a few tips and tricks on buying your first home from a reformed property virgin;

1. Get pre-approved BEFORE looking at any homes. I know this sounds simple but you’d be surprised how many people start looking without knowing what they can afford, or if it’s even the right time to buy a home. This is the most important step you’ll take in home ownership, as it will not only get you into the home of your dreams, but keep you there over the long haul. Your mortgage broker will help you to determine what you can afford and what you’ll need to have saved to cover closing costs and a down payment.
2. Now that you know what you can afford, shop within your budget. Shopping above your price range seems harmless enough, right? But put it into context: test driving BMWs when your budget is for a Honda Civic is only going to lead to disappointment and make it difficult to find “the Civic” that gave you that same feeling or features as the BMW. There are plenty of suitable homes in every budget so when you’re looking try and stay within the price point you’re comfortable paying.
3. When I bought my first home, the thought of interviewing and selecting a Realtor isn’t something I considered. Choose a Realtor with experience in Buyer Representation such as an Accredited Buyer Representative who has gone through additional training and certification to guide and advise you throughout the process. Your Realtor should provide you valuable insight on demographics of the area you’re purchasing in, recommend home inspectors, lawyers, and local service providers, and a negotiation strategy to get you the dream home for the dream price.
4. Be the first to know when new listings come on the market by signing up for a personalized property profile to stay up-to-date on new listings. This is a great system for any first-time buyer; it provides a customized website that allows you to see homes based on your criteria. You can then decline homes that aren’t of interest, request showings on ones that are, ask questions, and know when a home has sold.
5. Keep an open mind. Most of us start our home searches with a very specific idea of what the “dream home” is, but you’re not likely to know what your “dream home” really is until you’re standing in it. Start by looking at a variety of homes in different areas. Once you’ve been in them and had a feel for the layouts you like, you’ll be able to narrow your search to specific design options and features. I can’t count the number of times I’ve met a buyer who initially provides me with an exact description of their “dream home”, only to end up purchasing the complete opposite of what they originally described. Don’t be afraid to explore your options: that’s what Realtors are here to help you do.
6. Don’t wait to see a new listing. The price range for most first-time buyers tends to have limited inventory, and those homes move quickly. When you’re sent a new listing and you’re interested, schedule a showing as soon as possible. Don’t let it be the one that got away.
7. That said, be patient. Sometimes finding the “dream home” takes time; it’s unlikely you’ll find your home on the first day. Depending on availability and what you’re looking for, it can often take weeks or months. But as they say; good things comes to those who wait!
8. If you would like to include a friend or family in the process, it’s best to include them from start to finish. It’s common for first-timers to bring in their parents for the seal of approval before making the offer. Although it can be a good idea to get a second opinion, the end of your search isn’t the best time to begin to include them. If they haven’t been with you, looking at homes from the start, they won’t have others to compare it to. If they’ve been on board since the start, when you know you’ve found “the one”, they will too.
9. When so much is at stake, it’s hard not to get wrapped up in the emotional aspect of negotiations. As a first time buyer you’re more likely to be influenced by advice from multiple sources on what you should or shouldn’t do. When you’ve never done this before, it’s natural to be influenced by the opinions of others. I recommend that it’s best to leave the negotiations of the deal to the professional negotiators. As an Accredited Buyer Representative, I have taken multiple courses in negotiations and take great pride in getting my clients the best value. So, stay relaxed and leave the high stakes and stressful negotiations to us!
10. He might be really handy and do fantastic home renovations, but Uncle Fred, or Jim from work isn’t a home inspector. Although your family member or friend will have the best of intentions and it’s often thought to be a great way to save money, your home will be your largest single investment and spending a few hundred dollars for peace of mind is priceless. A home inspector is not only trained to inspect the property, but to explain and document what the issues are, and how serious they might (or might not) be. In the event there is an unforeseen issue that would impact your decision to buy the house, you can request a price adjustment or ask that the matter be rectified. Most sellers will not accept the opinion of an unqualified inspector and therefore not entertain renegotiations.

So there you have it, my top ten tips from one former first-time buyer to another. If you have any other questions or would like a complimentary buyer’s package. You can contact me anytime at pennington.remax@gmail.com