FIRST TIME BUYERS
Buying your first home is a very intimidating and stressful process. Over the last ten years I have worked with a few hundred first time home buyers, here are my recommendations to anyone thinking about buying for the first time:
Get educated. This is difficult and time consuming. Either spend the time it takes to be an expert or hire one. Real Estate agents can offer you a certain crash course in your preferred real estate in a few hours. The best part is that is that it is free.
Know all the hidden and exposed extra costs. When buying a resale or existing home or condo you need to be aware of certain closing costs. Below is a list of all the possible costs:
- land transfer tax
- bank appraisal fee
- mortgage broker or application fee
- legal fees
- high ratio mortgage insurance fee
Remember your first mortgage payment is due one month after your transaction closes. Property taxes are due in installments (usually 4 per year) or can be paid for you by your bank on a monthly basis.
Do not rush into anything but do not drag your feet either. Currently, and for the past eight years, the real estate market in Owen Sound and the rest of Canada has been very strong.
Rushing into buying before you have seen four to eight properties or have been very well schooled by a knowledgeable and honest real estate agent is foolhardy.
Equally foolhardy is wasting everyone’s time by dilly dallying when the right property comes your way. Be decisive and make your move. My observations have shown that indecision usually costs a buyer more than making an educated decision.
What to offer? I’m sorry that there is no rule book on what to offer. Do not listen to any advice that tells you that there is a standard discount from an asking price. I have seen 25% discounts and 25% premiums. To many factors are at play to offer you a rule. My best advice is for you to look at past sale comparables before making an offer and listen to your Real Estate agent’s advice. This advice is the most important input you will ever get.
