The Art of Buying A Home

There are many things to consider when buying a home. Finding the home that meets the needs of the homeowner requires knowing exactly what they want to begin with or getting a feeling that “this is the one” when they enter a home.

The search for that perfect home causes all homeowners to ask some of the same basic questions.  Do I want to live here or there?  Is this going to be affordable?  Is this the style that I like?   Is this want I want now or do I want to plan for the future?  Do I want a new home or one that has been passed down from one owner to the next?  All this culminates in a home that can be enjoyed for just a few years for some or can be the perfect home for a lifetime for others. 

How much is that home on the corner?

Affording a new home is more than just the monthly payment.  Taxes, utilities, and upkeep are all important factors to take into consideration before making a purchase.  Just because you are pre-approved for a more expensive home doesn’t mean your budget needs to be stretched each month to the limit.  A good realtor will find you that home in your price range that you can afford without hitting that upper limit.

Getting pre-approved before you go looking for that perfect home is essential.  This will not only allow you to establish the boundaries of your price range, but will allow you to find what you can afford each month, even if there is a change in your finances.

Knowing your price range also allows you to spend the most time looking at the homes you can buy, rather than the homes that are out of your price range.  This also allows you to look in the right location for that perfect home.

Do I want to live here or there?

For many, living near certain places is the motivating factor when buying a home.  Being close to work, where they shop, or in the same vicinity of schools or parks that their children will attend and play are all things that a homeowner looks at when buying a home.

Choosing a good location is one of the most fundamental things that a homeowner will make when buying a home and will have one of the most drastic affects on resale value.  Buying that perfect home on a busy street might mean that you have to sell it later for less than what it is actually worth because no one else wants to live on that street.

If you are looking for a home that you will only need for a short time, location will also allow you to sell it easily if you are in the right place.  So make sure you take a tour of the neighbourhood and take an inventory of what is close to the home.

This will also give you a snapshot of what life will be like if you do choose that particular location.  If it doesn’t have exactly what you want from the location, have your realtor show you similar neighbourhoods.

Still not finding that “perfect fit”?  Have your realtor show you some homes that cost just a little more than what you are expecting to pay.  Asking your realtor to talk to others that have listings nearby.  They might have information on a home that has the potential to be put on the market soon and has the qualities your looking for now.

What is essential?

Many homeowners struggle when deciding on what they want or need in a home.  Some are unable to separate the difference.  However, making a list of priorities that you would like in a home and in the neighbourhood, helps with the decision making in the long run.  This also allows your realtor to look for those things and show you the right homes in the beginning.

You might want the large kitchen but your significant other wants the large deck.  When two people try to decide what is essential to their home, the list gets a little more detailed, and makes the selection process that much more difficult.

Not everyone wants the same things.  Taking a step back and asking yourself is this something I want or is this something I need and will use regularly, will help you find the home that has both what you want and need.  It will also help you compromise with the other people in the home so that everyone gets a little bit of what they want and need as well.

If this home doesn’t have exactly what you want now, that’s okay.  Remember, most people don’t live forever in the first home that they buy.  If it is something you can live without for now, you can always get it with the next home you buy.

Don’t expect your list to stay the same as you look at different homes.  Even though you think you need a larger space, seeing how different spaces are arranged may show you that a smaller space used differently will work just as well.

Remember, homes on the market are decorated to sell.  Don’t get caught up in the paint and trimmings and forget to look at the property as a whole.  Small changes that can be made inside are a lot easier than changing the property itself.

What style is right for me?

First time homeowners tend to gravitate to the same styles: condos, town homes, or small bungalows.  Which style you decide on is going to be based on the amount for which you’ve been pre-approved.

Town homes make great first homes as they are usually located where other first homebuyers are located.  The lifestyles of your neighbours will probably closely mirror your own.  Town homes also tend to have a great resale value and are a good investment over a short period of time.

Small bungalows are great for a single twenty-something or young couple without kids.  Again, resale value will be based on the location and the essentials that are in the home.

Condos are great for people that might be on the go constantly and don’t want the hassle of having to keep up with the outside maintenance.  Many builders will upgrade different features to help with the potential resale value.

Condos might contain free or reduced fees for maintenance and upkeep.  These might be paid upfront for a three year period.  This will help in keeping your carryover costs down over a length of time.

The condo developer might also absorb some of the closing costs.  These might include any mandatory land transfer fees.

Free parking or a reduction in parking is also an amenity used to attract buyers to certain neighbourhoods.  Due to the expense of parking and the lack of space for parking, finding or asking about a reduced rate is very important.

Some properties will lose value over time due to the types of neighbourhoods that they belong.  If you are seeking a condo in a development, negotiate with the developer to cover part of the decrease so you don’t lose as much when you sell it later.

Knowing what style you want for your first home might not be easy to determine.  Let your realtor show you many different styles, and expect to see many different styles as you are touring different homes.  This will not only help eliminate styles you don’t like, but reshape your list of essentials that you created earlier.

The best fit for me now and in the future.

Some thinking on immediate needs and future needs is necessary when buying a new home.  Will this be a place that you will live in while temporarily transferred from another location by your employer?  Will you be getting married or starting your family soon? 

Tailoring a home to meet those needs might just mean changing the paint or wallpaper in one room or upgrading the countertops in another.  Most people will only stay in their first home for five to seven years according to industry statistics.  Finding that home that can be resold at that time needs to be considered.

However, if you are looking to make this a lengthier purchase, make sure you have room to expand in your home.  Those extra bedrooms will come in handy as your family or situation changes. 

Cosmetic changes to the flooring, countertops, and walls will also help you sell your home on short notice without losing all you have invested in it.

Knowing where to look.

Finding the perfect home is not small step.  It takes time and patience to find exactly what you are looking for in a home.  Be prepared to spend a lot of time in the car driving around from home to home.  Talk to those whose opinions you trust.  Ask questions of friends and family, or coworkers about their search for their home. 

Searching the Internet for MLS listings can help you determine what types of homes are available in your price range and where they are located.  Knowing the location of where you would like to live will help you in your search as well.

Let realtors do some of the work for you.  They are a wealth of information and can send you information on different properties and design tours of different types of homes for you.  They can even email you different properties that have certain qualities and essentials that you are looking for in a home.

You can even gather data about the neighbourhood’s crime rates, upcoming developments, and housing prices.  This can be obtained through phone calls to your local councilor or by calling the local police station.  Housing data can be obtained through your realtor.

Drive through neighbourhood at different times of days.  This will give you a good idea about what the neighbourhood is like on a weekend versus a weekday and how it might affect your trip to work.  This will also give you an idea of the types of people that live in the neighbourhood.  You don’t want to be in a neighbourhood with no kids if you have kids of your own, or vice versa.

Most of all, don’t buy a home based on a first impression.  Do your research, visit it at different times of day, and make sure you are pre-approved for the cost of the home.  This will go a long way in making sure you are happy with the final purchase.

This Old Home

Many homeowners debate between buying new homes or older homes, which are known as resales.  Just like with any purchase, price range, location and the essentials you want in a home will determine if you buy a new or older home.

New homes generally have the following characteristics:

Current trends in architecture and design: Homes that are new will have the latest in design features such as materials, floor coverings, windows, and features.

Upgrade in choices: Since many homes will not be finished if they are new when you buy them, you can decide on what amenities are upgraded such as cabinets, lighting/electrical fixtures, plumbing and flooring.

Up-to-date building codes:  Homes built today must follow all current building codes and meet certain energy and efficiency standards.

Lower maintenance costs: Since everything is new, maintaining them will cost you less per year.  Many will even still be under warranty.  Make sure you do have maintenance money set aside for any unexpected emergencies that may occur.

Homebuilder’s warranty: The builder of the home may provide a warranty on major systems such as plumbing or heating if it breaks down in the first few years.  Make sure you check the conditions that are listed in the warranty and ask any questions about them.

New home warranty programs: Different provincial and territorial governments will provide a new home warranty program to homeowners.  There are also private programs as well.  Check with your realtor for more information on programs in your territory or province.

Plans for your neighbourhood:  Many newer communities have plans for additional schools, shopping centers, or other services that might not be built yet.  Check with your local councilor for any major plans that are in the works.

Taxes:  New homes require a Goods and Services Tax (GST) and in certain provinces the Harmonized Sales Tax (HST).  If your home costs less than $450,000, you might qualify for a rebate.

Extra hidden costs:  There are additional costs to some newer homes when you might want to add trees or sod to the property to give it a more mature look.  Upgrading to a paved driveway will also cost you more.  Make sure you know what you want and have it listed in the sale of the home.

Resale homes

Established neighbourhoods: Homes that have been pre-owned will be in neighbourhoods that have already been established.  Shopping, schools, and other forms of entertainment will be well established in these areas.

Mature yards: Fencing and mature plants will often grace these yards since they have been tended to over the years.

No taxes: GST/HST taxes don’t apply to older homes unless the home has been remodeled extensively, then it is calculated at the price of a new home.

Decorating changes: The last owners might not have the same taste as you do, so changing the inside décor is going to be a major task.  Some might find a home that requires renovation and serious repair work to be done.

Searching for the perfect home is a major undertaking that should not be rushed.  If you do have to move quickly, enlist the help of a realtor to help you find the home that will be comfortable for you.  Getting pre-approved, listing your essentials, and finding that perfect location will go a long way not only in giving you a home to enjoy, but a home that can be sold when the time to move comes.


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