What 7 things should you do before you buy a house in Port Coquitlam?
The real estate process can seem daunting, especially if you’re a first time home buyer, and it’s our mission at Port Coquitlam Realtors to ensure that our buyers never have an ‘I wish I knew this…’ or a ‘I wish I did this…’ moment that could have been avoided. So with that being said, we decided to compile a list of our top home buying tips that we believe everyone should know before they decide to purchase a home. From the financing and pre-approval process to offer presentations, this blog covers it all!
Tip #1: Get pre-approved before you start looking
One of the most important parts of the home buying process is making sure you know what you can afford comfortably. Having your pre-approval done prior to looking for a home will give you an accurate guide for what you can afford, and what price range to begin looking in. Another advantage to having a pre-approval is locking in your interest rate for 3-4 months. You’ll be required to provide your mortgage professional with documents related to your income, credit score, and more so that when the time comes that you have an accepted offer the process of removing the financing subject will be much quicker as they’ll just need to qualify the home.
Tip #2: Try to avoid your absolute maximum budget
Stay mindful of your budget, because you likely won’t want to be eating Kraft dinner for the next decade because you chose to max out the highest amount of mortgage that the lender would give you so that you could buy the biggest house on the block. Try to avoid your max budget at all costs, and start building a ‘rainy day’ fund for unexpected repairs, maintenance, property taxes, and more.
Tip #3: Define asking price vs selling price
Asking price [listing price] and selling price are two very different things in real estate. Just because the seller has listed the property for $499,000 doesn’t mean that it will sell for that price. It’s important that you’re working with a realtor who understands how to estimate market value of a property, as that will ultimately be the closest estimate for the selling price.
Tip #4: Expect during the inspection
You should always expect something to come up in an inspection report. If the inspector comes up with a blank report, then they’re not doing their job. The report is there to anticipate maintenance and repair costs over a period of time, as well as determine what needs to be done now or in the immediate future. There will always be something and it’s important that you expect that to avoid disappointment. Buying a home is not just a simple purchase, it’s a lifestyle that includes long term care, maintenance, and repairs and you should be prepared to take on that responsibility when purchasing.
Tip #5: Don’t get too emotional & be open
It can be hard not to get too emotional when purchasing your home, and you can be lured in to the quartz countertops, stainless steel appliances, and hardwood flooring. However, it’s important to see the potential in a home and look at the structure rather than the cosmetics. What can you change? What can’t change? If it’s messy, try to see past the junk – because most people won’t be able to. Seeing the potential in a home and not getting too emotionally attached to a single home will make your real estate process so much easier, and your wallet will thank you.
Tip #6: Find a real estate agent
One of the most important tips is to find a real estate agent. A buyer’s agent will help you through the process, educate you on neighbourhoods, write up a professional and binding contract for you, and facilitate from the accepted offer all the way up until completion. Their job is to guide you in the right direction, and make sure you’re safe and protected all along the way.
Tip #7: Get to know the neighbours [and the neighbourhood]
You’ll want to do some research on the neighbourhood that you’re thinking about buying, and with that comes research on the neighbours! Door knock and introduce yourself, check to see if the neighbours have an opinion on the house or the area. Try driving from the property to your work and see how long it takes. Check out the demographics and neighbourhood info online. You’re taking on a lifestyle when you move so make sure that you fully understand what that lifestyle entails!
