First Time Home Buyer Lessons
There are a few lessons that first time home buyers learn when purchasing a home. In a market like we are having, and have been having for a while now, it's important that you are ready and understand what's going to happen.
How can you prepare yourself? Well, first of all, it helps to talk to a professional Realtor. Don't ask whether they are a Buyer Agent or a Seller Agent. We qualify as both. We can do both jobs. We are ready with all kinds of information and we are keeping up with technology that is keeping us up to date. We usually get new information and listings within hours of it coming on the market. More important, deal with an agent that knows the neighbourhood where you are looking for a home.
When you talk to the first home buyer after the deal has been done, the will be honest and tell you thinkgs that they should have done differently to make the process easier on themselves. The first big one would be to research the process. There is lots of information out there, but there is nothing like sitting and discussing the process with a professional. Usually there are 3 professionals involved - realtor, banker and lawyer. Now, try to co-ordinate all those schedules so they all match.
Websites of organizations such as the CMHC adn the Canadian Real Estate Association are filled with factsheets, videos and toolkits for buyers to adequately prepare themsleves for the process of buying a home.
The final tally of the costs to purchase a home usually shocks many. It can be embarrassing if you are not aware that there is, both, a municipal land transfer tax (in Toronto only) and a provincial land transfer tax. This can add up to thousands of dollars. Make sure that neither buyer has his/her name on a property other than the one that you are purchasing. If you do, you will not qualify for the first -time home buyers land transfer tax refund. Also, this money is due to the lawyer BEFORE closing.
If you calculate approximately 1.5% of the purchase price, you should be safe to have sufficient funds for closing costs. But, always make sure to have a little extra...just because!!! Some of the costs - electrician, locksmith, home inspector, furnace technician, looming property taxes, paint...and there are more.
For more information, or just to chat about the process of buying your first home, or if you're a seasoned owner, things have changed, Give me a call directly at 416 427 1875.