Illustration by Rachel Gordon
Once the wedding day planning is behind you, it may be time to focus on purchasing your first home together. Where do you begin? Here’s how you start on the adventure of attaining what will likely be your largest investment.
Be an Informed Buyer
Research all aspects of the process so that you are well educated and informed. The Real Estate Board of Greater Vancouver has a wealth of information from news and statistics to consumer information. The Canada Mortgage Housing Corporation can help Canadians who may not qualify in the private market by providing them with financing options and tips from buying to renting to renovating your home.
Make a Wish List
Discuss with your spouse what you want and need in an ideal home. Where is there room to compromise? Brainstorm the various locations you both enjoy, and be cognizant of other important characteristics—such as proximity to retailers or entertainment, for example, that suit your lifestyle.
Evaluate Your Finances
Look at your current household budget and financial situation to assess your budget for a home. Add up any savings that could be used towards a down payment and closing costs.
Get Pre-Approved
Start talking to lenders and mortgage brokers about your options for pre-qualification and pre-approval. Getting pre-approved before you start home-shopping allows you to focus on homes you can afford and makes you a more attractive buyer to sellers.
Find a Real Estate Agent You Trust
Along with being fun and exciting, the entire home buying process can be confusing, overwhelming and time consuming. That’s where a realtor is helpful. Locate one by asking friends and family for referrals, or search your local real estate board—Real Estate Board of Greater Vancouver or Fraser Valley Real Estate Board. Find out who represents homes in the neighbourhoods you’re targeting, and once you find a few names, interview prospective realtors to ensure you like and are comfortable with them, and feel they are competent. Look for a realtor with whom you have a good rapport and choose someone that you feel will protect your interests.
House Hunting Time
The internet is a great resource for real estate and should be used as a tool to narrow your search and find out what’s available. Your realtor will research listings and arrange times for you to view homes that match your important criteria.
Setting a Value on a House
The simplest method of gaining knowledge about property values is to ask your realtor. S/he can save you time and money by structuring an offer that you can afford based on market value. First, your realtor will find out what other similar homes in the vicinity have recently sold for, data that will determine if the home is priced according to the current market value. How much negotiating leverage you have depends on how long the home has been listed. If it is new to the market, the seller may not be as eager to accept a lower bid. Evaluate the home’s condition to determine whether it has undergone renovations and/or upgrades. Once you’ve considered all the factors, you’re ready to formulate an offer. Sellers usually expect to negotiate their asking price. Careful and conservative negotiations can save you thousands of dollars. However, don’t try to lowball the sellers as this may hurt your chances of getting the home.
You Found the Home—Write an Offer
Your realtor will draft an offer to protect your interest and explain how offers become legally binding contracts. The offer mainly consists of: (a) Purchase Price, (b) Deposit, (c) Completion Date—date where title and money exchange hands, (d) Possession & Adjustment Dates—dates when you receive the keys, (e) Items included in the purchase price, and (f) Conditions Precedents or Subjects—what the Buyer must fulfill prior to full acceptance of the terms of the offer (i.e. Subject to Financing, Home Inspection), to be removed or fulfilled within seven days of an accepted offer.
Arrange for Home Inspection
Do not skip this step! Inspections are designed to disclose defects in the property that could materially affect its safety, livability or resale value.
Arrange for an Attorney or Notary
Your lawyer or notary will ensure that all funds are disbursed and the title has properly exchanged hands. Ask friends, relatives and
co-workers for a referral or visit www.lawyers-bc.com, www.lawyershop.ca, or www.notaries.bc.ca for possible sources.
Final Closing and Settlement
Meet with your lawyer or notary to sign the final documents and pay the final closing costs. Buying your first home together is a huge step but an exhilarating one. Don’t get so caught up in the details that you forget to enjoy the experience. With the support of professionals you trust, you can have fun with it!
Marife Sanvictores is a residential realtor for Sutton West Coast Realty representing buyers and sellers in the Lower Mainland. She has assisted many couples in purchasing their first home together. Contact Marife via email or call her at 778 836-SOLD (7653).
