What Every New Home Buyer Must Know

Facing the challenge of buying your first home can be downright scary. There are a multitude of little details that seem to crop up out of nowhere, and it’s not uncommon for some first-timers to suffer from "house hunting fatigue" – which either means that they continue renting (which is a usually not a good idea), or they make a rash decision just to get it over with (which is almost always a terrible idea!).





As an Edmonton Realtor who specializes in helping first time home owners achieve their home ownership dream safely, successfully and smoothly, my advice is to approach the house hunting process with as much information as possible. This is sometimes easier said than done, because there is A LOT of misinformation and "half truths" out there that confused and frustrate many first time buyers.





So, without further delay, here’s what every new home buyer must know before buying a house – whether that’s tomorrow, next year, or a decade from now:





• Location really DOES matter. Many factors influence a property’s value, and whether (and how much) that value will appreciate over time. However, location IS a big factor. So do your homework and get a sense of how attractive a location will be a few years from now. Are their plans to build a new school nearby? What about a mall or even a highway offramp? Do your research and try and find this information out before you buy – you’ll be happy you did!





• Don’t fall for "over-renovated" homes. Some sellers load up on renovations in advance of a sale, because they think it will more than pay for itself by boosting the selling price. Beware of such tactics. Yes, while SOME renovations may be attractive to you, don’t pay for someone else’s desire to, say, install a sauna that you’re never going to use, install a sunlight that you find irritating, or put on a new roof in a colour that you dislike.





• Maximize your leverage. When you’re on the hunt for a new house, you want to have as much "in your corner" as you can – so that when you find a fantastic house, you can make an aggressive offer. One of the key ways to maximize your leverage is to get pre-qualified for a mortgage (and NOT merely pre-approved). It also helps if you’ve sold your current house or can move into your new home quickly, since some sellers are looking for a short sale. And of course, a key aspect of maximizing your leverage is always being able to walk away from the negotiating table and move on. Sometimes a great house doesn’t come with a great price (or it comes with not-so-great terms and conditions). In those cases, you want to be able to leave and look at other houses ASAP.





• Buy your home to LIVE in. Obviously, your home is a major investment and you need to keep that in mind. But sometimes, it’s easy to get "lost in the numbers" that you forget a very simple fact: you’ll be living in your home! What I’m saying is that if you aren’t comfortable with the house and don’t truly love it, then despite its investment potential, you’re not going to be happy. So yes, while you may need to compromise on some points (e.g. taking your second choice because it’s in a preferred neighbourhood), you shouldn’t overlook the fact your home is where you’ll LIVE. Make sure you love it!





• Work with a REALTOR. Buying a house isn’t merely a transaction. That sweater you bought for your uncle last Christmas was a transaction. Buying a house is a MAJOR FINANCIAL UNDERTAKING, and mistakes made in the buying process can end up costing you tens or even hundreds of thousands of dollars. A REALTOR gives you the "insurance" you need to know that your transaction will be handled professionally and ethically. Just as you wouldn’t perform your own surgery, you shouldn’t go it alone when it comes to buying a house. The miniscule rewards are far, far outweighed by the risks (and many times, the hidden costs that Do-it-Yourself’ers don’t take into account end up costing thousands of dollars!)





So there you have my version of the things that every new home buyer must know. If you’re equipped with the right information and are working with a certified REALTOR, then relax: you’re already half way to the home of your dreams!





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ABOUT THE AUTHOR:





My name is Chris Proctor, and I am a Realtor with Realty Executives - Devonshire Realty in Edmonton. I specialize in helping Edmonton home buyers find a great home that meets their needs, budget and goals. Search Edmonton MLS homes and condos here.