Curtis Leibel 780-438-2500

There are many different types of home buyers – downsizers, move up buyers,  investors and first time home buyers to name a few.  Although a lot of the characteristics of each group may be similar, it is important to recognize the individual needs of each.  I intend on doing a blog for each of the groups, but for now lets start with first time home buyers.   Are you looking for your first home?  Here are some important factors to consider:

1)  Timeline:  It is important to have an idea of when you want to be living in your new place by.  Ive had people living in a new house or condo anywhere from 1 week!! to 2 years from the day they started looking.  Once you have an idea of your ideal scenario you can set a general timeline of how to proceed (keep in mind no matter how prepared you are it still all depends on actually finding the right place).   On average it may take a typical buyer 3 -4 weeks of looking houses, 1 – 2 weeks of offering/negotiating and another 3-6 weeks til possession date.

2)  Location:  The one thing you will hear over and over is that no matter what house you buy you can not change the location once you buy it.  Even if you have your mind set on 1 community, its a good idea to look at a few different areas to see the pros/cons of each.  What neighborhood or location within the neighborhood (on a busy street, next to a pawn shop, etc…) will influence your ability to resell the home in the future.

3)  Financing:  Obtaining financing is usually most difficult for first time home buyers.  Typically they will only be putting 5% down, have to pay CHMC fees to insure there mortgage and will most likely be doing it on a lesser income than the investor/move up buyer groups.  Its a good idea to get preapproved by a mortgage broker- its free and gives you a letter stating you are qualified to purchase a home up to x dollars.  This way you know what price range you are comfortable going up to.

4) Associated costs:  There are costs that come with buying a home that you will want to consider.  Lawyer fees (average $1000-1200) a purchase, CMHC fees (varies depending on how much you put down), property home inspection (~ $500), title insurance (optional ~ $250) and potential utility hook up fees are costs you will want to budget for.  You may also owe the vendor back pay for property taxes/and or condo fees that they have already paid for the remainder of the year

5)  Characteristics of home:  It is important to decipher between cosmetic characteristics and the mechanical/foundational characteristics of the home.  Or in other words, wants vs needs.  Quite often first time home buyers can get wrapped up in the cosmetic beauty of the home while disregarding the operational aspect of it.  Paint, trim, doors, lights, taps – all can be added fairly easily at minor costs whenever the budget allows for it.  However, some expenses are necessary to keep your home dry and warm so it is important to look at these as well.  Windows, shingles, furnace, electrical panel, hot water tank, siding – all expensive fixes that may have to be completed whether you want to or not.

If you are looking at buying your first home it is important to have a Realtor you trust and respect to fill you in on everything there is to know about buying a home.