Your Guide to Becoming a Homeowner!
Are you looking to purchase a home in today’s crazy Vancouver market? Looking for some guidance to make your home buying process a little smoother? To help simplify what can be a complicated process, we’ve outlined the home buyer process in 9 steps.
Step #1: Finding a Realtor
Are you unsure about engaging a realtor? or unaware of the benefits an agent provides? Here is a brief rundown of finding a realtor and the benefits. It’s important to partner with a realtor you feel completely comfortable with. A realtor can help you find your dream home, that meets both your needs and your budget. They will set you up with viewing appointments, and also help bring clarity to the complicated process of buying a home. You’ll want to go with an experienced and knowledgeable realtor who you can be sure will represent your best interests. The best part? It’s free of cost! When you utilize the services of a realtor, the commission is paid by the seller’s agency after completion.
See below for services included when working with your realtor:
- Educating their clients on the buying process
- Keeping up with real estate market trends, news and activity whilst researching current and sold MLS listings for homes that fit their client’s interests
- Booking showings or related appointments to bring their client to view homes
- Submit and negotiate offers on your behalf
- Handling all documentation, paperwork and/or organizing their clients with mortgage, insurance, and lawyer needs
This list is just small portion of what your realtor will do! For more information on how we can help you, feel free to reach out to one of our experiences associates.
Step #2: Know your budget
As you might already know, buying a home is going to be expensive. Knowing exactly how much it will cost and how much you can spend is a crucial step in making a wise investment. Consider your lifestyle, your income and any current debts you’re carrying. Are you secure in your employment? Are you planning any major life changes in the near future, such as a job change or growing your family? Be mindful of the financial impacts this could have.
You should know how much you can afford to spend on a home so you can narrow your personal home search. If you come prepared with this figure, you’ll also be helping your realtor to find you the properties that you can afford.
Check out this Home Affordability Calculator to get a rough estimate of how much you can spend before you start house hunting.
Step #3: Finding a Mortgage Broker
Similar to finding a realtor, finding the right mortgage broker will ensure you will be taken care of and will be provided with the best financial guidance and advice. A mortgage pre-approval informs you of how much your lender is willing to lend you based on a number of factors, such as your credit rating, income and debts.
Depending on your personal needs and the state of the market, your agent may recommend you to put in a subject free offer which requires a mortgage pre-approval.
If you need mortgage broker recommendations, feel free to reach out to us and we can connect you with some of the best mortgage brokers we’ve worked with.
Step #4: Start home hunting
Simply start by creating a list of all your wants, needs, and non-negotiable items. As an example, include things like ideal locations and whether having a patio is a must have and shared laundry is a must not have.
Starting this list at the beginning of your home buying process will be very helpful for you and your agent as you start searching for properties and receiving listings that meet your criteria when they hit the market.
Step #5: Schedule showings for viewings
Now that you know what you want out of your home, your realtor will help you book accordingly and schedule your first showings. This is the most exciting part of the entire process so make sure to enjoy it and approach it with an open mind. Some will find their home after the first viewing and for others, it might take a bit longer.
With every home you view, you are getting closer to finding the right one! Trust your realtor’s expertise, ask questions and remember to stay positive.
Step #6: Present an offer
You’ve found the home you want and you’re ready to present an offer. Time to submit an offer to purchase for a price, dates, conditions and subjects that are agreeable to both you and the seller. Your agent will then negotiate on your behalf
Here’s where working with an experienced realtor can give you the upper hand. Different market conditions require a different approach – a seller’s market might mean lots of competition, requiring you to come in at or over asking price with few to no conditions/subjects, while a buyer’s market means you have choice and time is on your side. Lean on your agent on how to best handle the situation.
Step #7: Get a home inspection
This is a step that can sometimes come before or after your offer submission depending on your offer subjects. A home inspection is intended to identify any existing or potential underlying problems in a home, alerting the buyer of risks and giving them leverage in potentially negotiating a reduced selling price.
Your home inspector will examine systems that are visible without opening walls or floors, including heating, plumbing, electrical, roofing and foundation. The inspection should take approximately three hours and will cost a few hundred dollars, depending on the size of the home.
Step #8: Post subject removal and closing preparations
Once your subjects have been removed. The closing period for your home begins and can range depending on the agreed upon terms in the Agreement of Purchase and Sale.
The homebuyer has some obligations during this waiting period. Your mortgage broker will need a copy of the deal documents to ensure it’s in-line with your pre-approved level of financing. After any adjustments or repairs have been done to your satisfaction, your realtor will finalize the deal and your lawyer will process the paperwork, including the mortgage documents with your broker. You will also need to have property insurance on your unit for completion day. These sub-steps are crucial in a smooth and successful closing.
If you need notary or lawyer recommendations, feel free to reach out to us and we can connect you with some of our most trusted notaries and lawyers we’ve worked with.
Step #9: Move into your new home!
On possession day, you will do a walk-through with your realtor to ensure the property is clean and in working order. Once this is all completed, you will be handed the keys, and congratulations, you are a new homeowner!
If you’re planning to get some help with a moving company, book it well in advance. If you’re doing it yourself, book the truck, get some help and ensure you have your packing materials.
We hope this simple home buying checklist helps. If you still have questions and would like a fully detailed process or maybe you’re ready to start your search, feel free to reach out to one of our experienced associates and we’ll be sure to take good care of you!