Thinking about taking the plunge to become a homeowner? First, you need to be clear about your budget and all costs related to a property before you dive in. Then you need to decide how you’re going to find your home-sweet-home: with the help of a real estate agent or on your own? Let’s get started!
Establish your budget
First, do a complete and realistic evaluation of your financial situation. This will be time well spent!If your budget is not clear and precise, there could be consequences down the road that have a considerable impact on your quality of life. Include everything. You’ll still want to enjoy certain indulgences even after becoming a homeowner.
Desjardins’ Homebuyer’s Guide recommends that you spend no more than one-third of your gross household income on housing. It is not recommended to exceed this amount if your cash flow fluctuates or if you have a loan (or loans) to pay back. However, if you have few expenses, or it is a revenue property, or buying it saves you money (e.g.,transportation costs), then you can consider exceeding this limit slightly.
In addition to the initial down payment, you must anticipate a minimum amount, equivalent to about 3% of the value of the property you want to buy, to cover various up-front costs. These include inspections, real estate transfer taxes, notary fees, and home insurance costs. It’s suggested that you keep a reserve of about $3,000 for unexpected renovations or maintenance costs.
Identify your needs
Now that you know your means, another question arises: what are your needs related to your future property? The main elements to define depend on the lifestyle you want to lead: do I have the talent or the time to maintain a ground, do I want to receive all the family and friends there, or am I I'm more of a nomad and I'm probably going to be away more often than not? Don't choose according to trends, but instead the best option to meet your real needs and your lifestyle.
Write down all the elements necessary for the property to entice you. Awareness of these criteria will allow you to do more precise searches and save you lots of time.
Take action
1. Doing it on your own
Check out popular platforms such as DuProprio to see what properties are on the market. Enter criteria to refine your search results: price range, desired location, number of square feet, and so on.
If a listing piques your curiosity, simply contact the person responsible to obtain the seller’s declaration. It will provide you with more information about the current condition of the property. If there are no major issues noted, ask for an appointment to visit the house. You can ask someone close to you with experience to accompany you and provide support.
2. Using a real estate agent
The expertise of a real estate professional can be extremely helpful, not only for selling but also for buying. Benefit from our advisory services and easily find the broker who is best suited for your project with the Confia real estate agency. To be represented by an agent you must sign a purchase brokerage contract. Once your budget and needs are identified, here’s what they’ll do for you:
Take care of finding and offering you properties that may interest you, some of which are not yet on the market
Request seller’s declarations
Organize home visits
Accompany you during visits and ask questions you might not have thought of – especially if this is your first shopping experience
Helps you think about a fair purchase price, according to your budget
Assist in drafting the offer to purchase and present it
Explain the legal procedures
Lead the negotiations
Provide you with their network of contacts (notaries, financial advisors, inspectors, etc.)
Take advantage of the protections offered by the Real Estate Brokerage Act
Is it love at first sight? Make an offer to purchase and keep your fingers crossed that it's accepted!
For more information about the services offered by DuProprio, head over to their website. Would you rather renovate before selling? You might want to check out the RenoAssistance website. Perhaps Confia, a new service available throughout Quebec, is the best option for you.
