How the F*** does the Real Estate Process Work?
So you’ve decided it is time to invest in some property. Well, I can’t say I blame you. Home ownership is a common goal amongst the general Canadian population. However, the process is very specific and is designed to protect all parties involved. Let’s take a simplified step-by-step journey through those various steps and hopefully when you’re done reading this blog, you’ll have a better understanding of how the f*** the real estate process works.
Step 1 – Your Budget
Oddly enough, you can’t just start your real estate journey without a clear picture of your finances. A solid budget will help you with your down payment, mortgage, additional costs and will be a key indicator as to how big and what type of home you will be able to afford. It will also give you that cash cushion you will need on mortgage payment dates in case some other hidden cost pops up in the monthly cycle.
Step 2 – Your Mortgage Options
There are many different types of mortgages available. Even if you do not have the savings set aside to make a 20% down payment, a high ratio mortgage could be your best option. Before you get to this step however, you should get yourself pre-approved for a mortgage by an accredited mortgage specialist – answering a few questions on an online form just won’t do. Once you’ve discussed your options with a professional (I’m happy to offer up some recommendations) I can begin sending you listings that match your wants and needs as well as your budget.
Step 3 – Your Realtor
Choosing the right Realtor is one of the most important steps before beginning your house hunt. Oftentimes people choose a Realtor for the wrong reasons and it can lead to a stressful and unpleasant experience and can even lose you thousands of dollars (when you thought you would save thousands *gasp*!) It’s almost like interviewing someone for a job. You should view the Realtor selection as a crucial and significant step towards your home ownership goals and ask a lot of questions that are important to you.
Step 4 – Your Lawyer
Although lawyers are pretty good with all types of legal matters, when you are house hunting you really will benefit from the experience of one that specializes in real estate. Aside from all the typical legal duties associated with home buying, your lawyer can provide additional services, all you have to do is ask.
Step 5 – Your House Hunt
This is basically a two-part process. First, you need to create a realistic wish list. House hunting can be a long and involved step, you can save some time and effort by putting together a list that outlines what you are looking for in a new home. Sure, it may vary over time but at least you will have something tangible to work with. The second part is to have a check sheet of some sort since you may end up viewing many homes in a short period of time, a ‘cheat sheet’ will keep your memory straight on the things you liked or didn’t care for about the homes you’ve seen. A prepared Realtor will provide you with something of the sorts as part of their service.
Step 6 - Your Offer
So, you’ve found a place you like. You’ve crunched the numbers and are ready to have your Realtor present your offer to the seller. The offer documents include several particulars, including price, deposit amount, the conditions of sale and the closing date. The ideal situation would be for the seller to accept the offer immediately; However, Sometimes the offer is rejected and oftentimes it is countered. As a Realtor it is my job to make this process as quick and pain-free for you as possible.
Step 7 – Your Home Inspection/New Home Warranty
You are not required to hire a home inspector, but it may prove to be a great investment on your part as potential issues may be revealed. Depending on the severity of issues, the cost of repairs can be leveraged against the purchase price of the home. If the seller is not cooperative in negotiating some kind of deal in this manner, you can legally withdraw your offer before the inspection condition is finalized and move on to a different property.
Step 8 – Your Deal Finalization
Assuming the seller accepts your offer, you are this much closer to owning a new home. This is where the deal gets real. Your mortgage will receive final approval, insurance, conditions of sale and the title search results will keep you in your lawyers office for a period of time but this is probably the second biggest step of the entire process.
Step 9 – Your Move
Before you can step inside your new home you have a lot of running around to do. In addition to booking a moving company (assuming you have a plan already in place for packing up your existing house), you’ll have to make arrangements for utilities and all other services required to get your home functioning. Phone, cable, internet, etc. Change of address information will have to be forwarded to wherever it should go and then you can start planning the actual moving day.
Step 10 – Your New Home
By the time you get here, you will have covered a lot of ground and now you can relax and soak up the wonders of home ownership. You’ll be spending a fair bit of time organizing your new home to fit your needs and to personalize it with your own ‘stamp’ and then you and your family can start to build your new life.
Explore my website and you will find handy dandy checklists to help you with your move, and I’m always a call or email away.
Need Some Help With A Few Of These Steps?
I know I simplified this process and I don’t want you to think that it is overly complicated, but there are some details that can change the direction of your home search early on. What helps is to have a Realtor working with you and advising you along the way. You can contact me for assistance and guidance.
I’m Jen Bedard and you can reach me at 289-213-7031.