5 Things Every First Time Homebuyer Should Know

First time homebuyers are usually worried about getting the best price, nailing down their financing early on and making sure they’re getting the right home - but what else do you need to know?

  • Did you know that November has the softest home prices all year long?
  • Did you know that you should buy the best home you can afford - not the cheapest?
  • What about the fact that unrealistic expectations can leave you stuck renting until you die?

These are just a few of the things you need to know before you start shopping. Let’s get started!

November Has the Best Prices, Summer Has the Worst

Yes, summer isn’t a month, but it is the time when people get into emotionally fueled bidding wars where they fight tooth and nail for that three bedroom corner condo with the beautiful view of Lake Ontario.

But November has the best prices all year round - and sellers that are willing to go a little below asking price to ensure escrow clears by Christmastime. Just beware that the weather can be quite atrocious after Thanksgiving and the savings may not be worth it.

Perfect Homes are Like Unicorns: They Don’t Exist

Well, they do, just only in cartoons, movies and funny little dreams we have when we doze off after lunch at work. The more realistic your expectations are, the better off you’ll be.

Sort Your Financing Ahead of Time

You might think you can get $500,000 to buy that dream home - but do you know for certain?

Pre-qualified is a term bandied about, but it’s not the same as being pre-approved for a mortgage amount. Pre-qualified just means you can walk in the door and apply for a mortgage just like anybody else. Being pre-approved for your mortgage means you’ll have a set rate and set amount a lender will give you that you can give to a seller to show you’re serious.

Buy the Best You Can Afford

Buy the best you can afford in the best neighbourhood you can afford.

There’s a reason that home’s a bargain - and it’s usually not worth what they’re asking for it. Earlier in February a dilapidated home at the edge of Toronto went for over $800,000; the new owners will have to spend $500,000+ to repair structural and cosmetic issues.

The estimated value of the property once they’re finished?

$900,000 - meaning they’re out 2 years of time and $400,000. You’re buying a home for the first time, you’re not an international investor with money to burn. Be honest with yourself before you buy.

Tell Your Realtor What You Really Need

Talk to your realtor, tell them about what you want and need. Work together to create a realistic list of needs and wants that can be found in a home.

Your realtor’s sole job is to be an objective guide through the process of buying a home, especially when you’re a first time buyer. To do that, they need to understand what your needs are. Sort out your true needs and desires from expectations others may have about what those might be and you’ll have a much better time with it.

The Goodale Miller Team - Oakville's Leader in Luxury Real Estate

Goodale Miller Team

Goodale Miller Team

CENTURY 21 Miller Real Estate Ltd., Brokerage*
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