You’ve made the decision to buy your own property, Congratulations!
Buying your own home or condo is a very smart decision because in Canada there is no tax payable on the capital gains acquired from the sale of your principal residence.
The first thing you should do once you’ve decided to purchase a property is to contact a real estate broker familiar with the neighbourhood in which you would like to live. If you haven’t yet made up your mind about a specific area, a reputable broker will point out the pros and cons of different neighbourhoods in Montreal. You should ask about schools, transportation, recreation facilities, shopping centers etc.
Your broker will then ask you about your family and your lifestyle in order to determine your real estate needs. Are you looking for a single-family property, a duplex, townhouse or condo? Do you want a new home or a resale property? And are you looking for something turnkey or would you prefer to renovate according to your own taste? These are all questions that must be answered in order to help your broker find the right property for you.
The next logical step would be to meet with a mortgage broker. Your real estate broker will refer you to a mortgage specialist in order to get a pre-approval. This way, you will be able to lock in interest rates before they increase and know exactly what your budget will allow. Your real estate broker will then be able to show you different properties in your price range.
Once you have found your dream home or condo, ask your real estate broker to do a comparative market analysis of the property in order to determine how much other buyers are willing to pay for a similar property. You will then be in better position to make an offer.
Once an offer is presented to a seller, he or she has 3 options: accept the offer, decline the offer or make a counter offer. The negotiation process may go back and forth a few times. Offers are usually conditional upon various things such as: property inspection, financing, the sale of the buyer’s own property etc… All stipulated conditions must be met in order for the sales transaction to go through.
Your real estate broker will guide you with the purchase of your property and will explain all about the closing costs involved: notary’s fees, transfer tax, municipal tax adjustments, home insurance etc.
With the help of a reputable broker, you are only a few steps away from your achieving your real estate goals.