First Time Buyer Tips 1.800.617.0090 info@kormendytrott.com kormendytrott.com
by
good luck ENJOY A ND
On behalf of KT, congrats on embarking on this rewarding journey towards buying your first home or investment property! This easy-to-follow guide summarizes the critical initial steps to getting your feet wet in real estate. I was inspired to prepare this guide while listening to Tupac, hence why you may recognize familiar topic titles that resemble some of my favourite songs (or simply those I found best suited to the topic).
A D R I A N TROTT KORMENDYTROTT. com
It Ain’t Easy
THE MOST COMMON STRUGGLES AND HOW TO OVERCOME THEM
The most common objection to getting started buying real estate is affordability. We help hundreds of people annually buy, sell, rent and invest in real estate. While many people sit on the sidelines, others are making it happen. To get started, consider finding easy solutions to increasing your income and lowering your expenses.
Affordability
Download more than 30 ways to save and increase income in our FULL MONEY SAVINGS TIPS GUIDE HERE
While your friends are out buying designer clothes and fancy cars, you’re stuck at home eating mac n’ cheese and watching re-runs on Netflix. Whether you’re feeling like an outcast or lonely or simply trying to get your head wrapped around the perceived massive commitment and expense of owning real estate…like most things, the first can be overwhelming but the second, third and fourth will be a no-brainer.
Mindset
It’s All About the Benjamins MORTGAGE, DEPOSIT AND DOWN PAYMENT
BEFORE ANYTHING (after reading this guide)
Contact a bank or mortgage broker to get a MORTGAGE APPROVAL. mortgage approval
Know what you can afford
Expedite the process upon finding a property
Removal of conditions in competition is common and not something you would want to do without a pre-approval
A relationship with a good mortgage broker/agent can be an invaluable tool for future purchases and refinancing
DEPOSIT vs DOWN PAYMENT
Your Mortgage Broker/Agent will help you determine how much money is required. The funds will depend on how much you’re spending (minimum down payment) and closing costs. You will need some of it available earlier in the buying process (deposit) and later (down payment).
deposit
Deposit vs. Down Payment
This is the money required upon signing an accepted Agreement of Purchase and Sale. The amount is negotiable and can vary between geographical markets. Deposits range greatly but are commonly $10,000 up to five-percent of the purchase price.
WHEN IS IT DUE?
Within twenty-four business hours of an accepted agreement, unless otherwise agreed to.
HOW DO I PAY IT?
Certified funds are typically required. This can be a Bank Draft, Certified Cheque or an electronic transfer such as a wire transfer and direct deposit.
WHO HOLDS THE DEPOSIT?
The deposit is typically held in Trust by the real estate brokerage representing the seller, but it can also be with the seller’s lawyer.
CAN SOMEBODY ELSE PAY FOR IT ON MY BEHALF?
IS A DEPOSIT THE SAME AS A DOWN PAYMENT?
Yes, a third-party is allowed to provide the deposit! If this occurs, your REALTOR® is required to complete an identification document for this person. Note: If a third party is contributing to your down payment, consult with your mortgage broker/agent as they may have requirements surrounding how this can be completed. Nope. The deposit funds are a form of consideration, part of a legally binding contract (the Agreement of Purchase and Sale). These funds still belong to you, and can later be applied against the down payment.
You may qualify for Federal and/or Provincial incentives for first-time buyers. FIND OUT IF YOU QUALIFY HERE.
bonus!
Holla At Me
FOR LACK OF A BETTER SONG TITLE: GET OUT AND FIND A GREAT REALTOR®
A
GREAT REALTOR® is another invaluable tool in your arsenal to locating and buying real estate.
NOT ALL AGENTS ARE ALIKE, HERE ARE SOME TIPS TO FINDING A GREAT REALTOR: Social Media
Scour Social for real estate agents who are active in your market. SEARCH HASHTAGS LIKE #<YOURCITY>REALTOR #<YOURCITY>REALESTATE
Synergy
Find somebody you trust and resonate with.
gimmickS
Just like how a mortgage with cashback may not provide the best interest rates and mortgage terms, a REALTOR® offering incentives may not be well suited to helping you successfully find a property. In any industry of skilled professionals, the degree of skills vary greatly. A professional, skilled REALTOR® is worth their weight in gold.
Temptations FORGET THE HGTV GLAM
Whether it’s your first home or an investment, don’t get caught up in fancy finishes and flashy features. We spend thousands of dollars staging our listings for sale because we know that the nicest homes sell for more money. Look beyond this to see the home for what it really is.
Homes requiring a bit of TLC have more upside!
Most buyers can’t see beyond minor cosmetic deficiencies (and gross smells!)
Most upgrades are surprisingly affordable and they can be done in a short period of time –even before you move in!
First time buyers typically move in two to four years –this is not likely your Forever Home
All In
FINAL TIPS TO SUCCESSFULLY PURCHASE REAL ESTATE
Embrace Bidding Wars It’s common to shy away from competing to purchase a house. Don’t be discouraged or give-in to the negative connotations associated with the term “Bidding War.” Know your budget, trust your Realtor and put your best foot forward. Pre-Inspection Nice homes often sell in competition. One of the first things buyers do to improve their offer is remove conditions. This is often a necessary evil but if you’re able, get an inspector in before submitting the offer to give you peace of mind. Keep Records Once you find “The One,” take photos of everything; walls, floors, ceilings and serial numbers for appliances. If something is damaged or missing at closing, or during a revisit before closing, you’ll be in a better position to protect yourself.
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