Buying the Right House: Our Top 6 Tips

Upgrading your home can be an exciting time.  You want to make sure that you buy the right house for your family.  Mistakes can be costly.  Here are six tips to ensure that you buy the right house for you.

1. Sell or buy first?

This is a tough decision for most of our clients.  We’re in a balanced market in Toronto, with the number of buyers essentially equals the number of available homes, for both detached homes and Etobicoke condos, However, the inventory of homes on the market has increased in the last couple of months. This means that there’s more choice for buyers today than there has been in the recent past.  If you want to make sure that you know how much you have to spend on your knew home, it’s best to sell first. If you are more concerned about selling and not being able to find your next home, you should buy first.

In a buyer’s market, sell your home first as you won’t have as much trouble finding a new one. For most buyers, we recommend that they sell first in today’s market.

2. Research the Neighbourhoods

Check police websites for neighbourhood crime statistics. Ask at City Hall if new developments are planned or whether a new large employer is relocating to the area. Jobs mean demand.

Walk any neighbourhood you are interested in and talk to people. You will learn the demographics of the area and its facilities. What schools are in the area and is there a waiting list to get in? Are there activities nearby for children, including parks, libraries and community centres?  Once you have done your research, narrow in on a neighbourhood.  Getting to know what homes are selling for in your chosen South Etobicoke neighbourhood will be helpful.

3. Find the Best Real Estate Agent

Look for an agent that focuses on your chosen neighbourhood.  They sometimes know of houses coming on the market before they are listed.  Interview several agents and select one that you are comfortable with.  An agent needs to have strong negotiations skills to win in the hot market in Toronto.

4. How Much Home can you Afford?

You should never live just to pay your mortgage, or else the rest of your life will suffer. Meet with a mortgage broker in advance to determine how much you can safely borrow, based on your income and family needs. Buyers should also realize the lender will do an appraisal and if the lender believes you paid more than the house is worth, they will not give you the full amount of the loan you expect. So, be very careful about stretching yourself to the limit when you make an offer.

5. Choose a Home Inspector Carefully

The home inspection is becoming even more important, as it is one of the only ways for a buyer to check against unwanted surprises after closing.

Ask for references and call these references yourself, especially the ones who bought older homes, where problems are more likely to occur later. There are now additional inspections that test specifically for mould or termites. There are video cameras that can tell you the condition of your sewage system and scanners that can look behind walls. If it is an older home, it is worth this extra investment.

Remember, most inspection firms have a limitation of liability clause, which states that if they miss something that costs you money, they are not responsible. Ask the company if they have ever been sued by a buyer.

6. Title insurance is a Must

Title insurance can be arranged through your lawyer. You will be protected against unpaid taxes or water bills by the seller, as well as problems that are not known at closing. This includes problems where part of the home or swimming pool is in fact on your neighbour’s property.

However, it is a mistake to believe title insurance will protect you against everything. For example, it won’t compensate you if you thought your lot was 50 feet and a later survey showed it was only 48 feet. That is why you should always ask for an up-to-date survey on the property.

If you do your do diligence when purchasing your home it will be a very positive experience.  It is one of the biggest purchases that you will make,  Chose wisely.