8 tips for finding your first HOME!

The following post comes from Coldwell Banker Vanguard Realty, Inc. agent, Kim Knapp. Kim is an experienced agent in Northern Florida and has a great team who has worked with countless first-time home buyers.  What is interesting for me  - is that even though the price points, market, product and geography of the Buyers are different to our – their needs and process is the same.

Here are her 8 tips to help make finding that first home go as smoothly as possible:

1. Research before you look. Decide what features you most want to have in a home, what neighborhoods you prefer, and how much you’d be willing to spend each month for housing. “Our local Coldwell Banker Horizon Realty REALTOR® can help you determine what areas will present you with the amenities you would like to fit your life style choices”
2. Be realistic. It’s OK to be picky, but don’t be unrealistic with your expectations. There’s no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property.
3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a lender or Mortgage Broker (Brenda Dilley brenda@homelinecanada.com) and get prequalified for a mortgage. This will save you the heartache later of falling in love with a house you can’t afford. A good Realtor can help you go over the expected closing costs, whether or not you qualify for an exemption from the Property Transfer Tax and how the statement of adjustment from the lawyer at completion will reflect those costs to you.
4. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own. You will be the one that will be ultimately living in the home and paying the mortgage payment.
5. Decide your moving timeline.When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move.  “School start dates, right down to the available of friends or family that may help with the physical move.”
6. Think long term.Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that will best suit you.
7. Insist on a home inspection.If possible, get a warranty from the seller to cover defects for one year. “In some markets that is uncommon but certainly obtaining a professional home inspection from a QUALIFIED inspector is most important – we have contact info and credentials from several in our Kelowna area”
8. Get help from a REALTOR®.Hire a real estate professional who specializes in buyer representation.  “You can secure your agency contract with them by completing and Exclusive Buyers Agency agreement. Our Realtors will explain clearly what their fiduciary duties are to you as their client, how they are compensated through the transaction and any other details you need clarity on.

REALTORS® are a huge wealth of knowledge and can help you through every step of this exciting – but sometimes scary process.

First Time Home Buyers Week...Coldwell Banker

There seems to be a week for everything these days, but very few of them prove to be valuable for more than just a week. So Coldwell Banker® With 30% of home buyers in 2013 being first time home buyers, they are dedicating an entire week of content on the Coldwell Banker Blue Matter blog, Twitter and Facebook pages to sharing tips, explaining terminology, and guiding first time home buyers through the real estate process.  We will also post this info to our Facebook page as it filters through to us.

The Coldwell Banker network of agents and brokers across the globe share insights as well as real life experiences from first time buyers who are currently going through the home buying process for the first time. In my Blog of September 8, 2011  “Out of the Mouths of Babes” I review some of these topics from the perspective of my daughter – who just bought her first house.  Even though inventory and markets change, the basics haven’t changed much at all –Here’s just a quick sample of some of the content I’ll be unveiling as it comes through:

• 8 Tips for Finding Your First Home
• Confessions of a First Time Home Buyer – Taking the Leap
• Common Closing Costs for Buyers
• Real Estate 101: What does it mean to be pre-approved?
• Real Estate 101: The Importance of Interest Rates
• 9 Questions to Ask Your Home Inspector

As an aside to the First Time Home Buyer Week – there have been reports generated from surveys that show a very interesting trend in young couples entering the real estate market.

When headlines address the home buying market, it’s typically done from a dollars-and-cents perspective. But, buying a home is so much more than a business transaction as we are seeing a shift in the real estate culture that is being led by millennial couples who are purchasing a home before marriage. Buying a home is one of the most emotionally impact-ful experiences a person can have, especially if it’s a mutual experience shared with one’s husband or wife (to be).

Coldwell Banker Real Estate partnered with market research firm Harris Interactive to learn more about the emotions married adults exhibit during the home buying process. As it turns out, the survey findings revealed that 1 in 4 young couples are buying a home together before tying the knot. The results also discovered that nearly all (92 percent) of married individuals who purchased their first home with their current spouse after being married view it as a positive milestone in their relationship and life together. From a psychological vantage point, these statistics make complete sense.

Purchasing a home is a very exciting and special time in a couple’s life.  Time.com and USA Today, have been seen to say buying a home together has become “the new engagement ring” for some young couples. The home buying process forces couples to deal with their competing feelings of money and how to spend it, and that is why successfully purchasing a home with someone else is deemed a significant accomplishment in any relationship. It means the couple has been able to overcome their differences in an effort to create a better future together.

Wanna trade?? - My bike for your……..house?

Coming through the adjustment to the market we have been experiencing these last months has brought some ingenuity and creative ideas to Sellers, Buyers and their REALTORS®.


Moving is something you may want to do but what if you can’t get your money out of your house?  


A Common question! 

Common justification that REALTORS® will make is, “Even though you may not get what you want, Mr. and Mrs. Seller, you are also buying into the same market and can very likely save an amount on your purchase, similar to or greater than the amount you believe you are losing by selling right now.”


Good logic actually.  It makes even more sense for those Sellers who are ready to buy ‘more’ house than they currently have.  Commonly, the higher priced the property – the more adjustment seen to their market price.  The higher end of the market sees less activity simply because there are fewer Buyers, which results in excess inventory (IE., more competition). Buying ‘up’ in the market helps a seller recover the price adjustment they feel they are making to sell because they can benefit from the larger price adjustment in the higher market.  Buying ‘down’ in the market can still lighten the blow for the high end Seller as a Buyer’s Market will provide a break on price regardless of what price point you are shopping in.


Here’s an idea:  I’m now an empty nester and don’t need as much space, plus I want to move a little closer to stores, doctor, day to day conveniences’.  My house is perfect for that young couple who has saved from working two jobs over the last years, is now starting a family, needs a yard, a basement, a double car garage for bikes and things.  That young couple, with the first or second child on the way, or teenagers that want more privacy, and the second car to get to school, hockey, dance, must be feeling a little cramped in that lovely little home they started out with a few years back.  



LET’S TRADE? !               


A very practical idea many good REALTORS® will bring forward to their clients.


Through networking with their colleagues and using the Trade book at the office and the website that is available to our Coldwell Banker Realtors, we have seen many successful negotiations go this way.


You don’t have to find something of the same value – one of you does have to pay the difference .  
Your Mortgage Broker can help you work through financial details.  Often save you fees if you are simply rewriting your mortgage to increase for the different – no payout penalty, no lose of great interest rate.  It can depend on the type of mortgage you currently have but asking the questions of a Mortgage Broker that can negotiate for your benefit doesn’t cost you anything and will very likely save you.


Your REALTOR® will address all the necessary clauses in the contract that will allow you, and your trade partner, to do all the necessary research, inspections and qualifying that you need to do.  Just because they found you someone to trade with doesn’t mean you shouldn’t be sure about what you are getting.


 A smart REALTOR® will protect you from
 agreeing to sell your home before you are
 sure you want to buy the other one. 


“Subject to the Buyer and Seller entering into an unconditional offer to purchase (the other persons home address), on or before (date this the day after you have all done your homework).  This condition is for the sole benefit of BOTH the Buyer and the Seller.


Contractually, this allows you and the Buyer to do all your homework, be sure you can finance, check out the condition of the home, be certain on all the things you expect to be included, find a date that will work for both parties to move and THEN tell them you are ready to go firm –they in turn must do the same. With this Condition being for the benefit of both of you – you BOTH have to sign off and agree to move forward – together.  Otherwise one of you could have sold your house without the other party agreeing to sell theirs.  

Trades can work, and do work, very well – you need an experienced REALTOR® and Mortgage Broker to protect your position so things turn out they you intend them to.

HAPPY MOVING!

When the going gets "Tough"...just call me.

Susan Tough

New Year, New Home?

It’s officially 2012 so let me start by wishing you a Happy New Year.  In early January, many of us are planning and setting goals for everything we want to do and achieve in the year to come.

While many people think of spring as the prime time home buying season, the winter months often offer an even greater selection of inventory, and the opportunity to settle into the new home before warmer months arrive.  If buying a house is on your “to do” list this year, now is also the time to begin preparing.


I remember when I bought my home.  There were so many things to get in order– it was confusing to decide where to begin! So, even if you plan to buy in the spring, January is a good time to get ready. Here are some tips to help you get on track to reach your 2012 home buying resolution:

• Select a qualified and trusted real estate agent: At Coldwell Banker Horizon Realty, we have knowledgeable, trustworthy agents.  Agents that understand the valley’s market and can help you find all the information and resources you need to get started. Researching on your own is important, and using free on-line tools is a great way to start, but meeting with an agent will ensure you don’t miss any important steps along the way.  In fact, the next three tips were sourced from the great advice of our agents.
• Create your “must-haves” and “nice-to-haves” list: Easier said than done, right?  But it’s next to impossible to find a first home with everything.  You’ll need to think about your lifestyle needs and prioritize the non-negotiable home accommodations, such as a bedroom for each family member, over items you may want, but not need, such as a large master suite. Everyone’s list is different, but knowing your “must-haves” in advance will help you stay focused.

• Determine your budget: Be realistic about what is affordable. An agent can help you find comparable home prices and hone in on approximately how much the payments will be.  You should also plan to get pre-approved for a mortgage. Here is a link to two very capable Mortgage Brokers that have come very highly recommended by our REALTORS® that have used their expertise in the past with very positive results.  Brenda Dilley (250-861-4663) and April Dunn (250-768-6833) with Mortgage Alliance Homeline Mortgage are available to you at any time and will work getting together with you around your work and family commitments. Doing this prior to house hunting will let you know how much money you qualify for, and how much you can afford. You’ll also be able to figure out which mortgage type is best for you. You have a lot of options you may not be aware of.
• Identify the perfect “location, location, location”: Everyone has heard this phrase before, and while the surrounding neighbourhood and home itself may improve over time, the physical location will remain the same. Determine in advance how close you would like to live to work, schools or extended family. A short commute to work, proximity to family or having easy access to highways and mass transit will often be items for your “must-haves” list.

• Other costs and questions:  I won’t repeat myself but I will encourage you to go back to my Blog of      September 8, 2011  and review the many questions a first time buyer can have.  Even though this may not be your first purchase or move – things change, regulations, costs and you can sometimes forget the small details that may have caused you grief during your previous transaction.  Be sure you know what possible taxes will now apply to you on a second or third purchase that didn't on your first. Government grants for update to heating and insulation can come and go and may be available to you if you find the need to shop in a lower price point and put a little ‘elbow grease’ and equity into your home.

Welcome to home ownership !  - Something to be very proud of and excited about.  Be sure you have an experienced, trusted REALTOR® by your side to maximize the knowledge and minimize the stress.

Happy New Year!

When the going gets "Tough"...just call me.

Susan Tough