Buying your first home can be intimidating. It’s a major financial investment and involves commitment. There are a number of things that as a home buyer you should be aware of. But is it a matter of just getting the friendly advice offered by your family, friends and co-workers? Aldo Ivol, Broker for Re/Max West Realty says, “There's actually quite a bit of advice that can be given. When I meet with a client it usually takes at least an hour or more to go over some of the topics which are essential.”
So where can you start? “Get your financing in order, so pre-approval”. Aldo’s first tip is essential for the first time buyer. It doesn’t make sense to waste your time shopping when you don’t even know what the bank is willing to lend you. So enlist the help of a mortgage broker who will shop around for the best mortgage rate for you and then handle getting you pre-approved for a mortgage. Or you can choose to go with your preferred lender for pre-approval. As long as you have given honest and accurate information and the home is in your approved range, your pre-approval will transform into approval, providing you have the down payment and appropriate income and credit documents you promised in the pre-approval stage. A pre-approved mortgage is not a 100% guarantee, but it’s the next best thing and you should have one before you go house hunting.
However, Aldo warns buyers to determine their comfort range in terms of price. He says, “Many people are approved for more than they want to pay”. So, just because your lender has said you qualify for a $250,000 mortgage, that doesn’t mean that’s what your budget should be, so decide what you can comfortably afford each month, taking your pre-approved amount into consideration and decide on your comfort range.
After your pre-approval and personal budget is in order, you need to decide what area you want to purchase in and research the sales of properties in that area. So get a good agent. Aldo suggests that a good agent will provide you with this information and that agent experience is essential. Aldo also advises that before you decide on an agent, you should interview the agent and make sure you are compatible with them and warns the process can take a long time. Don’t just settle on any agent. Remember this is your purchase and you should be comfortable with who is working for you. He states, “When selecting an agent, it’s important to understand agency relationships, so who's working for whom? In particular, "Multiple Representation". A good agent will explain this to you without you asking...it's the law. Many agents can't explain it to themselves.” So it’s important to remember that when interviewing your agent.
Once you have decided on a compatible agent, Aldo states that buyers are required to enter into a written agreement with their agent otherwise the agent automatically MUST represent the seller, although some exceptions may apply. Once the agent is representing you, Aldo recommends discussing a “buying strategy” with your agent. “It's a very competitive market and a good agent knows how to represent their buyers effectively”. Make sure you have this discussion with your agent before you get too deep in your search. It will save you time and ensure your agent is working optimally for you.
So you have the agent, the area, the research – you are that much closer to finding your first home. Does your agent’s role stop after you have found that dream home? Not at all! Having an agent will not only assist you in finding and closing on the right property, but Aldo suggests that a good agent can help you with property inspections. “Property inspections are very important, but it is NOT a guarantee that all defects will be discovered. A good agent can point out some areas of the report that may, inadvertently, be misleading.”
Aldo notes that there are other areas to be aware of which is why his initial interview with his client takes as long as it does and he sheds light on how the process should go, “Once the process has started, just enjoy the ride. It should be a thrilling and exciting experience. It can also be a frustrating one and not because of anyone's fault. The buyers today are quite knowledgeable.”
But not every experience is as picturesque and you should know how to handle them. “If an agent doesn't discuss with you most of the points above, then you may have a concern”, Aldo warns. “Should a buyer feel as though they've been misled or that there has been misrepresentation, they can file a complaint with RECO (Real Estate Council of Ontario) www.reco.ca , and/or TREB (TorontoReal Estate Board) www.torontorealestateboard.com . The agent must then defend themselves against the charges.” On the RECO website, you will find a list of agents who have been charged and convicted of an offense and of the penalties they received. Before you decide on your agent, it would be interesting for you to see if your agent is on that list.
About Aldo
In a career spanning more than two decades, Aldo has achieved top producer status and consistently placed in the top ten percent in Canada resulting in the Award of Excellence and Re/Max Hall of Fame. He services all price ranges, his challenge is to find a compatible match between buyer and home. For more on Aldo and his listings, visit www.torontowestrealestate.com.
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