The moment you make a decision to buy a home in Victoria BC, you know you have a lot of investments and overwhelming procedures coming your way. It includes planning, dealing with different agents, R&D, and above all adequate knowledge of all the processes.
We know how important it is to select the ideal home that you have been looking for. But before getting into it, it is important to understand the home-buying process. It will assist you to make smarter decisions in the long run. Here is a guide to offer you an overview of the procedures and prepare you for them.
The right time to buy a house
The first question that arises in your mind is when is the right time to buy your dream house? Are you ready for the commitments and investments that it asks for?
Well the answer would be, do a pre-execution evaluation of your finances and housing market. Make sure you have a considerable amount of savings to kick-start your home financing. Also, keep a consistent check on the housing market. As a smart choice, select a house whose value will go up in the future. Appoint a real estate agent at this stage for the best aid.
Estimate the cost
Fixing your financial expenditure is the foundation for house selection. Home searching is an endless process unless you have a fixed price range. It makes the process convenient by filtering out the options beyond the range. It is very important to calculate your finances beforehand. You don’t want to be overcrowded by the financial stresses later-on.
Save enough finances to cover the down payment, closing cost, prepaid costs, and moving expenses. It is advised to save at least 10% as the down payment for your new home. Plan out your finances precisely by including even the smallest expenditures.
In case you plan for a mortgage, get it preapproved. The lender will verify your financial information to offer a preapproval letter.
Look for the best real estate agent
Appointing an appropriate real estate agent can benefit you in more than just one way. You may start the research online but when it comes to securing the best home, you need the help of an expert. Further, when it comes to negotiating, the agent can get you the house is the best possible offer.
A good real estate agent will navigate you through the process to make the right decisions. An expert agent should have an up to date knowledge of the market and would give you honest insight about the locations and houses.
Start your home search
1. Do your homework:
Since you have worked out your finances, you know what you can afford. According to your budget, search for houses online before jumping on the offline survey.
2. Must-have list:
Make a must-have list that you expect from a house. Share the list with the agent so that specific houses can be shortlisted.
Since you and your children will be spending their life in the house, you cannot avoid the neighborhood. Look for the nearest school, medical facilities, shops, etc. Also, look at whether the house price is declining or rising in that area.
4. Analyze precisely:
Sellers might accentuate the outer surfaces of the house to cover the defects. Therefore go through the house to evaluate every minute detail. If you are doubtful of any area, ask the seller to get it certified by the respective agency.
∙€€€€€€Make an offer
Once you are satisfied with your choice of home, make an offer and sign the contract agreement with the seller. Your real estate agent will help you in doing the needful.
Sometimes, due to intense negotiation, you might have to compromise on small details to continue to process. Consult your agent to decide whether those details can be compromised or not. Just remember you need to hold tight of the situation to make it successful.
∙€€€€€€Home Inspection and Appraisal
Once you are done with the contract, you are the official owner of the house, which gives you a responsibility of ensuring home safety. It is time to work out the contingencies mentioned in the contract. If something goes wrong, you may walk out of the contract without losing your deposit.
As the very first precaution, get a home inspection done by a professional agency. In case the inspection reveals major issues regarding the house’s structure, ask the seller to get it fixed or reduce the worth. Consult your real estate agent if you should get any other specific inspections like radon test or termite inspection.
In case you are going for a home loan, the seller would require an appraisal. Appraisal evaluates the net worth of the property, which will, in turn, keep you from paying off more than the actual worth. If the appraisal turns out to be lower than your offer price, your real estate can negotiate with the seller to reduce the price.
Once you are through with the rigorous process, you are just a step away from your house warming session!
You would get a copy of the closing documents way before the closing day. You will be required to pay for closing costs, property tax, and home owner’s insurance (if any).
Feel free to ask any questions at the time of closing, as this might be one of the biggest purchases and sell for you and seller respectively. You have the right to know what you are endorsing.
That’s all for the procedure part of the house shopping. The process might not be a piece of cake, but surely the end result is worth all the hard work and pain. Just careful planning with the help of the right real estate agent is all you need to reach your home-purchasing goal successfully.