How to buy a House
How I did it: We asked for recommendations for a realtor, and after meeting a friend's to go through how he works, decided that we liked his open & friendly attitude to purchasing a house. We had our 20% deposit assembled - not only from savings, but through my husband's parents kindly giving us a loan (that will be paid back in full over the upcoming years).
The easiest part was looking at houses - old ones, new ones, ones with tiny gardens, tiny bathrooms. But we had a clear list of what we wanted - hardwood floors, a quiet neighbourhood, a close proximity to resources (eg: grocery stores and schools), 3 bedrooms and a decent sized garden.
We ended up going through two offers (one had too many offers and we knew we didn't need to bid a house up to find something we wanted, the other was a short sale and would have taken forever) before placing an offer on the house we eventually bought.
Lessons & tips: - in choosing a realtor, you don't need someone you share views with, just someone who is a solid negotiator and understands exactly what you're looking for. The faster they work, the faster you get your house and they get their money. The best bet is to use someone that a friend or colleague has used for their own needs, so that you have a preview as to how they work.
- when you decide on a realtor, have a pre-prepared list of what you want from a house, and what you do not want from a house. It makes it easier for them to get started.
- look at houses that don't necessarily meet your requirements, you might find a gem. eg: houses with fewer bedrooms but large gardens can be extended.
- look past the decor, that can be changed. Lot size or the structure of the house are far more difficult, and you can't do anything about the neighbourhood once you move in.
- if you like a house, visit it a second time. If you love a house, visit it in the morning, in the evening, at rush hour, when it rains. See it in all lights.
- be willing to work with the seller, but don't be afraid to ask for credit for repairs, especially if the house is defective in clear ways. Combining the seller credit with the tax credit, we've had all of our repairs plus some paid for.
- your realtor should have good contacts with home inspectors and even construction companies. Use them, even if it's only for quotes. Get the quotes before escrow closes, so that you can ask for credit from the seller.
- it's really hard, but remind yourself that you should be able to walk away from a house at any point until escrow closes. Get those quotes, get the inspection, walk around the neighbourhood, get a fantastic interest rate, and THEN decide if the house is for you. Don't cripple yourself by buying a dud, especially if the fundamental structure of the house is terrible.
- make sure you shop around for your local hardware store coupons, and find them on the map before you move in. You will need them.
Resources: - friends
- zillow.com
