Buying Real Estate in Barrie


 

When you’re buying real estate, it’s important to have a complete understanding of exactly what you are getting yourself into.  Of course there are plenty of one-time expenses, many of which may be hidden from you until you get ready to sign on the dotted line.  Then there are some monthly expenses that you need to take into consideration as well.  And on top of that, you have the current market conditions to consider.

Let’s start with the one-time expenses you can expect:

  • The down payment
  • Application and appraisal fee for the mortgage
  • Inspection
  • Survey
  • Tax on the land transfer
  • Insurance for the mortgage
  • Moving expenses
  • Property insurance

And here are the monthly expenses you can expect:

  • Payments on the mortgage
  • Maintenance on the property
  • Condo or homeowners’ association fees
  • Property taxes
  • Utilities
  • Insurance

Of course some of these fees will be rather fixed, and others can vary quite a bit depending on what the current market conditions look like.  For example, if there’s a buyer’s market, then you can expect prices on homes to be lower because there is a glut of them on the market.  Homes also tend to stay on the market longer during a buyer’s market.  On the other hand, a seller’s market is characterized by there being few homes on the market and more buyers than there are appropriate homes.  Prices tend to be on the rise during a seller’s market.  And then there is the happy medium, which is a balanced market.  Prices tend to be more stable during this time and there are just enough homes to go around.

Having an understanding of the current market and all of the expenses associated with buying a home is a critical first step, but then you must go on to the step many home buyers try to skip: getting pre-approved for a mortgage.  It is always best to have an idea of what you can afford, but then you should take those numbers in and get pre-approved for a mortgage so that you know what to expect and can ask questions about financing options.

Making an Offer

When you finally reach a point at which you are ready to make an offer on a property, it’s important that you don’t lose yourself in the excitement and continue carefully through the process.  The price you offer might not be the same as what the asking price on the property is.  You’ll also have to include a deposit on the purchase of the home and a list of conditions that must be met in order for the offer to go through.  In addition, you make a list of items you saw inside the home that you want included—everything from the curtains to specific appliances.  And then you add some conditions, usually referring to whether the home passes inspection or after you sell your home, etc.  In addition, you’ll include a requested closing date.

As you draw up the offer with your realtor, you have the option to put in a firm or conditional offer.  Of course a firm offer means you don’t have any conditions on the purchase of the home, and a conditional offer includes a list of conditions under which the purchase of the home will go through.  Once the seller receives your offer, they can choose to accept it, reject it, or make a counteroffer, which may change any one of the elements included in your offer.

Let the experts at Your Choice Realty  help you find the property of your dreams and guide you through the purchase process.  They will help make sure that you pay a fair price for it.