Buying a home is a significant financial and emotional investment. It's essential to approach the process with careful consideration and preparation. By engaging an Island Homes PEI (IHPEI) REALTOR® we can guide you through the process, help find suitable
properties, negotiate offers, and will handle the paperwork. At IHPEI we understand the importance of working with someone you feel comfortable with and who understands your needs.
Here's a step-by-step guide to help you navigate the real estate market and make an informed decision when buying your next home:
1. Wish List
Define your needs: Determine your requirements for your new home, such as the number of bedrooms and bathrooms, location preferences, proximity to schools or amenities, and desired features.
2.Budget
Establish a realistic budget: Consider your financial situation, including the down payment, mortgage payments, closing costs, and ongoing expenses like property taxes, house insurance and maintenance.
3. Pre-approval
Get pre-approved for a mortgage: Before you start house hunting, it's best to get pre-approved for a mortgage. This involves meeting with a lender who will assess your financial information and provide a pre-approval letter indicating the amount you can borrow. A pre-approval may strengthen your offer and help you determine your ideal price range.
4. REALTOR®
Engage a REALTOR®: It’s important to establish a relationship with a REALTOR® making sure it is someone you feel comfortable with and who understands your needs. IHPEI REALTORS® pride themselves on providing personalized service and building lasting relationships. We will guide you through the process, help find suitable properties, negotiate offers, and will handle the paperwork.
5. Home Search
Begin the house-hunting process: Based on your wish list, your IHPEI REALTOR® will use their professional resources, including Multiple Listing Service® (MLS®), to search for suitable properties on the market.
6. Viewings
Once potential properties are identified, your IHPEI REALTOR® will schedule viewings according to your availability and will accompany you during these visits, providing insights and answering any questions you may have about the properties. If you express interest in attending open houses, your IHPEI REALTOR® can accompany you to these as well. When viewing properties, take note of any repairs or renovations required and evaluate if they fit within your budget and timeline. Throughout the viewing process, your IHPEI REALTOR® will help you assess the pros and cons of each property, considering various factors such as location, condition, market value, and potential for future resale.
7. Making an Offer
Once you find a home that you would like to offer on, your
IHPEI REALTOR® will prepare a written offer. Together with your IHPEI REALTOR®, you will evaluate various elements when determining an appropriate offer price, including the listing price, prevailing market conditions, comparable
sales, the condition of the home, what conditions will be within the offer, and the potential appraised value. When obtaining a mortgage your lender will typically necessitate an appraisal to validate the home's worth. Once you have signed the offer your IHPEI REALTOR® will present it to the seller/seller's REALTOR®, initiating a negotiation process that may continue until both parties reach an agreement.
8. Conditions
Your offer may include various conditions that need to be satisfied after its acceptance. These conditions often include aspects such as financing, home inspection, property insurance, septic inspection (if applicable), and more. It is crucial to meet these conditions within the specified deadlines. Your IHPEI REALTOR® will offer valuable guidance, ensuring you understand and fulfill all the requirements outlined in the offer. They will facilitate the process, providing direction and assistance to ensure that all conditions are met in a timely manner.
Example:
- Financing - Complete the mortgage application process with your selected lender to finalize your mortgage. Submit any additional documentation that may be requested. Your IHPEI REALTOR® can assist with providing a copy of the Agreement of Purchase and Sale and other relevant paperwork. Take the time to carefully review the loan terms and conditions. Be prepared for the underwriting process, where the lender will assess your application, financial information, and creditworthiness to determine the final approval of your mortgage.
- Home Inspection - If a home inspection is part of your offer, it will be necessary to hire a skilled home inspector to evaluate the property's condition thoroughly. You will then carefully review the inspection report. Your IHPEI REALTOR® can offer suggestions for reputable home inspectors and aid in assessing the inspection findings. If the home inspection is satisfactory, you can proceed by removing the home inspection condition from the offer. However, if issues are identified, you may choose to have your IHPEI REALTOR® negotiate repairs or credits with the seller on your behalf. This negotiation aims to address the identified concerns and reach a resolution that satisfies both parties.
9. Legal Representation
The services of a lawyer who specializes in real estate will be required to handle the necessary legal tasks associated with the property transaction. These tasks can include obtaining the solicitor's approval of the Agreement of Purchase and Sale, conducting a thorough title search on the property, facilitating the transfer of the property deed, and facilitating the exchange of funds between the buyer and the seller, among other important responsibilities. Hiring a knowledgeable real estate lawyer will help ensure that all legal requirements are met throughout the process of changing property ownership.
10. Firm Offer
Once all the conditions outlined in the offer have been satisfied, the offer is considered firm and binding. The next significant milestone in the home buying process is the closing day.
11. Closing
Closing the deal: Your IHPEI REALTOR® will arrange a pre-close viewing, preferably on the morning of the closing day. However, there might be instances where, although not recommended, the viewing needs to be scheduled a day or two before the actual closing date. After conducting a satisfactory pre-close viewing with your IHPEI REALTOR®, you will need to inform your lawyer's office, enabling them to proceed with the final closing procedures. Prior to the closing, you will have already signed the necessary paperwork at your lawyer's office and will be responsible for covering the closing costs. Once all the closing details are settled, your lawyer's office will notify you, and you will receive the keys to your new home.
IHPEI REALTORS® offer invaluable expertise, wisdom, resources and support throughout the home buying journey, resulting in a smoother and less stressful experience. They act as your dedicated representative, prioritizing your interests, and help you to find the perfect home.
REALTOR® - Registered trademark of REALTOR® Canada Inc. (owned by the Canadian Real Estate Association [CREA] and the National Association of REALTORS®).
REALTORS® are licensed salespersons, members of CREA, as well as their local real estate association, and are appointed or authorized by an agent (broker) to trade in real estate.