The heat has definitely been taken off the real market these days.
Prices are down from their lofty heights of a couple of years ago, mortgage rates are at record lows and there are more homes and condominiums to choose from.
If you are thinking of plunging into the real estate market here are some time tested rules that will ensure you a frustration free experience.
1.
Hire a Buyers Agent to Represent You Whether you are a new first time home buyer or a seasoned homeowner, sooner or later you will need the services of a good real estate agent to act on your behalf.
A buyer's agent owes you fiduciary duty and must legally work in your best interests.
2.
Get Pre-Approved For a Mortgage This is a relatively easy process that your buyer's agent can help you with.
There is no obligation and won't cost you anything.
It will however let you know how much you can spend on a new home and will usually protect you from any increase in rates for a period of time.
It will also allow you to forgo a financing condition in an offer, making it more attractive to a seller.
If you are a high ratio borrower you will still need a financing condition clause even with pre-approval.
3.
Know the Costs of Buying Before Closing Day Before you sign on the dotted line you need to know there are costs to buying a home.
Legal fees, Land Transfer Taxes, Lawyers disbursements, Title Insurance, Home Insurance are some of the costs you will need to have available on the day of closing.
Be sure to have your buyer's agent explain these to you so that you can budget for them on closing day.
4.
Select a Real Estate Lawyer Before You Buy If you do not already have a real estate lawyer ask your buyers agent for some names.
Alternatively you can ask a relative or friend for a recommendation.
When you speak with them be sure to ask if they specialize in real estate law.
There are many types of lawyers practicing in different areas of the law, criminal, family law and corporate to name a few.
You need a real estate lawyer.
If you needed brain surgery you wouldn't want a knee surgeon to perform it, would you? A good buyer's agent with your best interests in mind will not discourage you from your lawyers input and advice on any offer before it is presented to a seller.
5.
Power of Sale and Foreclosure Properties Often real estate agents will offer to send prospective buyers a list of power of sale properties on the market.
The implication seems to be that a pot of gold awaits buyers of these properties.
This is far from the truth.
Power of Sale properties have been taken over by the mortgage holder when the registered owner has defaulted on the loan.
They are usually vacant and therefore subject to faster deterioration and vandalism than an occupied home.
This is not to say that bargains cannot be found in these types of properties but caution is advised.
Care in the preparation of an offer on power of sale properties is also required so as not to expose you to any unforeseen additional costs.
6.
Keep Your Emotions under Control When you do walk into the home that you absolutely fall in love with, do keep your emotions under control.
Any signals of enthusiasm or excitement shown to the seller or the seller's agent will be used to your disadvantage.
7.
Home Inspection Sometimes you are in a competing situation for a property and you will be under pressure to forgo a home inspection.
In this emotionally charged atmosphere you may be tempted to do so.
Do not let anyone talk you out of performing a home inspection by a qualified home inspector.
You may wish to instruct your buyer's agent upon hiring them to remind you of the dangers of this if and when the situation arises.
Along with a regular home inspection you may want to consider doing a Thermal Imaging inspection.
It does cost more but it will reveal hidden problems and potentially hazardous issues that a visual surface inspection fails to uncover.