You have to shop around for a house
Considering today’s real estate prices, the purchase of a
house is a decision not to be taken lightly. Even if your
mind is made up, the process takes time, careful consideration,
some shopping around… and a bit of vision. It’s an
important purchase. Review all your options carefully.
On average, it takes about 18 months from the moment you decide to
buy a property to the day the transaction is officially concluded. Even if
you manage to shorten your own purchase time by a few months, the
following advice will certainly come in handy to make the process work
to your advantage. Here are four common-sense steps that will help
you avoid repeated frustrations and devastating regrets, and help you
find the home that best meets your needs and your means.
Step 1
According to many real estate professionals, the very first thing
to do as an aspiring property owner is to meet with an advisor at a
financial institution. This exercise is all the more important if you
are working with a tight budget. The meeting will allow you to
realistically examine your options. It also has the advantage of
shedding light on two common situations: households, particularly
second-time home buyers, who find themselves in a position to afford
a bigger or more luxurious home than they imagined; and people
whose finances are too fragile to find a house they can afford in a given
set of market conditions.
Additionally, many aspiring homeowners forget to take into account
things like taxes and a number of other inevitable and variable
expenses. These may push your debt ratio into the red, increasing your
mortgage payments beyond a reasonable limit. The higher the cost
of the house in relation to your ability to pay, the more important it
is to adequately budget beforehand. Sometimes the best – or only –
solution is to continue saving for a few more years before purchasing.
Step 2
The second stage of your process consists of choosing the area where you would like to buy.
That’s right: the neighbourhood first, then the actual house. The way to proceed is to make a
list of the criteria that are most important to you. In order not to forget anything important,
include criteria relating to your tastes, habits, lifestyle and household needs (distance
from your workplaces, closeness to parents and other family, access to services, shopping
possibilities, available parking, etc.).
Then, to ensure you have really chosen the area that suits you, take the time to visit and
re-visit it – not in front of the computer screen, but in person – at different times of the day
and week. This will give you a better idea of the neighbourhood’s day-to-day advantages and
disadvantages (noise, traffic, overall ambiance, activities available in the area that may be
bothersome in and of themselves – for example, the endless sound of tennis balls being hit
on four courts – or because of the number of people drawn to these activities).
Step 3
At this point, it’s the choice of the housing unit itself, beginning with the different types.
How many closed rooms are needed? Do you want to have separate entrances? Do you need
more than one bathroom? What are the minimal dimensions that certain rooms must have
to accommodate the furniture you want to keep? What kind of outdoor space would you like
to have (balcony, patio, roof terrace, backyard,) and how big?
When visiting houses on the market, make sure you have your list of criteria. That way,
even if you have to compromise on various aspects by choosing this one or that one, you
reduce the chances of being seduced by a house that really doesn’t meet your priorities or
essential criteria.
Step 4
Maximize your chances for finding what you really want. To begin with, the best sources
of information that provide a good look at what’s available are the real estate sections of
local or neighbourhood newspapers, free specialized magazines, and online classified ads
for new housing (for example, monhabitationneuve.com, the Ville de Montréal web site,
habitermontreal.qc.ca). As for existing housing, there are web sites such as centris.ca, mls.
ca, and micasa.ca. There are also the web sites of real estate brokers. Most of these sites can
provide you with email alerts as soon as a house that corresponds to your criteria goes on the
market. Register with these sites. You never know!
Also, take advantage of all the occasions to visit available properties. The Open House
Weekends are without a doubt the best single event to compare the cutting-edge products
offered on the island of Montreal. However, even if you don’t find your dream home
immediately, continue making as many visits possible throughout the year. That way you’ll
really get to know the market in the area in which you’re interested.
After that, chose a real estate agent on the basis of his or her competence and
experience in the neighbourhood you’ve chosen (the number of listings in the area is a good
indication). At this point, you’ll have a clear idea of what you want, and the results should be
more satisfying.
Words to the wise
- Very few first-time buyers have the means to meet their ambitions.
You may have to accept that your first property may not be exactly the
house of your dreams.
- Sometimes it’s best to buy a somewhat smaller house, as long
as the other essential conditions are met or, in some cases, exceeded.
For example, the advantages of the neighbourhood may be superior
to your expectations, and can compensate for the compromises
you may have to make in terms of space or the characteristics of the
house itself.
- It might be smart to buy in an area that’s being transformed, or
gentrified. In an up-and-coming neighbourhood, it’s more likely that
your property’s value will increase over time than in areas that are
already consolidated.
- If you’re a second-time home buyer, it is strongly recommended
that you have your current property evaluated and that you test the
market waters before buying another house. Otherwise, you might find
yourself with two mortgages on your hands for some time.
- It’s important to closely evaluate your transportation needs. By
choosing a house near a metro station, you may be able to forego a
second car, or any car.
- It is possible to buy an apartment with a friend or relative, as is the
case in many big cities in North America and Europe, where housing
costs have risen dramatically. To meet this new demand, developers
now offer housing with two bedrooms and two bathrooms, as a remedy
for the main inconveniences of sharing.
- Buyers looking for single homes should focus on townhouses or row
houses, as they tend to be more affordable than single-family houses.
- Another option is to be located at a distance from the city centre.
Sometimes, living near a well-served train station on the island’s
periphery means that your daily travelling time is no more than it
might be in some more central neighbourhoods.
Source : Gouvernement du Québec, Ville de Montréal, Jacques Beaulieu Consultant