5 FAQs for First-Time Homebuyers

1 - “How big of a down payment do I need?”

The financial aspect of a real estate transaction is the heart of the transaction and it is imperative to find a good mortgage broker before you start shopping. It is definitely not as exciting as browsing model homes or falling in love with photos on Realtor.ca, but browsing for a mortgage broker that will provide you with good information and that will fight to get you a competitive rate will pay off in the end.

A mortgage broker will help you determine what you can afford, how high your down payment will need to be, and strategize a financial plan with you. This will help guide you to your real estate goals ASAP (whether you need a cosigner, to consolidate debts, etc.)

Many refer to 20% as a down payment but in certain situations you can put as low as 5% for a down payment. Every case can be different.

2 - Should I wait to buy until the market “cools down”?

There’s a lot of talk about the highs and lows of the Vancouver and Toronto real estate markets in Canada, but when it comes to Ottawa we have a very stable market. According to statistics released by the Ottawa Real Estate Board, residential sale prices (including condos) have seen positive and steady growth every single year for the past two decades.

I have seen my own properties increase in value over the past 6 years and personally wish I had been able to get in even sooner! We are experts in our field, but we do not have a crystal ball for exactly how or when the market will change. Honestly, my best advice is to buy when it makes sense for you personally and financially.

3 - “Do we know what the other offer is?”

You like a property, you’ve taken some time to consider it, and the next thing you know the seller has received another offer.

I am often asked “Steve, do we know what the offer is?”
I can make a very educated guess, but no, we never really do. That information is not released until the sale of the property is firm. Even though some real estate negotiations can feel like a bidding war, it isn’t an auction format.
We want to bring your best offer to the table if you truly love the place. Your best offer on that property is not necessarily the top of your budget. Any higher than your best offer would be the number at which you are comfortable losing that specific property over.

4 - “What is the next step once I find a house I like?”

We’ve found out what you can afford, we’ve brought you to some gorgeous options, and you’ve found the home of your dreams.

A real estate agent can offer you a lot more than just bringing you to showings. It is now my job to help you through price negotiations, writing in contingencies, paperwork, and also to introduce you to some other key players in your transaction. These include a home inspector and a real estate lawyer. (If you already know who you want to use, that’s great too!) We could write volumes on the value of their expertise but in short - a good home inspector can bring you confidence in your purchase, even pointing out things the sellers may not have noticed and maybe help us knock down the price. A good real estate lawyer will sort through a mountain of paperwork with you, give you the information you need in terms you can understand, and save you serious headaches down the line. Most agents do have a few trusted people they enjoy working with, who are professional, efficient, and keep everyone up to date. No one likes to wait too long on information during a real estate transaction, especially a first-time home buyer!

5 - “I’ve just moved in. [Problem with major appliance, e.g. My dishwasher is leaking.] Can you help me?”

I’m happy when a client reaches out again. Not necessarily happy that they are experiencing any kind of issues with their new home, but that they feel comfortable asking me questions and continuing to value my opinion after the closing date. While we are not landlords that will come in and fix it, a good real estate agent can provide you with solutions, valuable information, and put you in touch with the appropriate professionals.

Most first-time homebuyers are used to having a landlord to go to in these situations! Consider the home inspection the creation of your manual to your new house. The majority of resale properties will have their own unique characteristics and kinks to work out. No house is perfect but becoming a homeowner (with a good support system in place to call on!) is very rewarding.

These are just 5 questions I’ve received often. Buying your first home is an exciting but often confusing time - let me help provide you with some answers.