Buying or selling a home? Here’s how you can prepare

Are you preparing to buy or sell a house? Buying and selling a home are two of the biggest financial decisions you will make throughout your life. Whether you are new to the housing market or have dealt with it multiple times, it’s essential to prepare yourself properly. This ensures the process moves as smoothly as possible, giving you the best experience. Let’s discuss some of the most important steps you need to take before buying or selling! There are lots of items to address during these processes that may not be mentioned below, but this will help you guide your experience.

If you are a buyer…

Get pre-qualified for a mortgage

The first, and one of the most important, steps in the buying process is getting pre-qualified for a mortgage. This is meant to give you an idea of what you might be able to afford in a mortgage. It is based on lender estimates and only takes into account your current situation, meaning it is not a guarantee of future financing. However, it is very helpful for buyers who want to gain a clearer picture of their purchasing power. Your pre-qualification takes into account your income, credit score, debts, and financial history. It gives you a good idea of what kind of budget you can work with, and how to improve your situation if necessary. Plus, sellers tend to look more favourably upon buyers who are pre-qualified, as it implies they are serious candidates.

Understand the costs and your budget

You must have a clear budget before you start house hunting. Your budget is your guide, and it’s very important to follow it. It will save you time and effort to only view homes you can afford, and it will limit financial stress down the road. You can work with your real estate agent to determine the right budget for you. It’s also essential to fully understand all the costs associated with homeownership. While there is the down payment and mortgage payments, you also need to remember closing costs. These often cost around two per cent of a home's purchase price, and include things like legal fees, land transfer tax, title insurance, and moving costs. It’s easy to forget these items, but be sure to leave room in your budget! They are essential to a smooth transition into your new home. 

Make a lists of your needs and wants

Creating a clear list of what you need in a home is a great way to help you find properties within your price range. Your needs are things you absolutely must have in a home, and their absence would take a property out of consideration. This could include location, access to public transit if you don’t drive, number of bedrooms, and how the area ranks in terms of safety. Try to keep your list of needs concise and only include things that are truly essential. 

Your wants are items you would like to have in your home, but aren’t completely necessary. This might include having a finished basement, inground pool, or a huge yard. It’s important to put your needs above your wants, so you aren’t passing up good homes that don’t fulfill every requirement. Most homes won’t have every single thing you want, but you should prioritize what you need and make any changes or upgrades later.

If you are a seller…

Find the right real estate agent

A good real estate agent makes all the difference when selling a home. There are tons of realtors out there, many of whom are fantastic at what they do. However, it’s important to find an agent who can cater to your specific needs. For example, you will want to work with an agent who has sold homes in your area before and has experience working with homes of your value. This will help ensure you determine an accurate listing price and find the best buyers. 

Feel free to ask potential agents about their work as you are narrowing down your options. This person will be largely responsible for closing one of the biggest sales of your life, so it’s important you trust them and feel comfortable with their experience. You can also do some research on your own of agents’ websites and online reviews. 

Make important upgrades

When selling a home, it’s important to make it as appealing as possible to potential buyers. Focus on high-value areas in your home and make any necessary updates or repairs. The kitchen and bathrooms tend to have the highest impact, so be sure those are in good condition. You don’t need to shell out tens of thousands of dollars to make improvements, either! Smaller changes like a fresh coat of paint or new cabinets can make all the difference. 

Curb appeal is also a huge part of successfully selling your home. The outside of your property is the first thing potential buyers see. You want your yard to look neat and tidy, and the exterior of your home should look fresh. Consider repainting the garage doors, repaving the driveway, or upgrading any walkways if you think your home’s outer appearance is looking a little worn.

Consider your next steps

Finally, you need to think about what’s next for you! Are you planning on buying a new home right away, or will you be renting? Do you know what type of property you want to live in, or which area you are interested in? It’s easy to focus entirely on selling your home, but it’s just as important to have your next steps planned out. Start thinking about those plans early, before your home goes on the market. This gives you time to figure out your next move, without the pressure of having to find somewhere new to live by a certain date.

Whether you are buying or selling a home, you should ensure you are working with the right professionals. Your real estate agent and lawyer will both be essential as you navigate this process. If you are buying a new property, be sure to contact a mortgage broker as well! We can help you secure the best product and lender for your needs, ensuring a smooth transition into your home.

If you have any questions about your mortgage, get in touch with me!