Today’s real estate market is a wild ride, but you’re not in it alone. Experts are here to demystify the process, whether it’s your first purchase or you’re upgrading. The journey can be complex, but a good Realtor can make a world of difference, helping you navigate the twists and turns with ease. Here, three of Canada’s top REALTORS® share tips and tricks to put you on the road to success.
Tip #1
Define a few parameters to get started.
Understanding your financial situation and the market dynamics are crucial to developing a solid home buying strategy. There can be a lot to consider and it could be overwhelming. A Realtor can help you map everything out.
“The first step is to contact a Realtor and a mortgage broker,” says Ben Sweet, a Calgary-based realtor and sales representative. “A Realtor is going to outline the steps for you specifically, and the mortgage broker is going to be the one who will take care of the financial steps.”
“The number one thing is to get your finances preapproved,” says Mark Arnstein, a realtor and sales representative in Toronto. “You then know where you stand and can work within those margins. There’s nothing worse than falling in love with a property and then realizing you can’t afford it.”
His advice is to talk with the bank you already do business with, as well as at least two other people – one other traditional institution and an independent mortgage broker.
St. John’s-based realtor and sales representative Winnie Lei, advises homebuyers to carefully consider all the costs, including closing costs like the lawyer fees and the home inspection, as well as the utilities and maintenance costs, the commuting costs and even the price of any new furniture.
She also thinks that the earlier you start looking, the better. “I have people who talk to me as early as a year before their purchase,” she says. “I send them updates and listings within their budget. So, by the time they’re ready to shop, they have a decent understanding of what is within their budget.”
Tip #2
Ask yourself: Where do I see myself living?
Picking a place isn’t just about price tags; it’s about finding a community that matches your vibe and lifestyle.
“From the first meeting, most people should already be able to decide – OK, I prefer to be in this area, even though the houses are older, or I want to be in a newer house, even though it’s a longer commute,” Lei says.
“A lot of times, if people have been renting in a certain area and really like it, they will look for something in that neighbourhood,” Arnstein says. “We will go out and see what gets you excited and what doesn’t, gauging your reaction to the properties. Once we know what the buyer is looking for, we can narrow it down.”
Tip #3
Dream big, but know when to compromise.
While you might be aiming for the stars, it’s crucial to keep your feet on the ground. Outline what you absolutely need versus what you can live without. Keep an open mind and don’t discard a property even if it’s not what you were expecting for your budget. A good Realtor can help you see beyond the surface and imagine the possibilities.
Lei finds this is very challenging for many, especially in a market that is constantly growing, “the prices increasing while your budget stays the same. My suggestion is to start looking at the lower end of the budget first – a little bit below their maximum,” she says.
“In Calgary, what cost $500,000 four years ago is now $650,000,” Sweet says. “Buyers need to continually adjust their expectations for what they’re able to get. They will say, ‘If I need this much space, I need to go farther away from my chosen area of the city,’ or ‘I need to settle for one less bedroom or no garage.’”
“The goal is to get as close to everything you want as you possibly can,” Arnstein adds. “And anything else we can get on top of that is gravy.”
Don’t skip the home inspection.
Sweet warns against bypassing this crucial step: “Buyer beware! I tell people that there are three reasons we do a home inspection: One, to make sure there’s nothing about the property that’s going to render it dangerous or unfit for habitation. Two, it gives us the opportunity to potentially renegotiate if we do find issues that are expensive to fix. And three, it’s going to give us a maintenance schedule going forward.”
But that’s not all – a home inspection can reveal hidden opportunities. For instance, discovering minor issues that might not be deal-breakers but can lead to additional negotiation room, such as asking the seller to cover closing costs or include certain appliances in the deal. Additionally, understanding the property’s current condition helps you plan for future upgrades, potentially increasing the home’s value over time.
Sweet emphasizes that a home inspection isn’t just about spotting problems – it’s about giving you the full picture so you can make informed decisions.
Tip #5
Expect emotions to run high.
“Buying a home can be emotional, particularly for the first-time buyer,” Arnstein says. “We handle it with lots of education and making sure they understand what it is they’re doing, so they feel comfortable about it. We want them to be more excited than freaked out.”
Lei likes to point out how many other people have lost out on a sale, so buyers realize that they’re not alone. “Plus, a lot of the time, once buyers see something new to pursue, the previous emotions pass fairly quickly.”
Sweet says his team tries to manage the expectations of the purchasers, letting them know that the negotiations are going to be nerve-wracking. “There’s always going to be a little bit of fear and stress – it’s a big commitment,” he says. “That’s not a bad thing, it’s just something to understand, a part of the transaction.”
Tip #6
Compatibility counts.
“You want to work with someone you like,” Arnstein says. “Do they understand you? Are they listening to you and what your needs and wants are? I want my clients to be absolutely thrilled when they buy a home.”
Lei emphasizes the importance of availability in this fast-paced market: “A listing can come up at noon and be sold by 6 p.m. Your Realtor will get back to you quickly so you don’t miss opportunities.”
Sweet encourages speaking with multiple agents to find the right fit: “Don’t just go with the first one you meet. You need to feel a good connection, to feel comfortable – and to trust your gut.”
Tip #7
Revisiting your preapproval could unlock new opportunities.
Securing a preapproval loan is a critical first step in the home-buying process, but Lei suggests taking it further in light of recent rate drops: “Someone may get approved for $400,000 and then, if the rates go down, they could get preapproved for 10 or 20 more,” says Lei. “If they keep updating, they may be surprised.”
To prepare for future payments, Arnstein recommends starting a reserve account early, especially if you’re considering a condo with mandatory amenity fees.
Sweet adds, “Think of your first purchase as a stepping stone in your long-term homeownership journey. Focus on what you need right now for a shorter time frame over the next three to six years.”