Buying a house with the help of a real estate agent
Are you looking for a house? Is it your first real estate purchase? Do you need professional help to carry out the errands? These are questions we often ask ourselves, when we are about to take a big step in our lives.
Buying a home is an extremely important decision, and it’s worth taking the time to analyze any obstacles or unforeseen events that may come your way. In addition, it would not be wrong to ask for professional help from a real estate agent, if you do not know about these issues.
Buying a house is a dream that many of us have since a young age, but surely you never imagined what had to be done to do it. That is why you will ask yourself:
Buying a house: is it as easy as it sounds?
If you are involved in the real estate business, you may have a mixed opinion regarding the previous question.
Sometimes, the formality of buying a house tends to flow beautifully, where both parties, buyer and seller, understand each other completely, and legal procedures are easily executed. On the other hand, it can happen that, when communication is weak and confusing, a feeling of distrust, insecurity, and even annoyance is generated, simply because of not understanding the negotiation process.
There is a varied list of stories, which usually occur in the process of buying and selling a house, so do not worry about what your story will be. Our purpose with this article is to teach you exactly what you need to know, to avoid unfortunate eventualities.
Now, if your intention is to buy a house, but it is your first time buying it, you will surely be thinking: where do I start? If so, then we advise you to turn to an experienced real estate agent.
How can a real estate agent help you buy a home?
Just as a mother or father advises their children in times of indecision, or when they are looking for help, so does the realtor’s job.
An agent will be the support and guide you need, in any moment of doubt or uncertainty you may have, while your decision to buy a home is still on.
Once your mind is focused on the action of buying a home, a real estate agent will guide you through the necessary process, to have the keys in your hands sooner than ever.
The broker will advise you on what type of home is best suited to your expectations, whether it is a large or small house, 3 or 2 bedrooms, a house with or without a pool, with or without an attic and basement: the decisions will be yours, so the broker will display a catalog of options suited to your desires.
Going a little bit out of the physical landscape of the house, the realtor also has the faculties to know about the fluctuating price of the houses, and negotiate in your favor. If your budget is very tight, the broker can use his skills to get you a discount, and get your house at the most amazing price for you.
And you want to know more? A realtor can also advise you on legal matters. Their experience allows them to study legal scenarios, which favor or disfavor both parties, but their knowledge is, without a doubt, fortunate. This is not to say that a lawyer is not indispensable, but the broker will let you know some things that the lawyer will later mention to you, so you can save valuable time.
What you need to do BEFORE you buy a home
Before starting your real estate process, you need to know some things that you will have to do previously, even before hiring a real estate agent.
Analyze your current financial status
It’s embarrassing to hear the phrase, “Your card was denied for lack of funds,” and it’s best to avoid it at all costs.
So, faced with a decision as big as buying a home, it’s only fair and necessary to evaluate your current financial situation. Determine if you have a stable income, a stable job and a spotless credit history – or at least as spotless as possible. These are some of the financial statements you should look at before you begin the buying process.
Set expectations and goals
The more realistic your expectations are, the better, and more so if it’s your first time buying a home.
In Canada, mortgages are the most common method of purchase, but that doesn’t mean it’s easy. In fact, it takes more work, as a bank is being added to the equation.
That’s why your expectations and goals should be as stable and sensible as possible, so your results will be real and successful.
You should know that to pay for a house you only need money. However, there are several ways to do this, each with a different level of difficulty. For example:
If we pay in cash, you would be making the full payment for the house.
In fact, this method is one of the best, since you save the expenses derived from payment methods that generate interest, such as mortgages.
A cash payment often occurs in people with large amounts of savings.
Mortgage loans are a fairly comfortable way to pay, but before doing so you must show that your financial status is stable, and that you will be able to pay the loan and its interest later.
This is one of the well-received systems in Canada, since real estate mortgages have provided peace of mind in the country, with a rate below 1% in its delinquency rate: a rate that has been maintained for two decades.
The loan (which usually covers 80% of the total amount of the house) is granted by a bank as base capital, for the purchase of the property. And depending on the interest applied, the amount must be returned, through a periodic payment of installments -which tend to be monthly-, for a determined amount of time.
In cases like these, both parties must come to an agreement, where the payment of the property will be paid in installments.
Usually, this method of payment is made to pay that 20% of the price of the house remaining that, unfortunately, is not covered by the bank. If the seller accepts the deferred payment agreement, the buyer may pay the designated amount, within a time frame that both parties agree upon in full.
In reality, this is a method of payment entirely between the parties, in a more intimate and private manner.
Think carefully about the location
One thing you should keep in mind, when you want to buy a house, is to think about the location where you will want to live.
Depending on the area in which you plan to buy your new home, the amount of money the seller will ask for will also vary.
Money can be a big dilemma in these cases, but you can always ask for advice from your real estate agent, who will know how to guide you and show you a portfolio of properties, that fit your budget.
Don’t underestimate the law
Sometimes, during a process of buying and selling a property, buyers or sellers can be blinded by the legal issues involved in the process.
Lawyers are in charge of making paper, ink and signatures with the decisions made by both parties (seller/buyer), and their task is to take care of the client’s back, before the public (or private) institutions involved.
The truth is that each process is different, and despite following fixed parameters, the process can always be truncated by some or other eventuality. Taking care of the legal aspect is important and essential, and if you don’t know about it, your real estate agent is your support.
Celebrate your new home
As if that weren’t enough, after having completed all the steps and culminated the process of buying your new home, all that remains is… to celebrate your new home!
Of course, without forgetting that if there is a loan or mortgage rooted in the purchase of your home, you have to practice consistency, to pay it back in the determined time, and then you will have another reason to celebrate your home.