Smart Buyer Tips - Ottawa Real Estate

Almost everyone can picture their dream Ottawa home down to the potting shed and white picket fence or twenty acres on a quiet country road. That’s the emotional side of the home buying equation and is probably what will lead you to the want ads and Sunday drives in the country “just to look around”.

Before you take that first emotional step into the Ottawa home buying process you need to pay close attention to the business side of this important family investment. The more you prepare yourself and know what to expect, the less stressful and more enjoyable the whole home buying experience will be.

Avoid the “impulse” trap! Decide what features you WANT and what features you HAVE TO HAVE:

Type of home (i.e. condo, townhouse, duplex, single family dwelling).
Single level or multiple level home – may depend on mobility issues or small children.
Number of bathrooms and bedrooms – plan ahead, do you need room for an expanding family?
Proximity to schools, work or leisure activities – of more importance if transportation is an issue.
Privacy of yard – provides a secure place for children (or Rover) to play and
prevents the neighbors from looking right into your pool or hot tub.
Layout of kitchen – close & cozy for convenience or large & roomy for big family dinners.
Location of bedrooms in relation to more active areas of the house – keep in mind that small children are usually early birds and teens are often night owls, you might have a happier home if the two are kept separate.
Parking availability for your vehicles (including any recreation vehicles you may
have) and also those of friends or family who will be coming to visit.
Other features such as fireplace, fenced yard, and natural lighting.

Housing density – do you need a home where the buffalo roam? Or do you like to see your neighbors across the backyard fence?
Type of neighbours – will you fit into a retirement community or a neighborhood with young families? This detail is almost as important as the home itself!
Future construction or development in the neighbourhood – are they building a
mall or apartment complex down the road? It may affect property values in the future, and think of the noise and traffic, is it worth it?
Future trends in the neighbourhood - is the value going to increase or decrease according to the nature of the growing or declining neighbourhood? Your real estate agent should be able to advise you.
Crime rate – check out the neighborhood with local law enforcement agencies.
Traffic patterns – is it a busy road, a major connector or a slower dead end street? Spend some time on the street and see traffic use for yourself

Assess your financial situation - visit your lender before you start looking and get details on your “borrowing” situation.

Confirm that your lender will be willing to loan you the money. You can even get “pre-approved” or “pre-qualified” for a maximum amount and that will help to convince the seller of your dream home that you are a serious buyer and not just a looky-loo.
Define your price range – you don’t want to waste time looking at homes you
can’t afford. Take note: you may not want to borrow the full amount your lender is willing to lend you. Some people prefer to enjoy a carefree lifestyle rather than being “house poor” and burdened with a maximum mortgage.
Lenders usually want to lend you the money and will help you be creative with
your income, finding money you didn’t think you had and figuring out how much you need for a down payment.
When assessing your financial situation, you may want to consider consolidating some of your other debts (car loans, credit card debt, etc). Your lender can advise you.
Is this your first home? First time homebuyers sometime get deals or breaks on some costs that previous homeowners do not. Check with your real estate agent or your lender for more information.

Expect the unexpected– you’ll need more than just the down payment to close the deal!

Do you have enough "extra" money to cover unexpected costs? This often-over looked detail has sunk many a good deal. Consider arranging a line of credit if
you don’t already have one. It will give you the peace of mind that you can afford any unexpected expenses when they come up. A Buyers Agent can alert you to expenses associated with buying your home that go beyond the down payment:

sales tax (if it is a new house)
appliances
property taxes
cost for property survey and building inspection
house insurance
additional life insurance
lawyer/notary fees
appraisal & inspection fees (maybe, this is negotiable)
government fees
home warranty fees
condo fees
loan fees

You will need to finance any renovations you want to do when you move in and any additional furniture you will need to properly furnish your new home. Experience indicates the more money you have on hand, the better. Your real estate agent will be able to help you estimate all those costs.

Tips for the trenches - how to find your dream home without losing your shirt.