The #1 Problem First Time Home Buyers Have
Proper education is the number one problem we consistently see with first time home buyers. Real estate is a hot topic in mainstream media. Every homeowner voices their personal opinions too, making it more important than ever to properly educate yourself.
Understanding topics like how the real estate industry works, the current state of the market, and the entire home buying process from A-Z will pay dividends for your first, and largest purchase to date. We rely on statistics, experience, as well as proven system and models to educate and prepare our clients for their first purchase.
How The Real Estate Industry Works
In Ontario you have regional real estate boards, brokerages, and salespeople (aka realtors). Real estate boards connect brokerages and their representatives to data and systems to facilitate the purchase and selling of real estate in their region. Brokerages provide the necessary tools for realtors to run their business. Each brokerage offers different things to their agents like marketing, training, business philosophies etc.
Realtors are the individuals that work directly with clients like first time buyers. Each agent runs their business individually as they are considered independent contractors working under their brokerage’s banner. If they are working with someone to help them purchase a home they are commonly referred to as a “buyer’s agent”. It does not cost anything to work with a buyer’s agent as they are compensated from the seller of the property only when their client closes on their purchase.
The Home Buying Process
The home buying process is different for everyone but typically goes something like this:
- Know how the real estate industry works – Hire a realtor or do it yourself
- Financing – Consult a mortgage broker (any good realtor has a good mortgage broker)
- Understand your realistic options – Is their options in my budget that fit my criteria?
- Know your market – Understand if it is a buyers, sellers, or balanced market and what that means
- Utilize search tools to actively search for new properties
- View listings often and critically – Important to see options to compare
- Negotiate the right deal – Consider things like price, inclusions, conditions, closing dates
- Closing – Hire the right lawyer!
- Ownership – Utility billing information, property maintenance, learn how to improve the value of your home, stay updated on property values etc.
Current State of The Real Estate Market
First time home buyers need to understand that the market can’t be controlled by any one person. The best thing first time buyers is to learn exactly what types of properties fit their budget and criteria in the current market. From there, identify what the market is like for those specific types of properties. Buyers can then identify how competitive that market is and formulate the right strategy to get get the right deal. Buyers that are active and engaged in the home buying process are rewarded.
Find monthly real estate stats and commentary on our blog.
We recommend asking questions, a lot of them! First time home buyers need a proper education and the right tools now more than ever. Furthermore first time home buyers that take the time to create and follow a plan experience less stress. Remember, you’re buying your first home so if you’re well educated be confident and have fun! You’re only a first time home buyer once.
Drop us a comment if you have questions on this blog post or make a request. Get connected and ask us your questions here!