It’s a new year, and while not everyone is a believer in the practice of setting resolutions, it’s certainly as good a time as any to take stock of everything on your plate in the year ahead. For a lot of people, that includes buying a home in Guelph. Is this your year?
Well, if you’re hoping that it is, there’s no time like the present to sit back and review where you’re at and, while you’re at it, maybe even set forth a resolution or two for the process ahead.
Step #1: Revisit Your Finances
If you’re in the market to buy a home, be it a first or second home, an investment property, whatever the case may be, it’s a good idea to start the process off by meeting with a mortgage specialist. It’s the first logical step in the process: review your numbers and get your financial ducks in a row. If you’ve been looking for a long time, a new (and maybe improved!) pre-approval might even be in order. I went through the process myself last year and it was an eye-opener. In my case, just by clearing up some room on a credit card and paying down a line of credit helped my approval numbers dramatically.
So, sit down with someone you trust and re-work your numbers. Check your credit, and get yourself in a strong buying position on the financial side of things.
Step #2: Revisit Your Home Buying Criteria
Whether you’re just starting out, or you’ve been on the hunt for a house for a while, it’s a good idea to take some time to look at your criteria and make sure that you’re not either over-shooting on expectations or overlooking some good options.
It’s hard with housing prices being so high in Guelph. Prices have gone up and qualifying for a mortgage seems to get harder by the minute. Many people found themselves with less purchasing power than they expected. Some figured they’d just stay put or rent and try to save a little longer. The problem is that home values keep rising and buying gets further and further out reach.
Consider this. If you’re able to branch out with your criteria, home ownership may be more attainable. I have always looked at home ownership as a ladder. For many, the dream is a good-sized detached home with lots of room… the 10-year or more plan. In reality, a lot of us have had to start out lower on the the rungs of the property ladder. An entry-level townhouse or even apartment condo, while not offering everything, has been the starting point that gets us in the market. From there, we’re paying ourselves and trying to add value to a home so that we can eventually ‘sell up’ and get that 10-year-plan place.
If you consider a scenario like this, there’s a big upside on the home buying process: you get less emotional and more strategic. It’s less about finding your “dream home” and more about finding a good investment. The warm-fuzzy “I’ll know it when I see it” approach is replaced by… I can make this work and I can make money on this house. This is the five-year plan… maybe three if the stars and the moon align and you do well on the purchase price. Sure, there are stresses and costs associated with moving, but getting in the market usually makes more sense in the long run than just sitting and paying rent while home prices continue to rise.
Step #3: Revisit Your Representation
If you’ve been shopping for a home, do you feel like you’re working with the right Realtor? Actually, first, let’s back track to the most basic rule of the home buying process: get your own representation. As a Buyer, your best interests will not be served by the agent selling a home you’re interested in buying. Those Realtors work for their sellers. They can’t intentionally mislead you or financially harm you, but they’re under no obligation to protect your financial best interests.
Find a Guelph Realtor who works for you and only you – ideally, someone who (like me,) thinks that dual-agency, aka “double ending” is an ethical no-no, and will never put themselves in the position of representing both you and a Seller at the same time.
If you find that your Realtor isn’t a good fit, or that you’re frustrated by their working style or the process in general, talk to them. If your Realtor isn’t prepared to work hard for you and listen to your concerns, find yourself a new agent. (Yes, even if you’ve signed a buyer agreement – you can be released from that in Ontario.)
Step #4: Revisit Your Mindset
It can be really challenging as a Guelph buyer… literally in any price range. It’s not an easy market to buy in. I always advise my clients to go into the process with an understanding that – even though yes we will have fun! – it’s not necessarily fast, or easy. For most buyers, I’d liken it to more of a marathon than a sprint. Depending upon budget and the kind of property you’re looking for, it’s also possible that you’ll lose out in competition a time or two which sucks… in fact, it often really sucks – but… we chalk it up to fate and move on. Persistence pays off.
I’m a believer in positive thinking and the law of attraction. Visualizing good outcomes and setting positive intentions are good practices for all kinds of goal-setting… including buying a home. Positive thinking and visualizing/dreaming/whatever you want to call it… it can’t hurt. What can hurt is a really negative mindset that sets you up for failure.
I realize that buying a home in Guelph isn’t everyone’s dream or primary financial goal, but for those who have your hearts and minds set on a purchase this year, keep the faith. I do believe there is a right home out there for everyone. Hopefully, for those of you looking now, this is your year to make it happen.
