Home Buying F.A.Q
1. What are the advantages of buying over renting?
A home is an investment. When you rent, you write your monthly check that helps to pay someone else’s mortgage. The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity and protect yourself against rent increases. When you own a home, you have something that is all yours. A home will reflect who you are.
2. How much money will I have to come up with to buy a home?
There are a number of factors that will determine this. The cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs:
Deposit - the deposit is given with the offer you submit this proves to the seller you are serious about wanting to purchase their home.
Down Payment - The down payment is a percentage of the cost of the home that you must pay when you go to sign your mortgage papers with your lawyer.
Closing Costs – The closing costs are the costs associated with purchasing a home. This includes lawyers fees, land transfer tax etc.
3. What are the first few things I need to prepare before I start my search?
What you need to determine is; How much you can afford for a monthly mortgage payment? How much space do you need? What are your preferred neighbourhoods? Start with some casual research to get familiar with the process. Talk to friends and family, drive through neighbourhoods of interest, and look in the "Homes" section of the Winnipeg Free Press or the weekly edition of the WREN – Winnipeg Real Estate News.
4. Should I use a Realtor to aid me in my search?
Using a Realtor is a very good idea. All the details involved in home buying, can be overwhelming so it makes perfect sense to work with an expert that can guide you through the entire process making the experience more enjoyable.
The right agent will be familiar with the individual neighbourhoods, the area schools, local shopping, amenities and other pertinent information needed. Your realtor will assist you with defining a realistic search criteria keeping in mind you overall budget. The benefits of working with an agent are many. Realtors ultimately save you value time with your search.
5. How do I select the right real estate agent?
Start by asking family and friends if they can recommend an agent. Look for an agent who listens well and understands your needs, and whose judgment you trust. The ideal agent knows the local area well and has resources and contacts to help you in your search. Overall, you want to choose an agent that makes you feel comfortable and can provide all the knowledge and services you need.( link to Pat & Catherine page)
6. How do I find a lender?
You can finance a home with a loan from a bank, a credit union, or a private mortgage company. You can save money if you take some time to look around for the best rates, products and services that will suit you the best long term. Your real estate agent will be familiar with lenders in the area and what they're offering. Or you can look in your local newspaper's real estate section or The Winnipeg Real Estate News for up to date interest rates and offers.(link to financial page)
7. Which websites should I visit to aid in my search?
There are a number of helpful websites that can aid buyers in their search.
www.MLS.ca This site is an advertising site for Realtors across Canada .
The homes shown on this site are being assisted by a realestate broker to advertising properties on a national level.
www.winnipegassessment This site is brought to the public to give additional information on homes located in Winnipeg . For rural property information the regional RM will have to provide this information.
http://www.cmhc-schl.gc.ca/ Canada Mortage & Housing Corporation. CMHC is Canada ’s premier provider of mortgage loan insurance, mortgage-backed securities, housing policy and programs, and housing research. There is an abundance of helpful information for first time and repeat buyers.
8. How can I find out how much homes are selling for in certain neighbourhoods?
Your real estate agent can give you a price range of homes in your choice neighbourhoods. Your real estate agent also has access to property sales histories from the MLS – Multiple Listing Service.
9. Is an older home better value than a newer one?
This is a difficult question to answer. This all depends on whether you as the buyer, see the value. Generally, older homes may be in more established neighborhoods, offer more of an atmosphere, and have lower property tax rates. However, people who buy older homes should acknowledge that their home may need more maintenance and repairs. Newer homes offer the latest in design and systems, are typically easier to maintain, and may be more energy-efficient. People who buy new homes often don't want to worry initially about upkeep and repairs. Some new homes come with warranties on selected components of the home.
10. When I find the home I want, how much should I offer?
Your real estate agent can help with this. There are a few thing you need to consider before you write an offer:
1) Is the asking price in line with prices of similar homes in the area?
2) Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it? Your real real estate agent can help you determine values for remodeling or repair.
3) How long has the home been on the market? Your real estate agent will be able to provide a sales history of the home.
4) How much of a mortgage will be required? Make sure you really can afford the home you are offering. Keep in mind additional costs that may appear.
5) How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house.
