Moving Tips for Buyers

Determining Your Needs

Your Lifestyle

Dreaming of a new home? With the right planning, that dream can become reality. But there's a lot to know before you begin packing. Our Buyer's Guide takes you through the entire planning process, step-by-step, to determine the type of home that may be perfect for you. We'll ask a few questions, provide a few answers, and even help you print worksheets that you can use with your RE/MAX agent.

What Will Your Lifestyle Require?
How many bedrooms do need? How many will you need in few years? Those preschoolers will be teens someday. Are you planning to stay in your home that long? Perhaps you already have teens who'll be ready to move out on their own soon. What will you do with all the extra space? When you're thinking about your family's needs, remember to think about little things, too -- like parking. How many cars will require space? You'll also want to consider the proximity and reputation of schools. (Our new Neighborhood Profiles page can help you learn more about these factors).

What about work? These days, people tend to change jobs frequently and sometimes the best way to get a promotion is to move to another company or city. If you're transferred, will you be able to sell quickly? As long as we're thinking about work, how much time do you want to spend commuting? Do you drive or rely on public transportation?

As you can see, you'll want to dedicate quite a bit of thought to how long you intend to stay in your new home. It may be difficult to answer before you've even found you’re a property, but if it's your first home give some thought to the resale value when it's time to upgrade. On the other hand, if you're planning to stay in your home for a long time, consider your future needs and purchase a home that will accommodate them.

Do You Live a Maintenance-Averse Lifestyle?
When you're looking at homes, consider the advantages of brick over wood frame homes when it comes to painting. Take a look at the garden. If you don't enjoy mowing, then an expansive lawn and garden may not fit your lifestyle. You can also evaluate the possibility of future maintenance and repairs based on the age of the house. If you don't like the idea of major renovations, a newer home may be your best option.

Does Your Lifestyle Accommodate a Fixer-Upper Fantasy?
Many first time buyers have them. It goes something like this: You find a big home in a great neighborhood that's well below what you'd expect to pay. You visualize a couple coats of paint, a few repairs and - voilà - a dream home without the nightmare price.

But before you jump headlong into this "once-in-a-lifetime opportunity," consider how you'll do all of the work - and how long it will take you to do it. Will it be weeknights after a long day at the office? Or will you have to hire someone? Are you ready to live in a dusty mess as you renovate? Do a realistic assessment of the job at hand and be sure to have the house inspected. The last thing you want is a bargain home that turns into a money pit. You're far better off finding a house that costs a little more each month but doesn't need much work than you are buying a fixer-upper that eats hundreds of dollars each month.

For example, lets say you could buy a really nice house with minimal work required for $10,000 more than a fixer upper. At today's mortgage rates, that really nice home would cost only cost about $65-$75 per month more than that fixer-upper. If you buy the fixer-upper, you'll be spending a lot more than $75 a month to get it into shape, not to mention the potential strain on your family from living in an unfinished home.

Location, Style and Cost

The first question you're bound to ask is, "How much home can I afford?" That depends on a number of factors:

• Your selected location. Are you set on a specific area? Downtown? The suburbs? A rural setting?
• Your preferred type of home. Detached? Duplex? High-rise? Townhouse? New or Resale?
• Your income. It's not just the mortgage you have to take into account. There are property taxes, utilities and, in some cases, condo or homeowners association fees. As a general rule of thumb, your monthly home-carrying cost should not exceed 30-35% of your income.
• Market conditions. Is it a buyer's, seller's or balanced market?

There are always a few additional costs to keep in mind - like lawn care, remodeling and redecorating. It's a good idea to work out exactly what you want and what you can afford before you begin the search. Be specific. Then stick to looking at homes in your price range. The more you've thought it out, the better your RE/MAX agent can meet your needs.

One part of deciding just what you can afford can be accomplished by meeting with your bank or a mortgage broker and negotiating a pre-approved mortgage. There are many types of mortgages and many different terms. Research all of your options. This ensures that there are no surprises once you're ready to make an offer.

Once you've figured out your monthly expenses and what you can afford, you can start your search. It could be that the first home you see is the one you want; or you might look at home after home with one of them catching your eye. But rest assured that the home you're looking for is out there, somewhere, and when you find it, you're ready to make an offer.

Purchasing a home is easy once you put your plans together.

Why is Location Important?

Of course, the first step in deciding on a new home is your lifestyle today and how it will change over the next few years. Are you active in sports? If so, a location with a nearby health club or recreational facility would be ideal. Are you a nature lover? Then perhaps an area with parks and walking trails would suit you. Think about yourself and your family and decide what you enjoy doing and what type of lifestyle you would enjoy in your new home.

Which Neighbourhood is Right for You?
Your ideal home may not really be ideal if it's downwind from the garbage dump or right next to a freeway overpass. Think about the view. Will you like what you see every time you look out your windows? Selecting where you want to live is as important as deciding what type of dwelling you'd like to live in.

Consider how far your selected neighborhood is from where you work and how far you're willing to commute. You'll also want to think about about schools if you have - or are planning to have - children. And what about medical facilities, places of worship, public transportation and recreation?

If you're contemplating the move to an unfamiliar neighborhood, take the time to go exploring. Walk around, drive around, get a feel for the distance to the nearest grocery and convenience stores. Make some notes. Take the neighborhood tour at different times of day and contact the local municipal office to find out what future developments are planned.

You'll also want to check zoning bylaws and fire codes; especially if you plan to rent the basement or conduct a business in your new home. In-law suites, student housing, basement apartments and duplexes often have very specific code requirements.

Choosing a Neighborhood

An Established Neighborhood or a New Home?
Established neighborhoods tend to have their own personalities with mature trees and often larger yards. Older building styles tended to lean toward higher, plaster ceilings, hardwood floors and decorative woodwork. Depending on the age of the home, it may require a little more maintenance. Established neighborhoods are also usually closer to the city.

Urban living puts you at the center of the action. It offers a wide variety of amenities like shops, theatres and restaurants. It may also be closer to your workplace. Of course, the drawback of an urban location could be a smaller, older or more expensive home. Look for schools playgrounds, parks, etc. Make sure there are no undesirable areas surrounding your neighborhood such as waste disposal sites, etc.

The suburbs usually often the advantage of newer homes with more square footage for the same price as an urban location, but may not have the other amenities as close as you'd like.

New neighborhoods tend to have a noticeable lack of foliage and can look barren for years as the landscaping matures. If you purchase a home before it is built, you will be able to take advantage of upgrades during construction and when you move in you can decorate to your taste. A new home won't have the charm of an old one, but it will have warranties covering most major components. Be sure you understand what the warranty covers. New homes have some real disadvantages that most people don't think of until it's too late.

New vs. Used

1. When buying a new home, keep in mind that the representative you are dealing with at the new home site may not be a licensed real estate agent. The new home representative's best interest may lie with the builder and not you. In many cases, the builder will not allow your RE/MAX agent to protect your interests or help you prepare the agreement.
2. The builder's agreements can be very one-sided in favor of the builder. Did you know that many agreements allow the builder to extend closing by 2-3 months twice, and then cancel the agreement if the house still isn't built?
3. Your team of experts cannot fully protect you when buying a new home. For example, your lawyer will not be able to force the builder to sell you a house that's not there yet. Whereas, when buying a used home, your RE/MAX agent will be able to negotiate the price and your mortgage expert will be able to arrange the best possible mortgage for you. If you do decide to buy a new home, try not to get confused with terms like "mortgage-paydowns" that are built into the price of the home.
4. Remember, your home inspector will not be able to inspect a house that's not built yet and new homes are not always trouble free.
5. As a new home buyer you may have to spend money on additional expenses like driveways, decks, landscaping, decorating, recreation rooms, air conditioning and fencing. If you want all of the above without having to go through all the hassles, a used home might be the solution for you.