I'm a first time home buyer... I need to ask you anything - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Jayems · 04-06-2009, 07:42 PM

Title fairly obvious.

My fiancee and I are looking for a new home. We're looking in the range of $275-$350ish. Preferable areas are in the NW (Tuscany, Royal Oak) or Cougar Ridge Area in SW. We'd be willing to go deep south if we found the home of our dreams for cheaper than the other areas. But traffic in that area scares the poop out of me.

So, what are the best methods to find good deals? Through builders? MLS? Finding open houses?

Basically, what I'm asking, is for some tips. What to look for? Should we generally stick to MLS.ca? We'd be interested in getting a home built or a spec home that is move-in ready. But a house. No condo, townhouse or anything.

Any things to avoid? Builders to avoid? Basically a total rookie and looking for just some things to keep in mind. We've got about $30k to put down, if that matters. Looking to move in July or August.

Rathji · 04-06-2009, 07:44 PM

Get a realtor and look at builders and MLS

albertGQ · 04-06-2009, 07:55 PM

I know a good realtor. You can PM me

Jayems · 04-06-2009, 07:58 PM

Yeah, we're currently with a mortgage banker who is figuring out what we can be loaned and then were going to get a Realtor. Is there anything we can be doing in the mean time so can reduce the time when we do hire a realtor?

Antithesis · 04-06-2009, 08:01 PM

This may seem like a no brainer, but with that type of purchase, don't 'settle'. Especially in this market, don't buy anything until you find something that you love.

ken0042 · 04-06-2009, 08:12 PM

Interview realtors. They are hungry, and there are ones that are right for you and more that are wrong for you. I started with the guy that all of my "adopted family" here in Calgary uses, and I didn't like him at all. The guy I ended up using was on the same wave length as me, and being a single guy buying he knew enough to give me a poverbial smack when I was being silly.

I have to agree- don't settle. Not in this market. Forget the "property ladder" and "starter home." Get what you want, because even if you step up in your next move, you still will spend $20-30K in moving.

I also like that I live close to friends. On the weeks when I'm house poor, I can invite some bussies over to watch the game. I've lived farther from friends, and it sucks. Especially with a new house; nothing like being able to call a buddy and say "can I borrow you for 15 minutes" to take that 1 person 3 hour job into a 2 person 15 minute job.

Slava · 04-06-2009, 08:15 PM

I think that its a good idea to sit down with your fiance and go over exactly what you want in a house and what are deal-breakers. The realtor is going to want to know that kind of thing anyway, and this just helps you qualify what is really important to you.

Winsor_Pilates · 04-06-2009, 08:45 PM

I agree with Slava, figure exactly what's most important to you. Things like Location, size of home, # of rooms etc should be things you've pretty much decided on before a realtor is even involved. The more information like this you can give your realtor, the better job they can do of finding the perfect home that fits you. A good realtor will ask a lot of questions about these things too so they can find you the best possible options.

I would also look very closely at how much you want to pay each month for a mortgage and decide your budget. This may be, and should be less than what you can be approved for. I would advise against maxing out, as it can be very draining on you to dedicate so much of your $$ to mortgage payments.

Also consider other costs you will have to incur such as moving expenses, new furniture, lawyer fees $ GST if you buy brand new. Leave some of your savings aside for these since they can't all be incorporated into your mortgage.

First rule of buying a home, location location location! Be picky with your location; the right house in the wrong area when never feel right, even if you love the inside.

Antithesis · 04-06-2009, 09:42 PM

Oh yeah, and don't be too hard on the traffic down here in the far south ... I'm in McKenzie Towne and love the area ... roads are fine too. Deerfoot right there, there'll be another freeway nearby when they are done Stoney, and heck, even 52 St isn't bad if you use that too. Just make sure you are happy in every aspect with whichever place you go for.

Mike Oxlong · 04-06-2009, 10:07 PM

Congrats on buying a house! You guys must be pumped....

First thing is to definitely to get pre approved. You mention you were working with a mortgage banker. Not sure if you meant to say mortgage banker or broker.

If you are using a banker I would highly reccomend exploring the BROKER option.

When you use a banker at say BMO for example you are limited to the programs, rates, and qualification guidelines at BMO only.

When you use a broker we go out and shop a whole bunch of different lenders for you saving you the legwork and time. We find you the best rates but also the mortgage that best fits your needs, best of all our services are totally free to you.

This is a good time to be buying. Interest rates are super low. Make sure when you get pre approved you get a rate hold so you don't lose out on these rates in case they go up.

If you are using a banker then send me a PM and I will be happy to help you out or answer any of your questions at all.

If you are using a broker already then disregard this post and Congrats again on the new place!

ps
Like everyone else above said, a good realtor is worth their weight in gold. They could save you thousands on the purchase price and you don't have to pay them when buying. They can help you out even when building a home.

I know a couple really good ones if you want some names.

Jayems · 04-06-2009, 10:14 PM

Well, its an RBC mortgage specialist, so I'm assuming that's a banker?

And yes, we are very pumped. So very excited. Even just looking is fun. Addicted to the internet scouring the web for houses etc.

ruddstud · 04-06-2009, 10:21 PM

I have a house in Tuscany, PM me if you like. (Under $380)

Mike Oxlong · 04-06-2009, 10:23 PM

Quote:

Originally Posted by Jayems

Well, its an RBC mortgage specialist, so I'm assuming that's a banker?

And yes, we are very pumped. So very excited. Even just looking is fun. Addicted to the internet scouring the web for houses etc.

Buying a home (especially your first one) is an awesome process. Especially in this market when you have the time to look around and pick out what you want. Enjoy it....

Yes with an RBC mortgage specialist you will be limited to RBC's options.

Nabber · 04-06-2009, 11:40 PM

Quote:

Originally Posted by Jayems

So, what are the best methods to find good deals? Through builders? MLS? Finding open houses?

For the most part you'll be sticking to mls for the best deals as that's where the best ones seem to be right now. Get a realtor to set you up on a specific mlx search where they enter in specific criteria such as areas, size, type of house (ie two storey/bungalow, remember size greatly changes between different styles), certain number of bedrooms/bathrooms, garage, or whatever else you'd like in a home. That way you'll get new listings that match you search criteria right away emailed to you. Whereas as for it usually takes a few days before a listing goes from the realtors mls to the public site, I've seen many cases where homes sells before they have a chance to go on mls.

That said still keep your eyes out everywhere to find a home, mls, welist.com, websites, facebook, craigslist, wherever. Open houses can be advertised in the paper, but all those homes are usually on mls therefore I wouldn't be worried about missing something by not checking out open houses. But if you're out in a certain area you like and see an open house you may as well pop in and check it out. I would recommend interviewing a couple realtors for sure, even something as easy as over the phone. Ask them what they'll do for you to find a home? I would recommend trying to find someone not so pushy, especially in this market, where they'res no rush and lots of choices out there.

I'd probably say do some research on builders yourself. I'd mention it to your realtor and for the most part they should call around and do some research, but there's no mls system for new build therefore it's up to you or your realtor to call every sales center regarding prices, which can be a difficult task. As well some builders don't offer commissions to realtors therefore your realtor may decide to hide that awesome deal he found for fear he wouldn't get paid, which is really unethical, and against many obligation a realtor owes his client, but I guarantee it happens.

Mike_Oxlong is right, I'd say go with a mortgage broker as opposed to the bank specialist as they only have one bank to choose from where a broker has numerous options which usually means a better rate.

Feel free to PM or ask away in this thread any questions as I am a realtor.

Nabber · 04-06-2009, 11:42 PM

There was a good chart in this thread related to customer satisfaction of specific builders.

http://forum.calgarypuck.com/showthread.php?t=72364

T@T · 04-06-2009, 11:51 PM

My only advice would be not to buy your first house a long way from the city core, if you have to buy something that needs a little care closer to inner city it will pay off huge down the road. especially the way the market is right now.

JohnnyFlame · 04-07-2009, 07:52 AM

I have a relative working for Carma and they have dropped their prices bigtime. I've heard Jayman has done likewise or more. I would think this is a very good time to be buying. I'd be deal hunting right now as in looking for some extras through negotiation.

VladtheImpaler · 04-07-2009, 08:01 AM

I'm assuming you are aware of this already, but factor in upgrades you will have to/want to do into the price. And don't forget a home inspection - (1) it allows you to back out if there is some significant defect and (2) it gives you someone with insurance to sue if the inspector misses said defect. That's 2 layers of protection. Don't use a realtor who is a friend or a relative. Find an older, experienced realtor that has survived a couple of downturns. The realtor is free to you, so milk that service to the maximum, even if you have to see 50 houses before you find the one that's right for you - don't settle. Remember, you are the one who has to live there, not the realtor.

Jedi Ninja · 04-07-2009, 08:08 AM

When calculating how much you can afford, make sure you do some what-if type calculations based on different interest rates. Rates won't ever get much cheaper than they are now, so they can pretty much only go up.

Jayems · 04-07-2009, 08:15 AM

Thanks for all the tips, much appreciated. As far as I know, we'll be using my fiancee's uncle as a realtor. I have absolutely 100% faith he'll do a stand up job, as he's been doing it his entire life. But, if anyone wanted to PM me details to someone they'd recommend, that too would be appreciated, just in case. Thanks again.