What to Think About Before Buying Your Next Home

I’ve worked with people from all walks of life to help them through the process of finding and buying a home that feels just right. Seeing someone’s face light up is one of the highlights of my career. It’s one of the many rewards that inspire me to keep doing what I do.

If you’re thinking about your first (or next) home, you have quite a bit of planning and preparation ahead of you. Putting together a smart strategy before visiting open houses can really set you up for a successful home buying experience. In this post, we’ll review a few of the little-known things you want to consider before placing an offer on a property.

Do you want even more details on buying a house in Edmonton? Learn what to look for, what to avoid, how to create a compelling offer, what to expect during the closing process, and more in our comprehensive Buyer’s Guide. Download your copy for free right here.

Key Financial Considerations

The listing price isn’t everything when searching for a home. While you want to stay comfortably within your budget, you also want to prepare for the unexpected. For example, an older home with very few upgrades might advertise an irresistibly low price that captures your attention. But if it hasn’t been well-maintained and cared for over the years, you might soon find yourself facing expensive repairs that negate any savings.

On the other hand, the house may be slightly out of style, but perfectly solid and structurally sound. If you choose well, you can enter the market at an affordable price point and then renovate and remodel as your budget allows.

Condos can be another example of a seemingly low barrier to entry. They’re also perfect for retirees and first-time buyers who love their convenient location and maintenance-free lifestyle.

Just be aware of how much more you will pay each month to cover your condo fees. In addition, don’t forget to carefully review all condo documents. Even better, hire a professional review company. It’s a small price to pay to ensure your investment is sound. The last thing you want after your purchase is to face a special assessment because of insufficient reserve funds.

On the other side of the spectrum, a brand-new build or significantly renovated home can come at a higher price point. However, if everything is of premium quality and still under warranty, you can look forward to fewer repairs and lower utility costs.

Thinking about buying a home in Edmonton? The related reading below might push you over the edge:

Closing Costs Can Add Up

If you’re an experienced home buyer, you already know all about closing costs. First-time home buyers have heard the term and understand it in theory. Now, it’s important to realize just how much your home will actually cost when all is said and done.

Here are a few of the costs you will need to cover upon taking possession of your new home.

Land Title Transfer Fee

Home buyers in Alberta can rejoice that we are one of only two provinces without a land transfer tax. We are not entirely off the hook, though. We must still pay a land title transfer fee, which is far less expensive and burdensome. The fee is $50 plus $5 for every $5,000 of the property value. In other words, a $400,000 home would come with a $450 transfer fee.

In Ontario, the land transfer tax would add up to $4,475. Unless, of course, you bought in Toronto, which has its own municipal tax. Then you double the amount owing to $8,950. That’s presuming you could find a property for $400,000 in the first place, which is unlikely. The reasons to buy in Edmonton just keep adding up!

Mortgage Registration Fee

If you have a mortgage, there will be a base fee, and an additional amount depending on how much you borrow. Let’s take another look at your $400,000 purchase. The mortgage registration fee is also a base of $50 plus $5 for every $5,000. If you make an $80,000 down payment, that means you borrow $320,0000. Your fee would come to $370.

Legal Fees

No matter what province you buy in, you need an experienced real estate lawyer to ensure a seamless transfer of ownership. Your lawyer will prepare and review all contracts, conduct a title search, arrange for title insurance, and register the property correctly in your name. The total cost will vary depending on how complex the transaction is.

Title transfer and legal fees are your primary closing costs when buying a home in Edmonton. In addition, you will need home insurance, and there could be property tax adjustments, appraisal fees, and GST (when buying a new-build). All in all, it’s a good idea to have between 1% and 4% of the total purchase price to cover all of the additional expenses of buying a home.

Can I Sell This Home?

Here is a piece of home buying advice that may seem unusual. The moment you step in for a showing, ask yourself, “Will I be able to sell this home later?” Why worry about selling a house before you’ve even decided whether or not to place an offer?

This is one of my favourite techniques that will help you stay logical and objective. Emotionally, you may fall in love with the unique attributes a particular property offers. Considering its future saleability ensures that the home you love is also a wise financial investment.

Are you ready to take the next big step toward buying your new home? Download the free resources below to help you stay on track:

Will I Be Happy Here?

Many things go into choosing a home far beyond the price. Your happiness and lifestyle are equally important, so be sure to keep the big picture in mind throughout the process.

You can change a lot of things about your house over time. But you can’t change the location, so that is one choice you want to make under careful guidance and consideration.

Think of how you want to spend your weekends, evenings and holidays. Your neighbourhood is a reflection of your entire lifestyle.

How long will your commute be? Be sure to factor in transit or gas costs, vehicle maintenance or time away from your family.
Is the home close to quality schools and other amenities that are important to you? Where will you grocery shop?
Where will you go for brunch or to the gym? Do you want to walk or drive there?
More importantly, will you have fun and love living in this neighbourhood?
Where do you want to walk your dogs and what parks will your kids enjoy?

Once we’ve checked off every other box, the final consideration is if you can be happy in this house in this location for as long as you own it. My mission is to help you buy your next (or first house) for all of the right reasons so you are filled with a sense of joy every time you come home.

Ready to explore the exciting world of buying a house in Edmonton? Send me an email to jolene@jolenelangelle.com or give me a call at 780.910.1317 today to chat about the possibilities.