Ernie
Hills
First Time Buyer's Guide
Do's and Don'ts
Here is a list of do's and don'ts
for the first time buyer when viewing prospective resale homes:
DO: Buy the worst house
in the best neighbourhood!
(There are many examples of
negatives that apply here. For example, in North Rosedale, some properties
back on to the railway lines. They will still sell because it is a
desirable area. Some other areas mean major discounts for properties that
have negatives. Even my own street which is Roselawn has some negativity
because it is a busier street. - Houses will still sell because it
is a desirable neighbourhood. So in my books, start with the best
neighbourhoods that you want to be in and work from that premise. )
The Neighbourhood
- Do Look at the neighbouring properties.
Compare the quality and curb appeal as well as upgrades. Does the house look
as good or better than the others. It is difficult to get a good
read on prices if the neighbourhood is a dog's breath of all different
styles and shapes of houses. A subdivision done by one builder and
full of consistent styles will give you about as accurate comparables as is
possible.
- Areas like Lawrence Ave and Yonge St. are
very desirable, yet there are many poor quality homes in this
area. On the other hand, Allenby School district has more consistent
quality homes thus making it easier to get a good read on prices.
- Do Check out the facilities, schools,
access to transportation, shopping and anything else that is relevant to
your lifestyle.
- Don't Buy the best house in the worst
neighbourhood. The best house in a poor neighbourhood can be difficult
to sell as well.
- Do Buy the worst (or cheapest) house in
the best neighbourhood. (Without going into too much detail, you will
be much better off owning a property in a better neighbourhood because it
will be easier to sell than the best house in the worst neighbourhood.)
The House
Outside
- Do Look at the outside. Exterior,
landscaping, quality of maintenance, roof, windows, doors, walkway,
driveway, road. There are many other things to look at and you must train
yourself to look at all of these things and more.
Inside
- Don't look at furniture! If you want to
buy a lifestyle, then you have to offer a higher price which will include
the furniture. You are there to look at the house. Check out the floors,
ceilings, electrical, plumbing, closets, doors, lighting fixtures, plumbing
fixtures, windows,... . I have seen so many people tell me about buying a
house and not seeing the faults until after they have moved in. This can
cost you dearly in financial as well as psychological terms. Critique
everything mentally, then jot it down if you are interested in the house.
Familiarize Yourself with the
Neighbourhood
- Drive around the neighbourhood.
Better yet walk!
- Check out the demographics. Are the
residents all professionals? If you want a family neighbourhood, haw many
children do you see? What is the average age group of the
residents? The children? Pets? Nannies?
- Look at properties. Look at more
properties.
- Keep looking!
- Then when you are tired of looking, look
at some more properties.
I know that most first time buyers can be turned
on to a property pretty quickly and that they will buy just as fast. Don't !
Someone can tell you that you should hurry up and buy before you lose the
property to someone else, but I will only say this. If you hurry too fast, you
may regret what you have done later. -(There will always be another
property.)
Only an educated buyer should rush into a
deal.
Remember, agents are supposed to be Service oriented helpers, but a lot of
agents are also driven by the salesperson mentality.
On the other Hand
- Do not abuse an agent. 20 houses should be
more than plenty to get the right perspective on what you want to buy. Do
not check out the paper and run from one end of the city to the other like a
chicken with it's head off. Start with a neighbourhood and stick to it until
you either find something or want to move on to a different area.
(There is nothing worse for me than to
have a call from a Buyer who says "Oh Wow! I saw this great property in the
paper and I want to go see it right away. It is really cheap and sounds too
wonderful to be true.")
Guess what it is an advertisement! It is meant to get you to call. For every
one hundred ads that are such great buys, I know that most of them are already
sold or else there is something radically wrong with the property such as
Termites or the back yard is the 401 or The QEW.
Don't buy a house with a major
negative! Whether next to a major highway or anything else. If you can
avoid it do not buy it. A property with a major or even minor negative can be
harder to sell.
Taking into consideration the fact that you want a special neighbourhood at
all costs, then a negative can become your positive.
e.g.. In Lawrence Park the houses are $450,000 to $700,000 for a good 4
bedroom home. If you buy on Lawrence Avenue, the price for the same house
is $300,000 to $400,000. Substantial savings for the same house with a
negative. It is your call.
Just call me and I can show you all of them! :)
Ernie Hills 00.