AMG
buyer’s guide
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WHERE BUYERS COME FROM INSIDE THE NUMBERS First-Time vs. Repeat Buyers: • First-time buyers: 35% • Median age of first-time buyers: 32 • Median age of repeat buyers: 52 • Median household income of first-time buyers: $72,000 • Median household income of repeat buyers: $98,000 • Among those who financed their home purchase, buyers typically financed 90% of the home price. • 88% of buyers purchased their home through a real estate agent or broker—a share that has steadily increased from 69% in 2001. • Buyers who definitely would use same agent again: 73%
SHOPPING WITH A POWERFUL SOURCE We offer a buyer profile system to get you all MLS® System listings that meet your exact requirements. Using one of these systems can greatly increase your chances of finding that perfect home as you will be made aware of all existing and new listings that meet your requirements.
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HOW DO BUYERS LOOK FOR A HOME?
51% internet (home searches & research) 34% realtor 4% call on yard sign 4% friend/relative/neighbor 4% open house 2% new builder 1% local newspaper & magazines 1% knew the seller
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WHAT WE BELIEVE IN... Our team believes that building a strong relationship with each of our clients is one of the most important things. They strive to provide exceptional customer service through constant communication, accountability, and sincerity. “We truly believe in our clients and will always have their best interests in mind. This responsibility is so important to us, that we make it our goal to help our customers achieve their goals.”
PROFESSIONALISM We offer our clients professionalism and honest trustworthy representation. “If we are not on our game, it could cost our clients thousands of dollars which can leave a lasting effect. Our clients put their faith in our team to provide the best service possible. We believe that this starts with a professional approach.”
OUR PROVEN SYSTEM Our success is based on constant, open communication with our clients. We go out of our way to make sur our clients have all the accurate, up-to-date information to make informed educated real estate decisions. Whether it’s setting the right price, or choosing the right home, we help our clients make the right move.
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PREPARING YOURSELF TO BUY YOUR NEXT HOME Starting the journey to home-ownership can be overwhelming and stressful. But with a little planning, you’ll get the home that’s right for you. A home that strikes a balance between your “wish list” items and the practical realities of the property, location and the housing market. Before you know it, you’ll have a place to call your very own. A place to entertain. A place to decorate and a place to raise a family. Below we will review the buying time-line and what you should expect throughout the process. This cycle is commonly used to develop a better understanding of the buying process.
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CONTACT AMG WHENEVER YOU NEED Contact Agent Marketing Group anytime you need to know what’s really going on in the market. If you have questions, they’ll have the answer! When you’re ready to take the next step toward buying a home, they’re here to help. It’s all part of us providing quality customer service while helping you become an informed buyer along the way.
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BUYER’S INFO When purchasing a home, you are faced with a multitude of decisions! The primary one is whether you are actually prepared to purchase a property. Locating the perfect home is not always an easy task, and obtaining a mortgage loan can be a complex and tiring process. Once you have determined that you are ready to move forward towards your home-purchasing goal, the rewards are unquestionable. Our team will make the process of purchasing a home easier, more enjoyable, less time-consuming, and less expensive than if you undertook this challenge on your own. They will help you prepare so that sellers perceive you as a preferred buyer, help you locate and assess properties for sale that match your specifications, and help you through the myriad of details attending the actual purchase. YOUR FIRST STEP Your first step in buying a home is to ask yourself why you want to buy a home: to stop paying rent? To start building equity? To have a place of your own? To raise a family? To entertain business associates? To move up to a bigger house? Next, list what kind of home you’d like and where you would like to be. Be specific. Separate the “must haves” from the “want to haves.” Think of yourself as zeroing in on a target, moving from the general to the specific. Consider area (city, suburban neighbourhood, country); community (north, south, east, or west side); neighbourhood (older and settled or sparkling new; a particular school zone; recreational facilities; and other community services such as transportation, day care, library, stores, entertainment). Ask yourself how much time you are willing to spend commuting. Think about home styles. How much space do you need? Does your situation require a one-level home, or are stairs acceptable? Consider size and kind of property. Do you want a newer home, or maybe an older one to fix up? Someday you or your heirs will want to sell. Consider how long you expect to live in this particular home. 8
THE RIGHT RESPONSE HELPING YOU MOVE FORWARD! Real estate can be scary for some people. There are so many obstacles to overcome from finding the right mortgage broker to finding the right home in the right neighbourhood for the right price. From the first contact you will realize that we are not your average real estate team. We care. We treat you like family. We listen, learn, teach and grow with you every step of the way. We connect in a way that we consider “the right move!”
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UNDERSTANDING HOW SELLERS SET THEIR PRICE Sellers price their homes in several different categories and it’s important to consult your agent about the price of a property. Keep in mind that roughly 75% of all homes on the market are priced 5-10% above fair market value.
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WANTS & NEEDS WHAT IS MOST IMPORTANT TO YOU? MOTIVATION - What are the reasons you have decided to buy a home? Does your motivation justify your needs and wants? TIMING - What is your timeline and when are you looking to close on your home? PRICING - What is your price range? Typically this is one of, if not the most important factor when looking at purchasing a home. Does the home you are looking for fit your budget? DECISION MAKING - Will anyone else be involved in the decisions moving forward or are you the primary decision maker? LOCATION. LOCATION. LOCATION. - You’ve heard this before, but understand that there’s so much more to a property than simply where it is located. A desired location comes with many compromises. Are you willing to compromise? HOME TYPE & STYLE - From suburban townhomes to highrise condos and sprawling rural bungalows to luxury estates, your personal style usually impacts the style of home you get. However, there are many factors that you must consider that play a huge role in the style and type of home you desire. HOME SIZE - How important is size? Obviously it matters, but if you are able to get something that meets your minimum requirements in a desired location but lacks some of the other things you want, would you be willing to compromise on those other things? These are common questions that you may need to ask yourself during the buying process.
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LOT SIZE - How big of a backyard do you want? Enough room to entertain or for the kids to run around and play in? Does it matter if the yard is west facing the mountains? FLOOR PLAN - What type of layout would you like in your home? Closed-compartments or open concept. Does the flow of the home matter to you? Newer homes and newly renovated ones tend to have an open concept with a high focus on the kitchen, master bedroom and ensuite. However, older homes usually are spaces defined by walls and compartmentalized with more focus on gathering spaces and less focus on the kitchen, master bedroom and ensuite. AMENITIES - What other features are you looking for in your new community? Shopping, transit, schools, proximity to work, local coffee shops, grocery stores, bike trails, parks, recreation facilities, etc. Amenities play in to your everyday lifestyle. Their convenience could make a huge different on the way you live your life. Consider this as an important factor when deciding what home best fits your needs.
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HAVE ROOM TO NEGOTIATE Before settling on your maximum offer price make sure you leave yourself enough room in which to bargain. For example, set your lowest and highest offer price. Then depending on how much you want the home, make a respectable offer that the seller can work with, but is not the maximum you would pay to start. However, be prepared to go to your max if necessary.
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MORTGAGE INFO DIFFERENT TYPES OF MORTGAGES Getting a mortgage is one thing. Getting a mortgage that best suits your situation is another. Some mortgages have less strings attached but have more strict stipulations, while others may be harder to get, but have more flexibility. It is important to have all the information about mortgages available to you before you decide to move forward in the purchase of your home. CREDIT HISTORY All lenders review a borrower’s credit history to determine the type of credit used, the amount owed, and the borrower’s repayment history. INCOME & ASSETS Most loan programs require the lender to verify all of your income sources. Typically you will need to provide pay stubs, your T-4 and copies of your tax returns. Lenders will also want to go through your assets and how much of a down payment you will have when determining your loan approval. DETERMINE YOUR PRICE RANGE The best place to start when buying a home is to find out how much house you can afford. The Thomas Yeung Group can refer you to a mortgage broker who can assist you with determining how much of a down payment you can afford, comfortable monthly payment, and the type of loan that best fits your needs. Serious buyers who are highly motivated should go through the effort of getting pre-approved; not only will this allow you to focus your time on searching for a home, but it will also position you as a serious buyer in the eyes of sellers when the time comes to make an offer. TOUR HOMES IN PERSON AND ONLINE
Check out homes online. This helps connect you with sellers who are selling their home in your local market.
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MAKE A LIST AND PRIORITIZE Imagine your ideal home and location. Now make a list of everything you envisioned, take that list and break it down from high to low priority. High-priority items are the things you cannot live without in your new home. (Large Bedrooms, Large Closets, High-end appliances, proximity to amenities and schools, etc.). Lower-priority items are those that are an added bonus, but not necessary. (Jetted-tub, landscaped yard).
“68% of buyers are NOT satisfied with their agent’s buying process.”
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GETTING HELP FROM YOUR LENDER Depending on your financial standing, you may have assets worth equal to or more than your needed down payment. If this is the case, your financial institution may be willing to lend you the extra cash needed for your down payment, while securing it against your assets. Don’t ever think that nothing can be done. Ask questions and find out if your lender can help.
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OFFERS & INSPECTIONS GETTING STARTED All offers will be made in writing and presented to the seller’s representative/agent. All accepted terms and conditions carry through the life of the contract unless both parties agree to amend in writing. PURCHASE PRICE You want a good buy but your offer must also be reasonable to the Seller. Low-ball offers can sometimes upset the seller and prevent further discussions. Make sure your offer is fair and reasonable. AMG will guide you through this part of the process to help find a reasonable offer to present, but ultimately, you decide how much the property is worth and what you are willing to pay for it. INCLUDED ITEMS What items do you want to be included? (Fridge, washer, dryer, hot tub, window coverings?) EXCLUDED ITEMS What items do you not want to be left behind? Sometimes, the sellers will leave behind things they do not want. E.g. Deck furniture, barbecue, shed, outdoor garden light fixtures, etc. Make sure you are specific if there is something you do not want left behind. INITIAL DEPOSIT The importance of this item is often overlooked. This shows commitment and will secure the property for you. METHOD OF PAYMENT Will this be a cash sale or a traditional mortgage and how much of a down-payment will you be providing? POSSESSION When does the property legally change ownership, when do you receive keys? This is important for you because it helps you organize the transition of your move and make preparations necessary.
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THE HOME INSPECTION PROCESS Hiring an experienced home inspector will help you discover it’s true condition and what may lie behind close doors that you can not see. TYG has a group of trusted inspectors that can assist you in making sure your potential purchase is a safe one. Some of the things home inspectors investigate are shown below. The inspection is vitally important if you want to learn about your new home and determine the condition the home is in. Being an informed buyer means you should always be aware of the potential pitfalls of the buying process and an understanding of what to expect throughout. Home inspections can give you specific details of the home that help you make an informed decision.
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DON’T RUSH THE CLOSING Take your time during this critical part of the process, and insist on seeing all paperwork the day before you sign. Make sure this documentation perfectly reflects your understanding of the transaction, and that nothing has been added or subtracted. If you rush this process on the day of closing, you may run into a last minute snag that you can’t fix without compromising the terms of the deal, the financing, or even the sale itself.
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AMG PH: 403-475-1811I E:info@agentmarketinggroup.com www.agentmarketinggroup.com 16