BUY
OR SELL FIRST? You may not want to sell
first and be caught without a place to live -
even for a short time! Nor do you want the expense
of owning two homes! But, by selling your current
home first, you remove the burden of uncertainty
and know exactly how much you've netted from the
sale - an important consideration in determining
the price range for your next home.
By selling first, you'll
negotiate the purchase price on your new home
more confidently. If you do buy first, make your
offer to purchase conditional on the sale of your
current home.
Financing may also be
a short term solution when buying first. Based
on your credit worthiness and the probability
that your current home will sell quickly, some
lenders may extend additional credit on a short
term basis, using the equity in your current home
as security. In a buyer's market, many people
prefer to sell first to limit risk. In a seller's
market, many will consider buying first.
SEARCHING
FOR THE PERFECT HOME You're house-hunting, your
CENTURY 21® sales associate has located the
perfect home and we make an appointment with the
seller to view their home. You walk into it and
immediately, you know - this is it! The windows,
the flooring, even the colors of the walls. It's
perfect. Or is it? Before making a final decision,
take a deep breath and carefully consider whether
this home offers the features that will last beyond
the first impression. Of course, location is everything.
Your decision on the neighborhood should depend
largely on the size and age of your family, your
income, and your personal preferences. Some people
prefer the city - others like small towns or the
suburbs.
No matter where you choose
to buy, here are some other factors to consider:
· Availability
of public transportation; accessibility to major
roads and highways.
· Condition of public facilities such as
streets, sidewalks, water and electric supplies.
· Proximity to parks and recreational facilities;
restaurants and theatres and shopping malls.
· Availability of public services such
as street cleaning, garbage collection; police
and fire protection.
· Proximity to medical services including
hospitals, doctors, dentists.
· Appropriateness of schools.
CONSIDER THE FUTURE
RESALE VALUE If you're thinking of this
as a starter home that you'll sell within a few
years, many people feel it's smarter to buy a
modest home in the best neighborhood you can afford,
rather than the most expensive home in a modest
neighborhood.
RESALE Typically, with a resale
home, you see what you get, and get what you see.
Also, resale homes are usually sold in more established
communities and neighborhoods. That means recreational
facilities, transportation links, support services,
schools and shopping centers are already in place.
Many people believe they get better value buying
a resale home, since appliances, light fixtures,
floor and window coverings can be negotiated into
the deal. Improvements like swimming pools, paved
driveways and landscaping automatically go with
the house, too.
BRAND
NEW
Newly-built homes have a strong appeal. Buyers can customize it to suit their
taste - interior colors, decor and finishings - with a variety of models and
styles to choose from. Most brand new homes have a warranty covering defects in
materials and workmanship. Buyers may be able to get good value buying from a
builder - by including extras, options and upgrades in the price.
However, before you purchase a brand new home, investigate the builder - the
reputation, the background, and the quality of work done. Don't be afraid to
knock on doors and ask other buyers what they think of their builder.
GET PRE-APPROVED With a pre-approved mortgage, you're much better prepared to
shop for a home because you have all the financial facts in hand, your purchase
commitment is far more likely to be one you can live with comfortably. Also,
you'll have a clear idea of what you can afford in terms of price, down
payment, legal fees and other expenses.
Offer to Purchase Once you have found the
home which best suits your needs and budget, the
next step is to have a CENTURY 21® sales associate
draw-up an offer to purchase. Be certain to review
the offer in detail before it is presented to
the vendor. Ask questions if you need clarification
and make sure that you understand exactly what
it is you're signing. Your CENTURY 21® sales
associate will ensure the offer clearly outline
all terms and conditions of the sale including,
among other details, the following:
· Basic details such as your name, the
name of the vendor and the legal and civic address
of the property you are offering to purchase
· Proposed purchase price
· List of all items included in the purchase
price
· Explicit details of all financial arrangements
· Closing date for the sale of the property
· Date of occupancy
· Any conditions attached to the sale
· Any specific obligations to be fulfilled
by the vendor
· A Certificate of Location or survey
How To Determine Your Purchase Price?
Your CENTURY 21® sales associate would have helped determine
the right price based upon a combination of factors:
· Number of homes currently available, both in general and in that neighborhood
· Asking price of other comparable homes in the area
· Recent history of sales of similar properties in the area
· Unique selling features such as a pool, fireplace, etc.
· General condition of the property and the area
· Immediacy of your need to purchase
· Vendor's need or motivation to sell
Once the offer is signed -- here are a few things you'll need
to take care of before closing day:
· If you're currently living in a rental property, either cancel your lease or
sublet the premises.
· Contact the water, electric and gas companies to have the meters read on
closing, new accounts set up in your name, and final bills paid.
· Contact the telephone company to arrange for your current service to be
disconnected, and service in your new home to be set up.
· Arrange for your move as far in advance as possible. Book a truck or mover.
And remember, packing will take more time than you think.
· Send out your change of address notifications.
Once You Move In
Now that you've taken
possession of your new home, it's time to get
your house in order:
· Get the names and addresses, payment
dates, account numbers and amounts you have to
pay for your mortgage and utility charges.
· Notify everyone about your change of
address
· Consider upgrading the locks to deadbolts
for greater home security.
