4 Things All Home Buyers Should Remember

The decision to move is a big choice to make. You and your family have most likely thought long and hard about it. The reasons that drive such big changes are varied, and they’re unique to every family.

In my experience, there are two kinds of factors that influence people’s decision to relocate to a new home. I like to categorize them into two groups: the Known Factors and the Hidden Factors.

Known & Hidden Factors to Remember

While the Known Factors are the ones most of us think of when we’re gearing up for a move, the Hidden Factors are just as important—if not more so—and should not be forgotten. Let’s take a look at both.

When I say “Known” Factors, I mean the reasons we typically have for moving. These can be as varied as moving for a new job, wanting to live closer to or further from the city, upgrading for a growing family or downsizing for retirement.

These considerations can be the impetus for change, but then what I am calling the Hidden Factors kick-in. These are things that Canadians should keep in mind when planning their next move.

1. Mortgage Pre-Approval

Hidden Factor #1 when planning your move should be your mortgage pre-approval. Work out how long it will take to get pre-approved, and once it’s done, make sure you have the funds ready when you need them to close on your new home.

2. Timing is Everything

Hidden Factor #2 is timing. I mean in terms of average house prices and whether they’re going up or down.

If you know you’re not planning to stay more than 5 years in your current home, you’ll want to keep a sharp eye on the market and carefully plan your timing when you decide to sell. If, however, you’re living in a house you plan to be in for the next 20 years, timing will be less of a consideration as historically, Canadian homes have appreciated in value in the long-term.

3. Prioritize Your Renovations

Hidden Factor #3 is actually one to keep in mind well in advance of your move. It’s about prioritizing renovations. Let me explain:

If you’ve recently moved into a home and you plan to be there for a while before reselling, you may be tempted to redo the kitchen or perhaps the bathroom. But are you renovating out of necessity? Or for a profit?

If you want to make some money on your resale, it makes sense to wait until a year or so before you move to do major renovations. They’ll be more up-to-date and in line with current tastes.

4. Don’t Forget Closing Costs

Finally, Hidden Factor #4 is closing costs.

There are a number of costs above and beyond your down payment.  Lawyer fees, land transfer taxes, taxes on CMHC default insurance, inspections, etc....  I have a complete list of expected costs you may not have considered.

If you’re planning a move in 2014, keep these four Hidden Factors in mind. Take time to talk with your financial advisor in preparation for your sale and remember: Whether you’re upgrading or downsizing, the most important factor is that you love the home you’re in.

Contact me today to have a professional help guide and advise you during the exciting time!