7 Tips to Keep in Mind When Buying Your First Home

The majority of first-time homebuyers in Canada were born between 1980 and 1995, according to a recently released RE/MAX survey. This makes millennials the vanguards of the first-home real-estate market. If you’re in this demographic, you might be looking to fulfill your housing needs of today without thinking about tomorrow. Do you want kids soon, or maybe a new puppy? Looking at slightly larger properties or one with a yard might not make sense right now, but it will in five years’ time.

When that magical “Open House” sign appears in your preferred neighbourhood, don’t be shy. Get in there, look around and put on your inspector’s hat, keeping your eyes open for nasty smells, ceiling or wall stains, or crumbling anything. Ask questions about the house, such as the year it was built, recent updates, and age of the HVAC, electrical and plumbing. If you don’t get all that you need due to crowds, make an appointment to come back.

When shopping for a first home, it’s easy to get caught up in those little décor details that may turn you off. Yes, that glass-paneled chandelier is heinous, and the puce colour in the powder room makes everyone look sick. These are easy fixes. Light fixtures, paint colours, door hardware and carpets can all be swapped out for something much more stylish when the home’s yours. So, don’t sweat it; rather, see it as a sweet project that you get to live in for years (so long, rentals!).

You probably know this already, but just in case you don’t, money lenders require homebuyers to take out homeowners’ insurance. Not all home-insurance policies are created equal, so shop around for the best price with an institution you feel comfortable with. Also, take a very close look at what’s covered and – almost more importantly – what’s not. If you’re in a flood- or earth-quake prone area, these might cost extra and need to be calculated into your budget.

Finding the right real-estate agent is important when looking for your first home. You’ll be working very closely together, and your agent will also be your Professor of Property Hunting. Getting along well – and feeling confident in your agent’s competence – will make your buying experience a positive one rather than a painful one.

As tempting as it is to push your preapproval limit from the get-go, resist that potentially bankrupting urge. Looking for a new home below your limit will give you wriggle room for expenses that could arise after closing. If broken appliances, sudden pipe leaks and water tank replacements aren’t considered as a possibility (and budgeted for), you could be in deep water. Setting your purchase budget below your lender’s limit gives you readily available cash for sudden, scary costs or necessary renovations and upgrades.

Yes, with all that’s been saved and budgeted for already, there’s still one more thing to consider – what goes inside the house once you get the keys. It’s unlikely your old furnishings and accessories are going to fit seamlessly into the new space, so set aside some savings. There may be new rooms to kit out, fixtures to update, painting and personal touches to be added. Now, let’s be honest – this is the part that’s made the bidding wars, inspection fees and insurance hunting all worth it, right?

Now that you have some background and a budget, all that’s left to do is get out there and start hunting. Here’s to you finding your forever home (or maybe just the first of many)!