Buying a condo can seem like a daunting process for first time buyers. From getting approved for a loan to finding the perfect place, the steps toward purchasing a condo can take months. The best way to get a good deal is to become informed about the marketplace. New buyers are often uninformed about the real estate market and uncertain how the process of buying a home works. To get ahead of the game, learn more from tips provided by TorontoCondoTeam.ca about the process of buying Toronto condos.
Money, Money, Money
To purchase a condo, you need money. Since most people do not have thousands of dollars on hand, you will need to visit your bank or mortgage broker. Once at the bank, fill out forms to become pre-approved for a mortgage. Most banks will require you to submit your pay stubs and yearly income. With the current economy, you will also need to have a good credit score or a significant down payment.
Before you even look at your first condo, you need to know what your price range is. By visiting a mortgage broker first, you can find out how large your loan can be. Afterward, you can ensure that whatever condo you look at is within your financial means.
Navigating the real estate market is difficult for a buyer. To find the best deals and complete a purchase, you will need to have a real estate broker. Find a real estate broker that you trust and who is reliable. This person will be in charge of steering you to the right condo. Too often, brokers become interested in taking home their commission. You want to select someone who has your best interests in mind and not just their paycheck.
Looking for Properties
Once you have found a real estate broker, share your ideas with them. Only you know exactly what you are searching for in a home. Tell them how many rooms, the location and price range you are looking at so they can help you to achieve your dreams.
After the real estate broker knows what you are looking for, they will begin showing you different Toronto condos. The broker will make sure that any property you look at fits your unique interests and needs. While you are out looking at a condo, look carefully at the unit. Consider if the location around the Greater Toronto Area is convenient for you and if the amenities suit your needs. From landscape fees to gym memberships, a condo can offer a wide range of extra amenities. If you do not need the extra amenities, try finding a cheaper condo without all the miscellaneous trappings. With the current real estate market, you will also want to carefully consider if the property value will go up in the future. A higher price now does not necessarily mean that you will be able to sell it for more later on.
If you have found the perfect condo, tell your realtor. They will research the unit and see if it is worth the current price. Before it is purchased, the realtor will also carry out their due diligence to make sure you are informed about any potential issues.
Once due diligence is complete, it will be time for you to make an offer. Your realtor will already have calculated what the property is worth. Normally, they will send in an offer that is lower than what you plan on paying for it. If you need to, you can have a lawyer review any documents or price offers. Once the offer has been decided on, the realtor will submit it to the realtor selling the property. The other party has a set amount of time to consider the offer and return it. Within this time period, you are held to your offer. If the seller chooses to accept it, you are not allowed to back out. Once this irrevocable date passes by, you are no longer held to the terms of the offer.
Buying the Condo
If the seller agrees to the price, you can purchase the condo. Sometimes, the seller will choose to have a sell it conditionally. Normally, a seller will choose to sell it conditionally if they want their lawyer to review the contract or want to ensure your financing plan works out. If they choose to sell it conditionally, you will be able to have a short period of time to back out of the conditions if you want to. After all of the conditions are met, you will sign off on a waiver and the deal is complete.
All that is left for the buyer is to pay for the house and get the keys. At this point, the lawyers, buyer and seller meet to make the exchange. The title of the condo will be switched over to you and you will retain ownership. At this point, you have completed the process of buying a condo!
The best way for you to get a good deal on a condo is to find a real estate agent you trust. Choosing a home and making an offer can be stressful for even experienced home buyers. Find an agent you trust and spend time looking for a condo suited for your specific needs. After all, most people will live in their condo for years or decades. Select the right condo now so that you will enjoy your property for years to come.