Spring is in the air, and the real estate market is ramping up for the beginning of buyers’ season.  Things tend to move faster in the spring and houses for sale are often sold shortly after they are listed.  As a potential home buyer, it is important to be prepared as possible before you start looking at potential homes – that way, the chance of losing your “dream home” to another buyer is greatly decreased. You may be wondering … “What are some of the important things that can help you stay on top of, and ahead of this year’s spring market?”  Have no fear, in this toolkit, we have everything you need to know and do, to make the buying experience go smoothly for you!

Your “Tools”-What you want to be prepared with ahead of time:

Mortgage Information & Pre-approval

Find out what mortgage you qualify for, and get your mortgage pre-qualification.  By taking this step you’ll know exactly what you can afford to buy and when you’re ready to make an offer, you can be confident knowing you are staying within your financial boundaries.  A financing condition is pretty standard in an agreement of purchase and sale; after your offer is accepted by the seller the time you have to meet the conditions is best spent finalizing your financing on a specific property rather than starting the approval process.

A Realtor

Although that seems like a no-brainer, making sure you have hired the realtor who is right for you is very important when it comes to purchasing a home.  Do some research, ask questions, interview a few realtors, check online profiles and reviews.  You’ll be spending a lot of time with your real estate agent; make sure you trust them, that they’re knowledgeable and that you’re comfortable with them.  Quick and easy contact with your agent is another key piece when it comes to signing and sealing a deal.

Your List of Needs vs. Wants

Knowing what you’ll need in your future home, and things that you want (your wish list) is one of the most important aspects when it comes to looking for a new home. Needs are things that you must have in your new home (e.g. minimum number of bedrooms, a yard for the dog, a safe neighbourhood) whereas the wants’ or your “wish-list” are things you don’t necessarily need, but you’d like to have (Example: Granite countertops).  Your “must-have” list will help you rule out homes for sale that aren’t suited for your needs rather than spending valuable time on those that don’t.  This process can also open up your search options if some of the things on your need list actually turn out to be wanted.

Pro-Con List

It’s important to keep a list of the pros and cons of each property that you visit, in order to have a better recollection of the home that is best suited for your family. Remember to check small details in each home, like testing the lights, and plumbing, and make note of the neighbourhood characteristics.

Trust Your Gut

When it comes to knowing what home is the right choice for you, you can use the simple tools listed above to help make an informed decision, however, the most important aspect of home-buying is knowing when to trust your gut. The spring market moves quickly, and sometimes being prepared, and trusting your instincts are the two key factors standing between you, and successfully making an offer on your future home in time. If the potential home is in your price range, and has the combination of needs and wants you to desire – don’t take the time to sleep on it, or you may lose the opportunity to make an offer. Trust your intuition and keep in close contact with your realtor to have the best support and knowledge while making these decisions.

There are many different aspects that are key elements to finding the right home. Working with your realtor to negotiate for a fair price, finding the neighbourhood you’re comfortable with, and ensuring you have the right credit and down-payment for the home you’re interested in are just some of these factors. The home buying process doesn’t need to be complicated – a tool kit in hand, and a realtor by your side, will make this spring market a piece of cake for you.

Kelly Ebbs and Kerry Millican are your Ottawa real estate professionals at Royal Lepage Team Realty. Whether it is a condo or a family home, we are here to help guide you through the selling process. Together, we can make it happen. Get in touch to get started today!

Buying a home is a great accomplishment for many, but buying a cottage can feel like a dream come true. With aspirations of kicking back next to the lake and enjoying the solitude that comes with cottage life, residents in Ontario are now more than ever eager to find their own slice of paradise. While the luxury of this second property may offer an excellent way to break from the hustle and bustle of city life and enjoy some solitude, it is also an ample opportunity to earn income or to begin investing in Real Estate. But before you begin hours of globetrotting in search of the getaway home of your dreams, be sure to consider everything that owning a cottage entails; Speak with your REALTOR® for any advice they may have, tips on where to look, what to steer clear of, or for help with purchasing in another province. These are all big decisions to be made, and you should wait until you have the knowledge and information needed to get the most out of your property so that you can enjoy it for years to come. In the meantime, here are some considerations that should be made when looking to purchase your first cottage.

What is your Goal?

Prior to your search, ensure that you understand your goal in owning a cottage: Are you looking for a summer getaway spot, or a 4 season cottage to visit year-round; Do you desire solitude or is a community with neighbouring properties something that peaks your interest; Is water access a need, or does swimming and other water activities rank low on your list of must-haves; and finally, is this property for personal enjoyment, retirement plans, an investment opportunity, or as a means to earn a steady income. Once you know exactly what you want, you have a better idea of what it is that you should be looking for.

Costs

It is important to understand that the costs of operating a cottage differ from that of your primary residence. For instance, insurance alone can have higher rates due to the fact you are not there as often to check up on the home, and often have additional stipulations such as checking the property regularly in order to maintain the validity of the insurance policy. Other costs to consider when purchasing a cottage include hydro rates which may be delivered at a higher rate in rural areas, seasonal maintenance, property taxes, garbage disposal and recycling services, and the cost or availability of internet.

Access

Some cottages are very remote, making for unique factors in terms of accessibility. Before purchasing your cottage, it would be important to evaluate how you access the property throughout different seasons or any obstacles that may prevent you from enjoying your experience as a cottage owner to the fullest. Some potential hindrances include whether or not the property is accessible by land, the proximity in which you can park your car, the landscape surrounding the cottage, and whether or not you will have to climb stairs for water access.

Water and Septic Systems

As most cottages are located in rural areas, water systems and septic tanks usually coincide with ownership. Before purchasing your piece of paradise, be sure to understand whether or not the water available is safe for drinking, or if you need to bring your own supply each time you visit; If your cottage water supply runs from a well, you will need to incorporate in your expenses the cost to have the water tested regularly. If there is a septic system that the cottage uses, you should ensure that it is in good working condition and consider the costs that come alongside any regular maintenance; In addition, it would be good to receive proof of previous maintenance, inspections and approval reports obtained by the previous owners.

Amenities

Amenities are usually a big check on every homeowner’s list of requirements, but can often be prematurely dismissed when on the hunt for a cottage. Cross-reference the importance of amenities alongside your list of goals in cottage ownership. If you are looking for a place to retire, you may want to have the essentials within a short drive; If you plan to rent your cottage out for vacations, certain amenities may increase the demand of your property allowing you to charge a higher rate than cottages without.

Rentability

If you are looking to rent out your cottage to others as a means of income through websites such as Airbnb, ensuring your space meets the needs of cottage goers is essential to your success. What would you be looking for when renting out a cottage for your vacation? Things like waterfront access, availability of clean drinking water, accessibility, direction, amenities, and internet access are commonly sought out by renters when planning their vacation. Be sure to take these into consideration when searching for your rural getaway attraction.

Local Laws and Property Restrictions

Once you have purchased your cottage, you may have big dreams to build docks, workshops, or expand and upgrade the dwelling to meet more modern demands. Unfortunately, with building restrictions, by-laws, crown patents and waterfront issues this is not always the easiest process to initiate. In some cases, despite having waterfront access right off of your property, you may not have exclusive rights to the shoreline. Look to your Real Estate professional or Lawyer for help navigating and understanding your rights as an owner in respect to cottage and lake associations, local legislations, and any other official plans or restrictions.

Mortgage requirements

Typically, those who are looking to invest in a cottage already own a primary residence. If this is the case, it is good to understand that you will need a minimum payment of 20% as your down payment on a second property. If your cottage does not have year-round access, a larger down payment may be requested among other requirements in order to obtain financing from a lender. Securing a mortgage for a second property will depend largely on the type of property you are looking for, and your income to debt ratio. Be sure to speak with your bank or lender, or ask your REALTOR ® for help with obtaining information on how to be approved for your second mortgage.

Kelly Ebbs and Kerry Millican are your Ottawa real estate professionals at Royal Lepage Team Realty. Whether it is a condo or a family home, we are here to help guide you through the selling process. Together, we can make it happen. Get in touch to get started today!