The first step in looking for PEI real estate is to enlist the assistance of an expert. Your agent should demonstrate a solid understanding of the process involved from helping you narrow your search list, completing the required paper work, demonstrating good negotiation skills, and the ability to handle the little bumps that come along after the paperwork is signed and the deal is being processed. Yes there are often little bumps and having a good agent makes all the difference in these matters.
How to begin? Give your agent a wish list! In this list include the 'must have' items and the 'would be nice to have' items. The type of information that is useful includes number of bedrooms, bathrooms, size of lot, city or country, water front/view or not and of course price range. Allow your agent the time to research the PEI real estate market for active listings that meet your 'must haves' and that incorporate as many of your 'would be nice' list. Having narrowed down the list, it is time for your agent to gather as much detail with respect to the short list as possible. Pictures, conversations with listing agents, and sometimes previewing the property.
Through your agent, arrange a visit to these PEI real estate properties. Setting up multiple viewing, especially over large geographical areas can be challenging. Seeing 6 homes in one day is generally considered the maximum reasonable number for proper comparative assessments. Having said that, sometimes when clients are from out of Province we need to push this number beyond the limit to accommodate viewing all of their prospective properties. Again, properly completing step 2 will allow you great leisure and better evaluations if you keep your numbers down. One tactic is the keep 2 rule. As you view the properties and you get to property #3, one has to drop off your list. By the end of the day you should be left with the best 2 candidates that meet your needs.
During the viewings, your agent has rules and regulations set forth by the PEI Real Estate Association that they must honour. Some consider these next 2 rules somewhat contradictory but they are manageable. First, they have a responsibility to the home owner to show the property in its best possible profile. Highlighting the strengths of the listing. At the same time, they have a responsibility to the purchaser to declare any known material fact about the property that might influence your decision about buying it.
In addition to viewing the general appeal of the property, you as a potential purchaser should be focusing on the 'big ticket' items, like roof, electrical, plumbing, and foundation. You can then instruct your home inspector to focus their attention on these matters. No home is perfect and no home is a poor purchase if you are aware of all major issues and are paying a fair price for it. Your agent can help, but the final responsibility is yours.
OK, you've made up your mind on which property you want, what next? With the assistance of your agent you fill out an offer for the vendor. Your agent will help you focus on the points of importance with the offer including advising you on offer price, setting dates for inspections, financing, water testing (if rural), and setting up any other required conditions. A note here, the more conditions, the weaker the offer especially if you find yourself in a multiple offer scenario. From the Vendors point of view, each condition may be a lost of sale or a hurdle in any event until close. From your point of view, these are necessary insurances that will clear the property of any doubt. There are no right or wrong here. Both parties have to be satisfied with all terms before a transaction can go forth.
Having negotiated the offer, your agent's work has just begun. Now the coordination of all activities to remove the clauses must begin and timing is paramount. This is a legal contract and if you don't waive your financing clause on time, you leave the door wide open for the Vendor to accept any other offer that might be presented. However, if everything gets done in a timely matter and conditions are waived properly the door is closed even to an offer double the amount of yours. Setting up and executing all of these steps, and dealing with their results is were your agent can become invaluable in securing your
PEI real estate contract..
Let say for example your home inspection reveals a major issue that might cost you $7,500 to fix. Is the deal gone? If you, through your agent can find acceptable common ground then the sale maybe proceed. Otherwise if the parties are at loggerheads, you're back to looking at offering on your second choice of
PEI real estate, if still available.
Most deals have little bumps along the way but they are usually dealt with quickly and effectively by your agent with your input. In the end the goal is to ensure your satisfaction as well as that of the Vendor.
