1. Make sure that you can afford to purchase PEI real estate at the present. Sometimes you will be wiser just to rent for a while until your financial state becomes more stable. Remember that there are more expenses to home ownership than just the mortgage. Include taxes, utilities, repairs and maintenance etc
2. If you are in a financial situation to buy
PEI real estate – always determine the amount that you can afford monthly including those extras mentioned above and then go to your financial institution and apply to be pre-approved for that amount
3. Always view and inspect before buying. This step is particularly important in the case of PEI where you may live in another province. Don’t purchase from afar – come and view the properties
4. As you are viewing properties begin short-listing those that are worth a second look. If you aren’t eliminating those properties that don’t meet your basic criteria then you will become confused and forget which properties where suitable and which not. Do a thorough market research and make sure that you have an understanding of the
PEI real estate market in the area that you are buying.
5. Don’t rush – take your time and make sure that you have defined goals and objectives and that the properties that you are short-listing meet these
6. Make your final decision based as much as possible on objective reasoning and not emotional reaction. Depending on your reason for buying some of the best properties might look the worst. If you are buying to renovate and build “sweat equity” then obviously you are looking for an un-renovated home selling at a lower price. These types of homes will obviously not always create a warm, fuzzy glow when first viewed
7. Determine the real reason the vendor is selling as this knowledge will not only help you negotiate effectively but also alert you to the possibility of other problems with the property. Always use an experienced agent who is familiar with the area that you are buying in.
8. Ensure that the offer you submit contains all the “subjects” or conditions appropriate to your situation. Examples include subject to selling your current home, subject to financing, and in the case of non-residents of PEI real estate , subject to IRAC approval. Also ensure that you have detailed all the extras that are to be part of the purchase rice. These may include drapes or blinds, appliances, outdoor sheds or buildings and sometimes in the case of cottages here on PEI the cottage is sold “turnkey” and all household items down to knives and forks are included. While making sure that you are offering a price that you can live with re-paying – remember perhaps more than other places vendors tend to “take offence” at low-ball offers here and refuses to proceed further
9. Always make sure that before closing and as a condition of sale that the home is inspected by a qualified home inspector. If you have any questions about structural aspects of the home, particularly basements, for example if you see a crack in the basement wall, bring in an appropriate contractor for an opinion on the seriousness of the defect and a quote on repair costs. You may be able to re-negotiate and have the vendor absorb some of that cost.
10. Use professionals at all times and this includes at closing. Ensure that you have experienced legal representation. This is a large personal purchase, the ramifications of which will follow you through life for 25 years or more. This is not the time to “cheap-out” or makes mistakes.
