How to know when the house is right?

Mr. Speedy and I recently went to see a perfectly fine house. It was just slightly out of our preferred price range, but met all of our requirements, and then some.

It was located in a desirable east end neighbourhood, a short walk or bus ride to the subway, had three bedrooms, a wee backyard and a finished basement perfect for a rec room (which is not a requirement, but if we could get it, a seriously nice perk). The basement even passed the "Mr. Speedy" test, meaning that all 6 feet 4 inches of him could stand up straight in most of it. The rooms were smallish, but with a couple cans of paint and a few repairs here and there, it would suit our needs perfectly.

But I just couldn't see us living there. I couldn't imagine our stuff there, or us hanging out on the back deck with our friends. I couldn't picture myself cooking in the perfectly serviceable kitchen. For some reason, even as I tried to envision the decor changes we could make, it still just didn't feel like us. And I wanted to like it!

So, experiencing some sort of non-buyer's remorse that I'd passed up a property that would have been perfect for us (and which would likely get snapped up quickly, even in the current "buyer's market"), I asked my Tweeps (that's Twitter-speak for my followers) how I would know when I found the right home. And, thankfully, they came through for me!

Cobourg real estate broker @DaveChomitz told me that I would "absolutely know" when I find the right home, adding that "it may surprise you."

And follower @fathomco was also kindly reassuring, encouraging me to "stay the course ... you just know — kind of like when Mr. Speedy came round?"

Other chimed in saying that I really would know, somehow, when it was right, a message that certainly made me feel better! I'm back to believing that I will find something, and didn't pass on our dream home without realizing it!

Find me on twitter @jenspeedy

Catch up on the home hunt:

Making an offer

Home hunting makes me ... nauseous?

Resources for first-time buyers

Our first showings

Crunching the numbers

Finding Mr. or Mrs. Right ... Realtor, that is

Home hunting: Exciting, terrifying, all-consuming

What do we want in a home?

Am I house crazy?

Resources for first-time home buyers

As a real estate newbie, I've been doing a lot of reading, and, of course, watching HGTV's Property Virgins, to try to learn as much as I can about the process of buying a home. I don't want to be like some of those Virgins who aren't prepared with downpayment funds and aren't aware of the costs of homes or closing costs. So, in honour of my home hunt, I thought I'd share some of the things I've found valuable!

For starters, the Canadian Mortgage and Housing Corporation has a lot of great resources for home buyers (as well as sellers and renovators, but that's less helpful for me!). From step by step home buying guides to a mortgage calculator and other useful goodies, it's definitely a good place to start.

And, of course, Yourhome.ca has been a big help. Not only do I read it every day as part of my job, but it also keeps me up to date on the latest happenings in the market and gives me lots of reno and decor inspiration for my future home, from how to modernize a small city home to loftier ideas from Colin and Justin. Website promoting aside, anyone thinking about buying or selling really should be keeping up with their local media to stay on top of market conditions, which will help inform your decisions and expectations.

My realtor, @RealEstateSimon, is another great resource for answering my questions, especially those related to certain homes and neighbourhoods. Going to see properties with him has given me some hands on education, which all that reading (and TV watching) just hadn't taught me.

I've also just finished reading Realty Check, by Property Virgins host Sandra Rinomato. With useful checklists, real life examples and some no-nonsense advice to keep newbies from getting in over their heads, I'd recommend this as a very basic primer to those getting ready to venture into home ownership. Toronto and area-based examples are also a nice perk for those of us starting our home hunt in the city.

Where do you go for real estate advice? What resources would you recommend for first time buyers?

Our first showings

With our decision made, our priorities listed, our real estate agent chosen and our mortgage pre-approval in hand, the logical next step was to start looking at houses (and, of course, freak out a little).

The first few houses we saw all had great ... locations. Yeah, there certainly weren't any winners in the lot, but we did learn a lot from the experience, and got a crash course in outdated electrical codes to boot.

The first home we'd selected to see was a condo townhouse in an east end neighbourhood. We adored the location, just off the main drag and a few steps to transit, and the posted pictures looked pretty nice. Sadly, pictures don't tell the whole story. When we got there, we found a claustrophobic kitchen, an awkward layout, dark rooms and a front room view of a dumpster. There were no subfloors, so you could see into the rooms below through gaps in the flooring. Mr. Speedy and I did not see ourselves living there. But, we did learn not to get our hopes up based on photos in the future.

The next series of homes that we went to see, still in the east end, taught us a different lesson: If there are no photos, it's probably not because they didn't have access to a camera.

I'm generally a trusting person. I wanted to believe that photos of the properties were missing because they were waiting for the family to clean up the home or repaint, not because it was dirty and needed a lot of work. They all fell into the latter category.

From a cramped house with ceilings that were too low for the very tall Mr. Speedy to a few big projects, a rear entryway through a bathroom and a gaping hole in one third floor that prompted us to make a speedy exit, we saw a lot of duds.

But, thankfully, that didn't mean it was a waste of time. At one of the houses, we got to see knob and tube wiring, which we'd never encountered in person before, the green wire used for a decade sometime long before I was born and updated modern wiring, all coming from the same box.

We also learned a lot about warning flags in listing descriptions. While we were aware of the perils of terms such as "renovator's dream", "great lot" and "good bones", we came to learn that when anything is listed as "As is", even if it's just the appliances, it's often a sign that the rest of the property could use some TLC, and likely some cleaning. Also, one-line descriptions, when there's room for a full paragraph, now make us wary, as there should be lots of things to say to sell any property, whether it's listing the great nearby amenities or the included appliances.

And we learned that we might need to undertake a sizable renovation project if we want to live in some of the nearby neighbourhoods while remaining in our current price range. That's something we're still not sure we're up to doing. We could handle some re-wiring (well, hiring a licensed professional to do it, that is), but a full gut and rebuild project still doesn't interest us at all

After that evening (and a long shower to handle all the grime and guck that comes with homes that have been vacant for a while), we feel better prepared to select more promising properties from the listings, and, with the help of RealEstateSimon, find a place we can see ourselves actually living in. Wish us luck!

Catch up on the home hunt:

Making an offer

Home hunting makes me ... nauseous?

How do we know when the house is right?

Crunching the numbers

Finding Mr. or Mrs. Right ... Realtor, that is

Home hunting: Exciting, terrifying, all-consuming

What do we want in a home?

Am I house crazy?

Crunching the numbers

With our minds made up, our priorities listed, our realtor at the ready and a wee bit of a panic to boot, our next step was to crunch, re-crunch and re-re-crunch all of our numbers. And boy, are they big numbers.

Now, of course, prior to deciding to buy we had discussed budgets. We knew what we had in salary, savings, and monthly bills, such as metropasses and food.

We ballparked the new bills that would come with home ownership, such as property taxes, home insurance and repairs. We figured out how much we'd feel comfortable spending each month, and each year, and how much we would want to save, then calculated how much that left for spending on our home. A common figure for acceptable home-related expenses is about one-third of your income.

We'd been socking away money for our downpayment fund, and felt comfortable with the idea of paying the required Canadian Mortgage and Housing Corporation insurance for downpayments between five and 20 per cent. (A minimum five per cent downpayment is needed).

We also had the support of our family, and an offer to co-sign if necessary to help us with our mortgage approval.

Once we knew what we thought we could afford, and that this amount wouldn't mean living in a falling down home in a sketchy area, the next step was to find out how much the bank was willing to let us have — a figure we hoped would be in synch with our expectations!

We had been monkeying with online mortgage calculators, but were now ready to call in a pro and get a real estimate. We asked our friends and family for advice and decided to go with a mortgage broker who had been recommended to us.

Within a few hours, and after answering a lot of questions about our finances, savings, and expenses, we had a figure and a pre-approval document in hand, with the exact amount we had expected. (Guess all that number crunching really does pay off!)

Pre-approval is a good thing to do before you hit the street and start looking at houses. As first-time buyers, knowing the exact amount we can borrow keeps our hunt realistic.

And having this info before we started doing home viewings meant that we didn't risk the heartbreak of falling in love with a property we couldn't afford.

Getting pre-approved can also help speed up the closing, as the necessary credit checks have already been completed prior to making an offer.

It also makes the numbers seem a little more real. Suddenly you're not just playing with astronomical figures, but real money complete with monthly payment amounts and interest calculations. As I've mentioned before, Mr. Speedy and I have never spent this kind of money on anything before in our lives — our largest expenses to date have been our degrees and our wedding, and those costs don't nearly compare to the investment in a home!

With solid numbers to base our decisions on, and fret about, and the assurance that we will, in fact, be able to secure a mortgage, we're now ready to start looking at properties on the market!

Now our new worry is how we'll know when we've found the "right" place!

Catch up on the house hunt:

Making an offer

Home hunting makes me ... nauseous?

How do we know when the house is right?

Our first showings

Finding Mr. or Mrs. Right ... Realtor, that is

Home hunting: Exciting, terrifying, all-consuming

What do we want in a home?

Am I house crazy?

(Shutterstock photo illustration)

Finding Mr. or Ms. Right ... realtor, that is

Once we'd decided to take the plunge into first-time home ownership, and started to eke out some of our priorities for our first home, our next, and very important step was finding a realtor we could trust.

The real estate market can be very intimidating for newbies like us. Drooling over listings on the MLS website, or any other listing service, is one thing, but setting up showings, researching neighbourhoods and making offers is a bigger, trickier task!

We know some people decide to go forward with their home purchase without a buyer's representative, but we didn't really entertain that option. We knew we'd need help navigating this process, from figuring out what neighbourhoods fit our criteria (close to transit, safe, no obvious reasons why the property would lose value during our time there) and keeping us rooted in reality so we don't end up "house poor" to making an offer and recommending the other professionals we'd need as part of our home buying team, such as home inspectors and real estate lawyers.

Starting off, I knew a buyer's agent existed, but wasn't entirely sure how the system works. After a little research, and asking a few questions, I learned that the buyer's representative would help you find a property suiting your criteria, set up showings, offer counsel throughout the process and basically be there to represent your interests and answer your questions — all good things. I also learned that the buyer's agent's commission is paid by the seller.

Additional helpful nuggets included that realtors have way more access to information and listings than we do, and are able to spend their time staying on top of the changes in the market, the news and new properties — unlike most first-time buyers, who are peeking at the info during lunch breaks and evenings. They also are more familiar with all the factors that go into a property's value, such as nearby schools, zoning issues and resale value.

So, armed with that info — and a ton more questions — we were ready to start scouting for the perfect realtor for our needs, which meant making another list of priorities! While easier than figuring out what we wanted in a house, this list was still very important. We wanted someone who was familiar with working with first-time buyers — and enjoyed it! — and was familiar with the 'hoods of interest while also being professional, knowledgeable and friendly. We needed to feel comfortable with them, as we're entrusting them with one of, if not the, biggest decisions and purchases of our life. And, by the same token, we needed to feel like we can trust them. Finally, we didn't want to feel pressured. As first-timers, we needed someone gentle who wasn't going to ask for quick decisions in this daunting task, and who wasn't going to make us sign anything on our first meeting. (As a side note, most realtors say you shouldn't sign the Buyer's Representation Agreement on your first meeting anyway.)

I'm happy to say that we've found someone who meets all those criteria, and then some. We call him @RealEstateSimon, as per his twitter handle (follow me @jenspeedy), and we love the fact that he tweets and blogs, as it gives us other ways to communicate and learn from him. As an added bonus, it means he spends almost as much time online as we do, as email tends to be our preferred method of communication. (You can email someone about a listing at 1:30 when your insomniac husband finds a promising place. Calling would not be so much appreciated.)

So, Mr. Speedy and I are plugging away in our search, but feel a little less worried now that we have a professional to help guide us along the way!

Catch up on the house hunt:

Making an offer

Home hunting makes me ... nauseous?

How to know when the home is right?

Our first showings

Crunching the numbers

Home hunting: Exciting, terrifying, all-consuming

What do we want in a home?

Am I house crazy?

Home hunting: Exciting, terrifying, all-consuming

I was going to write about choosing and working with a realtor today, a process Mr. Speedy and I have recently started with Simon, who I consistently refer to in conversation as @RealEstateSimon as per his Twitter handle. But, after a night of strange dreams of fires, floods, earthquakes and houses being grabbed like the last patio table at Ikea, I've decided to share a little bit of the emotional roller coaster that is deciding to be a first-time buyer. (I promise more on realtors, and Simon, next week!)

We got our pre-approval for our mortgage yesterday (hooray!) and suddenly, buying a home seemed a little more tangible and the numbers seemed a little more real. My degree, which we're still paying off, our wedding and our sofa have been our largest purchases to date, and they're still several hundred thousand dollars less than a home!

Being a homeowner is a huge responsibility. It makes me feel very adult. Yes, I know I have a degree, a job as a web editor at the country's largest newspaper and am married, but home ownership seems to be ramping all that up a notch.

If the roof leaks, the furnace breaks or the basement floods, I would no longer have a landlord to call. And, I'd have to pay for the repairs! "What would I do?" I asked last night in a panic-induced state after a bad dream involving all three happening simultaneously with a small fire and an earthquake (which, admittedly, is highly unlikely in Toronto). Well, in the worst case scenario, I'd grab a fire extinguisher and put out the flames, get someone in doing repairs ASAP and get a line of credit to cover that perfect storm of costs, says the rational part of my brain.

Beyond the repairs, maintenance and fees associated with home ownership, I think the waiting is the worst part. I'm scared we're going to let ourselves love a listing, then lose the property to someone more decisive while we're still making pro-con lists. I imagine houses being lined up in shopping carts a la Ikea, with people wrestling over the last available models while I poke through the dregs of a cleared out as-is section. I don't want to repeatedly fall in love with homes only to have my heart broken when someone else outbids us or snaps it up while we deliberate. How do will we know when it's right? Is it a solid pro-con list or a feeling? I don't want to rush, but I don't want to lose out with indecisiveness either.

So, while one side of my brain is overanalyzing, panicking and doing all those mile-a-minute things that I am wont to do, the other is dancing a jig over the excitement of having a permanent place to call my own, to decorate and unpack, and the enjoyment of looking at the property listings, even those out of my price range or the ones listed as having "good bones." I love the idea of Mr. Speedy and I putting a stamp on our own property, building equity, and having the same address for more than 10 months (though we may actually make it a full year in our current rental, setting a new record!).

Overall, it's an exciting, terrifying adventure. At any given moment, I am 100 per cent convinced that we're making the right decision and totally terrified that we're going to get in over our heads (though that's not really our thing. After all, we do the pro-con lists).

We need congratulations, encouragement, consoling and a little hand-holding and reassurance. But, all in all, I think it's going to be quite the adventure and highly rewarding!

Get caught on up on the house hunting adventure:

Making an offer

Home hunting makes me ... nauseous?

How to know when the house is right?

Our first showings

Crunching the numbers

Finding Mr. or Ms. Right ... Realtor, that is

What do we want in a home?

Am I house crazy?

What do we want in a home?

Once we decided to take the plunge and explore home ownership, our next step was to try to decide what we wanted in a home, and what was a must-have versus what would be nice.

It was a lot tougher than I had expected. After throwing out the ridiculous and impractical ideas (such as Mr. Speedy requesting space for a suit of armour), we found that our list of priorities was actually pretty small — basically, we wanted something with two or more bedrooms in a safe neighbourhood close to the subway.

Which neighbourhood is still up for debate. We love living in the east end, where we have rented since coming to Toronto, but we don't want to rule out any other fabulous, and yet-undiscovered, hoods either. Plus, with our price range, we figure a little bit of flexibility is important! As long as it's safe and close to public transit, we'll be willing to consider it.

As for size, we really want to find a place we'll be happy living for the next 10 years (which, based on our nomadic moving history, is pretty epic). So that means that cramped one bedrooms are definitely out. A two bedroom could suit our needs, while a two plus den or rec room would be divine!

We also decided we're not looking for a project. We don't want to keep renting while undergoing an enormous renovation on our new place, or, heaven forbid, trying to live in a house through the overhaul. Small projects are OK, but places described as having "a great lot" or "good bones" are certainly not on our radar.

So, with these things in mind, we've started looking at listings, which is also helping us add to our "nice to have" list.

Prowling the listings with home ownership in mind, rather than simply window shopping, has helped us decide that a laundry room would be nice, and that having our own laundry is a must, even if it means a plumbing project. And an outdoor space would be a great perk, but, given my lack of a green thumb, a gorgeous garden isn't going to add much to the value for us.

Obviously, we've still got a lot of decisions to make before we find our "dream" home (or condo, or townhouse, or condo townhouse ... we haven't decided on that yet either!), but we're ready to start crunching the numbers, working with pros and, very soon, taking real-life instead of virtual property tours!

Read more:

- Am I house crazy?

- Home hunting: Exciting, terrifying, all-consuming

- Finding Mr. or Ms. Right ... Realtor, that is

- Crunching the numbers

- Our first showings 

- How to know when the house is right?

- Home hunting makes me ... nauseous?

- Making an offer

Am I house crazy?

After getting married, some women go baby crazy. They start shopping Pottery Barn Kids and Baby Gap, browsing nursery decor and investigating Registered Education Saving Plans. I am not one of those women. Seven months into married life, children aren't on my radar. I have a hard enough time keeping my african violet, my bunny and Mr. Speedy well-fed and happy.

However, I have found myself a little obsessed of late. Maybe it's an obvious side affect of my job, or having moved 10 times in the past five years (three in the past 2), but I find myself longing for a more permanent residence, one without leases and the inevitable "Should we stay or should we go?" discussion. (Obviously, this often ends on the "go" side of things).

I want to finally unpack all the boxes that have followed me between apartments, and provinces, without worrying about how soon I'll need to repack them. I want to be able to paint, renovate and decorate on a whim (though I likely won't! I just want to have the option). I want to start building equity.

So, as the volume of properties on the market has spiked over the past few month, while prices have slightly tumbled and interest rates have reached new lows, I've been highly tempted. A recent RBC survey found that the majority of Canadians believe we're now in a buyer's market, and I want to be one of those buyers!

For the past several months (more than I want to admit) I've spent my evenings surfing starrealestate.ca and drawing up lists of priorities with Mr. Speedy (more on those later this week). Instead of playing video games or baking cookies, I'm checking mortgage rates. I'm a woman on a mission.

And, I think it's time to make the move from window shopping to starting to hunt for a place we can call our own. A place where all the credit card companies, alumni associations and bulk mailers will finally find us, along with cards and invitations from our family and friends, who have had to add an extra section under "S" in their address books.

It's a big, and scary, step. I'm scared we may not find a good place in a safe neighbourhood in our price range. And, with the economy collapsing all around us, it's hard not to be concerned that we're making a wise financial decision. But, we're going to look. We're going to research and learn. And maybe, just maybe, we'll finally put down roots and stay at an address for more than 11 months (our current record). Wish me luck!

Read more:

- What do we want in a home?

- Home hunting: Exciting, terrifying, all-consuming

- Finding Mr. or Ms. Right ... Realtor, that is

- Crunching the numbers

- Our first showings

- How to know when the house is right?

- Home hunting makes me ... nauseous?

- Making an offer

It's a buyer's market: RBC

Home prices are sliding and the interest rate has been cut again. Two in three Canadians (sixty-five per cent) say all signs are pointing to a buyer's market, according to a new RBC survey.

And, apparently, people are ready to take advantage of it. More than a quarter of respondents, 27 per cent, said they intend to buy a home over the next two years. That's actually up from 23 per cent in 2008. Out of these prospective buyers, three in 10 say their decision was driven by the drop in prices.

In Ontario, the rate is even higher, with 73 per cent saying it's currently a buyer's market and 30 per cent planning to buy, up from 21 per cent in 2008. Thirty-two per cent of those planning to buy said they were influenced by lower home prices.

Almost half of Canadians (48 per cent) and more than half of Ontarians (54 per cent) said it makes sense to buy a home now versus waiting until next year.

The upsurge is driven by the under-35 set, as 48 per cent of the respondents in that age group said they plan to buy, up from 36 per cent in '08.

And, people believe prices will continue to drop. Fifty-four per cent of Canadians believe housing prices will be lower in 2009, up from 31 per cent in 2008. Fourteen per cent of Canadians believe their home has lost value in the last two years.

And, despite plunging prices, 83 per cent of Canadians, and 84 per cent of Ontarians, still see home ownership as a good investment, down slightly from 85 per cent in 2008.

"The current economic environment does not appear to have dampened Canadians' overall confidence in the housing market," said Karen Leggett, head, Home Equity Financing, RBC Royal Bank, in a release.

"Canadians continue to have an overwhelming belief in the long-term value of a home and we're seeing this in the buying intentions of many first time homebuyers this year."

Other nifty facts from Ontario:

— 76 per cent of those planning to buy in plan to purchase resale
— 69 per cent will opt for a detached house
— 96 per cent said low energy consumption was important to them
— 91 per cent were interested in standardized energy ratings for their homes

The survey, conducted by Ipsos Reid between Jan. 6 and 9, polled 2,026 Canadians.

Realtors get innovative

It seems like I'm posting a doom and gloom real estate market story almost every day. From news that the real estate boom is over to the roof caving in on housing starts, the depressing bits can get kind of overwhelming.

But, the good news is that tough times force people to innovate. And, according to a story in today's Globe, realtors are using social media to take home buying and selling to a new level.

From Twitter (you can follow me here) to Facebook, blogs, Kijiji and Craigslist, realtors are capitalizing on social networks to attract new buyers and sellers without all the traditional costs of printing cards and flyers.

I've certainly noticed this. My Twitter feed is full of realtors and interior designers, many who offer a mix of the personal and the professional in their tweets.

I've even been communicating regularly with two realtors through Twitter's direct messaging, asking questions and getting information for upcoming articles and personal use.

For consumers like me, this is a real boon. You're no longer constrained by trying to get that phone call in while they're still at the office, or stuck missing a call because you're trapped on the subway. You can send out a question on Twitter or Facebook and wait to see who replies at any time of day. You can reply to emails at midnight when you can't sleep, and sometimes you'll even get your answer back within minutes.

What do you think of this emerging real estate model? Do you think it will continue when the market rebounds?

And, for all you Friday afternoon procrastinators, read up on the latest news in Yourhome.ca's real estate section and catch up on Room for Improvement's office overhaul.