The Process of Buying a Home on PEI

Buying a home is most likely the largest investment you will make. It is a process full of ups and downs as you try to find the one home that will fill the most wants and needs and avoid those things that you definitely don't want.

The first thing you should do is decide and write down two lists that represent those features that you need, those features that you want and then a third that details the things that you don't want in your new home. Make sure that you consider such things as location and neighborhood including proximity to shopping, hospitals and the like, size including the number of bedrooms and bathrooms, finished basement etc., parking, heating and particularly if it is an older island home, the historic data on heating costs. Many vendors will say they don't know - however, insist, of course they know, they paid it!

You will want to think if there are other features you want eg a swimming pool, big garden or whatever you think is important in your home purchase. Alternatively you will need to think of those things that you simply can't live with. You may decide that you simply don't want to be on a main road, so you wouldn't buy on Highway 1 or 2 or you may decide that you must be on a main road that is well-cleared of snow in the winter. Your choice! You may also want to decide on a new home for heating efficiency and fewer repairs and maintenance or you may decide on an older character home for the charm.

You will add and remove items as you look at homes and get a better idea of what's out there and what you can afford. There is rarely the perfect home but I recommend having a look at 3 and then eliminating the least attractive, look at another and then eliminate again. Look at no more than 3 per day otherwise you will get confused and not remember what you have seen and what your impressions were.

You should of course know what your budget is before setting out to look at homes.

Review your credit score, clean it up if need be, paying off overdue amounts. When in good shape approach your bank or a mortgage broker and put your mortgage in place so that both you and vendors know that you are serious and can make the deal.

Finally find a good real estate agent. You can see properties with the selling agent, but realize that to buy through the listing agent you are loosing the advantage of having an agent whose sole purpose is to represent you in this deal. PEI real estate and realtors can represent both buyer and seller (and like to do so as they get the whole commission) and this creates a limited dual-agency. The agent does have a responsibility to you the buyer but this is overshadowed by their duty to their original client the seller.

An agent should ask about your needs which of course you have already worked out and your budget which of course you have in place. He or she will research the properties that meet your needs and make a short-list. They will then organize that you visit each of these properties. When you have made a choice the realtor will help you write an offer which may be accepted, rejected or countered by the vendor. The negotiation process goes on until either a price is reached acceptable to both, or the deal falls through.

After you have an accepted offer, you will need a lawyer here on PEI real estate who will finalize the sale. This is called conveyancing. Always remember these extra costs. You should have funds available to pay the lawyer, GST, IRAC fees if any, and the conveyed costs such as taxes and oil that the vendor has paid in advance and now must be re-imbursed.

When the property closes you get the keys and move in. Happy house hunting!