Brookland
Home Buying Guide
The experience of buying a home differs greatly whether you’re a first time buyer or are a previous homeowner looking for something new. Maybe the kids have all gone off to school and you’re looking to downsize to a smaller home or your family is just starting to grow and you need more space, this guide is here to help walk you through the basics of home buying no matter what your situation and goals are.
Start With The “Why?”
When you start looking for your new home it is first important to understand your needs. Depending on your motivations this will help to determine what kind of price range you can expect, what model you’re looking for, neighbourhood, etc. Some of the most common reasons for shopping for a new home include:
Downsizing
As time passes some homeowners may no longer have the need for as large of a home in their current situation. Whether your kids have moved out, you’re looking for a little less maintenance, or simply just want a more manageable space, downsizing could be your answer. These changes can come with a whole host of additional benefits such as reduced utility bills, lower property tax, more efficient use of living space, and much more.
Some important questions to ask yourself when downsizing are:
- What is the smallest size you’d be comfortable with your home being? How about the largest size?
- In addition to total home size, how many bedrooms will you require?
- Are you willing to part with underused items/furniture that you will no longer have room for?
- Which community amenities are the most important?
- What maintenance obligations (driveway size, yard size, etc.) will you have?
- Are you comfortable with multi story homes? How many stairs is too many?
Downsizing is about more than just moving from a larger space to a smaller one. It gives you an opportunity to free yourself of any items you no longer use while saving you money and time with upkeep.
Upsizing
Whether you have a new addition to your growing family, are taking care of a parent, or simply need more space than you have, upsizing your home is the way to go. Typically, when buyers are looking for an upsize they are seeking more bedrooms, a larger kitchen, more yard space, or maybe a spare room for a home office.
Some important questions to ask yourself when looking to upsize are:
- How many bedrooms do you currently need and how many will you need in 5-10 years?
- Will your budget be sufficient to cover higher utilities and potential maintenance costs that come with a larger home?
- Are you looking to rent out a space such as the basement in the future?
- How big of a yard do you need?
- How much parking are you looking for?
Investing
New homes are a prime opportunity for investment especially when it comes to the increasing rental demand. Select models have legal suites available that are specifically designed to meet code requirements. Additionally, many of Brookland’s communities are located in or near high demand markets for renters.
Some important questions to ask yourself when looking to invest are:
- Will you be occupying the home while renting?
- How does renting affect your mortgage, down payment, and insurance costs?
- How does projected rent for a suite or full home compare to your monthly carrying costs?
- Is the community still developing?
- How long do you plan to hold onto the property?
- What is your exit plan for when you’d like to sell the property?
Selling Your Current Home
The main difference between buying your next home and buying your first one is you are already in control of at least one property during the buying process. This means factors such as your home’s value, selling period, and more, will have an impact on your buying process this time around.
Home Value
Your current home is a significant financial asset to be able to leverage during your buying journey. Important options when looking to get a firm understanding of your current homes value are:
- Real Estate Agent Comparative Market Analysis (CMAs)
- Report based on recent comparable sales in your area
- Takes into account market, location, features, and size
- Usually free
- Usually is the most accurate for pricing
- Online Automated Valuation Models (AVMs)
- Automated estimates using recent sales for reference
- Usually is the quickest
- Not always precise
- Often don’t take into account upgrades and condition
- Certified Formal Appraisal
- Performed by a licensed appraiser
- Uses standardized industry methods plus comparable sales in the area to determine a value
- Often used for financing or legal purposes
- Certified appraisals tend to carry more weight than AVMs and CMAs
Financing Options
- Selling Before Purchase
- Often the lowest risk and simplest option
- Involves selling your home and putting the proceeds towards your new down payment.
- You may need temporary accommodation if closing dates cannot be aligned perfectly
- Pros:
- Exact knowledge of your budget
- Not carrying two mortgages at the same time
- Generally an easier time with getting your new loan
- Cons:
- More pressure to find a home quickly
- Potential requirement for short term accommodations between homes
- Pros:
- Buy First Using a Subject‑to‑Sale or Longer Closing
- Subject To Sale: you submit an offer on your new home conditional on selling your current property in a set time frame. This is lower risk but may weaken your offer in competitive markets.
- Longer Closing: Involves agreeing on a closing date further into the future giving you more time to sell your home. If you secure a firm sale on your existing home early, lenders can treat that favorably when qualifying you.
- Bridge Financing
- A short term loan that lets you access the equity of your current home allowing you to close on your new home before your existing home sells. Equity is estimated based on your home’s current value minus any remaining mortgage.
- Once your old home sells the sale proceeds will pay off the bridge loan and you continue with your new mortgage.
Experience The New Home Advantage With Brookland
On top of finding a home to better fit your lifestyle, you’ll also get to experience the advantage of living in a brand new home. This comes with a host of advantages you may not have experienced before in your older home. Advantages include:
- Tarion Warranty: Experience peace of mind with every new Brookland home coming with a standard Tarion Warranty. This means that should any problems arise you’re covered.
- Updated Interior/Exterior: Modern looks and finishes both inside and outside.
- Updated Appliances/Electrical: Modern appliances and electrical systems can help with energy efficiency and utility bills.
- Builder Relationship: With a new home you get the opportunity to build a relationship with your builder who can offer advice and answer any questions on your new home.
Find The Right Home For You
As you go through life you change, your family changes, your lifestyle changes, and your home should change with you. Whatever your goal is be it upsizing, downsizing, or investing, the process of purchasing a home should be done with the present and future in mind. Taking your time to find the proper home and financing options will make a world of difference during your buying journey.
