Do you know how much money will be needed in order to close your PEI real estate deal? Besides the basic purchase price, buyers face legal fees and disbursements (plus GST), which are the out-of pocket expenses a lawyer/notary incurs. Then there are closing adjustments with the seller – taxes, rental income, condominium maintenance, and some utility charges. And don’t forget about the costs of arranging a new mortgage which can include application and appraisal fees. For resale PEI homes, these “extras” can easily add 1 1/2% to 2% onto the basic purchase price.
Do you know what needs to be done after the deal is closed? Once your offer has been accepted the work has just begun. Future steps include arranging for monthly mortgage payments and PEI property taxes, finding the right insurance coverage, transferring your utilities and arranging for your move.
Avoid any surprises by having Ron Barrett, a CENTURY 21 real estate professional guide you through the necessary steps. Rely on his expert advice to keep you informed and prepared as each step of your PEI real estate purchase unfolds
It’s just one more way that a CENTURY 21 real estate professional takes the anxiety out of buying your next PEI home.
Start by creating a prioritized list of features you want to find in your short-list of PEI homes and the reasons why. Use it as your search guide, but remember that depending on your funding, you will probably need to make some compromises. In addition, talk to your Ron Barrett, your PEI realtor about where you want to live. Location is a huge part of any move. Ron will help you narrow down your choices by initiating you to PEI real estate market trends and local PEI information like neighbourhood statistics and community links.
Now that you know what you want, it’s time to see what type of PEI home you can afford. You can start by crunching the numbers yourself using our selection of calculators available on our homepage.
When you’re ready to move to the next step, you can get pre-approved for a mortgage. This process can often be performed in under an hour and it accomplishes two important goals. First, it will tell you how much you can spend on your PEI home purchase and what your monthly payments will be. Second, it tells the seller that you can afford to buy their home.
By definition, a pre-approved buyer has an approved mortgage subject to an appraisal of the PEI property. Many times a buyer can use this pre-approved status as leverage during the negotiation process.
Once you know what community you’d like to live in and have an idea of how much house you can afford, its time to start checking out actual PEI real estate listings. Beginning this search online can help save you time since it can help you target PEI homes that meet your search criteria.
Next, begin visiting the PEI homes on your short-list. Ask your Ron, your PEI realtor, to arrange visits and attend open houses that are in your target area and price range. When comparing homes, make sure to look at all aspects of the yourPEI real estate choices. Is the PEI property tax approximately the same? Are both the houses renovated? Do they both have the same amount of bedrooms and bathrooms? Are both houses located on the same or similar streets? Does either house have any encumbrances?
Once you choose one of the PEI homes, you need to make an offer. Typically this is a very difficult and trying time since both parties have totally different goals. In most cases it is better to have a third party, such as a PEI realtor, negotiate the offer. If you have any personal interaction with the homeowner, don’t give out any information about your move, your current housing status, financial status or your feelings about their property – positive or negative. This could hurt you in future negotiations.
After your offer is accepted you will need to set up, coordinate and interpret various inspections, including insect, radon, building quality, oil tank, title, etc. You will also need to arrange for homeowners insurance and finalize the mortgageon your PEI real estate purchase.
This is a major step in the buying process and there are many potential problems that can be discovered during this period. These include a leaky roof, radon gas, termite damage, a foundation problem, and wall cracks, to name a few. These problems happen all the time. The difference between closing on your dream PEI home and starting the process all over again is what occurs during the negotiations between you and the seller. Ron Barrett, your PEI realtor, can help make these discussions go more smoothly. You will also have the option of a “walk through” before the closing. This is your last chance to make sure that all of the items that you have agreed upon were completed to your satisfaction.
Before you arrive at the closing, make sure all the necessary paper work and deposits have been completed. If the mortgage, title work, homeowners insurance and other items necessary under local PEI laws are not completed and brought to the closing table, the closing may not happen on time – depending on the contract, this could result in further action including financial penalties and even the loss of your rights to your new PEI home.
Once you close, it’s official – you own your dream home on PEI! But there might be a few things you want to do before you lay out the welcome mat. These include arranging for an alarm system, turning on the electricity, subscribing to the local paper, cleaning or replacing the carpet, arranging for lawn services, etc. This could also be a good time to make some needed renovations.
Non Resident PEI Real Estate purchases. Non-resident PEI real estate purchases are not a problem providing some guidelines are followed to meet government approvals. Cases vary based on size, location and intentions of future usage of the PEI real estate. In general, any individual can own up to 5 Acres and 165 feet of water frontage without seeking governmental approval.