Laura Ellis, a Broker at Buy The Shores of Georgian Bay Realty Inc. Is committed to helping first-time home buyers navigate the tricky waters of the housing market, and their expertise is unmatched.
The key thing – according Ellis – is to look for opportunities to build equity rather than expecting perfection in a first (or second home). The idea is to help young buyers start paying themselves instead of a landlord.
Due to the “HGTV effect” where young people only see 3 houses and one of them is that affordable ready-made perfect home just waiting for them, there are unrealistic expectations of what’s out there and how real estate actually works. This is the first myth Ellis often dispels.
“You need to go see lots of homes to know what the values are. I try to educate clients about the realities of the market and how real estate transactions are actually done so that they fully understand the process long before they put an offer in.”
A dream home with a redone bathroom, marble countertops and beautiful hardwood floors may not be in a first-time buyers’ immediate future, but Ellis says it’s not out of reach for the future.
She says it’s about sweat equity and time investments and making gradual repairs and renovations to make the house the best it can be given the overall location, size and neighbourhood.
“Often a first house is a stepping stone to a better house in the future. There may be multiple steps to get where you want. Few people are in the same house their entire life anymore. A quick fix-and-flip is not as easy as it looks on TV,” she said. “You seldom see the true costs (especially if you have to hire trades people) or the length of time the renovations actually take. Updating a home takes time, patience and some financial investment, but it can really be worth it in the long run. Having someone to advise you where the investment for a future return is best made, can help keep you on track.”
She describes the current real estate market as a “changing tide.” After a few sluggish years post-COVID due to high interest rates, it was nearly impossible for first-time buyers to get what they wanted at a good price-point.
Prices remained high and buyers struggled to qualify for mortgages. Prices have come down since the peak. Interest rates have come down and amortization rules have loosened. That combined with some First Time Buyer incentives, has the market is looking much more positive for first time buyers.
“No one has a crystal ball to predict the financial future. There’s no predicting the absolute best time to buy, but it helps for first-time buyers to speak to their banks, talk to a mortgage broker and start working on their down-payment.”
She says education is key, and the right realtor can make all the difference. People can be comfortable that realtors like Ellis do their research on the market and can provide valuable advice.
She says a good realtor can discuss ways to build short-term equity and talk about the real cost of upgrades.
“Going with someone experienced is key. We can look at the infrastructure of a house and point out potential repair or replacement costs. A place may dazzle with beautiful quartz countertops but a 30-year-old furnace or aging roof will cost buyers money in the near future,” she said. “We can negotiate regular or specialist inspections in an offer to purchase to ensure your know what you are buying.”
“Educating yourself, managing expectations and building bit-by-bit to your forever home is key for a first-time buyer. I am here to help through the entire process.”
For more information or to find a realtor, visit here.
