11 Things to Look for When Buying a House: The Ultimate Guide

Buying a house is one of the most significant decisions you’ll ever make, and it’s not something to take lightly.

While many articles cover the basics like location, budget, and home condition there’s so much more to consider.

This comprehensive guide, dives deep into every factor you should evaluate when purchasing a home, from environmental sustainability and technological integration to legal nuances and the psychological impact of your living space. Let’s dive in!

But before you proceed, consider reading the pros and cons of working with a real estate agent.

Location: Beyond the Basics

Location is more than just a buzzword because it is the foundation of your home-buying decision, so let’s dig deeper:

Micro-Location Analysis

Street-Level Dynamics: Is the house on a quiet cul-de-sac or a busy main road? Traffic noise and safety are critical considerations.
Flood Zones and Natural Risks: Check Natural Resources Canada Mapping, additionally the most critical, detailed flood mapping is primarily held by provincial/territorial authorities and local Conservation Authorities (where they exist) or municipal engineering departments based on your location.
Sun Exposure: Which direction does the house face? South-facing homes get more sunlight, which can affect heating and cooling costs.

Neighborhood Nuances

Walkability: Is the area pedestrian-friendly? Look for sidewalks, crosswalks, and proximity to amenities.
Noise Pollution: Visit at different times of the day to gauge noise levels from traffic, airports, or nearby businesses.
Cultural and Social Vibes: Does the neighborhood feel like a good fit for your lifestyle? Think about what matters most to you—are there family-friendly parks where kids can play, a buzzing nightlife scene for evenings out, or cultural spots that bring the community together?

Future Growth Potential

Community and Infrastructure Projects: Are there any big changes coming to the area? Things like new highways, better public transit, or major commercial developments can make a huge difference. Not only can they make life more convenient, but they can also boost property values over time. It’s worth checking if any projects are in the works!
School District Changes: Upcoming changes in school zoning or new school constructions can impact desirability.
Gentrification Trends: Is the area undergoing revitalization? While this can increase property values, it may also displace long-term residents.

Budget: The Hidden Layers of Affordability

The budget is not just the purchase price. There is a multi-layered financial commitment that requires careful planning, and details on closing costs should be checked. There are also additional after the purchase that you should consider, for example:

Total Cost of Ownership

Maintenance Costs: Older homes may require more upkeep. Factor in potential repairs like roof replacements or HVAC upgrades.
Utilities: Energy-efficient homes can save you thousands over time. Compare utility bills for similar properties.
Condo Fees: If the property is part of a homeowners association, understand the fees and what they cover.

Long-Term Financial Planning

Mortgage Terms: Compare fixed-rate vs. adjustable-rate mortgages. Understand the implications of each on your long-term finances.
Down Payment Strategies: Can you afford a 20% down payment to avoid paying for mandatory mortgage loan insurance (provided by CMHC, Sagen, or Canada Guaranty)? If not, explore low-down-payment loan options (speak with a mortgage specialist).
Emergency Fund: Ensure that you have savings set aside for unexpected expenses like major repairs or, worse, a job loss.

Tax Implications

Property Taxes: Research local tax rates and how they’ve trended over time.
Tax Deductions and Credits: It's important for homeowners to understand which tax benefits they are eligible for. While you cannot deduct mortgage interest or property taxes on your main home, you should investigate if you can claim expenses for the business use of your home, rental income, or specific credits like those for home accessibility renovations.
- Source: The CRA provides a comprehensive overview of these and other programs on its "Homeowners"
Capital Gains: It does not apply in Canada if the property that you are selling is your principal residence, though you are still required to report the sale on your annual tax return.

Home Design and Layout

The design and layout of your home should align with your lifestyle and future needs. But there are things that you can look for:

Architectural Style

Timeless vs. Trendy: While modern designs can be appealing, considering if they will stand the test of time. However, there are modern design elements that are neutral and are typically timeless.
Customization Potential: Can you easily modify the home to suit your tastes, or are there restrictions?

Room Configuration

Open vs. Closed Floor Plans: Open layouts are great for socializing but may lack privacy. Closed layouts offer more defined spaces.
Multi-Generational Living: If you plan to accommodate aging parents or adult children, look for homes with separate living areas or in-law suites.

Storage Solutions

Built-In Storage: Ample closets, pantries, and garage space can make a big difference in daily living.
Attic and Basement Potential: Unfinished spaces can be converted into additional living or storage areas.

Environmental Sustainability: Building a Greener Future

Eco-friendly homes are not just good for the planet—they’re good for your wallet.

Renewable Energy

Insulation and Air Sealing: Proper insulation reduces energy loss, lowering heating and cooling costs. For existing homes, check if rebates are available from the Canadian government.
Energy-Efficient Appliances: Look for ENERGY STAR-rated appliances that consume less power.
Smart Thermostats: These devices optimize heating and cooling based on your schedule, saving energy and money.

Energy Efficiency

Solar Panels: Homes with solar installations can significantly reduce electricity bills and may even generate income through net metering. Always check your provincial government and local utility provider's websites for updates on solar programs and net-metering rules, as they vary significantly across Canada.
Geothermal Heating: This system uses the earth’s natural heat to provide efficient heating and cooling.

Water Conservation

Low-Flow Fixtures: Faucets, showerheads, and toilets designed to use less water can save thousands of gallons annually.
Rainwater Harvesting: Not for everyone, but a system that collects and stores rainwater for irrigation or household use is a great way to conserve water.

Sustainable Materials

Recycled and Reclaimed Materials: Countertops, flooring, and insulation made from recycled materials reduce environmental impact.
Bamboo and Cork: These fast-growing materials are sustainable alternatives for flooring and cabinetry.

Technological Integration: The Smart Home Revolution

Modern homes are increasingly incorporating technology to enhance comfort, security, and efficiency; since there are many, what are the ones that will benefit you?

Smart Home Systems

Home Automation: Lighting controls, temperature, and security systems remotely via smartphone apps.
Voice Assistants: Integration with devices like Amazon Alexa or Google Home can streamline daily tasks for home automation.

Energy Management

Smart Meters: Monitor and optimize energy usage in real time.
Energy Storage: Home battery systems like Tesla Powerwall store solar energy for use during peak hours or outages.

Security and Surveillance

Smart Locks: Keyless entry systems enhance security and convenience.
Video Doorbells: This is a great way to monitor the doorstep and communicate with visitors remotely, but these features can be added at a minimal cost.

Health and Wellness: Creating a Sanctuary

Your home should promote physical and mental well-being, correct? Below are some of the things we think are important.

Indoor Air Quality

Ventilation Systems: Ensure proper airflow to reduce allergens and pollutants. Make sure your furnace and duct system are cleaned on a yearly basis, and your filter is changed periodically.
Air Purifiers: These devices are typically not required unless there is a health requirement, but they can remove contaminants like dust, pollen, and pet dander.
Humidifier: Canada is a cold country, and running the furnace during the winter brings in and heats cold, dry outdoor air, which significantly lowers the humidity inside. Installing a humidifier can help maintain good indoor air quality and comfort.

Natural Light

Window Placement: Large, strategically placed windows can maximize natural light, boosting mood and reducing energy costs.
Skylights: These can bring additional light into darker areas of the home.

Outdoor Spaces

Gardens and Green Spaces: Access to nature can reduce stress and improve mental health.
Exercise Areas: Consider homes with space for home gyms or proximity to parks and trails.

Legal and Regulatory Considerations

Understanding the legal landscape is crucial to avoid future headaches.

Zoning and Land Use

Permitted Uses: Ensure the property is zoned for residential use and that there are no restrictions on future modifications.
Short-Term Rentals: If you plan to rent out the property, check local regulations on short-term rentals.

Condominium Corporation

Rules and Fees: Review the Condominium rules and bylaws, fees, and any pending assessments.
Reserve Funds: Check Condominium/Strata Corporation (or equivalent governing body, as terminology varies by province) financial health, including the adequacy of reserve funds for future repairs; this should be reviewed by a professional real estate lawyer.

Disclosure Requirements

Seller Disclosures: Ensure the seller provides all required disclosures about the property’s condition.
Environmental Hazards: Check for disclosures related to environmental hazards like radon, asbestos, or lead paint.

Emotional and Psychological Factors

Home should be a place where anyone should feel comfortable and happy. We think that you should consider the following emotional and psychological factors:

Emotional Connection

First Impressions: Trust your gut feeling when you first walk into a home. Does it feel right?
Personalization: Can you envision yourself personalizing the space to make it your own?

Stress Factors

Commute: A long or stressful commute can negatively impact your quality of life.
Noise Levels: Consider the noise levels from traffic, neighbors, or nearby businesses.

Family Dynamics

Space for Family: Ensure the home can accommodate your family’s needs, including space for children or elderly relatives.
Pet-Friendly: If you have pets, check for features like a fenced yard or nearby parks.

Market Trends and Economic Indicators

As we all know, Canada’s real estate market—including major metropolitan centers and regional areas—has had a fair share of market shifts that were very disruptive. It is a good idea to touch base with local real estate agents like ours, who are very competent when it comes to understanding specific local market trends and economic indicators across different regions. However, you should know the following:

Market Conditions

Buyer’s vs. Seller’s Market: Know whether you’re in a buyer’s or seller’s market to negotiate better.
Interest Rates: Keep an eye on mortgage interest rates, as they can significantly impact your monthly payments.

Economic Indicators

Job Market: A strong local job market can boost property values.

Historical Data

Price Trends: Research historical price trends in the area to gauge future appreciation.
Rental Yields: If you’re considering renting out the property, check local rental yields.

Inspection and Due Diligence

Inspection is an important element when you are purchasing a pre-existing home, as it can save you from costly surprises down the road.

Professional Inspection

Structural Integrity: Hire a professional to inspect the foundation, roof, and overall structure.
Systems Check: Ensure the plumbing, electrical, and HVAC systems are in good working order.

Environmental Assessments

Environmental Assessment (e.g., Phase 1 ESA): Check for soil contamination and other potential environmental concerns, especially if the property is near historical industrial areas or former gas stations.
Flood Risk: Assess the property’s flood risk and whether it requires flood insurance.

Legal Review

Title Search: Ensure the title is clear and free of liens or disputes (this is typically done by your real estate lawyer).
Easements: Check for any easements that could affect your use of the property.

Long-Term Investment Potential

Home is not just a place to live; it’s also an investment. Considering its long-term potential is vital; over the years, we have seen nothing but year-over-year growth in the real estate sector. Some of the things to help you understand.

Appreciation Potential

Development Plans: Upcoming developments can boost property values. It can also depreciate the value if the developments are inappropriate. For example, behind your house, suddenly, you have a plaza that can have a visual view from your backyard.

Rental Income

Short-Term Rentals: If allowed, short-term rentals can provide additional income.
Long-Term Rentals: Consider the potential for long-term rental income if you plan to move in the future.

Resale Value

Curb Appeal: A well-maintained exterior can boost resale value.
Modern Features: Updated kitchens, bathrooms, and energy-efficient features can make the home more attractive to future buyers.

Conclusion

Buying a house is a multifaceted process that requires careful consideration of a wide range of factors. While the basic elements are location, budget, and condition, we’ve emphasized that aspects like environmental sustainability, future-proofing, and emotional well-being are also crucial elements to consider when making a decision to purchase a home.

By taking a holistic approach to your home search, you can find a property that not only meets your current needs but also supports your long-term goals and enhances your quality of life.

Final Thought: Remember that a successful purchase relies on thorough due diligence. Don’t hesitate to leverage the expertise of various trusted professionals including lawyers, inspectors, and financial advisors to ensure every aspect of your investment is secure and sound.

What to Look for when Buying a House