Coldwell Banker : Latest Blog Posts

How Far is Too Far?

Tue, 01 May 2012 14:25:00 GMT

“I’d like to buy a newer home with a decent sized yard on a quiet, tree lined street in a nice neighbourhood, centrally located.” This may sound reasonable until you factor in the price of real estate and the proximity to the city when you are in Greater Vancouver. How much you say? With the typical sale price of a single family home in the region just over CDN $1 Million, it’s just not that easy. On the west side, prices are over $2 Million. If you want a more reasonable price about 1.5 hours commute away in Maple Ridge, the price drops to about $500,000. Buyers have come to realize that living close to the city means making compromises between accommodation and commute time. Buying a condo or townhouse with smaller space but closer in allows more time for self and family. This trade-off may reduce the stress of long commutes and traffic jams. Imagine up to 3 hours per day commuting to and from work, and then driving the kids to their activities! Perhaps this partly explains why more than 60% of our sales are condominiums. This is something to think about as a home buyer. How far do you want to be?

--Arthur Ng

Burnaby on Record Growth Spurt

Tue, 24 Apr 2012 14:15:00 GMT

Burnaby has grown up and perhaps rivalling their neighbour, Vancouver. Here is an excerpt from the Globe and Mail, Mar 30, 2012 edition by Kerry Gold:

The Burnaby skyline is about to be transformed. The city is looking at plans to raise skyscrapers in Metrotown possibly as high as 59 storeys, with plans for more major towers to sprout over the next few years.

Since the city nearly doubled allowable building density in 2010, Metrotown has become one of the fastest growing areas in the Lower Mainland, with a projected growth of 30,000 more residents and 20,000 more workers over the next 30 years, according to Edward Kozak, Burnaby’s assistant director of current planning. Projects under way include Intracorp’s 46-storey Metroplace and 38-storey Silver towers, and the accompanying major revitalization of Beresford Street, as well as Polygon’s 37-storey Chancellor.

There are nine more towers far into the approvals process, and three or four of those are expected to break ground in the next few months.

Metrotown may be experiencing a boom, but it’s all part of a density plan that goes back to 1977 and has been revised along the way, Mr. Kozak says. Zoning was amended in 2010 to allow more density in exchange for more amenities and cash contributions, dependent on a high calibre of architectural and public space design. Several of the towers soon to be completed fall under that specialized rezoning.

“I often get the concern raised, like, ‘Wow, this is unprecedented growth,’ says Mr. Kozak, “People are shocked when I tell them… it’s not unanticipated. It’s very deliberate. There have been peaks and valleys. Right now, this is a peak.”

Like Richmond, Metrotown is a major draw for the Mainland Chinese demographic that appreciates proximity to major amenities, shopping and transit. The Metrotown SkyTrain station is the second busiest in the region. Much of Metrotown already caters to a Chinese customer base, such as the Crystal Mall.

With a revised area plan under way to handle the increased density, Metrotown is shaping up to be a more vertical and dense, urbane neighbourhood. It is going beyond its claim for having Canada’s second biggest shopping mall and becoming an urban core, complete with restaurant, hotel and shopping destinations intended to draw residents. But if they should want to go to downtown Vancouver, it’s 20 minutes away on the SkyTrain, making Metrotown a commuter hotspot for residential development. To take advantage of the extra density permitted, however, developers have to offer something special in return, other than amenities such as a seniors’ centre or daycare.

“They are going to have to provide something much more unique, in terms of architecture,” says Mr. Kozak. “Most importantly, the developer will have to contribute to the community in more ways than just redeveloping a site.

“We are trying to create a compact urban core that is walkable, and linked to the rest of the region through transit,” adds Mr. Kozak.

As I have mentioned in previous blogs, the Lower Mainland is recognized world-wide. While prices may fluctuate in cycles as is typical in every market, there won’t be a meltdown in Greater Vancouver.

--Arthur Ng

What Men and Women Want (in Real Estate)

Fri, 30 Mar 2012 14:00:00 GMT

Coldwell Banker recently released their latest survey on what men and women want in real estate. Interesting enough, the results are not what you may think. Here are highlights of the findings: Both men and women place greater emphasis on their feelings about a home more than on layout, square footage, or price. And more than 60% also know within their first visit to the home is right for them. To read the complete report, please go to: [Men/Women Survey]

--Arthur Ng

Limited First Time Buyer New Home $10k Bonus

Tue, 20 Mar 2012 11:00:00 GMT

The BC government announced, on Feb 21, 2012, a one time cash bonus that can be received by 1^st time Buyers on new home purchases (with qualification criteria to a maximum of $10,000). While this bonus is still subject to be legislated, this is a huge benefit to those getting into our expensive marketplace. With some banks offering 5 year closed mortgages at 2.99%, the Property Transfer Tax Exemption for qualified first time Buyers in place, and some developers absorbing the net HST, this is a huge windfall to jump into home ownership. With the details yet to be released, there is mention of a time deadline for eligible purchases that must complete by March 31, 2013. For example, on a new apartment priced at $300,000, the savings could be as much as $35,000 (7% HST absorbed by developer; PTT exemption; $10,000 bonus). If you are still renting, you might want to talk to your mortgage broker and real estate agent to see how you can benefit. Time is ticking…

-Arthur Ng

Coldwell Banker Sings 'Home, Sweet Home' - NYTimes.com

Tue, 06 Mar 2012 10:30:00 GMT

Coldwell Banker released their 2012 TV ads at the Generation Blue convention in New Orleans last week. The ads focus on the "emotion and lifestyle" of homeownership and not the usual ads promoting reasons to hire a Real Estate agents that you find in most realty company TV ads. In addition the voice in the ads is that of Tom Seleck, the famous actor from the current TV series Blue Bloods and well he is known from the movies and of course his break through role as Magnum PI. Mr. Seleck has a real connection with Coldwell Banker as his father, brother and sister all worked for Coldwell Banker and his father was a VP for 33 years. The following article was recently published by the NY Times reporter Stuart Elliott, who comments on the refreshing message the ad creates for the slow to recover American housing market, and celebrates "the Value of a Home".

-- Paul Prade

Coldwell Banker Sings ‘Home, Sweet Home’

By STUART ELLIOTT

What would you do if you were a leading real estate broker during this sluggish, problematic market for American home sales? One such firm plans to accentuate the positive by playing up the emotional reasons for owning a home, now that the rational reasons like making a killing no longer seem relevant.

The firm is Coldwell Banker Real Estate, which in a campaign that is scheduled to begin on Monday will celebrate what it calls the “Value of a home.” The start of the campaign, with a budget estimated at $15 million, is timed with the approach of spring and the start of the home-buying season.

In this instance, each value cited in the campaign is a warm and fuzzy one, ranging from “the warmth of a winter fire” to “a grandmother kissing her grandchild.”

The values are brought to life in a television commercialthat cranks the emotional dial to 11, or maybe 12. The vignettes, photographed with a gauzy, well-lit look, celebrate “about 50,000 memories and a hundred thousand smiles,” which are generated, according to the campaign, by living in a home of one’s own.

Another way the emotional approach is intensified is through the use of the actor Tom Selleck to supply the voice-over narration in the commercial. It is no coincidence that Mr. Selleck is currently playing the paterfamilias of a clan of New York City police officers in the CBS series “Blue Bloods.”

“How to put a value on a home,” Mr. Selleck begins, then cites intangibles that include “the smell of pancakes made on a Sunday morning,” “the taste of a good cabernet with family at Thanksgiving” and “the power of a bedtime story.”

He also urges those listening to his voice to “subtract the stress of work” as well as “the struggles of the outside world” when considering “the value of a home.”

“Coldwell Banker,” Mr. Selleck concludes. “Where home begins.”

The campaign is created by Siltanen & Partners in El Segundo, Calif., which was selected as the Coldwell Banker creative agency in August. Siltanen & Partners replaced McKinney in Durham, N.C., whose last campaign dramatized the pitfalls of selling a home without using a Coldwell Banker agent.

“People buy homes for lifestyle reasons, for emotional reasons, and it’s not always a rational decision,” said Michael Fischer, chief marketing officer at Coldwell Banker Real Estate.

“But everything out there,” he added, in terms of advertising, “is about a rational decision.”

“There needed to be a better voice, a more positive voice,” Mr. Fischer said, that brought up “all the things that make a house a home” like “a large backyard, the outdoor fire pit” and being able to have pets.

The upbeat message is aimed not only at potential home buyers, he added, but also at Coldwell Banker agents, to remind them of what he termed “that emotional higher kind of calling of their business.”

The campaign is not a Pollyanna-like paean to buying a home at all costs, Mr. Fischer said.

“We’re not running away from” being realistic about the state of the housing market, he added, and the firm says “don’t buy a house” to those without sufficient income or plans to stay in a home for a long time.

Mr. Selleck was chosen for the campaign for “that authentic, trusting, warm voice,” Mr. Fischer said.

There also turned out to be, appropriately enough, a warm and fuzzy connection between the actor and Coldwell Banker.

Mr. Selleck’s father, Robert, “was a vice president for 38 years at Coldwell Banker” in Los Angeles, Mr. Fischer said.

And Mr. Selleck’s involvement in “Blue Bloods” resonates apart from the part he plays, Mr. Fischer said, because agents of Coldwell Banker, which has blue as its corporate color, “will say, ‘If you cut me, I bleed blue.’ ”

From the Media Decoder articles of NY Times online:

http://mediadecoder.blogs.nytimes.com/2012/03/05/coldwell-banker-sings-home-sweet-home/

Learning at Gen Blue!

Fri, 02 Mar 2012 15:00:00 GMT

It's very important to keep current with changing technology. Social media and Gen x,y has a profound effect on how business is conducted and how we communicate. We at Coldwell Banker Westburn are taking this head on with our real estate. 15 of our agents are here in New Orleans with over 3000 agents from the US and Canada. This is how we value education to help serve our clients better.

--Arthur Ng

Heading to Gen Blue in New Orleans (the Big Easy)

Thu, 01 Mar 2012 13:30:00 GMT

I just learned that if you are taking a connecting flight(s) to a destination, ensure that you are doing so with the same airlines and have ample time between flights with the necessary boarding passes.

There is no direct route from Vancouver, BC to New Orleans, Louisiana so I flew to Los Angeles via Air Canada to connect to United Airlines at LAX. There was about 70 minutes to spare and I was not issued my connecting board pass in Vancouver. As luck would have it, the 1^st leg was delayed by 35 minutes and, of course, the United Airlines gate was on the other side of the airport at Los Angeles. LAX is a large airport.

And then there was the security check all over again with the full body scanner.

You guessed it. I missed the flight. United Airlines re-booked for me but now I had to fly to Chicago and connect to New Orleans. Instead of catching the opening ceremonies and dinner extravaganza, I ended arriving just in time at midnight for bed at the hotel. Oh, and I got up at 4:30am to leave for the airport to catch the first flight. I did get to my final destination safely, just a bit late and tired but all ready for the Coldwell Banker conference!

I hope that my return flight would be smoother.

--Arthur Ng

Location, location, location for a condo.

Fri, 24 Feb 2012 10:15:00 GMT

Everyone asks about where is the best place to buy a condo in Vancouver. In the West End? Maybe Fairview Slopes? Perhaps by Coal Harbour? I’m referring to the location within the building itself which many don’t think much about. North facing units are cooler but get less natural light. South-west facing units, especially for high rises, are very bright but also get the most heat and sun. Corner units have great exposure and more air flow when windows are open. Ground floor units tend to have bigger patios and perfect for pets where allowed while others worry about security. Higher floors have better views but more steps to take should the elevators need servicing. A unit by an elevator is convenient but also has more noise and traffic. These and much more are considerations that our salespeople can bring to your attention. Wouldn’t you want to know before you move in instead of finding out afterwards? It really is about your preferences.

--Arthur Ng

Owning a Home in Your Lifetime?

Fri, 17 Feb 2012 16:23:00 GMT

With the price of real estate continuing to rise year over year more than the rate of inflation, will you ever be able to get into the market? Over the last 20+ years, we have gone through several cycles with peaks and troughs. Each correction was followed by an increase which exceeded the previous high. First time buyers need to understand that the first purchase will not be the dream home. Remember when you bought your first car in high school? Expectations need to be realistic and sacrifices need to be made. Saving for the down payment may mean foregoing the daily mocha or lunches out. It may mean getting a used vehicle instead of financing or leasing a new sports car that depreciates and is not tax deductible. It may mean not replacing your smart phone every time the latest model is released. It’s a matter of controlling or determining the spending as necessary or not really required. We have helped many buyers get their financial affairs together to buy their first home and they have never looked back. They also thought that they could never afford it. It is never too late if you plan ahead. If you are tired of renting and would like a place to call home, you need to act on it today.

--Arthur Ng

Canada Grows Especially the West

Fri, 10 Feb 2012 10:30:00 GMT

As per my previous blogs and what I have been advising our clients, the local real estate market is unique. The economic and political stability, quality of life, the natural beauty and the sound social and education system is desirable world-wide. This is confirmed by the latest 2011 census report from Statistics Canada shows that our population is growing faster than any G8 nation, fuelled primarily by immigration and the bulk landing in Western Canada. For Metro Vancouver with its’ limited land base, it just means that prices can only head one way overall. This explains why Surrey and Port Moody is experiencing 19.9% and 18.6% growth respectively when compared to 2006. More than 200,000 new residents came to Metro Vancouver since 2006. This and more is expected to continue for the next 20+ years by 1.6 million. Vancouver has been quoted for many years as one of the best places to live in the world by many sources including the Economist, the Conde Nast, Mercer, and others. If you are in the market to buy your first home, I would suggest that you act sooner than later.

--Arthur Ng

An Income Tax Deduction for Your 1st Home Purchase?

Tue, 07 Feb 2012 11:00:00 GMT

Did you know that you could be saving up to $750 in income tax if you recently bought your first home? Many have forgotten about the Federal program that was introduced under Canada’s Economic Action Plan Budget 2009. The Home Buyers’ Tax Credit (HBTC) is a non-refundable tax credit based on the amount of $5,000 that you claim in your personal income tax return on line 369. You would claim this amount in the year you completed on your home. So if you bought your first home last year, you could have up to a $750 surprise bonus this April! For more details about this program, please click here: HBTC

--Arthur Ng

Housing Affordability in Greater Vancouver

Tue, 31 Jan 2012 11:45:00 GMT

Many reports suggest that we have the most expensive real estate in the world. How then do the residents cope? The studies generally compare the ratios of average or median family income with the ability to finance a detached home. With the average price over CDN $1 million, many cannot afford to buy a house, but they do have other options.

Family dynamics have changed over the last 20 years. Couples are getting married later in life, having less children, and needing less space. While a detached house may be desirable, a townhouse or an apartment may be more practical where prices are less and the upkeep of the exterior and common areas is maintained by monthly fees. In fact, according to the REBGV MLS® statistics, more than 50% of all sales are from town homes and apartment units.

Many Buyers are also having family help with the down payments and as guarantors for the mortgage, or finding homes with rental suites to offset some of the monthly debt. Those who already have bought can make the easier transition to move up with equity built up over the years and whose values also appreciated. First time buyers have more realistic expectations on what they can buy for their money. Buyers can sacrifice land and opt for less living space for proximity to the city or move to the suburbs and accept the commute.

The reality is that we are live in a beautiful place and everyone wants to be here. BC Stats projects in their PEOPLE 36 report that our province will gain another 1.6 million people in 25 years, by 2036. Real estate here is not going to get any more affordable.

--Arthur Ng

Sitting on the Fence

Fri, 27 Jan 2012 10:00:00 GMT

“I’m going to wait until prices drop.”

“I want to save enough for a large down payment.”

“The prices are too high.”

“A better house might come up.”

“My friends/media told me not to buy.”

We hear these comments on a regular basis. I will say that the right time to buy is when the conditions work for you regardless of the market. If you can afford the mortgage and the property is in the right location and meets most of your needs, why wait? What happens if the prices don’t come down? If the prices do come down, would you and the others sitting on fence jump in at the same time to compete for the same property? When you find the near perfect house but wait to see if another better one comes up and doesn’t, and meanwhile the house that you liked has sold, what do you do then? A home is where you live. And we happen to live in the Lower Mainland where the population continues to grow from international immigration and the rest of Canada at a record pace. Prices are based on supply and demand. Have you wished that you had bought earlier but didn’t because you thought prices were going to fall? Ask some of your friends that did. I am not suggesting that you jump in blindly. Consult with one of our experienced agents and they can guide you in the right direction.

-- Arthur Ng

2012 BC Property Assessments

Tue, 24 Jan 2012 19:13:00 GMT

“My property assessments are up over 15%! Does this mean that my house is worth more now?”

As Real Estate agents we get asked this question all the time, in fact I remember getting asked this question 30 years ago too! Logically homeowners and buyers look at property assessments as some sort of guide to determine house values; unfortunately this method of evaluation is flawed. For example, most properties that are assessed by the BC Assessment Authority are never even inspected, meaning no one enters the home to see its physical condition, properties are mostly viewed from the outside or aerial mapping and assessed based on land size/location and age of the dwelling (recent building permits may trigger some further investigations as well). Can you imagine a Real Estate agent evaluating your home and providing professional price estimation and never even going inside? Of course not. Well that’s exactly what the property assessor’s do and yet we place so much value on their pricing method, it just doesn’t make sense to use property assessments as your basis to determine the correct Real Estate market value. I have heard some people say that the assessments are always lower than market value, or add 10% or 15%? All of this doesn’t make any sense and are just “guesstimates”. Another major reason for not considering assessed values when pricing a home is the fact that your 2012 assessment was completed by July 1011, over 6 or more months ago (depending when you sell in 2012). Anyone with Real Estate experience will tell you that a lot can change in 6 months when it comes to house prices. So there you have it, don’t put too much weight in your assessed value when deciding on the right price for your home or when you are making an offer to buy a property. At Coldwell Banker Westburn Realty we have experts to help you determine the “Right” price based on recent listings/sales on homes like yours in the market place near your location. Please watch the video below for an even better understanding of how property assessments work in B.C.

--Paul Prade

Coldwell Banker Innovative Real Estate Marketing Methods

Tue, 17 Jan 2012 14:15:00 GMT

Coldwell Banker continues to lead the way with innovative Real Estate marketing methods, the latest way to use social media and Facebook to promote listing between agents is demonstrated in the cool video link below. The 2nd Annual Generation Blue Coldwell Banker International Conference is coming up in late February and focuses on the internet and specifically social media as the best way to market Real Estate today. Please take a look at this video and see what the younger generation of realtors and buyers are looking for when searching for properties!

--Paul Prade

The Basics About Home Buying - Part I: Why Realtors are Good

Fri, 29 Jul 2011 17:00:00 GMT

I’m of the generation that knows next to nothing about buying a home. In high school CAPP (career and personal planning) class we learned not to submit résumés on fluorescent pink paper (something, I’ve learned, they encourage in university co-op programs). In math class, we applied algebraic formulas to arbitrary scenarios about cement trucks or airplanes when we could have been applying them to mortgages, something we would realistically need in the future. I hear they’re changing this now and high school students are actually learning about banking and mortgages, things they’ll need later in life. For everyone in my generation, this series is for you.

I’m going to start with a potentially controversial topic: Why Realtors® are useful. I’ve said it before: using, or not using, a Realtor is your personal choice, and whichever you go with is a fine one. Personally, I use a Realtor. Here’s why.

· At one point in my life I worked two jobs and went to school full time. I don’t anymore, thank goodness, but I still work full time, have a dog and significant other to look after, have friends and family to keep track of, and play on a hockey team. I also like sleep and occasional down time. I’d rather not spend my spare hours sifting through MLS or attending open houses. This is why Realtors are great – it’s their job to sift through the pages of listings and preview the homes that may be suitable for you. Realtors save me time.

· Closely related to this is the fact that Realtors have access to other Realtors. Through this widespread Realtor network they find out about listings that haven’t gone on the market yet. This could get you a head start to investigate the details about the property and neighbourhood before writing the offer.

· When you take a day to tour homes you’re interested in, your Realtor will drive you. This gives you the opportunity to focus on the area in comfort with complete attention rather than trying to find the property on your own.

· I was recently interested in a house and asked my Realtor to take a look at it. Within the hour he responded with an email with concerns about the property for reasons I hadn’t thought of: possible oil tank in the yard, septic (the house wasn’t on the city’s sewer system), knob and tube wiring. The asking price was also high for a property with so many possible issues. It also had been listed for an extensive period in a market where houses typically sell within a week or so. An experienced Realtor can spot problems in the property you may miss, and can advise you on market value.

Basically, it’s a Realtor’s job to know things you don’t about the market, about the property, the market, and especially explaining in detail the extensive paperwork and strategies involved in purchasing or selling a property. I never learned this stuff in school. This is why I use a Professional Realtor.

-- Sarah Mah

Renting Vs. Owning

Fri, 15 Jul 2011 17:00:00 GMT

When I was younger and the Vancouver housing market not quite so scalding, the truly intelligent among us drained their bank accounts in order to put a down payment on a home, choosing to pay monthly mortgage payments rather than monthly rent payments. The logic in this choice was infallible . The payments were very often similar, depending on where or what you decided to buy or rent, and while the initial mortgage pre-approval process was stressful – not to mention the sudden lack of funds after the down payment – it was all well worth the result of eventually owning your very own piece of property.

Now, however, this logic is less certain. Housing prices are up, making that original down payment substantially larger and increasing monthly mortgage payments as well. As well many investors who purchase homes don't necessarily live in them, increasing the number of rental units available. The rule of supply and demand dictates that rent prices, therefore, should hold steady, if not decrease. And of course, looking at the current prices of homes in Vancouver, one can't help thinking that – despite market experts making predictions to the contrary – this is a peak and prices should fall to more reasonable standards. And even if the experts are right and the market will continue its upward climb, I wonder how much higher it could realistically go. Yet BC's population continues to grow through migration from the rest of Canada and the world.

The market will always have some degree of unpredictability but the way things are looking now it may be worth some second thought when deciding to rent or own in Vancouver’s real estate market. Yet the question remains, what is the likely future scenario? And as a tenant, the landlord could always sell the home, meaning a move that was not part of your plan.

- Sarah Mah

The Importance of Curb Appeal

Fri, 24 Jun 2011 17:00:00 GMT

When selling your house, first impressions are everything. Whether or not a potential buyer will actually get out of his car during a drive-by viewing to see the inside depends largely on how good the outside looks. This is where a little exterior staging makes a big difference. After all, getting the buyer to come see the place is one of the hardest parts of selling, but if he pulls up and sees overflowing gutters, overturned planters and an unkempt lawn, he may decide he's seen enough and just keep driving.

Improving the curb appeal of your home can be as simple or intense as you like but the more you put into it, the better the chance of attracting a buyer. For front yard landscaping, the goal is to make your house look as inviting as possible: highlighting driveways and walkways with flowerbeds or potted plants on the borders, sweeping the sidewalk and walkway, keeping the lawn neatly trimmed and edged. Remember, though, that while the yard does a lot for appeal, it's the house people are here to see. Make sure gutters are clean, you've taken in the garbage cans from the morning pick-up, and you've touched up the paint job.

Curb appeal has become a whole industry within real estate. Several television shows have dedicated entire episodes to explaining and demonstrating the importance of curb appeal and how to best achieve it. There was even a show called Curb Appeal that aired on HGTV. Curb appeal has become so prominent that there is even software available that lets you virtually alter your front yard to see the changes before even touching a rake or hammer. A bit much, I think, when all you really need is some hard work and gardening gloves, but the point is still the same: In order to get people out of their car to see your house, it has to look good from the curb.

-- Sarah Mah

May Housing Numbers Still Favour Sellers in Vancouver

Fri, 17 Jun 2011 17:00:00 GMT

Reports from the Real Estate Board of Greater Vancouver show a continuation of the trend that has been running in Metro Vancouver for several months. Sales of residential detached, attached, and apartment properties reached 3,377 in May of this year. That's a 7 per cent increase from May 2010 (3,156 residential properties sold) and a 4.7 per cent increase from April 2011 (3,225 residential properties sold).

One significant, though somewhat misleading stat, is the Housing Price Index (HPI) for residential properties in Greater Vancouver. The HPI over the last 12 months rose in May 2011 to $627,568. In May 2010 it was $590,662. This stat means that the prices for housing in Greater Vancouver rose from last year but because there has been more activity in the higher end of housing, the numbers are a little skewed. 21 per cent of residential properties sold on the MLS® in Greater Vancouver sold for $1-million or higher, while 20 per cent of residential properties that sold in Greater Vancouver sold for less than $350,000. Keep in mind also that these HPI stats are only for properties sold on the MLS® and do not include sales by owners, or properties that were not listed on the MLS®.

With high end property sales making up an increasingly large part of the market and with talk of geographic restrictions inhibiting Vancouver's housing development, Vancouver's housing market continues to favour sellers this spring.

-- Sarah Mah

Common Sense and a Home Purchase

Fri, 10 Jun 2011 16:00:00 GMT

Sometimes it feels like these two terms – "common sense" and "home purchase" – don't really belong in the same area code. Buying a home is an emotional process, especially if it's your first time. As hard as it is to peel back the layers of excitement and anxiety when searching for a property, a cool head and a healthy overdose of common sense will help keep you within your means and get you into a suitable home.

Common Sense: Go see the house before making any decisions.
I know. This one is pretty obvious. But there are people who see pictures on-line or read a general description and are suddenly and irrevocably convinced the house is the perfect fit. On many occasions, it's not. Chances are the staging was incredible or the description was written by a retired novelist. Go see the place for yourself. It may back onto the highway or situated beside an apartment block. Overlook the wow factor and see if the house makes sense to you. Are there sufficient rooms for your needs? Does the kitchen work for you? Are there are any obvious flaws? This is where the home inspector comes into the picture where he may find defects where you may need to spend hundreds or thousands of dollars on repairs.

More common sense to come.

-- Sarah Mah