Lawyer says to know your limit.

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Susanne MacDonald

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Buying your first home can be an exciting - and a stressful - experience. For most people, this purchase will represent the largest investment they'll have made so far in their lives, so it's best to educate themselves before proceeding.

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Agent Penny Knackstedt with her clients Mark and Stephanie Holmes.

"First-time home buyers should understand the basic elements of the rights and obligations of ownership of land and the mortgages they use to finance the purchase," says lawyer Jamie Storey. "They should review, in detail, the terms and conditions of the offer to purchase, and understand what the terms of the contract mean before signing any documents."

Prior to looking at properties, Royal LePage Atlantic real estate agent Penny Knackstedt says the first thing people should do is get pre-approved for a mortgage with a banker or mortgage broker. She says the biggest mistake people make when buying their first home is to look at homes they can't afford.

"People will fall in love with something they can't have," says Penny. "There's nothing worse than maxing yourself out with your mortgage and being mortgage poor. It's important to be able to pay your mortgage, all your bills, and have enough left to enjoy a wonderful family life."

Penny recommends that after being pre-approved for a mortgage, people should find a good real estate agent.

"You need an agent who will help you identify your wants and needs," says Penny. "Do you want a single-family detached home, an income property, or a condominium? Do you need to be located near schools or a hospital? Do you want a garage or a finished basement? It's important to prioritize what features you want and to look at your long-term needs."

Most real estate agents can supply pamphlets with detailed information on what to consider when buying a new home, or prospective buyers can access buying tips on the Canadian Real Estate Association website at: www.crea.ca

Once clients have been pre-approved for a mortgage and Penny has reviewed their list of needs and wants, she sits down with them at the computer and uses the Internet to look at various properties.

"Location is always one of the most important factors to consider when buying a home," says Penny. "Even though it seems like a strange thing to do when you're buying, you should always consider what the resale opportunity will be on the property."

When viewing the properties with her clients, Penny always points out the features and benefits, as well as what might need to be repaired or improved. She provides a brochure that outlines the 10 deadly mistakes buyers make when purchasing a home. Some of these mistakes include: making an offer on a home without being pre-qualified; thinking there's only one perfect house out there; not having a home inspection; and not knowing the total costs involved.

"I've found that some of the most common issues surrounding first-time transactions are the necessities of arranging all the associated elements of surveys, fire insurance, oil or electrical hook-ups, and arranging the cash flow requirement to complete the transaction," says Jamie. "I suggest you get your lawyer involved prior to the offer to purchase. It'll likely save both time and money for the first-time home buyer." Home stager and decorator Georgie Phillips, who owns Stage & Style, recommends that people try to look past the personal items in the house.

"When a home has been staged, often the wall colours are neutral and the personal stamp of the home owner has been minimized, which makes it easier for a buyer to imagine what the home will look like with their furniture and personal items. If this hasn't been done, the buyer needs to look past the cosmetics to determine if the house itself is suitable to their needs."

In fact, Penny offers her clients two hours of Georgie's time for either decorating or staging consultation when they're buying or selling a home. And, along with real estate agent Rachelle Daigle, Penny and Georgie will be offering a free seminar on buying and selling homes at the Moncton Press Club from 7 - 8:30 p.m. on Monday, October 20.

Penny notes that it's a buyers market right now, but she cautions people that they may not find the house that exactly matches their dream home.

"No house is perfect," she says. "Each person has to know what their bottom line is when it comes to finding a property acceptable." Lawyer Jamie Storey recommends that people don't rush into a purchase.

"Don't be afraid to ask questions and don't act on impulse alone," he says. "Take some time to make your decisions. It's a very significant investment you're making, so ask questions of the seller about the condition of the home, what goes with it, any problems they have experienced, and any repairs the seller would make if they were not going to sell. Ask the hard questions and make sure you get the answers. The quick way or cheapest way to do things isn't always the best way."