Dear Heather

I have been thinking about buying a property for years. But I am so concerned about making the jump to home ownership, do you have any suggestions?

— First time buyer

Dear First time buyer:

Your First Big Step

You’ve saved for a down-payment. You’ve poured over listings for months. Touring open houses has become part of your weekend ritual. But months, perhaps even years, have passed and you are still in your rental.

For many first-time homebuyers, making their first purchase can be a frightening experience. Will you be happy there? Will you like your neighbours? Will you be tied down — house rich and cash poor? What if you lose your job? Will you hate your commute? In short, your fears stem from the unknown.

Meanwhile, your current home is familiar. You’ve come to accept its shortcomings — the loud neighbours, the leaky ceiling, the tricky parking. It has few surprises.

People often hesitate to make the ‘biggest purchase of their life’ because they fear they will make a bad investment and pay too much. Sometimes people lose sight of the fact that they are looking for a place to live instead of just an investment.

Give these steps a try to see if you are ready to take your first step.

Firm Up Your Finances

Anticipate the new costs that you will incur, such as taxes, homeowners insurance, utility bills etc. This will help determine the maximum price you can spend on a house. If your daily budget will change with a new home, consider a trial run living on that budget for a few weeks, to make sure you can. Enlisting the help of a financial expert will give you an objective view of your finances. Remember, the first year is the most difficult.

Partner With an Agent

Even though the internet gives you access to endless amounts of market information, don’t be tempted to go it alone. Instead, meet several real estate agents and find one you like who listens to you. He or she can line up properties to view, answer many of your questions and make connections for you. Agents often have the inside track on new properties just coming on to the market.

Accept Some Risk

Realise that there is uncertainty in everything, but no matter what happens, you will deal with it. Ask family and friends about their experiences and learn from them. Be sure to keep some cash reserves in the bank as a safety net. And remember, you have homeowner’s insurance for a reason.

Fine Tune Your ‘Must-Haves’

Are there features you absolutely must have? Are you adamant about a garage, a fireplace or a finished basement? Make your list of what’s vital. You may find that you are willing to sacrifice one feature if the rest are fabulous. If you are not crazy about the house, don’t bid. It’s important that you love it at the outset.

Be Ready to Bid

Regardless of the market, great houses do not stay available for long. One open house can lead to three offers. If you love it, be ready to make your best offer. If you are wavering, ask yourself, “How will I feel if I don’t get this house?” You might just get it, and if not, at least you will know you tried.

Reap the Reward

Owning a home can be one of the most exciting and satisfying things you will do in your life. It’s an investment that can pay you personal dividends as well as financial benefits. After all, if you add up what you have spent in rent over the years, it may surprise you! The market has some great deals at the moment, now just might be the right time for you.