So You Want to Buy on PEI or Looking to Buy a PEI Real Estate.

So you have found the little "Emerald Isle", PEI, Prince Edward Island. Islanders like to think that PEI is a little slice of paradise. Well if you are looking for a place where you can buy into the housing market for as little as $60,000 and own a small house in Summerside, the second largest city in PEI, then you may just have found paradise. The cost of purchasing housing in relation to the features afforded make for an excellent investment and low-cost living. That $60,000 house is only a block or two away from the water and a boardwalk that runs from one end of the city to the other.

There are even some companies who try to combine the idea of fsbo and the help with the purchase normally associated with an agent. Remember that only a realtor has access to all the listings on the MLS system. Also you should remember that the sales commission is paid by the vendor. You might think that if they know they are going to save this money they will pass some along to you in the form of a lower price - but how can you really know.

I am going to assume you are using an agent! As a purchaser you might consider looking for an agent who is a little hungry. This is a different prospective than if you were selling and wanted a agent with a proven sales record.

Once you have chosen your agent generally if you are looking for someone who is going to work hard for you, you should sign a buyers agency. The realtor will want to know the type of property you are looking for, any special features you are looking for and the general area and budget. You should be realistic in your goals as they really have to be in line with the market. This is where your realtor will help you. Your realtor will research the properties available and short-list for viewing those he/she thinks are suitable and within your price range.

If you are from out of province, perhaps even out of country, and depending on the number of properties that have been short-listed, your agent will try to arrange as many viewings in a day as possible while hopefully not exceeding the number that you can remember and focus on. As you visit each house your agent will give you an MLS flyer with all the pertinent information on that property as well as a few pictures to help you remember the property.

As you view each home start to short list these in your mind. Some people like to take notes to think about later, but if you aren’t the note-taking type, just keep thinking, "Is this property better or worse than the previous". Try to keep a top three in your mind. This is for day two.

Day two is a re-visit of the homes that "rang your bell". This visit should be a more meticulous viewing. Make sure that you are down in the basement. Actually the basement is where the "works" of the house are usually located. Check out the roof as well as the basement walls for cracks. Island basements may be poured concrete or block concrete walls with or without a concrete floor, however many of the older homes have clay basements and the house is built on a rock base. Many of these foundations have supported the home for 100 or more years. Check that the house is reasonably level, but realize that it might have taken 60 ot 70 years to sink the amount that it has and that it will take another 50 years to be a problem. While in the basement check boilers, water heaters, & electrical service. This is just a general inspection for obvious problems, general age and condition etc. You will have a qualified home inspector look at the home before the purchase closes.

When you have chosen the home the next step is to make an offer. Taking into account the condition of the property, how much other similar properties in the area have sold for (and haven't sold for), you and your agent will decide on an offer. The vendors agent will present your offer to his/her clients and there may be a process of offer and counteroffer taking into consideration such things as financing, price, conditions such as you selling a home first, and closing date. If an agreement can be reached and signed by both parties you have a legal contract to purchase a house. It is outside the terms of what I am writing to give more than a general outline of the process, but time is of the essence now. Conditions or "subject clauses" have to be worked at so they may be removed. For example if you made your offer subject to financing then you have to get busy and look for financing, if you offered "subject to selling your home" then that has to be undertaken as well. The home inspection is usually one of these clauses too.

Once subjects are removed the deal moves to the lawyers who apportion taxes, oil in the tank, etc, to ensure equity and put together the final paperwork - sign and pickup the keys!

** This article is general information and should not be taken as a complete or authoritative essay on the subject.