Find a home in Victoria: 3 expert tips for first-time buyers

If you want to find a home in Victoria, it helps to have expert guidance to succeed as a first-time buyer. Tom Hopper is a seasoned professional in the business of buying and selling Vancouver Island real estate. His wisdom and ideas are reassuring and inspiring to those who feel overwhelmed by a rapidly changing market.

Tom has worked with dozens of first-time buyers, and they appreciate his matter-of-fact humour, savvy strategies, and efficient approach. After taking Tom’s advice, first-time home buyers looking to find a home in Victoria can relax and enjoy more ease— and ultimately, a successful purchase. Here are three expert tips from Tom for new investors who want to avoid disappointment and maximize buying power.

Tip one: get pre-approved by a bank or mortgage broker

“You can go online and plug a few numbers into a website and think you’re pre-approved and know what you can afford,” Tom says. This, unfortunately, is a hazy mirage, and not reality. “What you have entered online is ‘fluffy data,’ but when you go into a bank and get a real approval, the bank pulls your credit bureau history.”

Even when we think we are being thoroughly transparent, It’s easy to forget all the ways we may be carrying debt and liability, Tom says. “But every nickel you owe is there on your credit bureau. If you had a poor rating in university, it shows up. Unless you’ve had your credit bureau pulled, you can’t really be pre-approved, or know what you can afford.”

Know your “real number” before you go shopping to find a home in Victoria

Tom often connects his first-time buyers to a trusted mortgage broker who can provide an accurate pre-approval number. Otherwise, many first-time buyers with a “fluffy” online pre-approval start looking at properties they think they can afford. Then, when they find something they love, they get excited. Sometimes, they may go all the way to an accepted offer before the bank tells them they don’t qualify for the financing. “This wastes everybody’s time, and is embarrassing and disappointing,” says Tom.

“You need to have the real number when you’re shopping, and the only way to get that number is with a mortgage broker or a bank. These professionals go all the way, they do the deep dive, then apply the mortgage ‘stress test.’ If you don’t do this first, you’ll constantly frustrate yourself, and fixate on the home you wanted but can’t afford. When you focus on what you can afford, then you’ll succeed.”

Adjust your expectations to find a home in Victoria

Any first-time buyer in Victoria is probably experiencing sticker shock. There may be a sobering realization that the Victoria home you’ve been saving for might not be possible as a first purchase. “You may have thought you were saving for a house,” Tom says, “but now it’ might have to be a condo or townhouse.”

Tom says savvy investors understand that buying well, at any level, is a wise move. “And that first home just has to be functional, and sellable. It doesn’t have to be your last place.” Then, when you go to sell and move up, “you’ll need the ‘wow’ factor,” Tom advises. “Whatever size first home you buy, make sure you are saying ‘wow’ more than ‘ew.’” And if you can’t find even a condo in Victoria you can afford? “You can get into a mobile home situation as a first purchase, spend $250,000, and at least you are in the market. You’ll always be able to sell a manufactured home.”

Tip two: aim high in buyer’s market; aim low in seller’s market

When it’s a buyer’s market, prices are falling, and properties are taking longer to sell. Tom advises his first-time buyers to shop within their pre-approved budget, but look for signs that a property is lingering on the market. “You can shop 10% above your ceiling,” he explains. In a seller’s market, however, “you need to be careful, and aim 10% below your absolute ceiling.” For the summer of 2022, Tom says indications are that Victoria is shifting to a buyer’s market.

One way to qualify for a larger home is to go a little bit farther “out” from the downtown core of Victoria. “Your money always goes farther in the western communities,” Tom advises. Heading out to look in Langford or Colwood can bring the purchase price down considerably. “Sooke is even less expensive— but it’s a more significant commute.” All these factors are important to consider, Tom says. Sometimes, accepting a longer commute could be the wisest choice. Other times, a smaller home right in Victoria is your best bet.

Tip three: don’t get emotionally attached

First-time home buyers are often stressed and emotional when they think they’ve found the “perfect place” — and then don’t get it. Tom helps everyone stay grounded, and keep looking ahead. “It’s very rare that a property for first-time buyers is truly ‘one of a kind,’” Tom counsels. “I tell buyers to just be patient, and know that if you miss something, something just like it or very similar is not far away.”

It sounds a little like dating advice, Tom laughs. But he warns his clients not to become too emotionally attached to any particular property. “Buying a house, especially for first-time buyers, is like getting into a relationship. You are sometimes blind to the obvious pitfalls because you’re so attached to the rosy outcome. My job is to take those rose-coloured glasses off, and keep you grounded.”

He offers the same advice about dips in property values, too. “Don’t get into a situation where you’re looking at your home as anything but a long-term investment,” he says. “You won’t lose money if you can ride it out over a couple of years.”