• Determine How Much Home You Can Afford

• Pick a Real Estate Property for Your Lifestyle

• Know What Real Estate You're Buying

• Choose Residential Real Estate Financing That Fits

• Find Residential Real Estate on eBay

• Buy Residential Real Estate With Confidence

Determine How Much Home You Can Afford

Determine How Much Home You Can Afford

You’ll save yourself a lot of effort if you take the time to figure out how much mortgage you can afford on a residential property.

• Pre-qualify with a residential lender: Talk to a residential lender to get pre-qualified before starting the process so you know exactly how much money you’ll be able to borrow.

• Determine your monthly mortgage payment — use the 28% rule: Generally, a residential lender wants your monthly mortgage payment to be 28% (or less) of your monthly gross income, which is your monthly income before taxes and other paycheck deductions.

• Consider interest rates in your monthly mortgage payments: The lower the interest rate of a loan, the lower your overall monthly mortgage payment. A low interest rate loan may mean you can afford a higher-priced home.

• Estimate monthly maintenance costs, insurance premiums, and taxes: Even though they don’t directly affect purchase price, monthly maintenance costs, insurance premiums, and taxes do have an impact on your pocketbook and may be considered by your lender.

Pick a Real Estate Property for Your Lifestyle

Pick a Real Estate Property for Your Lifestyle

There’s a variety of residential real estate types for a variety of lifestyles. You’ll probably have different needs if you’re retiring to Georgian Bay than if you’re snapping up foreclosures in Toronto. Consider how you’ll be using the property when you place your bid.

• Single-family homes: Single-family homes are free-standing structures that don’t share walls with any other homes.

• Duplexes: Duplexes are residential complexes consisting of two separate residential units where there’s only one legal title covering both units.

• Condominiums: Condominiums, also known as condos, are typically apartment-style properties within a building or complex. Individuals own the units, and common parts of the property, such as the grounds and building structure, which are owned jointly by the unit owners.

• Housing co-operatives: Co-op residents own shares in a legal entity that owns a group of homes, usually one or more apartment buildings. Each shareholder typically has a lease agreement with the co-op, and the co-op's rules provide tenure for its residents.

Know What Real Estate You're Buying

Know What Real Estate You're Buying

For most people, a house is a significant purchase. You want to purchase residential real estate you'll enjoy living in, and that will also sustain and hopefully grow in value. Look for things that can add to, or take away, value in your property.

• Pick the right residential real estate location: Find out about the neighbourhood. Is it in demand? Are there grocery stores, shopping, and good schools nearby? The “Neighbourhood Profile” feature is a great place to start. It gives you important details such as population in the area, average incomes, crime rates, and types of housing nearby.

• Get the right residential real estate features: You want features that you like, but it’s good to buy with your property’s resale potential in mind. To find out which features are in demand, browse the local residential real estate ads and see which ones are mentioned frequently.

• Check the condition of the home or real estate: Is the roof leak-free? Are there termites? Is the electrical work up to code? Issues like these can add costs after the purchase, so make sure to know about them ahead of time. Consider using a professional inspector who is trained to see things you may not.

• Get answers from the seller: Ask the seller or seller’s agent about the residential real estate property. Consider making a list of your top 10 questions. Some states may require that the seller deliver to a buyer a specific form of disclosure statement.

• Conduct a home title search: A title search is usually performed by a title company or an attorney, who examines public records to determine the property's legal ownership, loans on the property, and property taxes due. The company or attorney will also find out if there are any liens, which are claims against the property by debtors, or any easements, which give rights to anyone other than you to make limited use of the property, such as for right of way. If there are issues with the title, discuss them with the seller.

Choose Residential Real Estate Financing That Fits

Choose Residential Real Estate Financing That Fits

While there are many different types of residential real estate mortgages, fixed rate mortgages and adjustable rate mortgages (ARMs) are the most common.

• Fixed rate residential real estate mortgages: Fixed-rate mortgages set your interest rate prior to closing on your home and the rate does not change for the term of the loan. Many banks allow you to lock in a favorable interest rate several months prior to closing. If you expect rates to rise, you may want to lock in a rate even earlier — usually for a fee based on a percentage of a point (1 point typically equals 1% of your loan).

• Adjustable rate residential real estate mortgages: An adjustable rate mortgage (ARM) has a lower initial interest rate than fixed-rate mortgages, but the rate will vary throughout the term of the loan. The bank can raise your rate in accordance with a rise in interest rates with an adjustment period determining the frequency of your rate change. ARMs generally have an interest rate cap, with yearly and/or lifetime maximums.

Find Residential Real Estate on eBay

Find Residential Real Estate on eBay

Once you know what type of residential real estate you want, go to the Real Estate category portal and start searching for residential property on eBay.

• Keyword search: Search eBay title listings for specific words. For example, if you want to find condos, type "condominium" (without quotation marks) into the Search box. Click "Search title and description" to expand your results. Visit eBay's Search Tips page for more tips on searching with keywords.

If you can't find exactly what you want, try shopping eBay Stores, tell the eBay Community what you want by creating a post on Want It Now, or save a search on My eBay and eBay will email you when a match becomes available.

Buy Residential Real Estate With Confidence

Buy Residential Real Estate With Confidence

The information contained in this Buying Guide is intended for general information purposes only. This guide is not intended to be a complete list of all things relevant to the purchase of real estate and should not be deemed a substitute for professional advice. You should conduct your own due diligence into all aspects of a real estate purchase and depending on your situation; you should get assistance from experts, including a licensed real estate broker, a property inspector, title/escrow company, attorney, and/or financial advisor.

Due diligence

As with all major decisions, in buying real estate, you will want to make sure you get full information and the best advice possible. You may want to consider using an experienced real estate broker who can help you with your due diligence, negotiations, and closing. Depending on your personal circumstances and investment goals, you may also want to engage an attorney and/or a tax advisor.

Consider real estate purchase specifics before moving forward with any real estate purchase.

• Price: Am I bidding on the full price of the parcel, or am I bidding on a down payment?

• Title: Is the title clear; that is, free of liens, easements, and other encumbrances? If the title isn’t clear, what are the easements on the property?

• Insurance: Can I get title insurance at my own expense?

• CCRs: Are there any covenants, codes, and restrictions on the property?

• Deed: What type of deed will I be getting?

Before making your purchase, make sure you know exactly what you're buying, research your seller, and understand your payment options.

Know your purchase

Carefully read the details in item listings. If you want more information, ask by clicking the "Ask seller a question" link under the seller's profile. In some states, the seller may be required to deliver a specific disclosure statement.

Familiarize yourself with the seller’s terms, including any guarantees and requirements regarding the acceptable forms of payment. Check to see what closing costs you are expected to pay.

Nature of bids in auction-style advertisement

Due to the wide variety of laws governing the sale of real estate, eBay Real Estate auction-style advertisements of real estate property do not involve legally binding offers to buy and sell real estate. A bid is not a contract between seller and buyer. Rather, bids represent a buyer’s serious expression of interest in buying the seller’s item. Learn more about eBay’s bid policy for real estate and eBay Real Estate Rules and Policies.

Know your seller

Research your seller so you feel positive and secure about every transaction.

• What is the seller's Feedback rating? How many transactions have they completed? What percentage of positive responses do they have?

• What do buyers say in their Feedback? Did the seller receive praise?

Know how to pay

Never pay for your eBay item using instant cash wire transfer services through Western Union or MoneyGram. These payment methods are unsafe when paying someone you do not know.

PayPal enables you to pay without the seller ever seeing your bank account or credit card numbers. In fact, PayPal protects buyers 100% against unauthorized payments from their accounts.

Visit the Security & Resolution Centre to learn how to protect your account and use eBay's quick and efficient resolution tools.