MAKE YOUR FIRST HOME BUYING IN CALGARY EASY.

An expert breaks down a few key points to keep in mind.

Are you planning to purchase your dream home in Calgary? Here is something very useful. First-time experience is usually hard when it comes to home buying. First-timers ‘ homes have one thing in mind which is the perfect home for them. To achieve that they need to go through several steps and processes which might be tiring. But before you find your perfect home, fall in love, and make it your own, read our list of 10 things you probably should know when buying your first home in Calgary by industry expert and Calgary Realtor Renju Korath.

Your dream home concept evolves

Sure, if you build a custom home and see the development from start to finish, you can easily meet your list of desires depending on your budget, but even our clients who have built homes have said, “We love it, but we’d add this next time, or change this,” it’s just human nature, especially in today’s society. Frequently, our clients will have long lists of demands and wishes, which, not unexpectedly, grow as you shop and see more properties. Typically, buyers may overlook some of the unique characteristics of homes that aren’t as prevalent. It’s sometimes easy to fulfill and exceed expectations if you have basic expectations and demands, but for most buyers whose wish list is constantly expanding and growing, it often turns out that some features must be prioritized above others, resulting in the less-than-ideal dream home. You must manage your expectations of what to expect; some things are as basic as changing out the paint or countertops, adding more or better lighting, gardening, or installing some gorgeous new granite countertops from the cut you choose yourself. Whatever you may or may not require, bear in mind that your Real Estate Partners are here to help. A real estate agent can help you choose a home that meets as many of your requirements as feasible and assures you’re buying a house with good bones and potential.

Get connected with the right mortgage expert

How often have you considered taking advantage of the best deals? Your local mortgage broker’s Facebook post advertising rates 1 or 2 points lower than your bank or mortgage broker’s offer? Your mortgage partner should provide you with more than simply rate alternatives and suggestions, such as advice on the sort of mortgage, the term, and your options for breaking and paying it down. Before you leap into the best offer, speak with your Real Estate partner’s agent and inquire which mortgage specialist is best suited to your needs, so you know you’ll be dealing with an impact partner that goes above and above for your most important financial transaction.

Before you go shopping, get pre-approved!

We provide this advice all the time, and there’s nothing worse than a buyer thinking they’ll be able to afford a certain amount, putting in an offer, falling in love with a house, just to find out they’re not eligible for that amount and won’t be able to close.

Do not hesitate on a home inspection

When a property is listed for sale, our team will produce our own home inspection depending on the property and circumstances; we’ve had offers come through on these properties that lacked home inspections because they trusted ours to do the job, and while we fully trust all of our partners’ work, there are very few situations where we wouldn’t recommend that our buyers hire and have their own home inspection conducted. Homes that were built only a few years ago might and do have problems. Never trust another agent’s or a homeowner’s word for it; having an agent who knows how to negotiate these situations and watch out for your best interests is essential.

From the roof to the electricity, plumbing, and foundation, to appliances and everything in your mechanical room, your home inspector will examine important areas that might cost you thousands of dollars to repair.

Pro tip – When buying a home, ensure your agent has all agreements for fixes/changes in writing between you and the seller. An agreement (even in writing) between two agents is not binding, as an offer to purchase is a contract between you and the seller. Therefore, even if a selling real estate agent in Calgary promises to fix a leaking faucet before you take possession, ensure your agent has this in writing, as well as the recourse if it isn’t fixed before you take the keys.

Pro-tip #2 – Keep in mind that a home will never be perfect; even homes that are months old can have issues, some major, some minor. Your agent should be able to go over your home inspection report with you and decipher which items are worth discussing with the other agent and which are routine minor repairs that are common and expected.

Savings for home maintenance

Regardless of how new or old your house is, it will require upkeep and repairs at some point. Nothing lasts forever, from the roof to everything in your mechanical room, and being prepared for these bills is crucial for new homeowners. Start monthly savings account for when that time comes! This money should be separate from your emergency funds, which would be used if you lost your work; instead, it should be set aside for unexpected (but common) events.

Ask Questions

There’s nothing more frustrating than being unsure about a step in the process, and while our team does everything possible to educate our clients throughout the process, there are times when an agent will know something in-depth that a client may be unaware of because they live, eat, sleep, and breathe real estate 24/7. Don’t be hesitant to ask questions, whether to your agent, home inspector, lawyer, mortgage broker, or anyone else involved; these talented individuals should be more than willing to explain every element throughout to ensure you’re completely comfortable and in touch with your purchase.

Find out and consider the total costs

There will undoubtedly be expenditures related to the closing and purchase of your house; here’s a brief rundown of likely expenses for which you should have cash or credit.

• GST 5% – For new home purchases 
• Home Inspection costs
• Legal Fees
• Condominium Document Review cost 
• Insurance cost

Fixes  that might Require A Professional 

Some repairs can be completed by the owner, while others require expert assistance. One of our favorite stories about homeowners saving money on repairs involved a client who had purchased their first home had no trades or repair experience and generally dubbed themselves as not being very handy, but after a year of ownership, and a little Youtube to help out, they started taking on more and more minor upgrades to their home, until one cold winter day when their furnace broke down, they called a furnace company and received two quotes that said it would cost $2,000 and $3,000, respectively. They scanned the furnace panel and noticed the LED Indicator blinking in a specific pattern, indicating a problem. They went to a local furnace parts store, bought a $15 ignition piece, and swapped it out themselves, saving hundreds of dollars!

Beware of the advice from friends and family

It’s fairly normal in this industry for friends and relatives to assist with decisions, offer unsolicited advice, and even take over totally. While we recommend that you seek professional advice and make your own decisions, we do caution those who seek additional input from uninvolved parties. We’ve seen some incredibly heartbreaking situations where poor legal advice from non-legal professionals has cost our clients thousands of dollars after their purchase, which could have easily been avoided if they had sought advice from their agent and/or real estate lawyer.

Buying a property with the help of family or friends may be a lot of fun and gratifying, but make sure you talk to your agent about all of the crucial decisions and details before you do anything that could put you in a bad situation.

Decide if it is for the short term.

When selling a property, there are a variety of things to consider: mortgage breaking fees, real estate fees, repair fees, and so on. We bring this up because we occasionally come across buyers who believe or say things like “We’ll just move if we don’t like it” or “We’ll just move if we don’t like it.” They go from having a low rent space that allows them to travel and be free, with no personal maintenance responsibilities, to riding a lawnmower, carrying a mortgage, having property taxes, and maintenance bills, all while moving into an area they thought they’d like. Give thorough and deep thought into all elements of homeownership, it’s okay to rent short-term to test the waters in some aspects and be confident in your next big decision.  

Let your intelligence decide, not your heart.

Last but definitely not least, give some thought to why and where you’re moving.  Decide on the priorities and proceed further. The bottom line is that it’s okay to be selfish in this purchase, consider your circumstances, and have the foresight to consider as many variables and changes that could arise, buy a home that is suitable in all instances and not just one that warms your heart. 

Hope this article is informative and will help you in some way. Stay tuned for more articles on Calgary Real Estate related.

Author: Renju Korath