Calgary homebuyers’ guide: How to navigate the hot market

If you’re looking to buy a home in Calgary, you might be feeling overwhelmed by the current market conditions. With record-high sales, low inventory and rising prices, finding your dream home can be challenging and stressful.

But don’t worry, we’re here to help you navigate the hot market and make your homebuying journey easier and more enjoyable. Here are some tips and resources to help you prepare, plan and purchase your home in Calgary.

Tip #1: Know your budget and get pre-approved

Before you start looking for homes, you need to know how much you can afford and what kind of mortgage you qualify for. Getting pre-approved by a lender will give you a clear idea of your borrowing power and help you narrow down your search criteria.

A pre-approval will also show sellers that you’re serious and ready to buy, which can give you an edge in a competitive market. Plus, it will lock in your interest rate for a certain period of time, which can protect you from any potential rate hikes.

To get pre-approved, you’ll need to provide your lender with some financial information, such as your income, assets, debts and credit score. You’ll also need to decide on the type of mortgage you want (fixed or variable rate), the term (how long you’ll pay it off) and the amortization (how long it will take to pay off the entire loan).

Tip #2: Work with a REALTOR®

Buying a home is one of the biggest financial decisions you’ll ever make, so it’s important to have a professional guide you through the process. A REALTOR® is a licensed real estate agent who can help you find the right home for your needs, negotiate the best price and terms for you, and handle all the paperwork and legal aspects of the transaction.

A REALTOR® will also have access to the latest market data and trends, as well as the Multiple Listing Service (MLS®), which is the most comprehensive database of homes for sale in Canada. They can also connect you with other professionals, such as home inspectors, appraisers, lawyers and movers, who can assist you along the way.

To find a REALTOR® who suits your style and preferences, you can ask for referrals from friends and family, search online or visit the Calgary Real Estate Board (CREB®) website. You can also interview different REALTORS® and ask them about their experience, credentials, services and fees.

Tip #3: Do your research and be flexible

Once you have a budget and a REALTOR®, you can start looking for homes that match your criteria. You can browse online listings, attend open houses, or ask your REALTOR® to set up private showings for you.

As you look at different homes, you should do some research on the neighbourhoods, communities and amenities that interest you. You can use tools like CREB®’s Community Profiles to learn more about the demographics, schools, transit, recreation and lifestyle of each area.

You should also be flexible and open-minded when searching for homes. In a hot market, you might not find everything you want in one home or location, so you might have to compromise on some features or aspects. For example, you might have to settle for a smaller home, a longer commute, or a higher price than you initially expected.

Tip #4: Make a strong offer and be ready to act fast

When you find a home that you love and want to buy, you need to act fast and make a strong offer. In a hot market, homes can sell quickly and receive multiple offers, so you need to stand out from the competition and show the seller that you’re the best buyer for their home.

To make a strong offer, you should consider the following factors:

• The market value of the home: Your REALTOR® can help you determine the fair market value of the home based on recent sales of similar homes in the area. You should offer a price that reflects the value of the home and your budget.
• The seller’s motivation: Your REALTOR® can also help you find out why the seller is selling and what their needs and preferences are. You should offer terms that match the seller’s goals and timeline. For example, if the seller wants to close quickly, you should offer a short closing date. If the seller wants to stay in the home longer, you should offer a longer closing date or a rent-back option.
• The market conditions: You should also consider the supply and demand of homes in the area and how they affect the competition and negotiation power. In a seller’s market, where there are more buyers than sellers, you might have to offer more than the asking price or waive some conditions to win the bidding war. In a buyer’s market, where there are more sellers than buyers, you might have more room to negotiate or ask for concessions from the seller.

To be ready to act fast, you should also have your financing, deposit and documents ready. You should also be prepared to respond quickly to any counter-offers or requests from the seller.

Tip #5: Hire a home inspector and finalize the deal

After your offer is accepted by the seller, you need to hire a home inspector to check the condition of the home and identify any potential issues or defects. A home inspection is usually a condition of your offer, which means that you can back out of the deal or renegotiate if the inspection reveals something unacceptable.

A home inspector will examine various aspects of the home, such as the structure, foundation, roof, plumbing, electrical, heating, cooling and ventilation systems. They will also look for signs of water damage, mold, pests or asbestos. They will provide you with a detailed report of their findings and recommendations.

You should attend the home inspection with your REALTOR® and ask questions along the way. You should also review the report carefully and decide if you want to proceed with the purchase or not. If you do, you need to remove the inspection condition from your offer and finalize the deal with your lender and lawyer.

Source: calgaryherald.com