Welcome! to the Getting Started section of Buyer resources. When buying or thinking of buying a Calgary home, there are a few things that you should know and be aware of before starting the process. In this section, we will discuss Buyer Agency, Home Inspections, RRSPs, Buyer Brokerage, and common buying mistakes. If you have any questions or concerns, please call us at (403)-730-2330, and we would love to assist you with any inquires about Calgary homes for sale or Calgary Real Estate Needs! 

 


Buying a Calgary Home? Let a Buyer's Agent Work for You! 

Understanding Buyer Agency, Part I

Buying a Calgary home for sale can be overwhelming. Finding the right property takes time, knowledge of the local market, negotiating skills, and the expertise to deal with contracts. Each buyer has a different story. Maybe you're a first-time buyer, or perhaps you have to sell your home before you buy a new one. A buyer's agent understands these situations and is there to promote your interests and represent you through the entire process.  

What can the buyer's agent do for me? 

Your buyer's agent will help you through all stages of home buying and homes for sale, starting with a detailed search for the property that suits your needs and budget. This includes searching properties on the MLS Calgary (a large database of property listings) and any for sale by owner. If any of them appeal to you, your buyer's agent will arrange showings at your request.

Once you've found a property, you need to decide what price to offer. Your agent can prepare a comparative market analysis (CMA) that can help you decide on a price. Once you've named a price, your agent writes an offer and works to negotiate the price, terms and conditions in your favour. Your buyer's agent can help wade through all the paperwork that's part of a real estate deal.

Knowing all you can know about a home for sale is an important factor in your decision-making. For example, it's important to know what repairs are needed, what nearby future developments are proposed or in the case of agricultural properties, the state of wells and quality of water.

Your buyer's agent must disclose everything known about the homes for sale that could impact your decision. For example, a neighborhood might be known to have water problems or homes built by a particular developer might have a history of foundation problems. If you have concerns your agent can't answer, you'll be advised to ask for advice from other professionals.

Buyer's agents can also lead you to other services necessary in the home buying process. The buyer's agent can search title and provide guidance on financing, property inspections or arranging for a real property report.

 

Your Buyer's Agent Works For You

Your buyer's agent has certain obligations, or fiduciary duties that they must fulfill to you, the client:

·         Loyalty: The agent must protect your negotiating position at all times and work in your best interest.

·         Obedience: The agent must carry out all of your lawful instructions.

·         Confidentiality: The agent has an obligation to keep information confidential.

·         Reasonable care & skill must be exercised in performing all duties.

Full disclosure of all relevant information that is known by the agent and that may influence your decision or affect the value of the home for sale.

Full accounting of all money and property placed in the buyer's agent hands while acting on your behalf.

Your agent will promote your interests, represent you throughout the transaction and will act only as your agent unless you agree otherwise. For example, you might be interested in a property listed by the agent or another agent in the same brokerage. In this case, you may want to allow your agent and the brokerage to act as a dual agent, representing both you and the seller. In a dual agency situation, the fiduciary duties the agent owes to you and the seller change. Learn more about this in the next section, "Understanding Buyer Agency, Part II".

 

Understanding Buyer Agency -Part II of III

The Buyer Brokerage Contract is the written agreement that establishes an agency relationship between you (the buyer) and the real estate brokerage (and its agents). When you sign the agreement, you agree to be represented by only the agent you'll be working with and all other agents in the same brokerage.

The Buyer Brokerage Contract sets out duties and responsibilities of both parties. Your agent must provide you with information about the property and guide you through the transaction. Buyers have obligations under the contract as well. In signing the contract with a brokerage, you agree that all agents in the office can find suitable properties and help you negotiate the terms of any Purchase Contract. You need to provide information to enable the brokerage to search for properties that make the most financial sense for you. Finally, you need to inform the brokerage of any properties you're interested in viewing. The buyer's responsibilities under the contract enable the buyer's agent to do the best job she can for you.

 

Agency Relationships

You'll also find a section in the contract about agency disclosure. This authorizes the buyer's agent to act as a dual agent and outlines the duties the agent owes to you in a dual agency situation. A dual agency situation could occur if you're interested in making an offer on a property listed by your agent or another agent in the brokerage. In this case, the agent and the brokerage act for both you and the seller and can't fulfill all of the fiduciary duties owed to both parties.

In a dual agency situation, the agent doesn't owe a duty of confidentiality and will disclose to you and the seller all defects and information known about the property that may affects its value. The only information that the agent will not disclose to the seller is the minimum or maximum price you (the buyer) are willing to pay. The agent will also not disclose any information about the price the seller will accept or the reason they're selling. Further, in a dual agency situation, the agent will not disclose to you or other buyers the terms and conditions of competing offers on the property.

 

Paying Your Agent

Another important part of the Buyer Brokerage Contract is the section that determines the brokerage's compensation. Real estate commissions are negotiable in Canada and you and your agent have to agree on a suitable amount of compensation. Usually, the contract will state that the brokerage will receive either a portion of commission offered by the seller's brokerage or a fee that is negotiated between you and your agent. If the seller's brokerage doesn't offer a portion of commission to your buyer's agent, you may want to take that into consideration when making an offer. Some agents might ask for a deposit on their fee to be held in trust and applied to any commission payable or refunded to you if the contract expires.

Ending the Contract

The Buyer Brokerage Contract is in effect until the expiration date negotiated between you and your agent. The contract can be renewed or extended if you and your buyer's agent need more time to search for a property or close a deal.

The Buyer Brokerage Contract is a legally binding agreement but it can be amended or cancelled under certain circumstances. For example, if you or your spouse are suddenly transferred, talk to your agent about terminating or amending the contract. Make sure to ask your agent about any ongoing obligations on your part if the contract is terminated.

 

Understanding Buyer Agency -Part III of III

 

Why do I need a buyer's agent?

A buyer's agent promotes your interests and represents you throughout the home-buying process, beginning with the search for the perfect home until you have the keys in your hand. A buyer's agent can provide you with many important benefits such as knowledge of the local market, negotiating skills and expertise in working with contracts.

What is a Buyer Brokerage Contract?

A Buyer Brokerage Contract is the legal document that sets out the relationship between you and the real estate brokerage (and all of its agents). The contract also establishes the obligations of each party: you agree to have only the brokerage represent you and the brokerage agrees to represent you and act in your best interests.

 

Do I have to sign a contract for a specific length of time?

The expiration date on the Buyer Brokerage Contract is agreed upon between you and your agent. There is no requirement for the contract to last any predetermined amount of time. The contract should be written to expire in a time period that works for both you and your agent.

What happens if I sign a Buyer Brokerage Contract and then find a home listed through another agent?

Any time you find a property you'd like to view, contact your buyer's agent. The buyer's agent will contact the seller's agent to arrange a showing.

What if I decide to buy a home directly from a builder?

With a buyer agency relationship, there is no obligation to purchase a resale home. Tell your agent you'd like to look at a new property. Your buyer's agent will help you navigate through all the information on new homes and neighborhoods. More importantly, your buyer's agent acts for you and represents your interests when negotiating with a builder. Your agent can help you work with the builder from the planning stage, or help you finalize details for your new home. Your buyer's agent can also assist you through other unique issues that new homes present such as warranties, GST, builder's liens or encumbrances. Buyer's agents also have access to standard contracts and schedules that protect you, the consumer, when buying your new home. Commission is paid per the terms of your Buyer Brokerage Contract.

Can I look at open houses without my buyer's agent present?

Yes, you can view open houses without your buyer's agent but as a courtesy you should inform the agent at the open house that you are already represented. If you want to see the property again, your buyer's agent will make arrangements for a showing.

How is my buyer's agent paid?

The terms of payment should be contained in the Buyer Brokerage Contract. Usually, the contract will state that the brokerage will receive either a portion of commission offered by the seller's brokerage or a fee that is negotiated between you and your agent (whichever is greater). Real estate commissions are negotiable in Canada and you and your agent have to agree on a suitable amount of compensation. If the seller's brokerage doesn't offer a portion of commission to your buyer's agent, you may want to take that into consideration when making an offer on a property.

Source: Alberta Real Estate Association


Home Inspection

Buying a Calgary home for sale, especially a resale home, without a physical inspection can be like buying a used car without taking it to a mechanic first. A home inspection costs in the $250-$350 range, depending on the size of the home and other variables, but can be well worth the money in peace of mind. Following are some inspection areas that maybe looked at on your own. However, do not attempt any investigations if you are not qualified.

An inspection of a property will take about two to three hours, and the inspector will examine the house from the ground up. This would include heating, air conditioning, plumbing, electrical, appliances, structural components of the roof, foundation, basement and exterior and interior.

 

However, there are some basic areas that you can check yourself:

 

Roof - Average Life Spans

Composite shingles         15 - 22 years

Wood shingle    15 - 20 years

Heavy shake       25 - 30 years

Tile         40 plus years

Naturally, exposure to the elements and upkeep effect life expectancy.

 

Electrical system:

  • Check all of the outlets with an electrical tester.

  • Look for exposed wiring and aluminum wiring
  • Check the service panel for "tripped" breakers or "blown" fuses
  •  

Heating/cooling:

  • Activate the thermostat to the "on" position.
  • Walk around the house and check the vents for airflow.

Water pressure:

  • Turn on sink and shower taps and flush the toilets.

Pipes/plumbing:

  • Examine floor areas around the tub and shower for signs of moisture.
  • Check all exposed pipes at joints for visible corrosion, especially at the water heater.

 Doors/windows:

  • Open and close all windows and doors
  • Windows and doors should open and close easily.

Drainage:

  • Look for evidence of ponding, discoloration and sunken elevations.
  • Check gutters and downspouts.

Appliance check:

  • Oven: turn oven to 350 F and check the oven temperature in 10 minutes.
  • Range: ignite burners and smell for any gas odor, or, for electric ranges, check for cold spots
  • Dishwasher: let it run through a cycle.
  • Other appliances: check garbage disposal, hoodfans, trash compactors, etc.

Use a Qualified Inspector:

Although you may feel ready to tackle many of the items that we have discussed there are areas and specific problem situations where the experience and training of a qualified inspector will be well worth the fee they charge. The following is a list of items to definitely leave for the pros.

 

·         Furnaces boiler systems & exchangers.

·         Electrical panels.

·         Shake roofs.

·         Aluminum Wiring

This information is not warranted in anyway or is it meant to replace a qualified inspection and should not be used as such. A few hundred dollars spent on an inspection can potentially save thousands. If you are not qualified in building inspection specifically or construction generally you should not attempt a home inspection on your own. Look in the business directory of the yellow pages under Home Inspectors, check with the Better Business Bureau or ask your Realtor to recommend a company.

 

Inspection Hot Topics:

Three major issues have been under debate in Alberta over the last couple of years. These are Poly "B" plumbing pipe, pine shake roofs and aluminum wiring.

Poly B piping is the medium gray water pipe that thousands of Alberta homes have to distribute the water around the home. As far as Poly B piping goes the problems with this were pretty much isolated to the southern United States markets. The highest degree of failure was in mobile homes where the pipe was often run in the ceiling space. The extreme heat caused the pipe to fail because it became to soft. Rarely have there been failures in Alberta in fact I am told that if Poly B was still available it would be installed in Alberta but it is off the market because there is no U.S. market demand. Since we can't buy Poly B Canadians have switched to the new Pex pipe along with our friends south of the border.

Pine shake roofs are another thing altogether. Because of the humidity that we experience a mold will grow under and in untreated pine shakes. If the shakes were treated originally they seem to be all right but the problem is knowing if they were treated. Apparently, the best way to check is to cut away a portion of the shake and see if there is any green staining below the surface. The green is residue from the treatment that preserves the shake. The tell tale sign of problems is if you notice any black spots on the roof. The mold deteriorates the shake and causes premature failure.

The last issue is that of aluminum wiring. This is generally not a problem; there are thousands of Alberta homes with aluminum wiring. These homes were built in the early to mid nineteen seventies when copper prices went through the roof. If there is a problem it will usually arise at the kitchen receptacles because they tend to get the most use. If you put your hand on any of these and the receptacle feels warm to the touch it should be investigated.


USING YOUR RRSP TO BUY

The Home Buyers' Plan ("HBP") is a program founded by the federal government, designed to assist "qualified" buyers in the purchase of a new home. Until 1999, the program was only available once and you had to buy or build the qualifying home for yourself. Now, however, the rules have changed. In order to qualify you have to complete Form T1036 which is available at your tax services office.

Benefits from using the Home Buyers' Plan

.The utilization of your RRSP's within the guidelines of the HBP results in benefits that are quantifiable immediately and extend over the long-term:

How does it work? - No penalties

Under the "HBP", Revenue Canada permits you to use your RRSP funds towards the purchase of a new home. The default insurance companies support this program (when your down payment is less than 25%) in allotting the RRSP funds as a source of down payment.

No penalty for withdrawal

There are no negative effects from removing funds from the RRSP - in short, individuals are able to withdraw monies from their fund without penalty:

 

  • No tax is owed on the money withdrawn
  • No interest is paid on the money while outside of your RRSP
  • There is no monitoring of the money while outside your Plan (see Tax Management below)

 

Subject to restrictions

Regardless of no penalties for withdrawing funds, there are certain guidelines that must be followed in order to remain protected under the HBP' umbrella:

  • There is a maximum of $20,000 that can be withdrawn from one individual's RRSP.
  • There can be a maximum of two first-time buyers in the purchase of a new home, and each individual can withdraw up to $20,000 for a total of $40,000.
  • The purchased home must be owner occupied.
  • The RRSP must be repaid within 15 years with minimum annual payments of 1/15th of the withdrawn amount - failure to do so will result in 1/15th of the RRSP initially withdrawn having to be added back to taxable income in any year the minimum re-deposit is not made.
  •  Establishing an RRSP with borrowed funds for a tax refund.

The "HBP" permits an individual to establish an RRSP with borrowed funds, and then use the resultant tax refund for a down payment. In this scenario:

  •  The individual borrows funds that are contributed to an RRSP.
  • After a 90-day period, the RRSP is collapsed to repay the loan.
  • The client receives a tax refund that can be applied to the purchase of a home.
  • These funds re considered as an acceptable source of down payment provided that:

The tax refund is in the individual's hands at the time of closing.

The lender can verify that the borrower has proven liquidable assets equal to a minimum equity of 5% of the purchase price.

Researched from: Canadian Mortgages

  •  Increased down payment
  • Decreased principal owing
  • Avoidance of substantial interest costs over that accrue over long periods

BUYER BROKERAGE

We Can Do It! Together.

 

 

Chances are that finding your home will be unique to any other purchasing experience that you have had. Firstly, your new home could be the most you will ever invest in one purchase. The success of your purchase will rest heavily on your willingness to be diligent and committed to the task. This determination and sacrifice can be the crucial element that determines your ultimate success in finding your new home.

At this point you maybe thinking, "what are you going to be doing as my realtor if I’m doing all the work?" The truth of the matter is that in order to have the very best chance of finding the very best home we need to be working together as a team; each of us doing our parts. As your realtor, I need to be just as committed to the task and even more accountable for the skills that I bring to the table.

In order to be effectively represented in your home purchase there needs to be a team member that has a variety of rounded skills to ensure the best possible result. Someone needs to be intimately familiar with the local real estate market. Also, up-to-the-minute industry knowledge can make or break a transaction. The real estate industry changes almost daily with new contract clauses being implemented and others modified. And it doesn’t stop there; inspection techniques and issues such as toxic mould, grow houses and pine shake roofing are just a few more challenges that the industry is facing. Keeping pace is one thing, mastering the system to a client’s benefit should be your realtor’s target.

Many say that "Pit-bull negotiating is what every buyer wants." The reality is that the best transaction often leaves a bit on the table. You don’t want to be planning your move while the seller is looking for a way to get out of the transaction. Negotiating has been called an art and it really is. It’s like most skills, practice hones the edge and the sharper you become. When negotiating, the one with the most skill oftentimes makes the best deal for his people. Invariably the most highly skilled negotiator has a combination of experience and determination.

The third attribute of a winning team is trust. Without it a team is crippled into being only half as effective as it could be but with it true synergy will immerge. Mutual trust is critical for a number of reasons. Timing is probably the most important reason that comes to mind when finding your home, let me explain. When you are looking for a home there are always other buyers doing just the same thing, looking at homes just like you. Even in a slow market it can be difficult to find a clean well priced property. When a property comes to the market that is exceptional it can sometimes take weeks or even months to find one that compares. I’m sure that you’ve heard the expression that you don’t need to become a mechanic to drive a car, well the same thought holds true for real estate. You see, the home that is right for you might be the twentieth home that you see. At that point you will have seen nineteen homes and you will have a good "feel" for the market. But what if the right home is the second or third. Now you see what I mean by trust. Trust is something that should never be assumed and cannot be demanded, it must be earned. The reality is that in these situations it is more than often the people that trust their realtor that do the best.

Being a qualified, professional agent demands dedication and integrity. My desire is to help you to find the very best property possible. I am ready to commit my knowledge, experience, and time to the task. My desire is that you would mutually commit to me so that I can focus my efforts towards finding your home.

At this time I need you to be aware that as a realtor I work solely on a commission basis. I do not get paid anything until a transaction is complete. In fact I pay all of my own expenses and my office bills, rent and service fees.

My commitment to my clients is genuine and sincere. If you choose to work with me I will protect and loyally promote your interests. I will be responsible to your confidentiality and dedicated to the full disclosure to you of details in your transaction. I will be accountable for representing you to the utmost of my ability.

My long-term success as an agent is linked directly to my performance. It only makes sense that it would take a truly satisfied client that trusts my ability completely to refer me to friends and family. In the past ten years over 80% of my business has come from repeat clients and referrals. I have a large network of people that rely on me for their real estate needs and who trust me with their friends and family. My goal is to have you become another client that will return in the future and that you will refer me with confidence to your friends and family.

Buyer Brokerage

In the past, Realtor worked under a sub-Agency relationship. That meant that all Realtors essentially worked for the Owner of the property. Commissions were paid by the Owner. The Realtor who brought the Buyer to the table was also compensated by the Owner. The Realtors on both sides of the transaction owed fiduciary duties to the Owner under Sub-agency. The only duty to the Buyer was to deal fairly and honestly, no fiduciary duties applied. In Calgary most properties listed on the MLS provide for the buyers Realtor to be paid from the proceeds of the sale. However, in the ever changing marketplace, some owners prefer to let the buyer's agent negotiate their own arrangements with their client. However, more and more homebuyers wanted the services of an Agent who owed full fiduciary responsibilities, duties, and loyalty to the Buyer.

For instance, a Seller signs a Listing Agreement (Sellers Brokerage Agreement) with a Realtor of their choice, which sets out the terms, and conditions that a Seller would find acceptable to sell their home and the compensation they agree to pay to the Realtor. A Buyer would sign a "Buyer Brokerage Contract".

 

The Buyer Brokerage Contract is the written agreement that establishes an agency relationship between you (the buyer) and the real estate brokerage (and its agents). Compensation would also be clearly defined as to where and how the agent would be paid for his services.

The concept of a buyer's agent or buyer's broker might seem new, but it has actually been around for a long time. The main difference now, is that the buyer will sign a contract with the Agent. When you sign the agreement, you agree to be represented by only the agent you’ll be working with and all other agents in the same brokerage.

 

The Buyer Brokerage Contract sets out duties and responsibilities of both parties. Buyer representation service begins with a needs assessment, a search for the right property and negotiation of the best price and terms. It also includes helping to arrange financing if necessary, arranging for home inspections, arranging for documentation to get to the lawyer, and arranging for possession. The bottom line is that a buyer's agent makes their sole priority finding the client's dream home, in the least amount of time, and for the best price. Based on the client's wants, needs and desires, the buyer's agent can sift through the thousands of available properties and narrow the search to only the properties that meet the client's criteria.

 

 

Buyers have obligations under the contract as well. In signing the contract with a brokerage, you agree that all agents in the office can find suitable properties and help you negotiate the terms of any Purchase Contract. You need to provide information to enable the brokerage to search for properties that make the most financial sense for you. Finally, you need to inform the brokerage of any properties you’re interested in viewing. The buyer’s responsibilities under the contract enable the buyer’s agent to do the best job s/he can for you.

 

As your agent, the Realtor owes you the duties of utmost care, integrity, confidentiality and loyalty. And as a point of important information to gather as a buyer or seller, you should make sure you discuss "agency" with your Realtor.

 

You’ll also find a section in the contract about agency disclosure. This authorizes the buyer’s agent to act as a dual agent and outlines the duties the agent owes to you in a dual agency situation. A dual agency situation could occur if you’re interested in making an offer on a property listed by your agent or another agent in the brokerage. In this case, the agent and the brokerage act for both you and the seller and can’t fulfill all of the fiduciary duties owed to both parties.

 

In a dual agency situation, the agent doesn’t owe a duty of confidentiality and will disclose to you and the seller all defects and information known about the property that may affects its value. The only information that the agent will not disclose to the seller is the minimum or maximum price you (the buyer) are willing to pay. The agent will also not disclose any information about the price the seller will accept or the reason they’re selling. Further, in a dual agency situation, the agent will not disclose to you or other buyers the terms and conditions of competing offers on the property.

Paying Your Agent

Another important part of the Buyer Brokerage Contract is the section that determines the brokerage’s compensation. Real estate commissions are negotiable in Canada and you and your agent have to agree on a suitable amount of compensation. Usually, the contract will state that the brokerage will receive either a portion of commission offered by the seller’s brokerage or a fee that is negotiated between you and your agent. If the seller’s brokerage doesn’t offer a portion of commission to your buyer’s agent, you may want to take that into consideration when making an offer. Some agents might ask for a deposit on their fee to be held in trust and applied to any commission payable or refunded to you if the contract expires.

Ending the Contract

The Buyer Brokerage Contract is in effect until the expiration date negotiated between you and your agent. The contract can be renewed or extended if you and your buyer’s agent need more time to search for a property or close a deal.

The Buyer Brokerage Contract is a legally binding agreement but it can be amended or cancelled under certain circumstances. For example, if you or your spouse are suddenly transferred, talk to your agent about terminating or amending the contract. Make sure to ask your agent about any ongoing obligations on your part if the contract is terminated.


 8 Big Mistakes That Can Cost You Money When Buying A Home

 #1 Using an Inexperienced Realtor

Calgary home for sale Buyers are sometimes under the mistaken belief that using a Realtor's services costs them money. This can be an expensive mistake. You can have your own REALTOR, a Buyer Broker or Purchaser's Agent, who is committed to using the experience gained through hundreds of successful negotiations for your benefit - at no charge to you! Your Calgary real estate agent most often is paid from the same commission that the seller's agent is paid from - by the seller.

# 2 Working directly with the listing realtor

Agency is important to understand. Simply what it means is who is working for whom. The agent may be working as a sub agent - representing the seller's best interests during negotiations - or as your agent representing your best interests during negotiations. Your Realtor should always explain what the situation is beforehand. If you are not sure whom your agent is working for - ask for clarification. You need to know if information you divulge will be used for the seller's benefit - or yours. Oftentimes you have no way of knowing what a listing Realtor's relationship is to the Seller. A Realtor has to disclose blood relationships but you would never know if the Seller contacted the Realtor from a flyer or if they have been dealing together for years and they are best friends. The Buyer can end up in a situation where they are at a huge disadvantage by not understanding the intricacies of the situation. the Calgary real estate market and potentially the true value of the property that they are hopeing to buy by have a realtor that wil show them the MLS listings for comparable recent sales in the area.

#3 Not Knowing the Market or Having a Pricing Evaluation Completed

Before you make an offer to purchase that special home, you must have a good idea what the market value is to ensure you do not overpay. Your agent can prepare a Comparative Market Analysis showing what similar homes have recently sold for, and the difference between the asking and selling prices. This is the same type of report the seller receives when deciding on an asking price.

#4 Not Trusting the Experts

Failing to recognize different negotiating styles and strategies can sometimes make or break a transaction. For example; many buyers think that the way to achieve a fair purchase price is by offering low. This is the strategy of the buyer who is not in possession of all the facts essential to negotiating the best possible deal. Many times that type of strategy will polarize negotiations and lead to inflexibility on the part of the seller - or worse yet - failed negotiations!

If you have chosen your REALTOR wisely, now is the time to trust him/her. Remember, in the real estate business, an agent with many successfully closed transaction costs no more than someone who is inexperienced. That experience could mean a better deal at the negotiating table. 

#5 Failing to have the home inspected by a competent Home Inspector

Many home Buyers will spend as little as a half an hour in there new home before committing to a purchase. A qualified inspector will spend up to four hours going through your property. Inspectors know what to look for and how to look. For a few hundred dollars you could save yourself some major headaches.

 

#6 Not knowing and understanding the Offer to Purchase contract

It is important to understand completely the terms of the Offer to Purchase. Wrong assumptions, poorly written or missing clauses, and not understanding how the clauses affect the purchase, can lead to increased costs or a void contract. Clarity is important as well as timeliness. Sometimes a Seller's motivation can change or they might have generated a Buyer that will pay them more. If a condition is not waived on time or not waived properly you could lose your house or end up paying more for it. An experienced Realtor can thoroughly explain the agreement and help you to fulfill your contractual obligations.

 

#7 Letting Your Emotions Get in the Way

Buying a home is an exciting time and is usually an emotional decision. It is important that those emotions be validated by facts. It is very easy to get caught up in the excitement. An experienced agent will help to balance the emotion with the information you need to make the right decisions. At a time like this objectivity can be priceless.

 

#8 Failing to be pre-qualified for your mortgage & obtaining a rate guarantee

When looking for Calgary homes for sale knowing how much you can comfortably afford will ensure you are looking in the right price range and prevent you from buying a home that will strain you financially and emotionally. Having an interest rate guarantee will protect you in times of fluctuating rates and ensure that your initial projected payments do not suddenly escalate, resulting in extra interest charges. A letter of pre-qualification can sometimes mean a lot at the negotiating table, be sure to get one from your lender.

 

Being aware of these big time mistakes will help ensure you receive best value for your dollar when the time comes to buy your home!

First Time Home Buyers Tax Credit: What it Means for Calgary Homebuyers

Starting in 2009, the Government of Canada introduced the First Time Home Buyers Tax Credit. Don’t let the name fool you – this tax credit not only applies to single-family detached homes, but it also applies to semi-detached homes, townhouses, mobile homes, condominium units, and apartments in triplexes, fourplexes, or apartment buildings, located in Canada. The maximum possible amount of the credit for 2009 is $750. This is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000.

Want to know if you qualify?  An individual will qualify for the HBTC if:

• they acquire a qualifying home; and

• neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.


Required Field
The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Calgary Real Estate Board. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.