First-time homebuyers frequently have one goal in mind: to cross off as many items on their wish list of what they need and want in the house they've been fantasising about for the previous few years. However, read our list of 10 things you probably should be aware of before you find your ideal home, fall in love with it, and make it your own.
1. Think about your closing costs.
There are costs associated with finding and buying a home in Calgary, but as a home buyer you won't be paying your real estate agent directly.
2. Not Every Fix Needs A Professional
One of our favourite tales of first-time homebuyers saving money on repairs involves a client who, after a year of ownership and some assistance from YouTube, began taking on more and more minor home improvements. When, on a chilly winter day, their furnace broke down, they called a furnace company and received two quotes that said it would cost between $2,000 and $4,000 to fix the furnace.
3. Open an account for home savings
No matter how new or old your house is, upkeep and repairs will eventually be necessary. Nothing lasts forever, from the roof to everything in your mechanical room. For new home owners, it's crucial to be ready for these costs; create a savings account and make regular deposits. This fund should be set up for unexpected (but normally expected) expenses, such as your furnace motor expiring and you receiving a bill for $800 to fix it. This should be different from your emergency reserves, say if you were to lose your job.
4. Spend Money On A House Inspection
While we fully trust the work of all of our partners, there are very few instances in which we wouldn't advise that our buyers hire and have a professional conduct their own 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 were counting on ours to do the job. Recently constructed homes can and do experience problems. Never trust the word of another agent or the home owner; you need an agent who can handle these situations and watch out for your interests. is in writing and details of your recourse if it isn't fixed before you get the keys.
If you're buying a home, make sure your agent has all agreements for repairs or changes between you and the seller in writing. This is because an offer to purchase is a contract between you and the seller, so even if a selling real estate agent in Calgary promises to fix a leaky tap before you take possession, make sure your agent has this in writing and outlines your options if it isn't fixed before you get the keys.
Keep in mind that no house is perfect; even those that are just a few months old can have problems, some major, some minor. Your agent should be able to go over your home inspection report with you and analyse what issues are worth discussing with the other agent and what issues are routine minor repairs that are to be expected.
5. Setup the Correct Mortgage.
How often have you considered jumping at the earliest possible opportunity? The local mortgage broker's Facebook post advertising rates a point or two lower than what your bank or another mortgage broker is offering? Your mortgage advisor should provide you with options and advise on factors other than rates, such as the type of mortgage, the length, and your options for refinancing and paying down the loan. Ask your Real Estate Partners agent which mortgage professional is best suited to your needs before you leap into the best offer. This will ensure that you are dealing with an impact partner that goes above and above for your greatest financial transaction.
6. Help from family and friends is acceptable, but you should use caution while taking their advice.
In this profession, it's rather typical for friends and relatives to provide unsolicited advise, participate in decision-making, and occasionally take over entirely. We do advise those who want additional input from uninvolved parties to exercise caution. There have been some incredibly heartbreaking instances in which poor legal advice from non-legal professionals has cost our clients thousands of dollars after their purchase, which could have been easily avoided if they had sought advice from their agent and/or real estate lawyer.
As negotiations drew to a close, their parents advised them to walk away and give our sellers a few days to change their minds and meet more of their expectations (bearing in mind that this is a competitive buyers market). Their initial offer had nearly brought them within the range our sellers were comfortable with. Unfortunately for them, a well-maintained, reasonably priced home may frequently sell quickly in today's market. Before they had a chance to return to the negotiating table, an offer had already been received and accepted.
7. Is This a Temporary Home?
There are several expenses involved with selling a house, including closing charges, real estate commissions, maintenance expenditures, etc. We bring this up because we occasionally encounter buyers who think or say, "We'll just move if we don't like it" or who believe that a significant change in living arrangements or lifestyle won't bother them. These buyers go from having a low rent space that allows them to travel and be free, with no personal maintenance responsibilities, to having to mow the lawn, carry a mortgage, pay property taxes, and pay maintenance bills—all while moving into a neighbourhood they initially thought they'd like.