Guide to buy house in Canada 2023

Guide to buy house in Canada 2023

First Step 1 - Educate Yourself

It is most important to educate yourself on the real estate process and industry. We're talking about one of the most significant investments in most people's lives; a little time spent empowering yourself will go a long way. You can get information from a variety of sources.

The internet is unquestionably the information superhighway. If it's not on the internet, it most likely doesn't exist.

Make an appointment with real estate agent - It is critical that you understand how the current real estate market will impact your specific situation.

Step 2 - Initial Consultation or Meeting

After you've decided on an agent, you should set up a meeting. You can now officially meet (if you haven't already).

You should not skip this step. It will be nearly impossible to properly represent you without first sitting down to discuss your specific situation. The real estate market is always changing, and you need to know where you stand. After you've assessed your situation, this is where you'll express your goals and devise an action plan that will allow you to confidently move forward.

Step 3: Decide How I Will Pay

When it comes to financing, you have a lot of options, but you should have a good idea of how you want to buy your next home before you start looking. There are three major funding sources.

Traditional banks - If you have a good relationship with your current bank, this is a good option. Typically, you will be able to obtain favourable mortgage terms.

Mortgage brokers have the most choices. They can use the majority of the major banks as well as many other lenders. They will be your best bet for determining the best option for your specific situation.

Creative Financing - The possibilities are endless and are ideal for investing or if you are unable to obtain a mortgage through banks or mortgage brokers.

Step 4: Begin the Search

This is when the majority of the action takes place. You already know what kind of house you want and how much you can afford. A property search must be set up to notify you (typically via email) when a new property that meets your criteria enters the market. It's time to hit the pavement after you've identified some potential properties.

Keep the goal you set during the initial meeting in mind at this point; it will make the process much easier, not to mention less stressful. If you visit a property that isn't in line with your goals during your showings, it's simple to forget about it. If it is inline, however, you can easily add it to your shortlist or even make an offer. Quickly identifying a property that meets your criteria will save you the trouble of viewing hundreds of homes and becoming discouraged.

Click here to explore available featured listings in Calgary

Step 5: Create the Offer

After you've found a home that meets your requirements, the next step is to prepare and present an offer. When writing your offer, you must go through several steps.

Property research entails investigating the home's selling history as well as where the price stands in relation to the market. This will necessitate an examination of the current homes on the market as well as properties that have recently sold. This is where you will get the majority of your firepower for deciding on an offer price.

Terms are the clauses that comprise the contract. These are the items that have been agreed to and will be followed, or there will be a breach of contract. You can include whatever else you need in addition to the standard terms that will be reviewed with you when the offer is prepared; however, these are negotiable.

Conditions - Conditions, on the other hand, are contract clauses that must be met in order for the transaction to proceed. Typical conditions include a home inspection or the buyer's approval for financing. After that, the buyer or seller is given a few days to fulfil the conditions (typically 7 to 10). This is what is meant by the property statuses pending (P) or conditionally sold (C/S).If either the buyer or seller is dissatisfied with the results of their efforts to satisfy their conditions, they may terminate the contract at no cost and with no further obligation (deposit cheques are returned). Conditions are usually for the buyer, but they can also be for the seller.

Deposits - To write an offer, you'll need a check and some money set aside for a deposit. This is initially a demonstration of good faith in a transaction and is fully refundable if the purchase conditions are not met. The deposit becomes the seller's security that you will complete the purchase once the conditions are satisfied and removed in writing (non refundable).

Price and terms are the only things that can be negotiated in a real estate transaction. You can now effectively determine the appropriate offer price once you know what terms and conditions you want on the contract and have completed your property research. The offer price will be determined by taking into account all of the variables that affect this specific property. What terms are required? How many offers have you received? How long has the property been for sale? And there are many, many more. We won't get into negotiating strategy here, but keep this in mind: How can we meet the seller's needs while still meeting our objectives? This isn't always just about money.

The Offer Presentation and Acceptance Procedure - Once the offer has been written and signed, it is the agent's responsibility to present it to the seller. This usually happens in one of two ways.

First, if the seller is available, the offer can be made in person or directly to the home's owner. Although the listing agent will be present to represent their client, this is an excellent opportunity to meet the seller and present your case in person (much more intimate and effective).

Faxing the offer is an alternative method. This means that you must be reachable by phone in order for negotiations to take place. All parties must now sign the documents once a counter offer is received or the offer is accepted.

Step 6 - Meet Conditions

When the offer is accepted, it is time to move forward with fulfilling your conditions. This process typically entails scheduling and performing a home inspection, providing all of your personal and property information to your mortgage broker or bank, or simply conducting research to gather whatever information is required. As real estate professionals, we play an important role in gathering this information and making the necessary arrangements to ensure that the process runs smoothly.

After the necessary information has been verified, a decision to proceed (or not) is made, and the seller and their agent are given the appropriate written notice. Once the conditions are removed, the sale is considered "firm," and the property will be labelled "sold" for advertising purposes (the status will be changed from C/S or Pending to Sold).

Step 7 - Getting Ready for Possession

Typical possession times range from 30 to 60 days, but they can be much faster. Complete the following tasks as soon as possible to relieve a great deal of stress.

Attorneys - You may have already chosen your lawyer at this point, but if not, we must now know who will be handling the transaction. Once you've decided on a lawyer, they'll need all of the necessary paperwork before you meet with them. This is usually handled by your agent to ensure that they have everything they require. A week before you take possession, you will meet with the lawyer to provide your insurance information, the balance of your down payment, payment of fees, payment of any adjustments or taxes, sign documents, and finalise anything else that is required before you own the home.

Lawyers - You may already have a lawyer, but if not, we need to know who will be handling the transaction. Once you've decided on a lawyer, you'll need to provide them with all of the necessary paperwork before you meet with them. Your agent will usually handle this to ensure that they have everything they need. You will meet with the lawyer a week before you take possession to provide your insurance information, the balance of your down payment, fees, payment of any adjustments or taxes, sign documents, and finalise anything else that is required before you own the home.

Insurance - When you meet with the lawyer, he or she will ask to see a copy of your insurance policy because it is a requirement of the mortgage. Without insurance, there is no money. This step typically consists of a simple phone call and/or a lengthy survey. Have a copy of the listing with all of the home's specifications on hand. Prepare to answer questions about the house's age, furnace, electrical system, and roof, as well as general questions about square footage and features.

Utilities - It is critical to change your utilities over to your new address as soon as you take possession of your new home. This includes your phone, cable, internet, electricity, water, and gas. Don't forget to cancel your utilities at your previous address.

Mailing Address - Although this is the least favourite step, it is a necessary evil. Gather all of your bills, statements, tax information, healthcare information, anything you have set up for automatic payments, any subscriptions, clubs or organisations to which you belong, and so on. Make a big list of these things early on, because you will forget at least three of them... guaranteed. Then, pick up the phone and begin giving out your new mailing address as well as the date you will take possession or move in. You should also have your mail forwarded through the post office in case you missed anything.

Final Step 8 - The Day of Possession

On the day of possession, you must arrive at the property at least a half hour early (usually 11:30am) for a thorough walkthrough of the property. At this point, we can take a look around the house to ensure that everything is as stated in the contract. The most common things to look for are damage from moving and items that do not work when it was agreed that they would (appliances, furnace, etc).

By walking through the property before noon, we can alert the lawyers to any issues before the keys are officially handed over. If there is a problem, keys will still be exchanged; however, the seller will be responsible for taking reasonable steps to remedy the problem or be in breach of the contract, and the buyer can then pursue legal remedies as appropriate.

Interested in Calgary Real Estate?

Kuldip Singh Parmar
Kuldip Singh Parmar
Balpreet Tehri
Balpreet Tehri
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