Purchasing a home in Calgary is both exciting and a stressful event. No matter whether you are on your way to buy your first home or your tenth, the decision you make will impact your living situation. Over the last few years, many people have been investing money in real estate, which has increased the waiting period to take a loan as well. In this guide, we’ll walk you through the essential steps to buying a house in Calgary and what you need to know before making one of life’s biggest investments.
7 Key Steps to Buy a Home in Calgary
Step 1: Analyze Your Borrowing Capacity
Before you set out to buy a house in Calgary, start by estimating the amount of the mortgage loan. A home loan is a massive commitment that can last for years; hence, you need to be prepared for the journey. Knowing the final settlement amount will give you a reality check, and then you can decide whether you’ll be able to afford to pay the amount or not.
To determine your borrowing capacity, ask yourself the following questions;
Ask your financial advisor (who will be able to analyse your overall financial balance sheet)
Use the online calculator provided by a bank
Consider calculating your mortgage payments
Ensure you stay within your personal budget
Step 2: Undergo ID Screening
Throughout the buying process, you will be asked to show your ID. Real estate agencies that operate in the Calgary housing market, by law, are required to ask for your ID proof, to know who you are, and to verify your financial background. You can show identification, such as a driving licence or passport. In short, a government ID that features your real name, age, DOB, etc.
Step 3: Begin House Hunting
Now that you know your budget, lending limit, and have an idea of the official ID requirements, the next step is to start house hunting. One way to start your search is by partnering up with a professional realtor. An expert agent who has knowledge and experience can help you in finalizing a property that matches your requirements.
You can share your parameters to finalize a house, such as location, a certain house type, size, and price range. Top real estate agents in Calgary will take in all your preferences and present you with house listings that’ll align better with your wishes. Additionally, they can also guide you on top-rated school districts, neighborhood trends, and future real estate resale value.
Step 4: Make an Offer
Before making an offer, take into account the local real estate market as well as trends in home sales and purchases. You might have to make a strong offer to beat the competition if the housing market is competitive. You might wish to place a lesser bid in a less competitive market in the hopes of forcing the seller to engage in negotiations. When it comes to assisting you in making the right kind of negotiations, your real estate agent can be a powerful ally, especially when exploring homes for sale in Calgary, Alberta.
You will enter into a contract with the seller if they accept your offer. As you proceed with the house inspection and appraisal process, the seller usually consents to not accepting any other offers during this period. You may also be asked to put down a good-faith deposit, amounting to only 1 to 2% of the sale price. Top realtors in Calgary practise this as a gesture of goodwill. Also, that money is held in an escrow account that can be later applied toward the final purchase of your new house.
Step 5: Hire a Lawyer
Once you finalize a home, the next smart step would be to find a lawyer. The lawyer you hire would run essential legal checks on the property and also manage the work for the house-buying process. Although your real estate agency may recommend a legal aid, it is worth looking around to look for a few quotes that may suit you better.
Step 6: Execute a Thorough Home Inspection
You may have looked around the premises before making an offer; however, you still need to carry out an extensive survey of the property. Inspections are necessary and should be done by a professional surveyor. Before you make a judgment regarding houses for sale in Calgary, find a surveyor and ask for their feedback. Expect a fully detailed report at the end of the survey, which’ll assist you in making the final call. An inspection may include;
- HVAC systems
- Foundation and basement of the house – check for any signs of leaks or severe water damage
- Windows and doors
- Insulation and attic condition
- Pest or insect infestations
- Fireplace and chimney
- Appliances included in the sale
- Driveway, garage, and walkways
- Exterior walls and siding
- Water pressure and drainage systems
Step 7: Contract Exchange and Closing
The final step in your home-buying journey is the exchange of keys and the contract. Your lawyer’s presence is crucial as they’ll act as a witness to the process, plus they’ll get you the final dates. Additionally, there are certain things that you must know before setting a date. There’ll be other costs that you’ll have to pay, such as;
- Stamp duty,
- Legal fees,
- Property tax adjustments,
- Condo fee adjustments (if you are searching for condos for sale in Calgary),
- Home insurance.
To Sum Up
The home-buying journey can be hectic, and in such a scenario, you need assistance from a professional realtor. Alberta Property Group can help you simplify the process by guiding you through every stage. They can assist in setting the final budget, negotiating offers, and closing the deal. If you are looking for homes for sale in Calgary, joining hands with the right expert can change a complicated process into a rewarding experience. To know more, get in touch with us.
Frequently Asked Questions (FAQs)
Q1. How long does it take to buy a home in Calgary?
Buying a home in Calgary takes around 3 to 6 months on average.
Q2. What is the average cost of a condo in Calgary?
If you are searching for condos for sale in Calgary, the median price can be around $320,000.
Q3. What is the minimum down payment required in Calgary?
In Canada, the minimum down payment is 5% of the purchase price for homes under $500,000. For properties above $500,000, the requirement increases progressively.
