Buyers - The Right Realtor

Most forecasts for 2008 are seeing a small percentage increase for Calgary property values.  Only time will tell whether we actually gain a bit in 2008 or lose a little.  Either way, the deviation from current values should stay inside five percent.  We do know something for certain however; the Seller’s Market is gone for the foreseeable future.  So much so in fact, that we can confidently say we are currently experiencing a Buyer’s Market.  Our resale inventory levels are at record highs and new home builders have slowed substantially.  So does this mean bargains abound, unfortunately no.  What is does mean however, is that as a buyer, you will now be able to find that perfect home, in the right location. 

Choose the right Realtor:   Your choice of Realtor when buying a home is arguably more important than choosing the one to sell your home.  Consider that as a home seller in Calgary, with your home listed on the Multiple Listing Service (MLS), you have almost 6000 Realtors helping you sell your home. Statistically, it is far more likely that one of these "other agents" will sell your home through the MLS than it is that your listing agent will find the buyer. As a home buyer however, things are much different. Here you are relying on the expertise of only one Realtor, your buyer's agent, to help you locate that perfect home and negotiate anacceptable price.

Unless you will be purchasing your home without debt, the first step in the buying process is mortgage approval.  Many of our clients already have a preferred lending institution, and a good sense of what they can afford and how much they would like to spend on their new home.  If however, a client is seeking a new lender or would just like to get a competing quote, we have many contacts for you to choose from.  One caution on this topic, banks make their profits by lending money, the more they lend, the more they make.  Just because a bank says you qualify for a $400,000 mortgage does not mean it is your best interests to borrow that amount.  Your comfort level may be considerable less, say a $300,000 mortgage.  The term “house poor” is a very real concept.

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The next step we will take you through on the buying process is defining your needs and wants.  Many of these answers come from the reasons you are selling your current home.  For example, your current home has only three bedrooms with no space to add another, and you need four.  You may want to back onto green space because you’re tired of looking at backyards.  Or, perhaps you want to move from a new community to an established one with mature landscaping and schools.  Many of our clients have lengthy lists of their needs and wants which is good.  Our job is to question those lists to understand your motivations and to add items we feel you should consider.  For first time buyers, this stage may only be possible through viewing homes to “discover” what and where your preferences lie.

Once we have established a good set of criteria for your new home, it’s time to go shopping.  Much of the sorting out is done via the internet, whereby you are receiving, on a real time basis, all new listings that match your criteria.  Your input from homes viewed on MLS.ca is valuable information in the search process. The homes we decide to view will be those that best match your stated goals.  Once inside a home, you will be given a professional opinion on the value of the home and any potential resale problems.  Ultimately, it is up to you to decide if you like a home, we are there to ensure that you are keeping to your objectives.  Many buyers tend to stray and/or give up too easy on their criteria.

After we have found you a home you would like to buy, we will prepare and present an offer to purchase.  In preparing this offer, we will review recent comparable sales in the neighborhood and go over the MLS history of the home you are considering.  When was the last time it sold and for how much, what improvements have been done to the property since that sale, how long has it been on the market and have there been any price adjustments.  All these factors need to be considered before deciding how much to offer.  The best initial offer is one that is not too low as to get the seller’s back against the wall and not so high that the seller feels confident.

Buying a home can be a very emotional experience.  While it is not our wish to dampen your excitement, we will continually bring you back to the business side of purchasing a property.  If we feel you are willing to pay too much for a home based on emotional euphoria, we’ll tell you so.   We offer professional expertise throughout every aspect of the home buying experience.