Buying a Home is most often one of the largest investments you will ever make! We have created this step-by-step resource guide to help you.
What Steps Are Involved in Buying a Home in Calgary, Alberta?
Buying a home or condo is a very exciting thing to say the least!Whether you are a first time home buyer or have already lived in a few different properties, knowing what to expect on the road ahead is essential in making your transaction go as smoothly as possible.
Step 1: Mortgage Pre-Approval
To purchase a home in Alberta a minimum of 5% of the purchase price is required to start the process. Our mortgage professionals will guide you through the steps to approval and advise what requirements are needed to purchase your home.
Meet with your Mortgage Specialist or Broker and fill out an application. Be sure to bring your income verification, employment letter and confirmation of down payment. If you do not have a Mortgage contact, we would be more than happy to provide a list of our mortgage specialists for you.
Now that you are pre-qualified for a mortgage and have a price range that you can afford,you can view homes with confidence knowing that if you do find a property that you love, you can make an offer.
Step 2: Meeting With a REALTOR® From Our Team:
Let our passion and experience in real estate guide you towards buying your home!
In the initial meeting, you will be matched with a professional full-time agent from our team.
Most people have a general idea of the community(s) or quadrant of the city they wish to live in. You can view these on our main pages to get a better feel for the types of neighbourhoods and the listings in these areas.
In this meeting, we will go through the home buying process and get an understanding of your wish list to start our search. We will ask you a few key questions that will optimize your search, and save you wasted time.
Some of the questions may include :
• Pre-approval limit
• Purchase limit (your maximum budget may be less than your mortgage pre-approval amount)
• Preferred Communities
• Type of home (2 storey, Bungalow, Condo, etc.)
• Number of Bedrooms, number of bathrooms, kitchen wish list, finishes, etc.
• Garage – attached, detached
• Finished Basement - suite
• What general features attract you to the home (fireplace, garage, granite, etc.)
It's perfectly normal not to know everything, we will work through features that you love, and fit the budget requirements that we discussed. It's our job to make your search a fun and enjoyable experience and as stress free as possible.
Step 3: Searching & Viewing Properties
We will set up a personalized email search for you with listings that match your wants, needs and lifestyle best. You can then select from the list all the properties that you would like to see and we will make the showing appointments. Our goal is to make buying a home in Calgary as simple, easy and efficient for you as possible because your time is valuable. You can Register on our site and start looking at listings through our very easy-to-navigate system.
Step 4: Writing an Offer – “This is the One”
We FOUND IT!
Now it's time to search for comparative homes. This information will assist us when reviewing pricing for making an offer. Your agent will examine history on the area and locate all sold, pending and active listings that fit the same.We will submit the offer in writing to the listing agent and then negotiations with the seller begin.
We will fully inform you of every detail and each step along the way, we are 100% committed to getting you the best possible price.
Important sections on the offer:
- Your Agent has researched and investigated sold, pending and active listings to provide a basis for your opening offer. There are many different strategies to gain the best price for you, and your agent will discuss these with you.
- Deposit amount and mortgage amount can be a factor for price.
- Also know as “Completion Day” this will be the date that you wish to move in. In most cases the seller will have a preference that your agent would know. This can be a negotiation factor as "time is money".
- Financing: The mortgage company that you are using will have an emailed copy of the offer and will review it for the final Approval letter. They may require a Property appraisal, or CMHC Appraisal.
- Property Inspection: We recommend that you always hire an inspector to review the home and inspect for hidden damages and possible issues that may arrive. Cost of the inspection ranges from ( $300-$700) depending on the size and location of the home.
- Condominium Documents Review:If your purchase is a CONDO, a Condo Document review will be recommended to make sure that your building is has a healthy Reserve Fund for the large budgeted expenditures, and that the Condo Board is running the Corporation in a satisfactory manner.These documents will also provide minutes of the meetings and give insight to the day to day operations.
Step 5: Negotiating the Offer
Expect a counter offerfrom the Sellers. Most of the time there are negotiations back and forth adjusting either price or terms before both parties come to an accepted purchase price. Do not be discouraged if this situation arises, it happens more often then not!
Step 6: Receipt of Accepted Offer
After some negotiations and the offer is accepted, we will require 7-10 days to remove our conditions, your agents will submit your offer to your Mortgage Specialist for final approval, help you schedule the property inspection and to obtain the condo docs for review(if applicable).
During this condition period, the property is now "Conditionally Sold" until conditions are removed. The Seller reserves their right to continue to show the property or change the status to Under Contract/Pending.
- A bank draft for the deposit will be discussed, and will be required within the date specified on the accepted offer.
- Deposits are fully refundable if conditions are not satisfied and amount will vary on each property.
Step 7: Removal of Conditions - SOLD
Once your Financing has been approved; you are satisfied with the property inspection; thecondominium documents review is completed, and you are ready to proceed with the purchase, you will waive conditions by signing a Notice to the Selleror sometimes called a Waiver. This will complete the Offerand it is now a FIRM SALE, Congratulations!!
Once the offer has been negotiated and completed, your agent will continue to work on your behalf and guide you with the remaining steps to complete this transaction. This includes providing:
- Sending your mortgage specialist the offer and documents they require
- Help you choose a Lawyer if you do not have one and send them the offer
- Arrange for the movers, friends or truck rental
- Make appointment with your lawyer approx. 1-2 weeks prior to possession
- Complete a change of address
- Arrange for gas, electricity and other items such as internet and TV services.
Step 9: Possession Day!! It's FINALLY here!
It’s here...the day you have dreamed of – Moving into your home!
Once all monies are received by the seller's lawyer, keys will be released to your Realtor. Prior to this day or on the morning of Possession, your Realtor will arrange a time to meet you at the property and do a walk-thru to insure it is left in good condition and with no issues. If everything is acceptable the keys are handed to you and you are now Home Owners – Congratulations!