Step by Step Guide to Buying
Step 1 – Get Educated
Educate Yourself Understanding the real estate process and industry is crucial, as buying a home is one of the largest investments many people make. Investing a bit of time to educate yourself can be incredibly beneficial. You can access a wealth of information from various sources:
The Internet – The internet is a vast resource for information. If something isn’t online, it might not exist yet.
Libraries or Bookstores – Numerous books on real estate are available. If you’re eager to learn more, visit your local library or bookstore. Focus on materials relevant to your country or region, as real estate laws and procedures can vary significantly.
Meet with Your Real Estate Agent: It’s essential to understand how the current real estate market impacts your situation.
Step 2 – Initial Meeting or Consultation
Once you’ve chosen your agent, arrange a meeting to discuss your needs and objectives. This meeting is vital for establishing how the agent will represent you and for setting a strategy tailored to your specific situation. The real estate market is dynamic, so being informed about your standing and having clear goals will help streamline the process.
Step 3 – Determine How I Will Pay
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Before you dive into house hunting, have a clear plan for how you will finance your purchase. Here are the main options:
Traditional Banks – If you have a good relationship with your bank, this could be a viable option for favorable mortgage terms.
Mortgage Brokers – They offer a wide range of options by accessing multiple lenders, making them ideal for finding the best fit for your needs.
Creative Financing – Useful for investors or those who can’t secure a mortgage through conventional channels, offering a variety of innovative financing solutions.
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Step 4 – Start the Search
Now comes the exciting part: searching for your new home. Set up a property search to get notifications about new listings that meet your criteria. As you visit potential homes, keep your goals from the initial meeting in mind to streamline your search and avoid unnecessary stress. Focus on properties that align with your objectives to simplify the decision-making process.
Search now for all Calgary homes on the market.
Step 5 – Write the Offer
Once you find a suitable home, prepare and present your offer. Here’s what to consider:
Property Research – Investigate the home’s selling history and compare its price with the current market. Assess recent sales and active listings to inform your offer.
Terms – Include the contractual clauses and conditions in your offer. Terms are negotiable and should be agreed upon by both parties.
Conditions – These are requirements that must be met for the transaction to proceed, such as a home inspection or financing approval. Conditions typically allow a period of 7 to 10 days for fulfillment, during which time you can withdraw from the contract if necessary.
Deposits – An initial deposit shows your commitment and is refundable if conditions are not met. Once conditions are satisfied, the deposit becomes non-refundable and secures the purchase.
Price – The offer price is negotiable based on the property’s specifics and market conditions. Consider how you can meet the seller’s needs while achieving your goals.
The Offer Presentation and Acceptance Procedure – The agent will present your offer to the seller, either in person or via fax. Be prepared for negotiations and to sign any counteroffers.
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Step 6 – Satisfy Conditions
After your offer is accepted, work on meeting any conditions. This usually involves scheduling a home inspection, providing necessary documents to your mortgage lender, and any other required steps. Once all conditions are met, the sale is confirmed, and the property is officially marked as sold.
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Step 7 – Preparing for Possession
Typically, possession occurs 30 to 60 days after the sale, but it can happen sooner. Complete the following tasks to minimize stress:
Lawyers – If you haven’t selected a lawyer, choose one now. They will need all necessary paperwork and will meet with you to finalize details before possession.
Down Payment – Ensure your down payment is readily available. This might involve transferring funds or liquidating assets, which can take time.
Movers – If hiring professional movers, book them well in advance, as they are often busy around common possession dates.
Insurance – Your lawyer will need proof of insurance. Be prepared to provide details about the home’s specifications.
Utilities – Set up utility services at your new address and cancel services at your old residence.
Mailing Address – Update your address with all relevant parties and consider forwarding your mail to avoid missing important communications.
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Step 8 – Possession Day
On possession day, arrive at the property early (usually around 11:30 am) for a final walkthrough. Check that the home is in the agreed-upon condition and that all items are functioning. If any issues arise, notify the lawyers before the keys change hands. The seller will need to address any problems or risk breaching the contract.
Step 9- Follow Up
*This article has been written by Lindsey Smith of the Entyro Service Group in Calgary AB.
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