It’s been all over the media, the Calgary Real Estate Market is currently in a “Seller’s Market” pattern.

What does this mean for Buyers?

Well, it depends on which of the following categories the Buyer is in;

1.Wants to buy. This category represents a Buyer who will buy if the right property comes along but they are not in a hurry. Perhaps they are currently renting or they currently own a home but can afford to buy their next home without having to sell the home they are in.

2.Needs to buy. This category represents a Buyer moving to Calgary from somewhere else who has a limited time in which to find their home in Calgary. Also included in this category is a Buyer who has already sold their home, or a renter whose lease is up and must vacate their rental property.

If a Buyer is in the needs to buy category, this market can represent a lot of frustration. The properties that come on the market that represent good value do not stay on the market long and are often sold for over the asking price with multiple offers.

Not only does the Buyer need to view the property almost as soon as it hits the market, they then have to make what feels like an incredibly quick decision about making an offer, and to make matters even more stressful, they have to decide the maximum amount that they would pay for that property without regretting that price one way or another down the road. Some Buyers will even decide not to include important conditions in order to improve the odds of getting their offer accepted by the Seller.

So what is the best strategy if you are in the need to buy category? First and foremost know your position. Have you been pre-approved? Do you know how long your lender needs for the financing condition? Do you need a subject to financing clause? Based on the condition of the property do you want to have an inspection as a condition or can you include the inspection as a term, which would allow you to have an inspection but you would make any necessary repairs after you take possession. Are you qualified to make that kind of decision? If you are planning to live in the property for a long period of time, how much over perceived “market value” are you willing to pay if you are in competition with another Buyer or Buyers? Try to align your offer with the Seller’s inclusions and possession date. And last but not least, if you are in competition, make sure you are with your Realtor at the time they are presenting your offer. Your presence allows you to make quicker changes if necessary.

If you are in the wants to buy category, and you do not want to utilize any of the above strategies, you might want to consider holding off your purchase until the market has changed. No one can definitively tell you when this change will occur, and the prices will likely have gone up, but the process will be less stressful.

Hope this helps,

Susanita de Diego

With spring and summer months fast approaching in Calgary, many home owners are planning home improvement projects that may include finally getting around to building that new (or larger) deck, or…tired of brushing snow off the vehicle, perhaps you have decided to build a detached garage or car port so you are ready for next winter!

Whether you are a “do-it-yourselfer” or are hiring a professional, one of the requirements of your home improvement project may be to acquire a building permit. Although considered by many to be an added inconvenience and expense, building permits are actually important safeguards that help ensure you get sound workmanship and good value for your money. As well, if you are considering selling your home in the future, not being able to produce building permits could potentially spoil a deal, or at the very least, cause a significant delay in the closing.

You should check with the local authorities in your city or municipality prior to beginning work to see if a permit is required. Applying for a building permit ensures that your project conforms to local building codes and other regulations. Your project will be inspected by a qualified building inspector to confirm that the project follows the plans submitted for the permit. The inspector also ensures that appropriate materials and construction methods have been used for the safe usage of your project. For example, if the beams on your raised deck won’t support the maximum weight or the wiring is inadequate to safely run the lighting system you’d planned, the inspector will point this out and then return to verify that the appropriate remedies have been made before approving your project.

These measures are all to your benefit. After all, who wants to find out after you’ve already built a new deck that’s it’s too close to your neighbour’s property? In such a case, they could require you to remove the offending structure at your own expense. As for ensuring that your project used the correct construction materials and conforms to safety standards, the benefits are obvious.

Even if you’re working with a professional contractor, it’s to your benefit to ensure that a permit is obtained, so your contractor’s work will be scrutinized by a ‘pro’. Building permits are always required if you’re making any structural changes to your home, are building an addition onto an existing structure or adding a new improvement to your property. While regulations vary within municipalities, other types of projects may also require permits, particularly if electrical work is required. Some less than professional contractors may encourage you to initiate work without bothering with a permit. Be warned! This will simply allow your contractor to do substandard work without any unbiased party there to ensure that the job has been done to code. If the contractor implies the job will be cheaper without the permit, you should ask yourself why that is so.

Don’t proceed under the misguided assumption that if you do the work yourself, a building permit isn’t necessary. Not so! You’re responsible for ensuring that any home improvements conform to local regulations. That means you’re also liable for any costs that may be incurred to correct a problem, either during or after construction. If you’re in doubt, contact your local authorities before you start.

For Calgary residents, visit the City of Calgary Permits (Building Permits) page for detailed information on requirements for basement developments, detached garages, car ports, decks and many other home improvement projects.

Good luck with your home improvement projects!