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
