Four tips to keep in mind . . .
There is growing buzz around the city on quick possession options for new home buyers, as the 2016 Calgary real estate market takes shape.
An article on this topic was featured over the weekend in the Calgary Herald.
To be sure, new quick possession options offer a lot of unique and attractive benefits. But there is also a cautionary side to keep in mind. Here are four keys to consider:
1. Use a professional realtor. The quick possession market comes with more temptation for buyers to operate without a realtor. But what many don’t realize is this doesn’t mean saving any money or getting a better deal. It just means more risk.
New development areas and spec homes are managed by showhome / development representatives and / or builder realtors – all of whom who work for the seller in some shape or form. If buyers don’t have their own realtor, all of the potential real estate commission will get eaten up by these seller representatives instead. Either way someone gets paid. Buyers are better off having a fair portion of the commission going to a professional realtor who is working on their behalf and making sure they get the best deal possible.
2. Consider hidden costs. Prices can look attractive initially but soon rise when buyers start to add up additional costs not factored in such as sod, deck, fencing and blinds. That package can run from 10K to 20K or more. Buyers also need to factor in G.S.T. if that is required and not already included in the price. A realtor will have the best information to help buyers understand true pricing of the home they are interested in and find appropriate comparables to help them make the best decision that fits their budget.
3. Don’t forget the lot factor. Another important factor that tends to get overlooked is lot pricing. This is a big factor particularly in new development areas, where the simple fact is quick possession homes typically are not on the most desired lots. A realtor can help make sure this critical difference is appropriately factored in to a discounted price.
4. Check out inner city options. Last, people tend to think suburbs when it comes to quick possession. However particularly in dynamic markets such as Calgary the diversity of inner city options is also rising. This offers the “best of both worlds” of a brand new home available right away in an established area.
Whether in Altadore, the Beltine, or a number of other prime inner city communities, there are a lot of great options to check out. My new website offers some great tools to get the search started.