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Common Mistakes when Buying a New Property in Calgary

Here are some of the biggest mistakes Buyers make when they buy a home or property in Calgary:

DO THINK ABOUT LONG TERM RESALE POTENTIAL

A lot of buyers (especially first time buyers) fall in love with a “unique” property.  A unique property is one that is not the “norm”.  For instance, it has 1 bedroom because the previous owner knocked down the wall and made 2 bedrooms into one large room.  It suited the previous owner and seems to suit you as well.  This type of property is considered “unique”.  It is not the type of property the majority of buyers are looking for.  Typically they types of properties take much longer to sell.  When buying a property, you should always consider the resale ability of it in the future.  These days, we typically last 2-5 years in our first or second properties and you should account for that, even if you think you will live there for the next 8-10 years.

DON’T BUY WITHOUT SEEING THE PROPERTY

The internet is a great tool for searching and finding a property for sale in Calgary.  With the wonderful changes in technology, a lot of the pictures you will see of property are amazing.  Once you go to view these properties the first thing that comes to mind is, “Wow it seemed so much bigger in the pictures.”

A lot of overseas purchasers from the UK or abroad are buying property site unseen in Calgary.  This was even more typical in the boom of 2007.  Don’t ever do this!  Make sure you view any potential purchases with a REALTOR© and make sure you are fully informed about every property you are considering.

DON’T BELIEVE EVERYTHING YOU READ OR SEE

Just because the ad says it is zoned RC-2 doesn’t mean it is true.  When you work with a licensed REALTOR© you have access to all of the property details and don’t have to “hope” that all of the information you have read is true.  Make sure you are represented and protected in all real estate transactions.

Beware of the following catch phrases:

• Cozy – can mean tiny, or small
• As Is – can mean it needs significant renovations
• Up and Coming – could mean the neighborhood is less than desirable
• Motivated Seller – could be good or bad, could mean there is something significantly wrong with the property or something else to do with the property

DON’T GAMBLE ON SHORT TERM REAL ESTATE INVESTING

There was a time back in 2006 – 2007 when short term real estate investing or flipping was a sure thing.  Right now the appreciation of real estate in Calgary is slow.  Now is not the time to buy to flip or buy to sell right away.  If you get a smoking hot deal, where you’re purchasing a property for WELL under the market value, then you can do your due diligence and decide if it will work numbers wise.  Most however, in this market are not worth the risk.

DO RESEARCH THE NEIGHBORHOODS YOU ARE CONSIDERING

Some neighborhoods have a bad rap for no reason.  Other neighborhoods are well known for having a larger risk of crime associated with it.  Make sure that you are well aware of the neighborhoods you are looking in.  It is also a great idea to go talk to prospective neighbors to see if they are amiable, and if they have any information you might want to know about the street and its neighbors.  People are surprisingly willing to dish out the goods on the goings on in their neighborhood!

SEE BEYOND THE DECORATIONS

The place is gorgeous.  Wow how beautiful.  The large mahogany wood furniture is striking.  Okay, so will your Ikea furniture have the same overall effect once you move in?  Don’t fall in love with the staging of the property.  Make sure you see beyond the decorations and beauty.  Great furniture and placement can make even the smallest and less than perfect property seem perfect.

IS THE FLOOR PLAN FUNCTIONAL?

Is the floor plan going to work for your lifestyle and other needs?  Are your knees sore from playing too many sports, or is your back in pain a majority of the time?  Maybe the 2 story isn’t the best choice for you.  Make sure the laundry facilities are where you need them to be to access them easily.  Many people fall in love with a property even if the floor plan isn’t functional.  View a potential property at least 2 times.  Sometimes you see things the second time around that you missed the first time.