Real estate professionals 

can sometimes be difficult to find. Reason one is, that there are many licensed agents in Calgary conducting their real estate practice as a part-time endeavour. Then, there are others who choose not to adhere to all the rules and regulations regulated by RECA, (Real Estate Council of Alberta).

Where to find genuine real estate professionals?

Many people agree that at least once in their lives they’ve heard stories about irresponsible real estate professionals. Making professional mistakes including undisclosed costs, risks, and, even losing the sale, are just a couple. Is this fair? Of course not, and it goes without saying that you do not want the same outcome. For these reasons, you need to do a lot of research and spend time looking for the right real estate agent. As everyone is different, there is no ideal solution for everybody. That is why it’s always better to put in the effort and find the best qualified real estate agent. Just follow the main criteria, and you will definitely achieve your goal.

The essential characteristics of real estate professionals

What makes a truly great real estate agent? All real estate buyers and sellers in the world want to know the answer to this perpetual question. Firstly, the success of their deal largely depends on the professionalism of the agent. Secondly, the buyers/sellers want to avoid legal mistakes and legal suits in the end. Everything here sounds quite logical. Real estate could be a wonderful experience for everyone if they followed the basic rules of finding the right real estate agent.

A typical buyer/seller combination deal scenario;

There would be very limited nightmare scenarios as discussed. One scenario was a family who decided to buy a house prior to selling. In the beginning, everything was great. The screening and shortlisting processes started, they picked four houses to visit including one that appeared to have everything. They decided on this one, wrote an accepted offer and put down a deposit, conditional to their home selling. It ended up being a very frustrating experience for this family. As time went on, their house still had no offers. They had to go back to the seller of their purchase and request an “Extension” for theirs to sell. They were given the extension but this was a “Clause Offer”. Conditional to the buyer’s house selling, they ultimately lost the purchase. As their purchase stayed on the active market, someone else put in another offer on it. They were given 48 hours to complete their purchase or back out. Of course, as their house still hadn’t sold, they pulled their offer.

For you to avoid additional hassle and expenses here are a few tips on how to choose a great real estate agent.

1) Search all active real estate agents' websites in your area. Your initial list is a great starting point for a successful deal. While browsing you will see how every real estate agent presents themselves. You will see his/her face (if their photo is available), you will read about their services, and, most importantly, there may be a blog or testimonials that you can read. Moreover, the website design is important, as most everyone today shops via the net and a professional, optimized site presence is crucial. 2) As a proven option, Royal LePage Solutions suggests using the Calgary Real Estate Board (CREB) directory of local agents.

It opens up all available opportunities and quality solutions to your real estate needs. Also, it gives you a window into the community of real estate agents in Calgary. There you can find the most comprehensive information on every registered real estate agent. 3) Once, you have looked through a number of real estate agents' websites and have a basic idea about what they offer, your decision is simplified. So now, just shortlist them, and write down all the pros and cons of each. This list will have a huge influence on your decision. 4) Schedule interviews with the shortlisted candidates, but don’t waste time just sitting there and taking part in a pleasant chit-chat. Instead, prepare a few relevant questions including their areas of expertise, years of experience, fees, etc. Listen and observe the behaviour and manners of the prospective real estate agent. 5) All these steps will give you insight into every real estate agent’s potential. Set aside any personal prejudices and decide which one will represent you best in the process of selling/buying your new real estate property in Calgary.

The perks of hiring real estate professionals

There are those who strongly disagree with consulting and hiring real estate agents and believe that they can do everything on their own. Alternatively, others are of the opinion that real estate agents are indispensable and invaluable assets to a successful transaction. In fact, real estate agents are those intermediaries that help you achieve your real estate goal with minimum losses and expenses on your part. Usually, netting you more dollars in the end.

In summary

• First, your agent will interview you to learn about your goals, preferences, and requirements, selecting the best options and benefits for you.

• Then, your insider will now be able to show you all your possible options. Your agent now steps into more of a partnership position with you. Moreover, real estate agents are well-versed in many areas and will inform you about any potential pitfalls they see the property may have.

• In addition, your real estate agent guides you through, checks and double-checks all documents involved in buying/selling real estate. You do not have to re-read contracts several times and be concerned that everything is correct.

• Your real estate agent is your protection and assurance. Another upside to this new relationship is that you have much more time to spend with your family or business affairs.

CIR Realty – home of Calgary’s best real estate professionals

Every business sector has professionals others want to follow and emulate. Here, in Calgary, it is CIR Realty. All new real estate agents learn from experienced ones and participate in ongoing educational courses. Real estate experts in CIR Realty can boast about their market share and years in the business. Testimonials speak for themselves, so if you are not sure who is the right agent for you – visit the CIR Realty website. What is more, CIR Realty cares about the up-and-coming generation of real estate agents. They have continual educational courses and mentoring. Here, the new real estate agents learn, enhance their skills and hone their techniques. For additional questions, please contact Ron Christensen, a leading real estate agent with CIR Realty. Ron will answer all your questions and provide practiced solutions for your individual needs. Definitely, it won’t cost anything to consult with professionals, in fact, you will most likely save significant monies.

Here is a little info to assist you in searching Calgary’s real estate Listings.

How to search through Calgary’s real estate listings?

It goes without saying that every real estate transaction starts with a listing. Initially, a buyer, seller or their real estate agents have a long list. This consists of various options that may be of interest to their clients. Secondly, they shortlist this abundance of choices to a relevant quantity. At this stage, it becomes perfectly clear what the client’s target and preferences are. As a result, the accurate remaining choice of listings is vitally important and valuable for the success of the transaction that is about to take place.

Real estate agents know the methods and secrets to opt for the most valuable and preferable listing. This is one of the reasons why it is always better to have your real estate agent lead you through the process and help you. Nevertheless, there are some tips that you can read and follow when selling or buying real estate property in Calgary.

What to pay attention to when choosing real estate listings in Calgary?

Undoubtedly, there are a few who decide not to employ the resources of a real estate agent’s services. They, instead, want to be on their own, tackling the problems that may appear and celebrating their success in the end. It is easy to say, but not so easy to continue through the process alone and have everything satisfactory in the end.

Where do I look for Calgary’s real estate listings?

The first thing you should pay close attention to is the source where you acquire your information. Try to choose the most reliable websites that are at the top of your Google search. Confirm the authority of the website or you risk the chance of obtaining old listing info that is not relevant and a waste of your time. The next important step is to fill in all the relevant fields pertaining to your needs. This way the website will sort all the available listings, prioritize them and show you only those you would be genuinely interested in. Here you can confirm what kind of house you are looking for, what are your priorities and what fits your budget.

Southwest Calgary

Being one of the most prestigious of the four main Calgary quadrants, the southwest can also be called the median for those looking for a mixture of business life and a relaxing home lifestyle. Firstly, it is an easy commute to work that is sure to be a positive for those who don’t like rush hour. Then, there are many schools and other educational institutions throughout. Finally, the surrounding nature is so beautiful and peaceful that the minute you get back home, you feel like a different person in your own oasis.

Northeast Calgary

It is the smallest area in Calgary out of the four. However, everyone can find something here for their taste and budget. It does not matter if you want to buy or rent – Northeast is a good choice with all the amenities you’ll require.

Southeast Calgary

This region is particularly good for nature lovers. If quietude, mountains, trees and pathways are your cup of tea, then you definitely will fall for the Southeast. What is more, it is convenient to commute to the city center. Families with small children will surely like the area with all it has to offer.

Northwest Calgary

This is the region of Calgary with breathtaking views of the Rocky Mountains. For those who love nature and the close proximity to a bustling city center, everything is here for you. For nature lovers and dog walkers, Nose Hill Park is right next door. Definitely a breath of fresh air with all the conveniences of city living.

Why is it so prestigious to live in Downtown Calgary?

Now, more and more people see Calgary as one of the most inviting cities, and as a result – preferable for living and doing business. Residents will agree that the area is extremely rich in everything that one could desire. Consequently, the popularity of Calgary’s growth by word of mouth is at an ever-increasing pace. However, Calgary like every city in Canada is quite versatile, with its advantages for some, and disadvantages for others. Therefore, before you choose a place to live, check out the area and everything it offers. To assist you, the map of Calgary can come in handy, as all its communities and accesses are highlighted. Downtown Calgary can boast to be the most prestigious part of the city mainly due to its corporate density and fine shopping/dining. Also, a great place for networking for those looking to expand their horizons.

Acreage as your real estate solution

Buying an acreage is a good solution for those looking for a combination of privacy and proximity to business centers, malls, and other popular public places. If you are confident enough to buy your own land and start building a house, go ahead. But make sure to have a seasoned professional assist you. Ron Christensen is one of them. Do not hesitate to contact him and get the answers to all your questions. It is always best to ask for help before you do something rather than cry for help once something goes sideways.

Ron Christensen

What do all these mortgage rules mean to me?

New mortgage rules and what do they mean to us?

In the real estate world, mortgages are usually ways of buying a house. It is key to whether a family is going to enjoy their life in a new and cozy place of their own or not. Therefore, many clients and real estate agents consistently follow the information about new government mortgage rules. This way it is easier for them to react and make as lucrative a deal as possible. Here we cover recent mortgage regulations introduced by the government of Canada.

Life before new mortgage rules

Mortgage rules have existed for a long time and proved the concept to be working well in our real estate industry. Thanks to various mortgage opportunities, many families managed to acquire their new homes. Once they decided to put their efforts into motion, the dream was finally achieved. Previously, to most families, the word “mortgage” was a lifesaver on the way to home ownership. However, times have changed. Up till now the mortgage rules were realistic which allowed more people to qualify. In the end, everyone was appeased – real estate agents because they sold the property. The buyer, because now they are a legal owner of the property. Finally, the government, as they received the fees and increased the economic growth.

The old mortgage rules worked very well

Let’s say an average family of millennials could put 20 percent down payment and receive low-ratio financing. Still, they had the option through the government that offered as low as 5% down, insured mortgages. There is another benefit that the old mortgage rules provided to society. An average first-time home buyer could have been granted a considerably larger mortgage. In fact, with a $50,000 income and a 5% down payment, they would have qualified for around a $300,000 purchase.

The era, “after new mortgage rules”

While under new regulations, it is more difficult to receive a mortgage and become a homeowner. The entire real estate market is affected by the new rules as up to 50% of Canadians now will not qualify for a mortgage. According to the federal Liberal’s new rules, the amount of the down payment will no longer matter. To make it clear, it does not change anything if you want to put a 5% or 20% down payment, you will be subjected to a “Stress Test.” Only this scrutinized calculation process will decide what amount of mortgage for which you are eligible. By the way, the stress test went into effect on the 17th of October, 2016.

At the same time, the basis of the stress test is aimed to measure if the buyer can afford to repay the mortgage at a higher rate. This, in case the mortgage rates rise to the current bank, “posted” five-year mortgage rates set by the Bank of Canada. The problem is that the “Posted” rates offered by the banks are unrealistic because it is much higher than what lenders are actually offering. The entire buying process becomes more difficult & expensive as a result. To qualify, you will now be quoted on a five-year fixed rate of 4.64%, while realistically, lenders offer you 2.44%. Absolutely ridiculous, industry experts say!

More mortgage rules coming November 30, 2016

Also, it is important to pinpoint that as of November 30th, 2016, new criteria for low-ratio mortgages will also take effect. Apart from that, you should know that the maximum amortization period of your mortgage must be 25 years or less. (The new rules theoretically force buyers to qualify on an 18-year amortization rather than an actual 25-year.) At the same time, the maximum purchase price must be less than $1 million. As for your credit history, there are restrictions such as your beacon score must be 600 or higher. Finally, the property has to be owner-occupied.

Government’s viewpoint on its recent mortgage modifications

As Ottawa has recently decided to tighten mortgage requirements, it has become much more difficult for people all over the country to obtain a mortgage. This point is more relevant to the millennials who are the driving force of the market. They make up the volume of transactions. The Liberal’s reasoning for such drastic changes in mortgage rules is the federal government’s predictions. There may be an increased number of mortgage defaults in the future if rates were to rise. All this “could” happen due to the healthy activity in housing markets all over the country, providing rates do start to go up. To summarize, the government is of the opinion that new restrictions will decrease the number of predicted mortgage defaults to banks and other lenders. They “must” protect the wealthy banks who essentially control our government and our economy!

Consequences for the real estate market

Every single government incentive and rule has its purpose. However, the idea is not always as dangerous as its consequences. Because of these new regulations, there will be a massive increase in first-time buyers who now cannot afford to buy a home. Likewise, the people who expected to upscale can now only afford something much cheaper. This does not meet their personal wishes and expectations, thus a stalling housing market. Industry experts say that as a result of new mortgage rules, the market can soon expect even higher mortgage rates. We find that kind of ironic.

What the industry experts see

The majority of real estate experts agree that this government initiative will lead to an even bigger failure than the one it was trying to avoid. Also, experts say that it would have been imperative for Ottawa to have consulted professionals from the inside. This way, many problems we will now be facing, would have been avoided. The new mortgage regulations will also become the road for the banks to take further control of refinances, rentals etc. Previously the responsibility was with brokers and lenders not related to “The Big Five” lenders. As a result, the competition will become tougher and the public will drastically suffer financially. Again, experts agree that the government was trying to cope with a mythical problem which did not exist. The rate of default mortgages in Canada for the last several years has been extremely low.

Is there a light at the end of a mortgage tunnel?

In fact, no one can predict for sure what is going to happen. Clients now are wondering if it is better to just wait to do any real estate transactions at all. One can only hope that this detrimental mistake will not kill our industry as we know it. We hope the real estate market will stabilize and everything will get back to normal, but highly improbable. The best tip that can help you through this fiasco – hire a knowledgeable and trusted real estate agent. This person will become your guide in the real estate/mortgage world and do their best to offer you the options that help you succeed.

AUTHOR’S NOTE:

Without a doubt, I know this “Stress Test” is simply one step closer to government control over Canadians. Ideally, our government should be conducting their own “Stress Test” on their handling of our tax monies. Also, the Liberals should be monitoring and controlling the 5 major banks, which are basically in control of our government. You can easily take away the opportunity of home ownership by manipulating the rules so citizens can’t qualify. You now force them into rentals, becoming dependent and vulnerable. Very soon, a nation forced into rentals will be at the mercy of government, landlords, and institutions. Their unregulated operations will well surpass any “damage” a mortgage rate change would have had. If our infamous Liberal leaders were “truly” concerned for the welfare of the people, they would put the restrictions on the five major banks, not the public.

Sensible options

One reasonable option would have been to state that buyers had to commit to a locked 10-year term, on the lender's competitive discount rate. This option would confirm their payments were guaranteed for a decade, regardless of rate changes. Another choice would have been to extend the amortization from 25 years to 30 or 35 years instead of effectively setting it at 18 years for qualifying purposes. Statistics Canada shows Canadians typically move every five years on average. Therefore, an extended amortization is entirely appropriate, as the majority of homeowners don’t plan on staying for the long haul, to pay off their first mortgage. This extended amortization is critical for home ownership qualifying purposes, and affordable payments.

Ron Christensen