A Guide to Buying a Condo in Calgary Costs and Process

A Guide to Buying a Condo in Calgary Costs and Process- Buying a condo in Calgary, can be an exciting and rewarding endeavor. With its vibrant culture, economic opportunities, and stunning natural landscapes, Calgary is an attractive place to call home. However, like any real estate transaction, purchasing a condo in this city involves a well-defined process and various associated costs. In this blog, we will walk you through the step-by-step process of buying a condo in Calgary and shed light on the costs you should consider.

1. Determine Your Budget:

Before you begin your condo-hunting journey, it's crucial to establish a realistic budget. Calculate your finances, including savings, income, and existing debts. Keep in mind that buying a condo involves more than just the purchase price. You'll also need to budget for property taxes, condo fees, utilities, insurance, and potential upgrades or renovations.

2. Get Pre-Approved for a Mortgage:

Once you have a clear budget in mind, the next step is to get pre-approved for a mortgage. This will help you determine the amount you can borrow from a lender based on your financial situation. Pre-approval not only narrows down your condo search but also demonstrates your seriousness to sellers.

3. Start Your Condo Search:

With your budget and pre-approval in hand, you can begin searching for condos that meet your criteria. Consider factors like location, size, amenities, and the overall condition of the condo. Calgary offers a wide range of neighborhoods, each with its unique charm, so take your time to explore your options.

4. Diane Richardson Real Estate Agent:

Working with a Diane Richardson real estate agent is highly recommended when buying a condo in Calgary. A professional agent can help you navigate the complex real estate market, identify suitable properties, negotiate on your behalf, and provide invaluable insights into the local market conditions.

5. Make an Offer:

If the inspection goes well and you're satisfied with the condo, it's time to make an offer. Your real estate agent will assist you in preparing a written offer, which should include the purchase price, any conditions, and a proposed closing date. Be prepared to negotiate with the seller if necessary.

6. Post-acceptance Due Diligence

Once your offer is accepted your due diligence begins. This includes securing your financing; you’ll need to let your broker or bank know that you have an accepted offer.

The lender will want paperwork to support your earnings and credit rating (things like bank statements, credit card statements, tax statements, etc.)

The other two conditions that are probably on your purchase contract will be a property inspection and a document inspection. Both of these are important to help you understand exactly what you’re buying.

A. Property Inspection - this is a physical inspection of the property, appliances and parts of the building (especially if there’s underground parking). These inspections run about $400 and up + GST.

B. Document Review/Inspection - when you buy a condo you’re buying shares in a corporation, it’s important to know the health of the corporation and the competency of the board to run the building or complex.

These reviews can help to uncover any upcoming issues with the building(s) that could prove costly in the future in the way of a major condo fee increase or a special assessment (also known as a cash call). Generally a document inspection is about $500 + GST.

C. Secure Insurance - there’s different types of property insurance. As a condo owner it’s important that you have sufficient liability coverage, you will likely also want to get content insurance.

7. Closing Costs:

In addition to the purchase price of the condo, you'll need to budget for closing costs. These costs include legal fees, property tax adjustments, and expenses associated with a real estate transaction. Legal fees for a condo purchase can range from $800 to $1,500, while title insurance can cost between $200 and $400..

8. Arrange Moving Services:

As your closing date approaches, you should start planning your move. Whether you hire professional movers or opt for a DIY move, there will be associated costs. Professional movers' prices can vary depending on the distance and volume of your belongings, but budgeting at least a few hundred dollars is a good starting point.

9. Complete the Transaction:

A week to 10 days before you take possession you'll meet with your lawyer to sign the necessary documents and finalize the purchase. On the day of possession your REALTOR® will contact you when it’s confirmed that your payment has been transferred to the seller’s lawyer. Next step, meet with your agent and get the keys to your new home!

A Guide to Buying a Condo in Calgary: Costs and Process: Ongoing Costs

After purchasing your condo, you'll continue to incur ongoing costs. These include property taxes, condo fees, utilities, and maintenance expenses. Property taxes in Calgary are based on the assessed value of your condo and the current mill rate. Condo fees cover the maintenance and management of the common areas and can vary widely depending on the building and its amenities. Utility costs depend on your usage, and maintenance expenses will vary based on the condition of your condo.

Condo fees, also known as homeowners' association fees or strata fees, are monthly payments that condo owners are required to make to cover various costs associated with the management and maintenance of the condominium complex. These fees can vary depending on the specific condo community and its amenities, but here are common components that can be included in condo fees:

1. Maintenance and Repairs:

   Condo fees typically cover the upkeep and repair of common areas and shared infrastructure within the complex. This can include items like the roof, exterior building maintenance, elevators, heating, ventilation, and air conditioning (HVAC) systems, plumbing, and electrical systems.

2. Utilities:

   Some condo fees may include utilities such as water, sewage, and garbage collection. The extent of utility coverage can vary from one condominium to another, so it's essential to check the details in your condo's bylaws.

3. Landscaping and Grounds Maintenance:

   Condo fees often cover the maintenance and landscaping of common outdoor spaces, including lawns, gardens, trees, and walkways. This ensures that the property's exterior remains attractive and well-kept.

4. Snow Removal and Lawn Care:

   In regions with harsh winters, condo fees may include snow removal services for parking lots and sidewalks. Lawn care services, including mowing and leaf removal, are also commonly covered.

5. Amenities:

   Many condominiums offer amenities like fitness centers, swimming pools, saunas, party rooms, and recreational areas. The cost of operating and maintaining these amenities is typically included in the condo fees.

6. Security:

   Condo fees may cover security services such as gated access, surveillance systems, security personnel, or intercom systems to ensure the safety of residents.

7. Property Management:

   The fees contribute to the cost of professional property management services, including administrative tasks, financial management, and oversight of maintenance and repairs.

8. Reserve Fund Contributions:

   Part of the condo fees often goes into a reserve fund, which is used for major repairs and replacement of common elements like roofs, parking lots, and building exteriors. This fund ensures that the condominium complex can cover unexpected expenses without imposing a large special assessment on owners.

9. Insurance:

   While individual condo owners typically need to purchase their own insurance for personal belongings and liability, condo fees often include insurance for the building's structure and common areas.

10. Administrative Costs:

    Condo fees cover the administrative costs of the homeowners' association, including printing and mailing of statements, meetings, and any legal or accounting fees.

11. Pest Control:

    Some condo associations include regular pest control services in their fees to maintain a pest-free living environment.

12. Waste Disposal:

    Condo fees may cover waste and recycling services, ensuring that trash removal and recycling are managed efficiently.
    

It's essential for prospective condo buyers along with a condo document reviewer to carefully review the condo association's financial statements and bylaws to understand what is and isn't covered by the condo fees. This information can help you make an informed decision about the affordability and value of the condo, as well as what additional costs you might incur beyond the monthly fees.

Keep in mind that the specific inclusions and the amount of condo fees can vary widely from one condominium community to another, so it's crucial to conduct due diligence and seek clarification from the condo association or property management if you have any questions regarding the fees and what they cover.

Conclusion:

Buying a condo in Calgary is a significant investment that involves a well-defined process and various costs. It's essential to establish a budget, secure financing, and work with a real estate agent to navigate the local market successfully. Additionally, conducting property inspections and reviewing condo documents will help you make an informed decision. Don't forget to budget for closing costs, insurance, and ongoing expenses to ensure a smooth transition into your new condo. With careful planning and the right guidance, you can make the dream of owning a condo in Calgary a reality.

To make the most of your Condo search, it's advisable to work with a knowledgeable Realtor who understands the local market. Diane Richardson, your trusted Realtor, can assist you in finding the right property that matches your needs and budget. Contact Diane Richardson at 403.397.3706 for expert guidance.