November Market Insights for Calgary Acreages and Luxury Properties

As November unfolds, the Calgary real estate market continues to present unique opportunities and challenges, particularly for those interested in acreages and luxury properties. Whether you're considering buying or selling, understanding the current market trends is essential for making informed decisions. Here’s what you need to know about the Calgary acreage and luxury property market this month.

1. A Shift Toward High-End Sales

November is showing a notable trend: increased activity in the upper price ranges. Buyers seeking more space, privacy, and amenities are actively pursuing acreages and luxury homes. Several factors are driving this shift:

• Lifestyle Changes: Many buyers are prioritizing properties that offer outdoor space and the ability to work from home comfortably.
• Investment Appeal: High-net-worth individuals view luxury properties as stable, long-term investments, especially in Calgary’s growing market.

2. Inventory Levels and Market Duration

While there is a rise in demand for acreages and luxury homes, inventory levels remain slightly higher compared to the lower price ranges. This gives buyers more options to choose from, but it also means that sellers may need to:

• Focus on Presentation: Acreage and luxury home buyers expect pristine listings with top-tier photography, staging, and maintenance.
• Adjust Expectations on Time to Sell: The average days on market for acreages and luxury properties is longer than for lower-priced homes, which can be attributed to the more specific needs of buyers in this segment.

3. Pricing Trends

The Calgary real estate market is stabilizing after a period of significant growth earlier in the year. For sellers, this means:

• Competitive Pricing Matters: Overpricing luxury properties or acreages may result in extended market time, particularly with rising interest rates impacting some buyers’ purchasing power.
• Opportunities for Buyers: Serious buyers are in a favorable position to negotiate, especially for properties that have been on the market for a longer period.

4. Rural Acreages: Key Market Dynamics

The acreage market in Calgary and surrounding areas continues to be influenced by specific factors:

• Privacy and Space Demand: Buyers are prioritizing acreages that offer scenic views, functional outbuildings, and proximity to Calgary’s amenities.
• Infrastructure Considerations: Accessibility to paved roads and nearby schools or services remains a top priority for buyers.
• Winter Market Prep: Acreages that are well-prepared for winter, with clear roads, heated garages, and strong utility systems, tend to perform better in the colder months.

5. Buyer Behavior and What It Means for Sellers

Buyers in the acreage and luxury markets are often highly discerning. They’re looking for properties that align with their lifestyle aspirations and investment goals. To stand out:

• Invest in Marketing: Listings with professional photography, drone footage, and virtual tours attract more interest.
• Highlight Unique Features: For luxury properties, emphasize custom finishes, entertainment spaces, and architectural design. For acreages, showcase outdoor features like barns, trails, or gardens.

Key Takeaways for Buyers and Sellers

For Buyers:

• Explore your options thoroughly; increased inventory means you have room to be selective.
• Work with a knowledgeable real estate agent who understands the nuances of acreage and luxury property transactions.

For Sellers:

• Price competitively and focus on presenting your property as move-in ready.
• Leverage a comprehensive marketing strategy to reach the right buyers.

Your Next Step in the Acreage or Luxury Market

Whether you’re looking to buy or sell a luxury property or acreage near Calgary, having an expert guide is key to navigating the market successfully. With years of experience in these niche markets, I’m here to help you achieve your real estate goals.

Let’s connect to discuss your needs and develop a plan tailored to you. Whether you’re dreaming of expansive rural living or looking to sell a one-of-a-kind luxury home, I’ll ensure the process is seamless and rewarding.

Buying a new build is exciting, but if you also have a home to sell, the process can become a bit more complex. From timing your sale to managing financial risks, there’s a lot to consider—especially with the unique timelines involved in new builds. Here’s what you need to know to navigate this process smoothly and protect your investment.

Understand the Timing Challenges

1. Spec Homes (Quick Possession Homes)
If you’re purchasing a spec home, the timeline is typically shorter—anywhere from immediate possession to 3–6 months. This makes coordinating the sale of your current home a bit easier, as possession dates are more predictable.

2. Custom-Built Homes
With custom builds, the timeline is much longer (8–18 months), and the possession date is often approximate until the builder provides a final notice. Most builders only give a 30-day notice of possession, meaning you’ll need to be prepared to act quickly. If you’re relying on the sale of your current home to fund your new purchase, you’ll need to list and sell your home within that 30-day window. This adds urgency to the process, making it crucial to work with a REALTOR® who can help you plan effectively.

Plan for Market Risks

The real estate market can shift significantly over the 8–18 months of a custom build timeline. Here’s how to mitigate potential risks:

• Evaluate Market Trends: Work with your REALTOR® to understand current and projected market conditions.

• Be Conservative with Value Assumptions: Don’t rely on today’s high market value to remain unchanged—plan for potential fluctuations.

• Have a Backup Plan: Be prepared to adjust your strategy if the market changes unexpectedly, whether it’s selling sooner or exploring bridge financing.

Consider Bridge Financing

Bridge financing can be an effective solution for buyers who need equity from their current home to complete the purchase of their new build. This short-term loan allows you to buy the new home while waiting for your current home to sell. Your REALTOR® and mortgage broker can guide you in evaluating whether this option is suitable for your financial situation.

Strategic Timing for Selling Your Current Home

Timing the sale of your current home depends on your individual circumstances and the builder’s timeline:

• Selling Early: Listing your home well before your new build is complete gives you more control over the sale process but may require temporary housing.

• Selling Closer to Possession: Waiting until the builder provides the 30-day possession notice may minimize disruption, but it’s risky if your home doesn’t sell quickly.

Your REALTOR® can help you decide the best timing strategy based on your needs and market conditions.

Account for GST on New Builds

New builds are subject to GST (5% in Alberta), which many buyers overlook. Depending on the builder, GST may or may not be included in the advertised price. Be sure to confirm this detail and budget accordingly. A knowledgeable REALTOR® can help ensure you’re fully informed of all costs.

Work with a REALTOR® for a Seamless Process

Managing the sale of your current home while buying a new build requires careful coordination. A REALTOR® will:

• Analyze market trends to help you price your current home competitively.

• Provide guidance on timing your sale to align with your builder’s timeline.

• Help you navigate the 30-day possession notice and act quickly to list and sell your home if needed.

• Offer strategies like bridge financing and temporary housing options.

Final Thoughts

Selling your home while buying a new build can be a challenging process, but with the right planning and a trusted REALTOR® by your side, it’s manageable. By preparing for market risks, timing your sale strategically, and understanding the 30-day possession notice, you can confidently transition into your new home.

Have questions or need help navigating this process? I’d love to assist! Let’s work together to create a plan that ensures your new build journey is smooth and successful.

Dreaming of wide-open spaces, a little extra privacy, and the beauty of rural life? Buying an acreage is a unique and rewarding experience, especially in the beautiful Calgary area. But before you make that investment, here are five essential things to keep in mind to ensure the acreage you’re buying is the perfect fit for you.

1. Access to Utilities & Essential Services

Acreage living is quite different from city life, especially when it comes to utilities and essential services. Unlike urban properties, acreages often rely on private systems for things like water and sewage. It’s essential to understand:

• Water Supply: Many acreages depend on wells, cisterns, or water coops. Make sure to inspect the water quality and understand maintenance needs.

• Sewage and Waste: Acreages usually have septic systems instead of municipal sewage. Understanding how these systems work and the maintenance they require can save you time and unexpected costs.

• Garbage Services: Check if garbage and recycling services are available, or if you’ll need to arrange for private waste management.

2. Property Maintenance Requirements

Acreages come with vast outdoor spaces, which often means more work to keep the property looking its best. When considering acreage living, think about:

• Landscaping: Who will handle tasks like mowing, pruning, and managing weeds? Larger properties might require more equipment or help.

• Snow Removal: Driveways on acreages can be long and sometimes steep, which makes snow removal essential in winter months.

• General Maintenance: Fencing, tree care, and land upkeep are ongoing responsibilities. Make sure the maintenance fits within your lifestyle and budget.

3. Zoning & Land Use Regulations

Zoning rules for rural properties can impact your plans. Whether you’re interested in farming, building additional structures, or raising animals, zoning regulations play a big role.

• Check Zoning Types: Zoning can range from agricultural to residential. Each type comes with specific restrictions on what you can and cannot do.

• Future Plans: If you’re planning any future additions or modifications, make sure to verify these with the local planning authority to avoid surprises down the road.

4. Nearby Development and Future Plans

One of the biggest attractions of buying an acreage is privacy and space, but be aware of future developments that may impact the area.

• Infrastructure Changes: Nearby road expansions, commercial buildings, or housing developments can affect property value and the rural atmosphere.

• Community Growth: Research future projects by checking with municipal planning departments. Staying informed about potential changes can help you make the best long-term decision.

5. Access and Commute Times

Acreages are often located away from city centers and may involve longer commute times. It’s important to factor in:

• Commute to Work or School: Calculate travel times to ensure the location fits your daily routine and lifestyle needs.

• Accessibility: Consider proximity to main roads, winter road conditions, and ease of accessing services like grocery stores, hospitals, and schools.

Final Thoughts: Ready to Find Your Perfect Acreage?

Buying an acreage is about more than just finding a home; it’s about creating a lifestyle that fits your unique needs and goals. With the right planning and preparation, owning an acreage can be one of the most rewarding real estate decisions you make.

If you’re interested in exploring acreage options around Calgary or have questions about making the transition to rural life, don’t hesitate to reach out! I’m here to guide you through every step and ensure your dream property becomes a reality.

Entering into an Exclusive Buyer Representation Agreement is a significant step for any homebuyer. This agreement outlines not only my commitment to providing focused and professional representation but also details the rights, responsibilities, and protections you’ll have as a buyer.

In this post, I’ll cover each key element of the agreement so you can feel confident in what this document entails and how it benefits you.

1. What is the Exclusive Buyer Representation Agreement?

This agreement is a formal arrangement between you and the brokerage, through me as your designated agent. By signing, you’re granting me the exclusive right to assist you in finding and purchasing a property that matches your search criteria.

As your designated agent within a designated agency brokerage, I am exclusively committed to you. This distinction is essential in Alberta’s real estate market, as designated agency ensures that even though I work within a larger brokerage, I represent only your interests in the transaction, separate from other agents in our office.

2. Key Responsibilities of Your Designated Agent

Upon signing, I will provide exclusive services to help you navigate the home-buying process. This includes:

• Property Search and Evaluation: I actively search for properties that meet your criteria, provide market evaluations, and discuss each property’s pros and cons.

• Offer Preparation and Negotiation: When you’re ready to move forward on a property, I’ll guide you in creating a competitive offer, negotiate terms on your behalf, and manage all necessary paperwork.

• Market Updates and Professional Advice: I’ll keep you updated on market conditions and provide honest advice to empower your decisions.

  
  

3. Conflict of Interest and Transaction Facilitation

A conflict of interest may arise if I represent both a buyer and a seller for the same property. In such a case, I will inform both parties and present options, such as acting as a transaction facilitator. In a transaction facilitation role, I’d act neutrally to help bring the deal to completion without representing either party’s specific interests. If either party does not agree to facilitation, I would continue to represent the client with whom I signed the agreement first, unless we agree otherwise in writing.

4. Compensation and Commission Details

Typically, the seller pays the buyer’s agent commission, so most buyers don’t incur out-of-pocket expenses for this service. However, there are exceptions, like For Sale By Owner (FSBO) properties or instances where the seller offers a lower commission than the rate agreed upon in our brokerage agreement.

In such cases, I’ll negotiate my commission with the seller on your behalf. If needed, we can amend our agreement to reflect any modifications so that you’re not left covering the difference, or, if necessary, we may discuss the possibility of you covering the shortfall. For a more detailed explanation of these scenarios, see my Buyer’s Agent Commission and Compensation blog post.

5. Indemnification Clause

Under this agreement, you agree to indemnify and protect me and my brokerage from any legal claims arising from consents or acknowledgments made within this agreement, as well as any claims resulting from our good faith reliance on information you provide. This means that, if issues arise from these aspects, you would be responsible for covering related legal fees or other expenses.

6. Property Recordings and Privacy

It’s important to note that some properties you view may have active recording devices, including video and audio. Our brokerage, including myself, may not always be aware of these devices, so we can’t control whether you’re recorded by the property’s owners. By signing, you agree to release and hold us harmless from any privacy claims related to recordings made by the seller during your viewings.

7. Confidentiality Obligations

Confidentiality is at the core of my service to you, and this obligation doesn’t end when our agreement concludes. I am committed to protecting all personal and financial information related to your transaction, both during our agreement and afterward. Any confidential information shared during the transaction remains secure and is only disclosed with your written consent or as required by law.

8. Additional Terms and Show Home Visits

In some cases, there may be additional terms in the agreement that clarify specific expectations. For example, if you’re interested in new builds or pre-sale properties, I ask that you contact me before visiting show homes or sales centers. Many builders require an agent to be present at your first visit to secure representation and avoid exclusion from the sales process.

9. Early Termination Scenarios

The agreement will end automatically when you complete a purchase. However, several other circumstances can lead to early termination:

• If I or the brokerage materially breach the agreement, you can end it with written notice.

• If my real estate license is suspended, cancelled, or if our brokerage goes bankrupt, the agreement will terminate.

• You also have the option to end the agreement if our board membership status changes in a way that affects our ability to fulfill our obligations.

10. Document Attachments and Amendments

Any additional documents, such as the Consumer Relationship Guide, are attached to the agreement and form part of it. This guide provides valuable information on the different types of relationships you can have with a real estate agent, including designated agency, and what each relationship means for your rights and obligations. If any changes are needed to the agreement, amendments must be made in writing and signed by both parties to be valid.

For more insights into the different agency relationships and how they affect your rights as a buyer, feel free to check out my blog post, Understanding Your Relationship with a Real Estate Agent: A Guide for Buyers and Sellers.

11. Agreement Finalization and Communication Methods

To finalize the agreement, both you and I will sign, acknowledging that we’ve reviewed each part of the agreement and fully understand its terms. This includes your preferred communication methods for exchanging information—whether in person, by mail, or electronically. We recognize that each of these methods may involve certain risks, which we will discuss so you’re comfortable with the process. Additionally, we agree that electronic signatures are legally binding and will function the same as traditional ink signatures.

In Summary

The Exclusive Buyer Representation Agreement is an essential document that formalizes the commitment between you and your agent, ensuring you receive dedicated, confidential, and expert representation. This agreement provides peace of mind, clarity, and structure throughout your real estate journey.

If you have questions or would like to review the agreement together, don’t hesitate to reach out. I’m here to help ensure every aspect of your buying experience is transparent and supportive.

For more information on compensation and commission scenarios, please refer to my detailed post here, where I cover what happens in cases where commission differs from our original agreement.

When buying a property, one of the least-discussed yet essential topics is buyer’s agent commission. While most buyers won’t pay this fee directly, certain situations may vary, making it important to understand how compensation works and what options exist if the seller’s offered commission doesn’t align with our agreement.

In this post, I’ll explain the typical process for buyer’s agent compensation and outline alternative solutions for scenarios where adjustments may be needed.

How Buyer’s Agent Fees Work in a Typical Transaction

In most real estate transactions, the seller pays the buyer’s agent commission through the listing brokerage. This payment, typically factored into the sale price, is arranged upfront by the seller and their agent to encourage buyer representation and ease the transaction process. Once the sale is complete, the agreed-upon commission is paid to the buyer’s agent.

This standard arrangement allows buyers to access professional services without additional costs. However, there are exceptions, especially when a seller is not offering the full commission agreed to in our Exclusive Buyer Representation Agreement or when dealing with a For Sale By Owner (FSBO) property where no commission is offered.

Homebuilders and New Construction

Homebuilders do not fall under the same compensation structure as realtor-represented listings. If you’re working with a real estate agent and are interested in new build or preconstruction options, it is essential to take your real estate agent with you on your initial visit to the homebuilder. By registering with the builder at that first meeting, your agent can represent your best interests, ensuring proper compensation through the builder and avoiding any potential out-of-pocket costs to you as the buyer under our exclusive buyer representation agreement.

When Seller Compensation Differs from Our Agreement

If the seller’s offered commission doesn’t match what we agreed upon in the Buyer’s Brokerage Agreement, the agreement gives me the right to negotiate the fee directly with the seller. Here are the most common options we may explore:

1. Negotiating with the Seller

   In many cases, I can work with the seller or their agent to negotiate the agreed-upon commission, which allows you to avoid covering the difference out of pocket. This negotiation helps ensure that my services remain accessible to you without added expense, even when the seller’s commission offer is lower than expected.

2. Modifying the Agreement

   Occasionally, we may choose to adjust our Buyer’s Brokerage Agreement to accept the lower commission offered by the seller for a specific property. This option can be a practical solution, particularly when the difference is minimal or when the property meets your needs well. Modifying the agreement in this way helps avoid any additional costs to you as a buyer.

3. Buyer-Paid Commission

   If neither negotiation nor modification works, you may be asked to cover the difference between the seller’s offered commission and our original agreement. This scenario, while less common, may arise when a seller is unwilling or unable to pay the full commission. By considering this possibility in advance, we can avoid surprises later and move forward with clarity.

Key Takeaway: What to Expect

For most buyers, commission fees are covered by the seller, making the buyer’s agent services effectively free of charge. However, if the seller’s compensation differs from our agreement, we’ll review your options and select the most suitable approach—whether that’s negotiating with the seller, modifying the agreement, or discussing the possibility of a buyer-paid commission.

By having these conversations early on, you’ll have a clear understanding of potential costs and gain peace of mind knowing that your interests are well-protected.

Have Questions? Let’s Chat!

Understanding commission and compensation can be complex, but I’m here to make the process transparent and stress-free. If you have any questions about how commissions work or want to explore your options in more detail, please don’t hesitate to reach out. Together, we’ll ensure your home-buying experience is smooth, professional, and tailored to your needs.

When you’re buying or selling a home, it’s essential to understand your relationship with your real estate professional. This relationship isn’t just about having someone help you find or sell a property—it defines the level of service, responsibility, and confidentiality you can expect. In Alberta, all buyers and sellers are given the Consumer Relationship Guide to explain these options. Here’s a quick breakdown to help you understand the main points.

Why This Guide Matters

Buying or selling a property is one of the biggest financial moves you’ll make, so it’s critical to know what kind of support your real estate professional can offer. By signing this guide, you’re acknowledging that your agent has explained these options to you, and you’ll make an informed decision about your working relationship.

Types of Relationships with a Real Estate Agent

The Consumer Relationship Guide covers three main ways you can work with a real estate agent:

1. Common Law Agency (Brokerage Agency)

   • In this setup, the entire brokerage (including all its agents and staff) represents you as their client. Everyone in the brokerage works collectively in your best interest. This is often called a common law agency relationship.

2. Designated Agency (Individual Agent)

   • In a designated agency relationship, you work directly with one specific real estate agent, who is your designated representative. This agent will handle your needs exclusively without other agents from the brokerage being involved, ensuring more focused support.

3. Customer Relationship

   • If you decide to represent yourself in a transaction, your real estate agent will act as a facilitator rather than an advisor. This means they won’t give you the same services or level of guidance as they would for a client. Instead, they can provide general information, help you fill out forms, and connect you with appraisers or mortgage brokers, but won’t advocate specifically for your interests.

Responsibilities of an Agent When They Represent You

If you choose to have an agent-client relationship, your real estate professional has specific obligations to protect and support you fully. These responsibilities include:

• Undivided Loyalty: Your agent will prioritize your interests, putting them above anyone else’s, including their own.

• Confidentiality: Your personal information and transaction details stay private, even after your relationship ends.

• Full Disclosure: Your agent must tell you everything that might impact your decision, including conflicts of interest.

• Obedience: They will follow all lawful instructions you provide.

• Reasonable Care and Skill: Your agent must perform their duties to the best of their professional abilities.

• Full Accounting: They’ll keep track of any property or funds they manage for you.

Conflict of Interest: When Your Agent Represents Both Buyer and Seller

In cases where the same agent represents both the buyer and the seller, there’s a potential for conflict of interest. Here’s how this situation can be handled:

1. Separate Representation: Either the buyer or the seller can work with a different agent.

2. Customer Relationship: The agent may continue working with one party as a customer rather than a client. They’ll provide impartial help but won’t advocate for either side’s best interest.

3. Facilitated Transaction: The agent can act as a facilitator, offering services equally to both sides. They won’t give confidential advice or favor one side over the other. Their goal is to complete the transaction fairly, relaying offers, documents, and updates to both parties.

All parties must agree in writing to any change in relationship before any offers are made or accepted.

Making an Informed Choice

Your real estate professional should take the time to explain all these options and their responsibilities. Once you’re clear on how you want to proceed, you’ll be asked to sign an agreement that details your relationship with them.

Final Thoughts

Understanding the type of relationship you have with your real estate agent can make a big difference in your buying or selling experience. Whether you need full advocacy, general assistance, or something in between, the Consumer Relationship Guide ensures that you know what to expect.

When you sign off on this guide, it’s not just paperwork—it’s about making sure you’re informed and comfortable with the level of support you’ll receive.

If you have any questions or would like to discuss your options in more detail, feel free to reach out. I’m here to help you make informed decisions in your real estate journey.

In real estate, few things feel more disappointing than when a home you’ve bought doesn’t meet the level of cleanliness you expected at possession. Recently, I represented both the buyers and sellers in a transaction where we encountered a challenge that many agents are familiar with: differing opinions on what “clean” truly means. Here’s a look at why cleaning standards are so important to clarify in purchase contracts and what lessons this experience reinforced.

Setting Expectations: Why One Person’s Clean Is Another’s Concern

In real estate transactions, the expectation for a “clean” property at possession is often assumed but rarely defined clearly. Most standard contracts don’t actually include a specific term for property cleanliness, leaving it up to individual interpretation. This can lead to misunderstandings, as one person’s idea of “clean” may be quite different from another’s.

To avoid ambiguity, many agents add a specific cleaning term to the purchase contract. In this case, we aimed to set clear expectations by including a clause that the home and outbuildings should meet a particular cleanliness standard 24 hours before possession. I also discussed with the sellers what the buyers expected, suggesting a professional cleaning to ensure a baseline quality. However, the sellers ultimately preferred to handle the cleaning themselves and did not agree to the professional cleaning clause.

Without a standard term, it’s crucial to communicate expectations and outline clear cleaning requirements, yet even then, the subjective nature of “clean” can still lead to different interpretations, as we saw in this transaction.

The Walkthrough: When Standards of Clean Differ

The day before possession, the buyers and I walked through the property. Despite our discussions and the agreed standards, several concerns stood out:

• Many outbuildings still contained items left behind, and floors were unswept.

• The poultry coop hadn’t been cleaned.

• The garage had debris and visible leakage that could have benefitted from a thorough clean.

• Although the sellers stated the house was cleaned, closer inspection showed only a surface-level effort—dust remained on surfaces, doors had visible hand and paw prints, and it was clear the cleaning was minimal.

The buyers were understandably disappointed. I empathized with them, as I also value a high level of cleanliness, especially when expectations have been outlined clearly.

When Subjective Terms Fall Short

This situation underscores why using subjective terms like "clean" in a contract can lead to disputes. The buyers’ idea of “clean” included dust-free surfaces, a swept garage, and waste-free outbuildings, while the sellers felt that their clean-up effort was sufficient. Even with contract terms specifying that cleanliness should meet a particular standard, the interpretation remained open to each party’s perspective. The discrepancy led to legal involvement, and while the sellers returned to make additional clean-up efforts, their work didn’t fully meet the buyers’ expectations or the contract timeline.

Professional Cleaning Clauses: A Worthwhile Solution

In situations like these, a clause requiring professional cleaning with a receipt can help prevent disputes. A receipt provides proof that an effort was made, even if cleaning companies vary in their standards. While not foolproof, this objective measure adds clarity and reduces subjective interpretation. When sellers resist a professional cleaning clause, it’s important to communicate the risk of varied expectations and, if possible, negotiate for a specific checklist that can be agreed upon by both parties.

Closing Despite Unmet Conditions: Limited Remedies for Buyers

Ultimately, buyers must balance their desire for a clean property with the practicalities of closing on time. In this case, the buyers faced a dilemma: either close on schedule or risk penalties and delays. They chose to proceed, knowing their only recourse might be small claims court to recover cleaning expenses. While the contract included a holdback provision if the property wasn’t cleaned within 24 hours of possession, this became challenging to enforce due to the subjective nature of the agreed-upon term.

Lessons Learned: Clear and Objective Terms Protect All Parties

This experience highlights the importance of clear contract terms, particularly for subjective issues like cleanliness. When drafting or accepting terms, here are a few best practices to consider:

• Opt for Objectivity: If possible, specify professional cleaning with a receipt, even if there’s pushback. This provides tangible evidence of effort and makes expectations clearer.

• Discuss Details in Advance: Having open discussions about what “clean” means can reduce misunderstandings. While not a guarantee, explaining the desired standards to both parties can at least set realistic expectations.

• Consider a Holdback for Cleaning: If professional cleaning isn’t feasible, a holdback provision can be a backup measure—though, as seen here, it isn’t always easy to enforce.

Real estate transactions come with numerous moving parts, and cleanliness expectations are just one piece of the puzzle. By striving for objective terms, agents, buyers, and sellers can ensure that possession day is as smooth as possible and that everyone’s expectations are met to the best extent possible.

Final Thoughts

Buying or selling a home is a significant transaction, and setting clear, objective expectations for every part of the process—especially for details like cleaning—can make all the difference. If you’re planning a real estate transaction and want guidance on avoiding similar pitfalls, I’d be happy to help.

What You Need to Know

There’s a lot to consider when buying a home from a builder. The process is exciting, especially with the prospect of living in a brand-new home, but it’s also different from buying a resale property. Here’s an overview of the key factors, along with why it’s essential to work with a knowledgeable real estate agent throughout the process.

Spec Home vs. Custom-Built Home

When buying from a builder, you typically have two main options: a spec home or a custom-built home.

• Spec Homes are usually near completion and can have quick possession timelines, typically within 0 to 6 months. However, customization options are limited because materials and finishes are often already selected by the builder.

• Custom-Built Homes allow more choices, as you can select the floor plan, finishes, and even the lot. This process, though, usually takes longer—anywhere from 8 to 18 months.

Each option has its benefits, but it’s essential to be clear about your timeline, flexibility, and customization needs. Working with an agent can help you decide which type of home best meets your priorities.

The Importance of a Real Estate Agent

Having a real estate agent by your side is crucial to ensure you’re well-protected and fully informed throughout this unique buying process. An agent brings essential market knowledge, can help with contract terms, and works in your best interest rather than the builder’s.

Before visiting any show home or sales center, it’s essential to bring your agent with you to your first appointment. This step allows your agent to register with the builder, ensuring they can fully represent you. After that, you’re free to visit the property as often as you’d like, but having your agent involved in every step will help avoid potential pitfalls.

Key Factors to Consider

1. Builder Reputation and Reviews

Researching the builder’s reputation is critical. A reliable builder with a solid track record can make a huge difference in the quality and satisfaction of your home-buying experience. Your real estate agent can provide insights into reputable builders and help steer you clear of those with poor track records.

2. Warranty and Post-Purchase Support

Most builders offer a warranty on the home, which may cover issues with structural components, workmanship, or major systems like plumbing or HVAC. Be sure to understand what’s included, and have your agent review the warranty with you. Agents can help ensure you get the post-purchase support you’re entitled to if issues arise.

3. Timeline and Flexibility

Construction timelines can vary, and delays are not uncommon. It’s essential to have a realistic understanding of the builder’s timeline and flexibility for completion. Your agent can help manage expectations and keep you informed, so you’re prepared if there are delays or if your move-in date needs adjusting.

4. Escalation Clauses

Be aware that many builder contracts contain escalation clauses. This clause allows the builder to raise the price if material or labor costs increase during construction. An experienced real estate agent will ensure you understand these terms, so there are no surprises.

5. Deposit and Trust Accounts

Builder deposits can range from 5% to 20%, depending on the builder. Ask if the deposit will be held in trust or used to fund the construction. If it’s not held in trust and the builder faces financial issues, you risk losing your deposit. Your agent will guide you on reputable builders and can help clarify these critical financial details.

6. Hidden and Additional Costs

Beyond the base price, new homes often come with additional costs, such as landscaping, appliances, or even window treatments, that may not be included. Agents can help you get a complete picture of these costs and identify upgrades that could increase your home’s value.

7. Mortgage Considerations for New Builds

Financing a new build can come with unique challenges, especially for longer timelines. Interest rates may change over the construction period, and mortgage terms could vary. Your agent can help connect you with mortgage specialists who understand new construction, ensuring your financing aligns with your plans.

8. Walkthroughs and Inspections at Key Stages

A home inspection is vital, even for new builds, to ensure everything meets quality standards. Arrange walkthroughs at key stages of construction, like framing, electrical, and the final inspection. Agents can coordinate these walkthroughs to help you spot any issues early on and keep you engaged in the process.

9. Community Development and Amenities

If you’re buying in a new community, consider the future development plans. Many new communities offer added amenities like parks, schools, and shopping centers that increase property value and improve your quality of life. Agents are familiar with local development plans and can help you choose a location with desirable amenities.

10. Resale Considerations for Builder Homes

While new builds are highly customizable, it’s wise to consider features that enhance future resale value. Upgrades like a finished basement, energy-efficient appliances, and high-quality materials can make your home more attractive down the line. Your agent can advise you on which upgrades may add long-term value and appeal to future buyers.

What If You Have a Home to Sell?

If you’re buying a new build and have a home to sell, it’s important to consider how the timing of your sale will align with your new home’s possession date. This is usually less of an issue with spec homes since possession typically happens within 0 to 4 months. However, with custom-built homes, possession can take 8 to 18 months, and the real estate market can change significantly during that time.

For example, if you’re counting on your current home’s value in today’s market to finance your new build, there’s a risk that market conditions might shift, potentially impacting your financial plans. This is where having a REALTOR® by your side is invaluable, as they can guide you in planning and timing both your sale and purchase.

Curious about how to navigate selling your home while buying a new build? Check out my upcoming blog post, "What to Do When You Have a Home to Sell While Buying a New Build," where I’ll dive into strategies for managing overlapping timelines, market risks, and financing options.

Final Thoughts: Why You Need a Real Estate Agent

Working with a real estate agent when buying a builder home can be a game-changer. Builders’ sales representatives work for the builder, not for you. An agent will help you navigate the builder’s contract, protect your interests, and keep you informed at every stage. They’ll ensure you’re aware of your rights, help with any negotiations, and address potential issues before they become significant problems.

To ensure you’re fully protected, take your agent with you to the first visit to any builder’s show home or sales center. This step is essential for registration, allowing your agent to represent you throughout the transaction. Once registered, you can visit the property as much as you like, but it’s still wise to keep your agent involved for their guidance and support.

If you're considering buying a home from a builder and want expert guidance, I’m here to help every step of the way. Contact me today to make your new home purchase a smooth and successful experience!