Buying a home is exciting but also a little bit scary, especially if you’re a first-time buyer or upgrading from a condo to a single detached family home. The nerves are born from uncertainty. Do you have enough information to make a wise decision? Factor in the unique real estate landscape of Central Alberta and the adrenaline really kicks in, having you scramble to gather as much intel as possible before hitting the market. Thankfully, our Red Deer real estate team has seen it all and guided clients, such as yourself, through the process for nearly two decades. Today we put together a quick and easy guide to buying a home in the area.

10 Tips to Buying a Home (and Choosing a Realtor) in the Red Deer and Central Alberta

1. Get Pre-Approval on Your Mortgage

Don’t spend valuable time looking at homes that don’t suit your budget. Get pre-approved on your home loan as soon as you’re ready to put your interest out there on the local market. Having an exact cap in mind, and on paper, allows you to focus on homes that are right for you. Of course, the loan is not always as clear cut as it could be, so be mindful of the entire process. It’s important to learn about the hidden costs (processing fees, etc.). Not an expert in mortgages? We are. Contact us at 403.347.0744 to check step-one off of your list, before considering listings.

2. The Perfect Time is Your Time (Ignore Media Hype)

If you’ve found this guide it means that you’re ready to start the home buying process. Your career (or business, etc.) and family (no matter what that looks like) is ready for the transition. That means the time is right for you, and that’s what’s most important. Many prospective home buyers get caught up in the media hype (or the advice from friends and coworkers) and try to strike on the home purchase at some magical (and often arbitrary) time. The newspaper tells you one thing about interest rates, the local TV anchor delivers news on market forecasts, the voice on the radio proclaims that you should wait another six months, and your friend’s neighbor’s cousin’s uncle (who sold swampland in Florida) has a hot tip on a development that will be ready in 2-5 years tops. Forget them all. Instead, trust your instincts and move forward when you are ready.

3. Buy for Today and Tomorrow

Take a look at yourself, in five to ten years. That’s what you’re buying for today. Will your family occupancy grow (for young couples, etc.)? Will your family occupancy decrease (for soon-to-be empty nesters, etc.)? Will you be traveling or entertaining more? Do you plan on getting a dog or a cat? The scenarios that weigh-in on the needs of your home are endless and only you can take accounting of them. While you can’t predict it all, you can make an educated guess. Proceed accordingly.

4. See Beyond the Price Tag

The price of a home is not the only the mortgage you pay. You want to factor in all “sleeper” costs too. This can include utilities, homeowner association dues (where applicable), property tax today and property tax increases that can come with any additions and/or renovations that you anticipate making in the future. Plan for these expenses today and you’re monthly/annual budget will be in the clear.

5. Comprehensive Home Inspection

This may seem like common sense but often excitement and emotions get in the way. On the surface you may have come across the perfect property but the bells and whistles may cloud your judgement. But just like with a car you need to have someone look under-the-hood and make sure it’s all there and in working order. Have a professional real estate team conduct and/or dictate this inspection for you, leaving no square-foot unturned.

6. Don’t Attempt a Negotiation on Your Own

One of the most common analogies made here is found in the courtroom. You wouldn’t represent yourself in the court of law during a trial, right? Certainly not. Attempting to negotiate the price of a home with a seller (and/or their own agent) is as risky a scenario as the one presented in the analogy. Bring in a professional real estate team that is reputed in home-buyer negotiation.

7. You’re Buying into a Community, not Just a Home

One of the most exciting parts about buying a home is all that comes along with it, including the surrounding community. Spend some time immersed in it before making a purchase decision. This includes meeting the neighbors, touring the local school (where applicable), walking about the area, enjoying the recreation, and spending a few hours at the local coffee shop to gauge population traffic, and gossip!

8. Consider Acreage and Developments Too

While you’re excited about your home purchase you want to make sure that the property you do choose is 110% right for you. Sometimes that home is not yet ready. Thankfully, the Central Alberta area is ripe with both acreage and current developments. Is building a home an option for you? Then you may want to have a look at the multitude of Red Deer county acres available on the market. There are also numerous and highly attractive developments coming up all over the Red Deer region, developments that our team is close to and connect you to. The key consideration in all of this is time. While you may be ready to move in now, perhaps it’s worth buying for the near future (acreage or development in process) and taking up temporary residence in a rental accommodation until your home (your perfect home) has been completed.

9. Choose a REALTOR^® Over an Agent

There are options available to you when soliciting real estate services. But when it comes to buying a home in Central Alberta you want to work with a Realtor^® above all else. A Realtor^® has unlimited access to properties that meet your criteria, is an expert negotiator, is more knowledgable about the entire purchase process (paperwork and red tape included), and adheres to a strict code of ethics. Learn more about why you want to use a Realtor^® here.

10. Choose a Team Over an Individual Agent

Not only is choosing a Realtor^® the key to a successful home purchase, but choosing one that has an entire team at their side will provide you with unparalleled peace of mind. A real estate team means that you have someone, at all times, on the market and hunting down the property that meets the criteria dictated by you. It also means that you have a specialized expert working on each step of the process so that you don’t have to. Would you rather have one person, or many, managing the purchase of your home?

Ready to start talking about your new home in Central Alberta? Contact the Dusty Smith Real Estate Team anytime at 403.347.0744 or learn more here.

How to Price Your Home for Sale in the Red Deer AB Market

One of the most challenging things facing homeowners who are about to put their home on the market is how to determine the listing price. This is especially true for residents and real estate investors in Central Alberta. The economy and real estate landscape of Red Deer and the surrounding area are among the most unique in the country, and thus your pricing strategy must be customized accordingly. Today, we help you with this process by nipping a few myths in the bud and guiding you in the right direction.

4 Tips to Pricing Your Home When Selling in the Red Deer Alberta Market

1. Overpricing to Leave Room for Negotiation Does Not Work

The biggest myth in setting a listing bid is that over-inflating the price will work in your favor. The mentality, is that if you start very high you leave room to negotiate and ultimately land on the price you found most acceptable in the first place. Theoretically the buyer thinks that they drove a hard bargain, and are more likely to buy your home now that they can claim a victorious negotiation. Sorry, but this isn’t Pawn Stars. Buyers in Central Alberta are smart. They can sniff an overinflated listing price a mile away and instead of making that initial contact they and their agent will move on to a similar property with a more realistic price tag.

In addition, the inflated price will keep your home on the market much longer. While you may have the patience to wait until someone bites, the longer your home sits on the market the more that buyers become suspicious. They begin to think that something is wrong with the property. Remember, in the Red Deer buyer’s market perception is reality.

2. Don’t Undervalue Your Home Because of Economic Concerns

There are some sellers in Central Alberta that panic during economic downturns. Their fear of a slow economy has them making hasty decisions, undervaluing their home. The thought process is twofold. For one, they are making the assumption that the economy won’t bounce back, real estate market included. In addition, they think setting a low listing price will equal a quick sale and prevent them from losing additional wealth should the market continue to fall. Once again we have a misinformed point of view.

For starters, this is Red Deer Central Alberta we’re talking about. The long standing economic capital of Canada. The energy-rich sector will bounce back strong and along with it the real estate market. Setting too low a price will make you vulnerable to hungry outside investors looking to capitalize on your fear, knowing that prices will again return to form. Don’t let the panic get to you and don’t fall prey by undervaluing your property.

Secondly, setting too low a price does not automatically increase interest and offers. Remember our statement regarding perception is reality above? Well that applies here as well. Undervaluing your home in the listing price will make many agents and buyers cautious. They assume that if you’re unloading your property at a relative steal then something must be amiss. Your property will be passed over, receiving fewer views and a lesser opportunity to sell. Simply put, set your property at its true value.

3. No Need to Renovate if a Renovation is Not Needed

Many property owners end up dumping additional funds into renovations before listing their home, thinking that this will allow them to ask for a proportionately higher price. This can be true, but it is not always so. Only renovate where needed. If a room in a home is in obvious disrepair or a needs functional makeover then it certainly makes sense and can increase your asking price. But if you are planning renovations to simply enhance aesthetics you may be making a costly mistake. Just because your tastes dictate the necessity does not mean that prospective buyers would have wanted the same. You may end up eating an additional expense that does not allow you to actually raise the price of your home.

4. Selling Your Home w/a REALTOR® Will Get You Closest to Your Listing Price

Some people think that selling their home on their own will bring them a greater overall return on their listing price. This is not true. When you secure the services of a REALTOR® you avoid a hoard of expenses incurred by going at it alone. There is significant time and expense involved in listing your home on online/offline resources, marketing the property, negotiating with prospective buyers, writing/reviewing/amending contracts, and processing lone applications and inspections. A REALTOR® alleviates all of this. In addition, your property will be placed in view of more prospective buyers when you gain access to a real estate marketing team’s network. On top of the views, you’re far more likely to receive an offer closer to your listing price when a professional REALTOR® is at your side. Simply put, the opportunity cost of not using a REALTOR® far outweighs the results of any attempt to list your home on your own.

The Dusty Smith Team has been selling homes within 1 to 2% of listing price. Call the Dusty Smith Team today to ask the right questions about selling your home.

Red Deer Christmas Events – Festival of Trees

The holiday season officially begins as this moment as we pen this week’s post on the Dusty Smith Real Estate Team blog. Red Deer Lights the Night  tonight (at press), but that’s just the beginning. Whether you are a long time resident, new to town, or are preparing for a move to Red Deer you will find no better time of the year to find out why our Central Albertan city is one of the greatest in all of Canada. Take a look at this early Christmas event schedule to learn more.

Must Attend Community Events to Launch the 2015 Holiday Season in Red Deer

Red Deer Lights the Night @ City Hall Park / Downtown Red Deer – Nov 21 (4-7 PM)

No matter the year, Lights the Night marks the arrival of the holidays in Red Deer Alberta. Traditionally landing on the third Saturday of November Lights the Night gathers residents and visitors alike to City Hall Park. Celebrations include live music (the Overdue Blues Band in 2015), a Winter Market, a Kid’s Zone, baked goodies and free hot chocolate and most certainly a visit from Ol’ St. Nick. The highlight of the affair is the annual lighting of City Hall Park’s version of the Rockefeller Christmas tree and is capped off with a fireworks show – a breathtaking scene against the snow-crisp backdrop of Red Deer! This event sets the festive tone for the rest of the season and serves as a true representation of community in our great city.

Red Deer Festival of Trees @ Prairie Pavilion – Nov 25-29 (Various Times)

This multi-day affair is a blast for the entire community and has something for all-ages, tastes, and interests. The event kicks off with the Preview Dinner at Prairie Pavilion at Westerner Park on the 25th at 6 PM. The Preview Dinner is a formal gala exclusive to event sponsors and consists of fine dining and both live and silent auctions. On the following night (November 26 at 6 PM) is the Taste of Red Deer, an affordable dining extravaganza appropriate to family units and couples alike and is concluded with a raffle draw and silent auction. November 27th is highlighted by the event’s Festival of Wines, entering its 10th year in featuring an expansive selection of fine wines, craft beer, appetizers, raffles, and another silent auction. One of the downright most heartwarming (and cute!) events of the Festival is Mistletoe Magic – a formal fathers and daughters date night that features an evening of entertainment, dining, dancing, and one of the largest individual raffles of the event. There is simple so much to cover for the Red Deer Festival of Trees which also includes the Candy Cane Lane, the Gift & Sweet Shop and Breakfast with Santa on the final day. Learn more about the 2015 Red Deer Festival of Trees here.

Christmas Cookie Walk @ Victory Church of Red Deer – Nov 28 (9-2 PM)

This humble affair is essential to getting a head start on your Christmas baking curating for the holiday season. Absolutely delectable cakes, squares, loaves and of course cookies are on deck. What’s even better, is that while you fill your bellies and freezers (yes, do save some) you do some good for the community at the same time, with all proceeds going to local families in need! Once again the sense of community in Red Deer shines with this quaint event.

Jingle Jazz I & II @ Studio A, Arts Centre – Nov 30 to Dec 1 (7:30 PM)

Get down to the smooth sounds of Jazz as the RDC Big Band and Faculty Jazz Ensemble pours sweet honey into your ears with some hot and heartwarming holiday classics. This event is perfect for those looking for a taste of arts and culture in Red Deer at the onset of the holiday season.

The above represents the beginning of the holidays in our Central Alberta hub. Rest assured that one or more of our Red Deer real estate team will be in attendance so if you’re new to town be sure to say hi (click here for team bios). Stay tuned for more recommended events for the holidays as we prepare to enter December. And as always, should you have any local real estate inquiries whatsoever do not hesitate to contact us, anytime.

Investing in Red Deer Real Estate

Last month we posted an article on why now is the perfect time to buy a home in Red Deer, in spite of the past year’s economic challenges. However, we know that many of you have someone in your ear, whispering all sorts of propaganda, telling you to wait for the economy to return to its glory before investing in local real estate. Their assertions may be well intended, but alas they are not backed by accurate information. Yes indeed, there are numerous myths and suburban legends that have long hampered the potential for real estate investors to make a wise and well-timed decision. Today, we tackle those myths as they apply to our great Central Albertan city.

The 4 Myths About Real Estate Investment in a Slow Economy – Dispelled for Red Deer Investors

Myth #1 – Investors Are Wise to Wait for Economic Recovery

This is the biggest myth and the culprit of the most misguided decision in regards to real estate investment. Waiting for full economic recovery will do nothing more but raise the cost of buying your property. If the hesitation comes from wondering whether or not the economy will indeed return to form, you simply need to look to the region. Red Deer’s economy is driven by the energy sector. Prices may be down now, but will certainly come back up again. In fact, industry trends show that when the price of oil has experienced sharp declines a consistent pattern of rapid, not slow, recovery immediately follows. The fact is, the city will once again return to boomtown status. When it does, the cost (listing price, concessions, and interest rates) of buying your investment property will be higher, and you will have missed out on what may be a once-in-a-lifetime opportunity.

Myth #2 – Your Have Fewer Prospects for Monthly Rental Income

This couldn’t be further from the truth. There are numerous scenarios that create opportunity to generate increased monthly income from your investment property during an economic downturn. For one, energy sector executives may have bought beyond their means. During the slow down, they do not have the cushion to ride it out. They sell their property, and seek rental accommodations. This practice is more common than you may think and creates a demand in the rental market. Then there are those less-seasoned laborers that are brought into the energy sector to replace tenured executives who have moved on to other opportunities. These entry level executives are more cautious, and are not quite ready to buy, further increasing the demand for rentals. All of a sudden, your investment property (if you made the right decision to get in at the right time) now becomes a hot commodity and a big source of monthly income, for you.

Myth #3 – Vacation Property Purchases Are Frivolous During an Economic Downturn

If you desire a vacation property for your real estate investment portfolio abiding by this myth is another mistake. A slow economy has no real impact on the interests of outside parties that travel to a given region. The landscape, amenities, and experiences remain unchanged. In fact, when the oil prices are low travel to the region can increase due to lower fuel costs (air and road). Visitors also know that they will receive extra special attention when putting their money into an economy that needs the boost. All of this adds up to another great opportunity to earn income from a Red Deer real estate investment – your vacation property rental. Look to areas surrounding Red Deer for lucrative vacation property investment opportunities, such as found along the waterfront of Sylvan Lake and Gull Lake.

Myth #4 – Short Term Holds Hedge Risk if History Repeats Itself

Wrong. If you’re looking to invest in Red Deer real estate don’t get caught up in the mentality that a recession will return soon after the economy bounces back. Those that do only option for short term mortgages, looking to get in and out. But this opens yourself up to more risk, the kind that is bad for your portfolio. Your goal should be to finance with a long-term, fully amortizing, fixed-rate mortgage. Avoid balloon payments, variables, and short term loans. The assumption, is that you’re looking to build real wealth after inflation, thus a wise strategy is found within the loan. By accepting balloon or variable options you accept interest rate risk that could ruin your real estate investment in the future. Your goal should be a long-term hold that delivers cash in-hand in the present. This cash flow will increase as inflation rises while at the same time delivering moderately leveraged equity growth to build real wealth post-inflation and economic crisis.

Ready to talk about your next Red Deer real estate investment? Call the Dusty Smith Real Estate Team at 403-347-0744 or contact us here anytime.

Why You Should Use a REALTOR® to Buy a Home in Red Deer

You’re ready to buy a home in the Red Deer area. For starters, congratulations on your exciting decision! Now comes the next one, deciding upon who, if anyone, should help you with the process. Buying a property, whether it’s your first or second, is one of the most important decisions that you’ll ever make and because of this it should be given the appropriate consideration. Are you prepared to go at it alone? Are you considering a third party to help you with the process? Below we have detailed key reasons why choosing a local REALTOR® is the wisest choice when buying a home in Red Deer or surrounding Central Alberta region.

6 Reasons Why You Should Use a Local REALTOR® to Help You Buy a Home

1. Unlimited Access to Properties That Meet Your Criteria

Local REALTORS^® have full access to Board MLS^® Systems. What this means for those of you interested in property in Central Alberta, is that you are presented with well over 3000 listings! In addition, a reputable Red Deer area REALTOR^® will have special featured listings that include residential, commercial, and recreational properties in addition to acreages and more. Brokers and independent agents will have a hard time matching that.

2. Expert Negotiator at Your Side

Would you represent yourself in the court of law without a lawyer? Certainly not. To attempt to negotiate the purchase of a home on your own is just as ill-advised. You need someone to go to the proverbial bat for you, ensuring that your interests alone are protected and that you do not sway from your budget. This does not just apply to the price of your home, but to concessions too. As detailed in our recent article on why now is the perfect time to buy a home in Red Deer, buyers are in a position to make unprecedented demands from sellers regarding closing costs in addition to furnishings (for those sellers leaving the city) and even renovations. Only a professional REALTOR^® has the negotiation skills to pull it all off for you.

3. More Knowledgeable About Real Estate Developments Directly Related to the Region

The economic and real estate landscape of Red Deer in the most unique in all of Canada. Developments in the market change all of the time. This has been very evident given the recent economy. Because REALTORS^® are required to keep abreast of local developments through courses, workshops, conventions and the like, a REALTOR^® maintains a high level of intimate knowledge about real estate in their locale. They will provide you the information you need to make an informed decision, including comparable prices, housing market conditions, and residential/commercial property trends. No other individual representing you during your property purchase will pack the same level of authoritative weight.

4. More Knowledgeable About the Local Community

When you buy a home you aren’t just buying square footage, you’re buying into a community. The due diligence in buying a home applies to this as well. You may be able to access a lone property will relative ease, but assessing a neighborhood and entire community that is new to you is impossible in a short amount of time. An expert local REALTOR^® however, already has a wealth of community knowledge, and can provide both tangible and intangible information on the community, including which household in the neighborhood is the most gossip worthy!

5. Paperwork and Fine Print

Buying a property is concluded with a seemingly never-ending pile of paperwork and fine print to go through with a fine tooth comb. Navigating it all, filing the right documents in the right places and making sure that you’ve dotted all of the i’s and crossed the t’s is far too daunting without proper eduction in the process. You don’t want to miss a thing in the purchase contract, loopholes included. A local REALTOR^® will be expertly versed in all conditions and contingencies that apply to local area purchases, and manage the documentation on a daily basis. It’s their job. Let them do it for you while you focus on one thing – taking ownership of your dream property.

6. Adheres to the Strictest Code of Ethics

The most transparent thing that sets REALTORS® apart from real estate agents and brokers is that in Canada, a REALTOR® is a member of the Canadian Real Estate Association (CREA) and must subscribe to the REALTOR® Code of Ethics. This code is a strictly enforced program that consists of 17 articles that govern the standards of practice. It does not apply to standard brokers or agents. When seeking an individual or team to help you buy a home in the Red Deer area only solicit the services of one that bears the REALTOR® registered trademark on their website.

In conclusion, it should be noted that the sole fact that someone is a REALTOR® does not immediately qualify them as the best to serve your needs. You need to verify that a proper support system in place. Only a team can effectively communicate with buyers and provide a comprehensive level of service that will optimize your position as a homebuyer. To learn more, call us at 403-347-0744 or complete the form found here.

Central Alberta Events for November 2015

While our northern neighbor of Edmonton is known as Canada’s Festival City and their southern counterpart in Calgary is a big draw for events too, there is nothing quite as charming as the affairs found in small town Central Alberta. This is especially true of the towns of Blackfalds, Penhold, and Sylvan Lake. As a community real estate team with an ever present ear to the ground we will be updating our blog with recommended monthly events. Today, we deliver our all-ages recommendations for the month of November.

Best Blackfalds, Penhold, and Sylvan Lake Events for November 2015

Blackfalds Events

The hippest (and only non-profit) coffee shop in town, After the Grind, is hosting renowned singer-songwriter Jacob Moon on November 5. This timeless and eclectic performer is compared to the likes of Jackson Browne, Paul Simon, James Taylor, and Peter Gabriel so expect to be wooed by his command of pop-folk vocals and instrumentals. The other big highlight of the month in town is found on November 25 when Light Up Blackfalds arrives to ring in the season ahead. Gather around with residents and visitors alike at Tayles Water Spray Park gazebo as the City of Blackfalds lights up the trees and streets with holiday flare. Goodies and hot chocolate will be served so bundle up and prepare to get festive!

Penhold Events

Small town markets grow more and more popular year by year in Central Alberta. One of the most quaint yet rewarding is found here in Penhold. Residents from Red Deer, Sylvan Lake, and the surrounding area make the trek to explore the crafts, goods, and wares on deck at the Penhold Seasonal Market. The market is held every Saturday in November at the Penhold Regional Multiplex with a special addition on November 27 as the Museum Society hosts the annual Community Christmas Market.     

Sylvan Lake Events

There are many early holiday season events and markets in area this month but the entire Central Alberta community awaits the arrival of the Spirit of Sylvan – Yuletide Festival & Market. This year the annual event lands on the weekend of November 27-28 and in its 5th year organizers expect it to be bigger than ever. The festival highlight is the Christmas market, where early seasonal shoppers can nab a one of a kind treasure (or more) from artisans in addition to the slew of delectable baked goodies on site. There is also an Entertainment Extravaganza which features choir performances and rock n roll caroling. This year adds an enhanced Servus Credit Union Kidz Zone, complete with bouncy castles and face painting, while the event concludes with raffles and a silent auction. Don’t forget to wear your best (ugliest?) Christmas sweater. Learn more about the Spirit of Sylvan festival here.

All Together Now!

All Central Alberta towns will be coming out in full-force to support the region’s junior representation in the Western Hockey League. It all begins on November 3rd when the Red Deer Rebels take on the Seattle Thunderbirds at ENMAX Centrium in Red Deer (7 PM). Return again on November 20 as we look to send the Saskatoon Blades packing back across the provincial border along with the Regina Pats on November 24 and 28. Teams from far and wide fear playing against their Red Deer counterparts because when the Rebels take the ice, they do so with the fans from every Central Alberta town cheering ferociously at their back.

We look forward to seeing you at one or more of the events above. Until then, should you have any questions about real estate in Blackfalds, Penhold, or Sylvan Lake, please do not hesitate to contact us here, anytime of the year.

Why Buying a Red Deer Home in This Economy Makes Sense!

There is no avoiding the news about the current instability of Alberta’s economy and the challenges faced by the oil and gas sector. There is no need to sugarcoat it either. That’s not what we’re here to do. Instead, we’re going to shed some light on how the current economy, for all of its adversity, has presented an unprecedented opportunity for new homebuyers. Big industry may be turbulent at the moment, but individuals and family units looking for a place to invest in, and call home, will come out on top if they have the right guidance.  

5 Reasons Why Now is the Perfect Time to Buy a Red Deer Home

1. You Can Lock in Mortgage Rates at Historically Low Levels

Have you ever heard someone make a statement about local real estate that started with “I wish I bought a home back in…”? Do you want to be one of them in five or ten years? Certainly not. With mortgage rates at all-time lows prospective homeowners are able to lock in rates that they are not able to attain when Alberta’s economy is booming. When the economic landscape of the province returns to make Red Deer the economic capital of Canada that it always has been, those that lock in their mortgage rates now will forever remember this year as the one when opportunity knocked and when they opened the door.

2. Sellers Are Far More Likely to Accept Your Offer

The economic challenges faced by the energy sector and its impact upon the Central Alberta housing market are clear. Demand is low, vacancies are up, supply is high, and sellers are scrambling, vying for your bid. They know that the house down the block is doing the same. The new construction wave of single detached family homes from years prior have increased supply significantly, leaving a proverbial pick of the litter for interested parties. With options available to buyers, sellers are realizing that they may not be able to stick to listing prices that they set back in 2014.

On the flip side, it is important to note that in 2015 (and anticipated for 2016) housing starts are on the decline because of the growth from the year/s before. In October, the Canadian Mortgage & Housing Corp (CMHC) stated:

“The decline is due to an increase in the number of new homes available” (Richard Cho, Principal Market Analyst – CMHC Calgary, AB)

Simply put, the future will not hold the same level of housing inventory which can cause prices to rise, and thus it is not advisable to wait too long.

3. You Can Call the Shots on Complementary Services and Concessions

The drop in interest rates has opened up the opportunity to borrow additional funds for complementary materials and services that often accompany a new home purchase. For example, you may have renovations on the mind for your prospective home. You may also be moving to the Red Deer area for the first time, and need new furnishings. All of this becomes more immediately accessible via funds acquired through low rates of borrowing.

In addition, your leverage with sellers increases for concessions, so feel free to ask the seller to chip-in for closing costs. You may even inquire about the interior design, decor, and furnishing. Energy sector executives leaving Red Deer likely have no intent on taking their furniture and entertainment systems with them. Instead of them selling these items, they are likely to sweeten the pot by throwing them into the purchase of the home at no cost. All of a sudden your design, decorating, and furnishing expenses are dramatically reduced. Bottom line, as a buyer you can swing for the fences with your requests when the economy is as it is.

4. Rental Market Begins to Gouge Tenants – Better to Buy

Those that bought homes beyond their means during economic highlife have sold and are now on the rental market. Those households recently moving to the area have also bought into the negative hype and are also averse to buying. This boosts the demand for rentals. Law of supply and demand kicks in, and drives up the price. All of a sudden what seemed to be the most viable option becomes and an opportunity for landlords to squeeze every possible penny out of rental accommodations. Don’t reinforce this process, and instead put that monthly expenditure towards a mortgage.

5. What Goes Down Must Come Up

The demand for oil and gas isn’t going anywhere soon. Over a year ago Central Alberta was a dominant economic force in North America and it will take back its inevitable status. In addition, other industries in Central Alberta are certain to bounce back even stronger. A recent career fair in Alberta evidenced that executives and graduates alike are turning to the growing agricultural sector while waiting for energy to return to form:

“Agriculture’s been picking up the past couple of years so there’s been a lot of interest in agriculture, as you can tell by the booths here.” (Joshua Spies, Field Biologist, Syngenta)

As 2015 passes into 2016 consumer confidence is likely to return as well, and with it the retail sector too will grow in Central Alberta. All of this, and everything above, validates that the time to strike on your new home purchase is now, before prices and rates coincide with our province’s return to glory.

While buying a home in this economy is advisable, it must be done with the proper guidance. You will need a real estate team that understands your needs, respects your budget, and will deliver your offer in a manner that sellers cannot resist. Whether you are ready to buy, or have any questions whatsoever, feel free to call the Dusty Smith Real Estate Team at 403-347-0744 or contact us here anytime.