Top 5 Costly Mistakes in Alberta Real Estate Negotiations

Homebuyers and sellers are often unaware of the risks they're taking--and money lost--when contract negotiations are handled poorly. You can avoid this by insisting on experienced, savvy representation from your real estate agent.

In an Alberta real estate market that continues to burn hot (Lethbridge is no exception), everyone's in a hurry to 'do a deal' right now. Good properties at a great price are scarce, and homebuyers are frustrated and fatigued by the expensive cost of living.

Sadly, as in any industry, when volume of business increases, mistakes are made and contract-by-contract diligence decreases. This is completely unnecessary and bad for the consumer.

Here are the top five mistakes I'm seeing and how to correct them:

1) No due diligence on the property. Letting the lawyers 'fight it out' later is negligent. Take a thorough look at the property with your agent, inside and outside. Ask questions, and consider future expenses before crafting an offer. Know what you're transacting on.

2) Poorly written contracts. Inaccurate terms and conditions with loopholes, missing signatures, and even typos set you up for delays at closing or worse, a lawsuit. A real estate purchase contract is legally binding. Know what you're signing, electronically or otherwise.

3) Over-reliance on texting. Effective communicators have effective conversations. Tone and intent cannot be conveyed by text. The best agents are unafraid to pick up the phone and engage the other party in a meaningful way.

4) Undocumented counter-offers. Alberta Statute of Frauds states that real estate agreements must be signed, in writing, by both parties. A 'verbal' offer, a price conveyed by text, or a handshake agreement is not binding. Moreover, a competing buyer's written offer takes precedent over your verbal one.

5) Focusing only on price. Price matters but does not stand on its own. Know all tradable options. Deposit, possession date, buyer and seller conditions, special terms, and more can be used to create a win-win for both parties--and get you the right price.

Don't be shy when hiring a real estate agent. Your future is on the line. Insist on the best. We do it right, the first time, every time.