The Buying Process

When it comes to budgeting for your next home, it’s best not to leave anything to chance. That’s why connecting with a mortgage professional is so important. They’ll help you understand the financial side of the purchase, and what you can reasonably afford. Don’t have a mortgage professional in mind? No stress, we’ve got you covered, and can recommend some of the best in the business, some of whom we’ve worked with hundreds of times. Remember, when it comes to your financial needs, it doesn’t hurt to shop around for the best product for you.

Choosing the right neighbourhood will be guided by both your budget and your needs. Are you moving to make your commute easier? Then maybe easy freeway access is important. How about making sure your kids get into the best schools? Then only looking at homes in those school catchments would make the most sense. Keep in mind that needs and wants can change as you move through the process, and maybe that large walk-in closet becomes more of a want, while an enclosed garage becomes a need. Your Realtor will work with you to uncover your wants and needs, and where best to start your search.

It’s no secret, getting a mortgage in Canada is harder than it’s ever been. 10 years ago it wouldn’t have been uncommon to write an offer first and figure out your lending second; that doesn’t work anymore. The industry standard is to get pre-qualified before viewing homes, many sellers even require a pre-qualification letter. You’ve got a couple of options for mortgage pre-approvals, generally deciding between going directly to a bank, or working with a mortgage broker.

Both have their pros and cons, so doing a little research and shopping can help save you money and secure the financing that works best for you. They’ll walk you through the process and request all of the documentation needed to get you squared away. It might seem a bit invasive, but they’re only asking for documents to complete the application. A pre-approval will give you an affordability baseline, with which to make informed decisions.

Pricing a home can be tricky, they’re a lot like people in that everyone one of them is unique and it’s what’s on the inside that counts. Depending on the sellers expectations and timeline, they may have priced their home at or above the market, based on recently sold homes with similar features. Your Realtor will review the market and give you a breakdown of recent sales of similar homes, along with other market data and trends to build a picture of reasonable market value. Keep in mind, you can offer whatever you please, but grounding the offer with recent data can help make negotiations smoother.

Every once in a while, Sellers will list their home under market, to drive a crowd to compete. Having an understanding of the realistic market value in these instances can help you from overpaying.

Realistically, my goal as your Realtor is to bring your market knowledge up to a level that you can point out a deal when you see it. This helps us act quickly and stay ahead of the market.

Normally closing costs are limited to conveyancing, through a notary or lawyer. These are the members of your dream team that handle the legal aspects of registering the title in your name, everyone gets paid the correct amounts, and ensuring all financial encumbrances are removed ahead of closing.

These days a safe budget is roughly $1200-1500, with notaries being slightly cheaper than lawyers, but aren’t equipped to represent you in the event something goes wrong. Consider the difference in cost to be the price of peace of mind.

In short, yes. I always recommend an inspection, even on a new construction purchase. For the small price of an inspection, usually around $400-600, you can potentially save thousands of dollars. A good inspector will thoroughly review the property, from the foundation through to the attic and roof. They’ll use moisture meters and infrared cameras to look behind walls and make sure there aren’t any hidden gremlins. Another case of what’s the cost of peace of mind? About $400-600 dollars.

The process length, along with most everything else in real estate is entirely negotiable. I’ve had clients that started house hunting, found the right home, offered, negotiated, completed, and moved in within a couple of weeks. I’ve also had clients that didn’t move into their home for 2 years after confirming the purchase. The average timeline however is about 1.5 to 2 months to move into your new home after firming up the purchase, but we’ll work with you to put a plan in place and get you into your new home based on your needs.

Your Realtor is there to protect you during your new home purchase in a number of ways.

Firstly through market and neighbourhood knowledge, by helping you select the best areas and homes that will not only suit your needs today, but into the future. By looking at Official Community Plans, zoning and housing legislation we can ensure you’re buying a “safe investment” that won’t inadvertently lose value or reduce your enjoyment of the property as your neighbourhood grows and develops.

Secondly I’m here to assist in pointing out potential issues with the homes we view. I’ve been in thousands of homes, and have developed an eye for defects and areas of concern. Once we’ve found your next home, I’m here to help craft the most robust offer that protects you as a buyer. We want to ensure you’re able to perform your due diligence in the purchase, while also having terms and conditions that benefit you, and I negotiate all of this on your behalf. I handle all of the paperwork, ensuring the transaction flows smoothly, and deadlines are met, and can connect you with qualified professionals for everything you need, from your inspection, to financing to insurance, to moving, and the list goes on.

Did you know there’s 17 routes up Everest? While buying a house isn’t exactly the same as summiting Everest, it can certainly feel like a mountainous undertaking. I know if I was about to make a trek like that I’d want a well experienced sherpa guiding me along. Well I’ve been up and down that mountain hundreds and hundreds of times, and can point out all the crevices and pratfalls to avoid. Whether it’s connecting you with professionals that will make the process smoother, crafting an offer that protects you in unforeseen circumstances, or negotiating the best price, terms, and conditions, I specialise in guiding you through the process to ensure the best results for you.

The Property Transfer Tax (PTT) is a tax payable to the provincial government by buyers of real estate in British Columbia when they acquire an interest in a property. It is calculated based on the fair market value of the property at the time of the transfer.

Here’s how it’s generally broken down:

• 1% on the first $200,000 of the property’s fair market value,
• 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000,
• 3% on the portion of the fair market value greater than $2,000,000, and
• If the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000.
• For example, if you buy a property valued at $500,000, the PTT would be calculated as 1% on the first $200,000 ($2,000) plus 2% on the remaining $300,000 ($6,000), totaling $8,000.

There are some exemptions and considerations, such as for first-time home buyers or newly built homes, which may reduce or eliminate the PTT. It’s always a good idea to consult with a real estate professional or legal advisor to understand the specific details related to your situation.

A conditional offer is one that has subjects, otherwise known as condition waivers. These are generally, but not always, to the benefit of the buyer in order for you to do your due diligence, while having the opportunity to back away from the deal if a subject is unable to be fulfilled. Common subjects include receiving financing approval from a lender of your choice, or having an inspection performed on the home to your satisfaction. A firm offer on the other hand, is when all conditions are met and you have decided to fully commit to the purchase.

It is at this point that the deposit is usually due, and you can no longer back out of the purchase without risking losing said deposit. I’m here to help you craft and negotiate the best terms and conditions in an offer that benefits you.

A down payment is the money a lender requires you to bring to the table for a home purchase, this can be as low as 5% of the purchase price, in some cases, but your mortgage broker will better help you determine your minimum down payment requirements. A deposit on the other hand is the money negotiated with a seller to show your commitment to a purchase. Deposit money is usually payable after all subjects, also known as condition waivers, have been removed and you’ve decided to make the purchase firm.

There are a couple of points worth noting. Firstly, the deposit forms part of the purchase price, it’s not on top. So, for example, your lender has told you that your required down payment is $50,000 and you offer a deposit of $25,000 to a seller, when you complete your purchase of the property you’ll only need to produce an additional $25,000, totaling to your $50,000 down payment. Secondly, the deposit money you offer to a seller is usually held in trust by your Realtor’s brokerage and can’t be accessed without both parties consent, but can potentially be awarded the seller as damages in the event you don’t complete the purchase. So you want to be 100% sure you’ve done your due diligence, and are financially capable of making the purchase before removing your subjects and submitting your deposit.

This one is best answered with another question. If you were a seller and your potential buyer tied up the sale of your home for an indefinite period of time, keeping other people from buying it, and then changed their mind, would you be open to that?

The short answer is, usually, no. It’s important to make your offer in good faith, but you’ll have the ability to perform due diligence and back out of a purchase in the event one of your subjects, or condition waivers, can’t be fulfilled. Let’s take time to understand your needs, so that we can craft an offer that protects your best interests, and serves to accomplish your real estate goals.

It’s largely the same during the property search, and negotiation process, but your due diligence, and the documentation required to review is slightly more involved when purchasing a condo, townhouse, or any “Strata” property. When you’re buying a strata titled property you’re essentially buying into a company, or a Strata Corporation. The collective owners of a strata complex form the corporation and each owner has shares in said company. That means when you’re thinking about buying a strata titled property you not only need to consider the condition of the home itself, but also the condition of the strata corporation.

You’ll want to review the corporation’s financial statements, their meeting minutes to determine what issues have arisen over the last couple of years. You’ll want to ensure the complex has been well managed and there are funds available for emergency repairs and general upkeep, by reviewing their contingency fund and funding approach. This may sound complicated, but I’ve helped hundreds of clients buy and sell strata titled properties, and can easily walk you through the documentation, to better understand whether this purchase is the right move for you.