This isn’t one size fits all. Buying real estate is personal. The discovery process is an essential part of buying a home. Not asking the question “why?” is like not putting gas in your car! You’re just not going to get anywhere. This is the first step of the home buying process so make sure to call or email early in your process!
Enjoy the Process
You’re going to buy real estate either way, why not enjoy it? I used to hear people tell me that they had just bought a home and that they are so glad they don’t have to do it again for a very long time. Yes, there is an inevitable amount of effort one needs to put forth to go through this process, but there are so many avoidable pitfalls and stressors that can allow you to enjoy the process.
Have you ever been working with an agent and wondered if they’re actually working for you? I’m on your side and you won’t have to wonder. I take agency seriously and literally and that’s a non negotiable. This is a very different than the experience you’d have working with a salesperson. Often times our experience with a salesperson is that they are working for someone else, selling to us whether we like it or not. As your agent, your best interest is my highest priority.
Over-communication is the best policy. Weekly check-ins just to make sure you’re taken care of are just an example how you we’re making sure you never have to wonder what is going on. I’m here to answer your questions. Call anytime!
The Buying Road Map
Step 1: Meeting or Phone Call to Discover your Goal
Step 2: Get Approved for Financing
Click here to see my referral network page. If you haven’t already started the process, give one of my trusted mortgage brokers a call!
Step 3: Narrow your search parameters
Based on your firm budget and housing needs, we will narrow down search parameters to specific neighbourhoods, price point, size, rooms etc.
Step 4: Home Tour
Seeing and hearing a Buyer’s response to a home is helpful to know how to find just the right home.
Step 5: Preparing an offer
When preparing an offer to purchase in BC, we will often include subjects such as financing approval, inspection, title search review etc… Every contract has unique terms and conditions although we always start with the standard BC Contract of Purchase and Sale (updated every few months by the RECBC lawyers). The price is the key point for your offer and we will determine an offer price by creating a strategy around what we believe is the market value. The market value can be appraised by comparing the property to recent comparable sales. This process can be complicated but I’ll walk you through so that you understand.
Step 6: Negotiating an offer
The first offer is almost never accepted right away by the Seller but instead they will make a counter offer. Whether it is the price, terms or both, the deal often goes back and forth at least once. At this point I will understand your situation and be negotiating on your behalf and with your consultation each step of the way to ensure you are satisfied with the result.
STEP 7: DUE DILIGENCE
This due diligence timeline is determined in the terms of the offer but will typically be anywhere from 4-14 days depending on what needs to be done. Every contract is unique so I will outline the way forward to you and ensure we firm up the deal on time or early if possible.
STEP 8: CONTRACT TO CLOSE
Once the “sold” sticker is posted the process isn’t over; You’ll be hearing from me consistently and our client care service continues. From lawyers/notaries, discharging mortgages, tax issues, if I can’t help I know someone that can.
STEP 9: CONSIDER ME YOUR REALTOR FOR LIFE
Once the sale has completed and the dust settles I consider myself your Realtor for life. I hope you’ll reach out if you have any questions or if there is anything I can assist with. I have an awesome referral network of people that I really like and would love to share them with you.
TRIED AND TRUSTED PROFESSIONALS THAT I’M WILLING TO PUT MY NAME BEHIND
Tax on Purchases
Property Transfer Tax
Click here to view full article on the gov't website
This tax is applicable to all residential purchases unless you qualify for an exemption
When you purchase or gain an interest in property that is registered at the Land Title Office, you're responsible for paying property transfer tax and filing a property transfer tax return.
In most cases, property transfers are completed by your notary or lawyer when purchasing.
Taxable transactions include:
-transfer of fee simple
-right to purchase or agreement for sale
-lease or lease modification agreements
-escheat, forfeiture or quit claim
-transfer as a result of corporate reorganization
You pay the tax based on the fair market value of the property (land and buildings) at the date of registration with the Land Title Office, unless you qualify for an exemption or purchase a pre-sold strata unit. (see below for exemptions)
If you’re a foreign national, foreign corporation or taxable trustee, you also pay the additional property transfer tax on residential property transfers within specified areas of B.C.
Property transfers are routinely audited. If an audit determines you owe tax, you will receive a notice of assessment. You need to pay the balance shown on the notice to avoid additional interest.
If you disagree with the notice of assessment, you can file an appeal.
Property transfer tax should not be confused with annual property taxes. Annual property taxes are paid yearly for each property you own or have a registered interest in to fund services in your area.
FIRST-TIME BUYER PTT EXEMPTION: (FTB)
The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.
If one or more of the purchasers don’t qualify, only the percentage of interest that the first time home buyer(s) have in the property is eligible.
For example, if you qualify and purchase a property with a fair market value of $400,000 with a person who doesn’t qualify you would still qualify. If you owned a 60% interest in the property, 60% of the tax amount would be eligible for the exemption.
Do I Qualify?
To qualify for a full exemption, at the time the property is registered you must:
1. be a Canadian citizen or permanent resident
2. have lived in B.C. for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a B.C. resident in the last 6 years
3. have never owned an interest in a principal residence anywhere in the world at any time
4. have never received a first time home buyers' exemption or refund
And the property must:
1. be located in B.C.
2. only be used as your principal residence
3. have a fair market value of $500,000 or less if registered on or after February 22, 2017
4. be 0.5 hectares (1.24 acres) or smaller
NEWLY BUILT HOME PTT EXEMPTION:
The Newly Built Home Exemption reduces or eliminates the amount of property transfer tax you pay when you purchase a newly built home.
If you qualify for the exemption, you may be eligible for either a full or partial exemption from the tax.
To qualify you must be:
-a Canadian citizen or permanent resident (you will be asked to provide your Social Insurance Number (SIN) or proof of permanent residency and your birthdate)
and the property must:
-be located in B.C.
-only be used as your principal residence
-have a fair market value of $750,000 or less
-be 0.5 hectares (1.24 acres) or smaller
You may qualify for a partial exemption, if the property:
-has a fair market value greater than $750,000 and less than $800,000
-is larger than 0.5 hectares
-has another building on the property other than the principal residence
Expenses to Consider when Purchasing
I suggest a home inspection by a certified professional whenever you are buying a home. You can budget for $400-$700 depending on the size of the home.
LAWYER & NOTARY
A lawyer or notary will be required once the contract is unconditional. My office will forward your lawyer or notary the files along with closing instructions. On a typical purchase with a mortgage this will total $1100-$1500 including disbursements and title changes etc.
Click here to see my preferred Lawyer and Notary