The Hidden Costs of Buying Real Estate

Navigating the 2024 Home Buying Process: A Step-by-Step Guide

Selling your home can be a significant undertaking, which is why it's essential to navigate the process with confidence and knowledge. In this guide, we'll walk you through the crucial steps to sell your home successfully, ensuring a smooth and profitable transaction.

• Understand the Local Real Estate Market: Your Realtor should provide research on the current real estate market trends in the Fraser Valley. This includes understanding property values, market demand, and recent sales in your neighbourhood.

• Set Realistic Goals: Determine your selling goals, such as the desired sale price, timeline, and any specific conditions you may have.

• Choose a Reputable Realtor: A knowledgeable local real estate agent can be invaluable in navigating the market and ensuring you sell for top dollar. Look for someone with experience in your specific area, your property type,  and a proven track record of successful transactions.

• Enhance Curb Appeal: First impressions matter, so ensure your home looks appealing from the outside. Trim the lawn, clean the exterior, and consider adding some colourful plants.  Small paint touch ups go a long way!

• Declutter and Depersonalize: Allow potential buyers to envision themselves in your home by decluttering and depersonalizing spaces. Consider professional home staging to showcase your property in the best light.

• Address Repairs and Maintenance: Fix any noticeable issues, such as leaky faucets, peeling paint, or damaged fixtures. A well-maintained home can significantly increase its market value.

• Set a Competitive Price: Work with your realtor to set a competitive and realistic asking price. Consider recent sales of similar properties in your neighbourhood to determine a fair market value.

• Professional Photography: Your Realtor should offer high-quality photographs to showcase your home online. Many buyers start their search on the internet, so captivating visuals can make a significant difference.

• Online and Offline Marketing: Utilize various marketing channels, including online platforms, traditional advertising, and open houses. Your Realtor should have a comprehensive  and clear marketing strategy.

• Review and Respond to Offers: Once offers start coming in, you'll carefully review each one with your Realtor. Negotiate terms, such as price, closing date, and any conditions attached to the offer.

• Counteroffers and Finalizing the Deal: Be prepared to negotiate counteroffers and work towards a final agreement. Your Realtor will guide you through this process.

• Legal and Financial Procedures: Work closely with your lawyer and financial institutions to ensure all legal and financial aspects of the sale are handled correctly.

• Final Walkthrough and Possession: Before closing, you'll conduct a final walkthrough with your Realtor to ensure the property is in the agreed-upon condition. Once everything is in order, your Realtor will transfer keys to the new owners.

Whats the difference between the deposits and down payments, completion dates and possession dates?

1. Deposits and down payments: The deposit is the up front money a buyer puts down to secure the home prior to completion, in the form of a bank draft. This amount is generally 5%, howoever your Realtor may be able to negotiate less if the rest of your downpayment is tied up in investments.  The down payment is the total amount that a buyer puts down to contribute toward the purchase. Where people get confused is that the deposit forms a part of your down payment. And the rest of the purchase is funded by the mortgage. There are cases where a buyer’s deposit equals their down payment if they’re only putting down five per cent. Whereas if you’re planning on putting 10% down then the five% deposit forms a part of your final down payment.

2. Subject removal: It’s the Buyers time to do their due diligence. In a balanced market, this is usually about 7 business days. Standard subjects are the conditions that need to be met before the buyer moves forward with the purchase — including arranging finances, inspection, reviewing the property disclosure, reviewing and approving title, ensrureing the home can be insured, and reading strata documents if applicable. Once you’ve checked those boxes, you’re ready to hand in the deposit, and become a homeowner.  If during the subject removal period you weren’t satisfied with something, like the inspection or strata documents, you would be able to back out of the contract due to issues discovered. Your Realtor will advise further on this topic. 

3. Subject-free (cash): A subject-free offer means that, rather than having a conditional period after the acceptance of the offer, the buyer only has the 3 day rescission period to back out of the offer. It doesn’t necessarily mean that you don’t do your due diligence, it just means that you do it before you know if you’re going to get an accepted offer. It’s a lot more heavy lifting upfront but you may need to utilize this option if you are in a multiple offer situation. 

4. Completion date: This is the day that the title and funds transfer from buyer to seller. You should expect to sign paperwork with the lawyer, anywhere from 3 days prior to this date, up until the final date in some cases.

5. Possession date: Break out the Champagne; you are now ready to spill some on your new floor. This is the day you actually get your keys.  Typically this day is 1- 3 days after Completion, but could be longer.  

6. Property Disclosure Statement: Has there been any fire or water damage, have there been any special levies or proposed special levies, what’s the maintenance fee, what’s included in the maintenance fee? These questions and more are answered by the seller in this statement, and is available to the Buyer prior to writing the offer, in most cases.

7. Special levy/assessment: This is an amount needed for an upcoming project, such as roof repairs or window replacement, that a strata is planning. The strata will vote on whether funds will come from the contingency fund, or if a levy will be required to be paid by owners.  The amount owed, will be based on the square footage of your unit.

8. Contingency Reserve Fund: The CRF are the funds that a strata has saved away for any upcoming repairs and building maintenance.  Money for the fund comes from a monthly maintenance fee paid by each unit. The fee also pays for the caretaking of a building’s common areas.

9. Title search: This document includes details of the home itself, including the registered owner and any third party charges to the land, unit or building.  It’s a document you want to review prior to removing conditions, to ensure there are no liens or charges that will affect the use of the property in the future.  

10. Listing price vs. market value: This is a tricky distinction for a lot of first-time homebuyers.  The listing price is more strategy-based. A seller can list for more or less than market value. Just because someone lists for $400,000 doesn’t mean that they want $400,000 or that they’d sell for $400,000.  Part of your Realtors job is to provide a CMA (comparative market analysis) to provide an estimate of the value, in today's market.

We have experienced agents on our team that are First Time Buyer specialists, call us today 

• Market Trends and Prices: Understand the current real estate market trends in British Columbia, including average property prices, inventory levels, and whether it's a buyer's or seller's market. This knowledge will help you make informed decisions and negotiate effectively.
• Property Transfer Tax (PTT): Be aware of the Property Transfer Tax, a provincial tax payable upon the purchase of real estate in British Columbia. The amount is based on the property's fair market value and varies depending on the purchase price and whether you're a first-time homebuyer. There may be exemptions or rebates available, so it's essential to research and understand the tax implications.
• Strata Properties: If you're considering purchasing a strata property (condominium or townhouse), understand the regulations, fees, and bylaws associated with strata ownership. This includes monthly maintenance fees, special levies, restrictions on renovations, and rules governing common areas.
• Home Inspections and Due Diligence: Before finalizing the purchase, conduct a thorough home inspection to identify any issues or defects with the property. Additionally, research the neighborhood, school districts, amenities, and potential future developments that may impact the property's value or your quality of life.
• Financing and Affordability: Determine your budget and obtain pre-approval for a mortgage to understand how much you can afford to spend on a house. Consider factors such as your down payment, mortgage rates, closing costs, and ongoing expenses like property taxes, insurance, and maintenance. It's crucial to ensure that your purchase is financially sustainable in the long term.

The B.C. government is offering homeowners up to $40,000 to build a secondary suite as part of a new program aimed at boosting the supply of affordable housing across the province.

The three-year incentive program, will accept applications beginning in spring 2024.  Approx 3,000 eligible homeowners will be offered forgivable loans of up to $40,000 to help pay for construction costs for basement suites, garden suites or laneway homes on their property.

Whats the catch ?

Homeowners must rent the suites at below-market rates for five years for eligibility

If you're still reading, then you probabaly want to know how you can be a part of this.  Details below ⬇️

Who is eligible? 

1. You must be a Canadian citizen or permanent resident.

2. The home must be your primary residence. Your household’s combined income should not exceed $209,420.

3. The property cannot be worth more than $2.125 million, and owners should have enough home equity that can be leveraged as security for the loan.

What type of suites are eligible? 

 A secondary suite is a self-contained unit that has its own kitchen, bathroom and sleeping facilities contained within the dwelling. Standalone suites such as laneway homes and garden suites on the same property and title are also eligible.

 1. The loan cannot be used toward renovations or improvements to existing rental units.

 2. The owners must have received municipal building permits for the suites on or after April 1, 2023.

 3.The cost to build the suite must be a minimum of $20,000.

Still here? I've included the link to the BC Housing website for full details ⬇️

https://www.bchousing.org/housing-assistance/secondary-suite

Do power lines effect property values?

Do power lines cause cancer?

Are power lines bad for your health?

Is it safe to live near power lines?

How much do power lines effect home values?

What is the resale value of a home near power lines?

These are all valid concerns to address when buying a home and the answers may surprise you!

Power lines emit electric and magnetic fields, commonly referred to as EMFs. EMF represents a type of non-ionizing radiation that emanates from various electrical sources, including power lines, household wiring, everyday appliances, Wi-Fi devices, computers, and more. EMF exposure is a part of our daily lives, regardless of our proximity to power lines. The farther you are from the EMF source, the lower your radiation exposure tends to be. While burying power lines underground may enhance the visual appeal of a property, it doesn't reduce EMF exposure when compared to overhead power lines with the same voltage and current.

Now that we have an understanding of what EMF entails, let's delve into the potential health risks associated with power lines near your residence.

Is there a connection between EMFs and health concerns? There is a definite association between high-level EMF exposure and the stimulation of nerves and muscles. However, these exposure levels would need to significantly exceed 100 microteslas (uT), far beyond what one would typically encounter in any residential setting. Such extreme exposure levels are not a cause for worry or concern in residential areas of British Columbia.

Does living near power lines cause cancer?

Both Health Canada and the World Health Organization concur that routine exposure to EMFs at low frequencies does not pose a health risk. It is true that EMFs are classified as a potential carcinogen, but they fall into the lowest category of this classification. Other items in this category include aloe vera and pickled vegetables.

Proximity to power lines does play a role in the resale value of a home

There are many factors that effect the value of your home, including but not limited to: location, age, size, number of bedrooms, number of bathrooms, views etc.  Proximity to power lines is another. The stigma around perceived safety issues and decreased curb appeal are the two main reasons for the lower price tag. Homes near power lines will generally sell for a little less than comparable homes away from power lines. The good news is, if you want to buy a home near power lines you are likely to save some money compared to other similar homes in the neighbourhood.  Just remember that when it comes time for you to sell, potential buyers are going to want the same deal and considerations you had when purchasing the home. If you are considering purchasing a home near power lines, it is best to speak with your Realtor® over any concerns you may have.