When you are getting ready to look for your new home, there is a myriad of things to think about, prepare for and to organize.  Here’s a short list of some of the things to watch for.

In today’s complex and legal world of Real Estate, it is vital to understand the various agency relationships.  It is imperative to be counseled about whether you are involved in a buyer’s agency, a limited dual agency or no agency at all.  In other words, who is the agent really working for… you the buyer, the seller or himself?

The total cost of buying a home involves more than just the negotiated price.  There are additional costs that the purchaser may have to pay and of which you should be aware.  Costs such as purchase taxes, GST, interest adjustments, high ratio mortgage insurance fees just to name a few.  Knowing what these costs are and how they affect your overall ability to buy is vital.

One of the most expensive mistakes is also one of the easiest to avoid.  Have a professional building inspection performed by a reputable inspection company.  There are good inspectors in the marketplace and you should know who they are.

Many home purchases today require that the purchaser acquire some form of financing.  The amount of available down payment has a huge impact on the ability to get financing and the cost of that financing.  Do you know the limits for borrowing down payment funds from your RRSP or the option of borrowing the funds for RRSP contribution and using the resulting tax refund for the down payment?  For some this could mean that they are able to buy a home even though they currently do not have the required down payment!  It is also important to know that when buying with less than a 25% down payment, the mortgage will need to be insured.  The insurance fees are based on the level of required financing and increase on an increasing scale and could be almost $6000 in some instances. 

There easiest way to avoid this mistake is to get pre-approved for a mortgage by a lender so you know in advance exactly how much you can afford.  Do you know that in some instances a mortgage broker can negotiate a better interest rate?

There are many mortgages available in the marketplace today with varying options.  Understanding the importance of the various payment options, prepayment privileges, the term, the amortization period and the effect of compounding interest, could cost you thousands.  Real Estate financing is complex and requires an understanding of financial principles and a general knowledge in the use of a financial calculator, computer or mortgage tables.  A good Realtor could save you up to ¾ of a percent on your mortgage interest rate – a saving of approximately $3600 over 5 years on a $100,000 mortgage.

Real Estate law is extensive and complex; the contract for sale and purchase is a legally binding document.  An improperly written contract can cause the sale to be voidable, fall through, or cost you thousands for repairs, inspections, and remedies for items included or excluded in the offer.  You must be certain which repairs and closing costs you are responsible for.  You must know whether the property can legally be sold “as is” and how covenants, easements and local zoning will affect the transaction.  If there are defects in your title, or if your property is in conflict with local restrictions you or your Realtor may be called upon to remedy them.

The purchase of town homes and condos require some special care to important details.  Each development has differing bylaws and rules which must be adhered to.  There may be restrictions on age, pets or rentals just to name a few.  Lack of knowledge and advice on these matters could prove to be costly.

It is likely that you do not interview people very often.  And yet in order to find the right Realtor you may need to interview several.  The quality of your home buying experience is dependent upon your skill at selecting the person best qualified.  In most cases when purchasing residential properties and buyer’s agent is compensated by splitting the commission earned by the listing broker.

It is interesting however to note that in the real estate business an experienced and highly skilled agent will earn the same amount on a particular transaction as someone who is inexperienced.  Bringing that experience to bear on your transaction could mean a better price, better terms and fewer hassles.

The Lower Mainland is full of Realtors who may not be right for you.  For example: the part-timer who sells an occasional house because he or she needs a little pocket change, or the fast talking type who is only interested in their next deal, or perhaps your cousin George, who really needs your business.

The purchase of your home could well be the most important financial transaction you have ever been involved with.  The person you select can make it a satisfying and profitable activity, or a terrible experience.  The choice of your Realtor is up to you.  Make the selection carefully.

Thank you for your inquiry and interest in this report.  I hope it has been informative.  If you have any questions at all or perhaps would like further information on some of the many homes currently for sale, please call us at 604-581-3838 or email us.