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- Excellence in Real Estate
UNDERSTAND THE PROCESS.
Buying real estate is a complex matter and can be especially confusing for the first-time homebuyer. Do yourself a favor and learn as much about the process as you can before you begin. There are plenty of resources on the Internet, and most real estate offices will have pamphlets to explain things in plain language. You may also be able to research the real estate process by attending community-sponsored classes, or you can take a look at books like Home Buying For Dummies by Eric Tyson and Ray Brown, (IDG Books Worldwide, Inc.)
USE A REALTOR(R) TO HELP YOU BUY.
As a buyer, it usually costs nothing to hire a real estate professional to help you find and purchase a home--your Realtor will likely get a portion of the commission the seller pays to his Realtor. When choosing an agent, get referrals from friends, relatives, and co-workers, and then interview as many agents as possible. Pick an agent that works in the neighborhoods you're interested in. Listen to your agent, but make your own decision.
USE A REALTOR(R) TO HELP YOU SELL.
Some homeowners think that selling their own home will save money and give them an advantage over the Realtor-using majority. Before you start down this complicated path, here are a few reasons why using a real estate professional is important:
1) You will be drastically limiting your exposure to potential buyers, which means it can take between 10 and 15 times longer to sell your home. Houses that take a long time to sell usually sell for less because buyers believe there must be something wrong with them.
2) Most buyers find negotiating with sellers extremely awkward, and therefore avoid For Sale By Owner situations.
3) Most buyers use a Realtor in their home search, and most buyers' agents will typically not work with FSBOs because they will not be paid. This means you will have to offer a selling commission to attract buyer's agents, which will cut into your expected "savings."
4) Lack of negotiating experience can result in a lower selling price, or worse, a bungled contract and possible lawsuits. It is probably unwise to pit your negotiating skills against those of experienced professionals.
5) If you plan to use a lawyer to help you negotiate, your lawyer's fees could be considerably higher than a Realtor's commission. Unlike Realtors, lawyers do not get paid for proactively representing your best interests or mediating delicate situations.
6) You only pay a commission to your Realtor if they successfully sell your home at a price you are happy with.
Costs of Buying
Costs of Buying
1) COST OF YOUR DREAM HOME
We do our best with work with you to find your dream home, and negotiate on your behalf to get the best price and favourable terms and conditions!
2) PROPERTY PURCHASE TAX
Applies to all property purchases in BC and is calculated at 1% of the first $200,000 & 2% of the balance of the purchase price (or fair market value). The tax is payable to the Provincial Government when the property is completed and the sale is registered at the Land Title Office.
If you are a first time buyer buying your first principal property, you may be exempt from paying the Property Purchase Tax if:
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You have never owned a principal residence anywhere in the world at any time in the past
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You are a Canadian citizen or permanent resident of Canada
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You have resided in B.C. for at least one year immediately prior to your application to register the purchase
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The purchase price does not exceed $475,000. For homes between $475,000 and $500,000, a partial exemption is available
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You move into the property within 92 days of registration of the property at the land title office and live inside the property as your principal residence for at least one year
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Note that a pro-rata exemption could apply if the property exceeds 0.5 hectares or a portion of the property is not residential (i.e. commercial lofts) and the purchase price of entire property does not exceed the price limitations.
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Be careful not to confuse the Property Transfer Tax with the Property Tax. The Property Transfer Tax is a one-time tax paid to the Provincial Government by purchasers of real estate. The Property Tax is the tax paid on an annual basis to the local City Authority/Municipality.
3) GOODS & SERVICES TAX (GST)
The GST is ONLY payable on the purchase of new construction or substanitally renovated residential homes and NOT on used resale residential properties. The rate is 5% on the purchase price less any applicable rebates.
If you plan on living inside the new home as your primary place of residence on a permanent basis, you could be eligible for the GST New Housing Rebate. This rebate is 36% of the GST payable if the purchase price of the property is up to $350,000. This works out to a maximum rebate of $3,600. If the purchase price of your property is between $350,000 and $450,000, then the maximum rebate of $3600 is prorated. This rebate does not apply to any homes over the purchase price of $450,000.
If you plan on renting out the new home, you could be eligible for a rebate called the GST New Residential Rental Rebate which is also 36% of the GST payable if the purchase price of the property is up to $350,000. If the purchase price is between $350,000 and $450,000, then the maximum rebate is prorated. No rebate is available if the purchase price of the new home is over $450,000.
4) MORTGAGES
Your mortgage lender may require an application fee and an appraisal fee. Also, C.M.H.C. charges a fee based on the amount of the mortgage. (if you put down less than 20% of downpayment)
The mortgage lender may also require written proof of fire insurance coverage (an Insurance Binder). Most insurance agents can charge a fee for an Insurance Binder, generally from $35 to $55.00.
If your purchase a single family home and the seller or the local City Authority or Municipality does not have a useable Survey Certificate available, then you may have to pay for the cost of obtaining one. The cost of a survey certificate can range form $363 to $500 including taxes for a typical property in the area of purchase and can be as high as $1000 if you are purchasing a double lot or an estate sized property.
5) LEGAL COSTS
You can use either a notary public or lawyer to help you for the purchase of a property. Legal costs do vary depending on whether or not you have a mortgage, the type of property that you are purchasing and if there is ample time allowed for the completion. When requesting a quote, you should ask that the quote include all fees including all disbursements (the cost of searches, registration fees, couriers, photocopies, faxes, land title agent's fees, etc.) and any taxes.
For strata properties, you may have to pay a Move-In Fee to the strata corporation which can range from $50-400.
6) ANNUAL PROPERTY TAXES
Property taxes are typically due on the 1st business day in July of each year. (In the City of Vancouver, you pay twice a year.) When you buy a property, you will be responsible for the property taxes starting on the Adjustment Date on the purchase contract which is usually within a few days of the completion date. This amount will be adjusted for on the Lawyer's Statement of Adjustments.
Annually, you could be be eligible to apply for one of the following home owner grants if you are a homeowner and occupy the entire or part of the property as your principal residence and are either a Canadian Citizen of permanent resident:
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A basic provincial home owner grant of up to $570 can be available to elegible homeowners under 65 years of age.
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You may qualify for the higher additional grant of $845 if an owner is over 65 years of age. Please note that either of these amounts can also be reduced on a prorated basis if the assessed value of the property is over the provincial threshold that changes from year to year.
7) CITY UTILITY BILLS
The local City Authority can also charge for utilities to a homewoner that can include water, sewer, recycling & garbage fees if they are not billed as part of your property taxes. These amounts can be collected on flat rate basis, separately metered for each property or collected as part of maintenance fees if you own a strata property.
When you buy a property, you will only be responsible for the utility costs starting on the Adjustment Date on the purchase contract which is usually within a few days of the completion date. This amount will be adjusted accordingly on the Lawyer's Statement of Adjustments.
Costs of Selling
- We Sell homes much Faster and Higher than others, and get you the Best price in the shortest possible time. Contact us for a Free Home Evaluation at 778-378-8111.
1) REAL ESTATE COMMISSION
- The 5% GST is payable on real estate commissions.
2) MORTGAGE PREPAYMENT PRIVILEGES & PENALTIES
You may want to check with your lender about any prepayment privileges or penalties that may apply when you sell your property. Some mortgages do not allow any prepayment prior to the maturity date and if prepayment is allowed, penalties can be substantial. If you have the right to prepay a portion of your mortgage without penalty and have not exercised that right for the year of the sale, you should ask your lender if they will take that prepayment privilege into account when calculating your penalty for early prepayment.
3) LEGAL COSTS
Legal costs can vary depending on the purchase price of your property & whether or not you will need to register a mortgage against the property. When requesting a quote, ask that it include all fees including disbursements (includes the cost of searches, registration fees, couriers, photocopies, faxes, land title agent's fees, etc.) and any applicable taxes to be charged. You can hire either a lawyer or a notary public to assist you in the sale of your property.
4) STRATA TITLE HOMES - CONDOMINIUMS & TOWNHOUSES
You may be required to pay a Move-Out fee which can range from $50 to $400 (or more) that is payable to the Strata Corporation of the complex you are buying into. This cost will be deducted from the sale proceeds. Also, when you sell your house, you may be required to pay for cost of obtaining documents, including Form B, Depreciation Report, Engineering Report (if any), past 24 months of minutes, Annual General Meetings, Special General Meetings, Financial budgets and Reports, etc.
5) PROPERTY TAXES
Property taxes are typically due on the 1st business day in July of each year.
However, in some areas in the lower mainland, the local City Authority may require you to pay a portion of the estimated taxes in advance in January for the coming year. When you sell a property, you will only be responsible for the property taxes up until the Adjustment Date on the sale contract which is usually within a few days of the completion date. This amount will be adjusted accordingly on the Lawyer's Statement of Adjustments.UTILITY BILLThe local City Authority can also charge for utilities to a homewoner that can include water, sewer, recyclying & garbage fees if they are not billed as part of your property taxes. These amounts can be collected on flat rate basis, separately metered for each property or collected as part of maintenance fees if you own a strata property. When you sell a property, you will only be responsible for the utility costs up until the Adjustment Date on the sale contract which is usually within a few days of the completion date. This amount will be adjusted accordingly on the Lawyer's Statement of Adjustments.
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