Things to know about buying real estate in Vancouver

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Ask yourself what you are looking for. Chances are your needs and wishes are unique to you and your family. To make it a more sensible process, I suggest that you create a wish list that has three sections. Items on your A list should be 'must-have's (including your maximum budget), B list desirable items (but can be compromised if need be) and C list less important but nice-to-have bonus items. 

 Whether you have been living in Vancouver for a long time or are new to the city, you will need to narrow down the area or municipality that you are looking for. Each neighbourhood may have different zoning and bylaws, and present its unique characteristics and demographic.

If you have school-age children, your residential address will determine their elementary or secondary school within the Vancouver School Board catchment area. (This applies to public school only.)

What about proximity to public transit, shopping, library, parks or beaches? Examine your lifestyle and find a neighbourhood that will best suit your needs.

(See links on this website for more details.)

 Whether you have been saving up for a down payment or you are ready to pay the full price without a mortgage, you need to know your financial readiness in order to capture that special opportunity or successfully bid on that special listing that the market has to offer. Maybe you are waiting to receive a large lump-sum payment from someone, or pass a job probation to meet the bank's qualification requirement. In any case, it is always a good idea to apply for a mortgage pre-approval from a bank in advance so that you can know your budget limit, lock in a favourable interest rate and enter into the market confidently. A mortgage pre-approval from most banks is good for 90 days.

If you are a first-time buyer and intend to live in the home within one year of purchase, you may withdraw up to $25,000 from your RRSP (Registered Retirement Savings Plan) to contribute to your down-payment, tax-free. If both you and your spouse are eligible, it can be up to a total of $50,000.

 In Canada, it is the seller who fully pays for the commission cost for both the buying and selling agents. In other words, you as the buyer will not have to share any part of the cost. However you need to know that you will be responsible for the following:

1. Property Transfer Tax  -   1% of purchase price (or fair market value) up to $200,000, plus 2% of purchase price greater than $200,000 up to $2 million, plus 3% of purchase price greater than $2 million, plus further 2% of purchase price greater than $3 million. The government of BC website provides an online calculator for easy reference. Effective April 1, 2024, if the fair market value of a newly built principal residence is $1,100,000 (increased from $750,000) or less, there is a full exemption from the property transfer tax.
2. An additional 20% of full purchase price applies to properties bought by foreign  nationals or corporations.  Exemptions:  If you are a first time buyer, a Canadian citizen or permanent resident, have lived in BC  for 12 consecutive months, and the property is to be used as your principal residence  and has a fair market value of $475,000 or less, you may be eligible for full exemption.  Canadians may also quality for full exemption for purchase of a newly built home that  has a fair market value of $750,000 or less.                                       
3. Goods and Services Tax (5%, applicable to new homes only)
4. Legal Fees (including title search and title registration)
5. Costs of Mortgage (including lender's lawyer/notary, appraisal and land title registration fees), if applicable
6. Insurance fees for property

 More and more buyers are using the internet to kick-start their search and conduct their own private screening process. Except for a small handful of exclusive listings or private sales by owner, all properties available for sale are listed through MLS (multiple listing services), managed by the Canadian Real Estate Board. Here's the link for public access of current listing information: www.realtylink.org 

Whether you are looking for a new home or a good investment opportunity, buying real estate is an important decision. You need a strong business partner like me who will always have your best interest in the highest priority. I always stay current with the most up-to-date market intelligence, and will ask you the right question at the right time to coach you through the process. 

If I represent you as the buying agent, the following are some of the basic services that I will provide:

1. Offer neighbourhood information such as general demographic, zoning, school(s) in the catchment area, proximity to public transit, etc.
   
2. Discuss current market conditions and trends. (Is it a buyer's market or seller's market?)
   
3. Guide you through the screening process and help you short-list the best options for consideration
   
4. Schedule viewing appointments
5. Provide you with current market data such as recent sales analysis of comparable properties, similar listings on the market or sale history of the property. A good Comparative Market Analysis (CMA) will help you make an educated decision and allow you to bid with confidence.
6. Prepare a carefully drafted Contract of Purchase and Sales which is the legal document to be used by the buyer as an offer to purchase, including all necessary subject clauses to protect the buyer.
   
7. Negotiate with the seller's agent with tact, patience and integrity, and your best interest in mind.
   
8. Recommend a mortgage specialist, home inspector, lawyer etc. as needed
   
9. Close the deal with a binding contract.
   
10. Follow up well beyond completion date to ensure smooth transaction and total satisfaction​