AGUIDETO AGUIDETO AGUIDETO
BUYINGYOUR BUYINGYOUR BUYINGYOUR
NEWHOME NEWHOME NEWHOME
ElysiaAllen ElysiaAllen
SoYou’reThinking AboutBuyingaHome?
Great!Whetheryou'reenteringthe realmofhomeownershipforthefirst timeorthefifth,oneconstantholds true:It'sathrillingperiodanda significantundertakingthatdemands considerabletime,effort,and,of course,financialinvestment.
Nevertheless,theentireprocessis incrediblyrewarding Thesenseof pridethatcomeswithowningahome isoneoflife'smostdelightful experiencesandsignificant achievements.Amyriadof opportunitiesawaitsyouasdoors swingopenwide Myaspirationisthat thisguidewillprovideyouwithclarity andtranquilityasyounavigate throughthejourneyofpurchasing yournewhome.
Let’sgetstarted!
STEPONE
GettingPre-ApprovedForaMortgage
THEMORTGAGEINDUSTRYISA HIGLYCOMPETITIVEFIELDANDIT’SIMPORTANT TOUNDERSTANDTHATINTERESTRATESCANCHANGEATANYTIME.
Gettingawrittenpre-approvalnotonlyhelpsyouunderstandhowmuchyou canaffordtospendonahome,butitallowsyoutolockinaninterestratefora periodoftime,potentiallysavingyouthousandsofdollarsforyearstocome.
1.TALKTOAMORTGAGE SPECIALIST
Whetherit’syourbankmortgage specialistoranindependent mortgagebroker-talktosomeone withexpertisewhocanhelpyou compareratesandtermsasthereare hundredsofoptionstochoosefrom Checkoutmyrecommendations
3.GATHERYOURFINANCIAL INFORMATIONTOFINALIZE PRE-APPROVAL
Yourbankormortgageprofessional willrequiredocumentationtosupport yourapplicationsuchasincomeand downpaymentverificationtofinalize thepre-approvalprocess.
2.COMPLETEANAPPLICATIONTOFIND OUTHOWMUCHYOUQUALIFYFOR
Therearemanyfactorsthatgointo determiningyoureligibilityfora mortgage.Twooftheprimarypractices arecalculatingyourGDS(GrossDebt Service)andTDS(TotalDebtServices) ratios.Thesefactorsdeterminehow muchyoucancomfortablyaffordto spendbasedonyourdownpayment, incomeandotherfinancialobligations.
3.GETAWRITTENPRE-APPROVAL THATLOCKSINYOURINTERESTFOR 30TO90DAYS
Thisisapowerfulnegotiatingtool.It’s frustratingforsellerstoloseasale becauseoffinancing.Apre-approved buyermeanssellershveonelessthingto worryabout Eventhoughmanyoffersare conditionalonfinancing,thesellerofyour dreamhomewillseeyouasamore attractivebuyerwhentheyknowyouare pre-approved.
STEPTWO DECIDINGWHEREANDWHATTOBUY
CONGRATULATIONSONTAKINGTHISFIRSTSTEP TOWARDSBUYINGAHOME.
Logically,thefirststepinfindingtherighthomeistodeterinewhatyou’reactually lookingfor.Therearealotofhomesonthemarketatanygiventimeandlooking atthemallisnotthebestwaytospendyourtime.Wewanttobestrategicabout yourhousesearch.
The“BUYERNEEDSANALYSIS’worksheetinsertedinthisguidewillhelpus determineyour“musthaves”,your“dealbreakers”,yourdreamlocations,layouts, pricepointandmuchmore!Itwillgiveusagoodstartingpointfromwhichto beginoursearch.
Claritywithourin-depthneedsanalysistohelpyoudetermineexactlywhatyou wantandneedinahome.
Instantaccesstoallpropertylistingswithinyoursearchparameters,including: BrandnewMLS listings, Newlypricereducedproperties, Newhomeconstructionoptions, Privatesalesorpropertiesundercontractthathavefallenthrough, Expiredlistingsthatmaystillconsiderselling, Offmarketlistingsthatarenotpubliclylisted
Accesstopropertiesbeforetheyhitthemarket,
Ongoingandcurrentrealestatemarketinformationthatmayimpactyourbuying decision,includingmortgagechanges,statisticalsalesdataonmedianhouse prices,salesandmonthsofinventory,localareamarketchanges,trendsandmuch more,
Discoveryanddisclosureofallinformationaboutthepropertyincludingliens, warranties,disclosures,seller’spurchasepriceandmarketandplanningactingin thearea, Soundadviceandexpertnegotiationofanyoffersonyourbehalftoensureyour interestsareprotected, Everydetailtakencareoffromthemomentwestartworkingtogether.Mygoalisto createanexceptionalbuyingexperienceandguideyoueffortlesslythroughdetails andobstaclesalongtheway.
STEPTHREE
HOWSEARCHESANDSHOWINGSWORK
NARROWINGTHEFIELD
Oncewe’venarroweddownyour criteria,yourdateisenteredintoa propertysearchprogramwhichwill automaticallysendyounewlistings assoonastheyarelisted.
ELIMINATION-ROUNDONE
Dependingonhowmanyproperties matchinitially,myjobistodoan initialreviewofallpropertiesto identifyonesthatIknowarenotideal foryoubasedonmarketknowledge andyourneeds.
THESHOWINGPROCESS
I'llprovideyouwithinformationon propertiesthatalignwithyour preferencesandrequirements.You canthenselecttheonesthatinterest youthemost,examinethefloorplans andvirtualtours,and,ifpossible, drivebytheproperty.Whenyou've identifiedtheonesyou'dliketovisit, I'llhandlethearrangementsfor showings,andwecanexplorethem together.
ONGOINGCOMMUNICATION ANDNEWMATCHES
Ifwedon’tfindyouridealhomeat first,thepropertymatchingcontinues andIprovideup-to-the-minute notificationsonallthehomesthat arenewtothemarketorhavehada recentpricechange Imayeven broadenthescopeofwhatyouare lookingfortofindmatches.Ialso havemyfingeronthepulseof upcominglistingsandcanoftenget youintoseealistingbeforeithits MLS
KEEPINGYOUINFORMED
Beingaspecialistinthelocaland provincialrealestatemarket,Istay attunedtomarkettrendsandshifts.I alsomakesuretokeepyouupdated onanypertinentindustrychanges thatmightinfluenceyourbuying decision,suchasfluctuationsin pricesandmortgagerates
STEPFOUR IT’SOFFERTIME!
You’vefoundtheperfecthome.Here’swhathappensnext:
First,IwillconductaComprehensiveMarketAnalysisrelevantto determiningthemarketvalueofthehome.Thiswillempoweryou tomakeaninformeddecisiononwhattooffer.
NextIwillprepareanofferthatprotectsyou,followsyour instructionsandmatchesyourscheduleandneeds.
TheDeposit:Youwillneedtoprovideadepositwithyourofferthat willbeheldintrustbythesellingbrokerandcreditedtowardyour purchasepriceonclosing.Adepositistypically$10,000-$100,000, dependingonthepurchaseprice.
Iwillexplainthedetailsoftheoffer,thetermsandsuggestoptions forspecialtyclausesensuringyouknowexactlywhatyouare agreeingto.
Iwillpresentandnegotiatetheofferonyourbehalftogetyouthe homethatyouwantatthepriceandtermsyouwant.
Beprepared-thiscanbeaquickmovingprocess.
TheNegotiationProcess:
Thesellermayacceptyouroffer-congratulations!
Thesellermayrejectyouroffer-thiscanhappenandwewould endeavortofindoutwhy.
Thesellermaycountersign-changingthetermsoftheofferand presentingtheofferbacktoyou.
Ournegotiationscontinueuntilwereachanagreementoruntilwe knowanagreementcannotbereachedanditistimetowalk away.
NEGOTIATIONFAQS
HOWLONGWILLTHENEGOTIATIONTAKE?
Thisaspectoftensurprisesmanyindividuals.Negotiationstypicallywrapupwithin24 hours.Forexample,ifweweretosubmitanofferaroundnoon,itwouldn'tbe uncommontoreceivearesponse,usuallyacounteroffer,bytheevening Ifwedidn't reachanagreementthatsameevening,itwouldn'tbeunusualtohavetheoffer acceptedbythefollowingevening.
IFTHESELLERACCEPTSMYFIRSTOFFER,AMIFORCEDTOBUY?AND
SHOULDN’TWEHAVETHENOFFEREDLOWER?
No(andno).Unlesswearewritinganofferwithoutsubjects(whichisunusualand we’llhavetalkedaboutthisalotbeforehand),youwillhaveaperiodoftime(typically 5-10days)toinvestigatewhetherornotthishomewillbeacceptabletoyou.Ifyou don’tlikesomethingyoufindoutaboutthehomeduringthatperiodoftime,wewillbe abletowalkawayandthecontractwillcollapse.
Ifwedowriteanunconditionaloffer,wehave3daystowithdrawtheoffer Thisis calledthe“RescissionPeriod”.Therescission periodgrantsbuyerstheprivilegetoretract fromapurchaseagreementwithina designatedtimeframefollowingthe acceptanceofanoffer.Thepenaltyis0.25% oftheacceptedofferpricetotheseller
HOWMUCHSHOULDWEOFFER?
Thisisastrategyquestionandthe answeristhatitdependsontoomany factorsfortheretoonlybeoneanswer. Therearetimeswhenanofferthatis belowlistpriceisperfectly acceptable/appropriate.Similarly,there aretimeswhenanofferabovelistprice isappropriate.Whenwesitdownto prepareanoffer,wewilldiscussthis topicatlength.
WHATIFTHEREAREOTHEROFFERS?WILLIKNOWWHATTHEYARE OFFERING?
Whenanofferisreceived,thelistingagenthasadutytohavetheofferpresented “withoutdelay.”Futhermore,offershaveanexpiryclause-meaningthatiftheseller doesnotrespondbeforeacertaintime,theofferceasestoexist.
Despitethis,thereareoccasionswhenhomesattractmulitpleoffers.We’lltalkthrough detailedstrategyshouldthishappen,butherearesomebasicthingstoknow.When yousubmitanofferknowingthereisanotheroffer,you(usually)onlygetonechance tooffer.
Inotherwords,itisraretoseecounteroffersmadeatthispoint-itisassumedthat buyersareofferingtheirbesttermsandthesellerwilltypicallyjustchooseanoffer.
Inordertomakeyourofferascompetitiveaspossible,wewillwanttoensurethatwe haveasfewsubjectsorconditionsasarenecessarytoproperlyprotectyou,weare offeringashighapriceasyouarecomfortablewithandweareofferingthe completion/possessiondatesthatmostcloselymatchwhatthesellerislookingfor Fromthisperspective,theexperienceofmultipleoffersisverysimilartomakingblind bidsatanauction.Thetermsofanofferarealmostalwaysconfidentialuntilsubjects areremoved.Thesellerwilltypicallynotdisclosethepricetheyhaveaccepted(for fearitwilljeopardizefuturenegotiationsshouldthisoffercollapse).
HOWMANYCOUNTEROFFERSCANWEMAKE?
Asmanyasyou’dlike!However,myexperiencehasproventhatoncewegetpast3 counteroffersfromeitherside,ourchancesofreachingmutuallyacceptableterms starttodiminish.
Remember,thegoalofanegotiationistofindmutuallyacceptableterms.Mygoalis tofindthebottomendoftheiracceptablepricerangeandwewillneverdosoifthey feellikewearetryingtotakeadvantageofthem.
REMEMBER:
It’snotwhereyoustartwhenofferingonahome-it’swhereyoufinish.Negotiating canbestressfulandit’simportanttokeepalevelheadandrememberyourend goalsatalltimes.
OFFERCONDITIONS,HOMEINSPECTIONS &WAIVERS
ONCEANOFFERHASBEENACCEPTED,WENOWNEEDTOSATISFY ANYCONDITIONSWITHINTHESUBJECTTIMEFRAMEDESIGNATED.
Thisusuallyinvolvesperformingahomeinspection,abankappraisal,gettingtherest ofyourpersonalinformationandthepropertyinformationtoyourmortgagebrokeror bankandarrangingfortheotherinformationthatmightbenecessary,likesurveys, watertestsandstratadocuments(ifapplicable).
Restassured,Iwillhelpyoumakethenecessaryarrangementstoensurethatthe entireprocessrunssmoothlybeforethedeadline.
HOMEINSPECTION
Homeinspectionsallowyoutoscrutinizedetailsofhomeandsaveyoufrom someunpleasantsurprises.Iworkwithtrustedlicensedinspectors.Ican recommendoneifyouwouldlike,oryoucanchooseyourown.Keepinmind whenmakingyourdecision:
Ensurethehomeinspectorislicensed. Ensuretheycheckforvisibleissueswith plumbing,electricalsystems,theroof, insulation,walls,ceilingsfloors,and windows,andtheconditionofthe foundation.Theyshouldalsocheckthat includedchattels,likefurnacesandair conditionersareworking.
TheInspector,youandIwillwalk throughthehometogetherandgoover thehighlevelthings.Youwillalso receiveadetailedreportthat summarizestheconditionofyourhome thatyoucanrefertoforyearstosome.
CHOOSINGALAWYER
Yourlawyerisaninvaluablememberofyourteamwhosejobistoensurethat yougetwhatyouarepayingforandinaccordancewiththetermsofyour agreementofpurchase.IalsohavetrustedlawyersIcanrecommend.
Yourlawyerwillensure:
Thereisnothingontitlethatisnotsupposedtobethere. Thepropertytaxes,utilitiesandcondofees,ifapplicable,areuptodate. Youhavealltheinformationthatyouneedaboutyournewhome. Yourmortgagelenderissatisfiedandthatyourmortgageissecuredon propertytitleasrequiredbyyourmortgageagreement. youknowexactlyhowmuchmoneyyouwillneedinordertocompletethe transaction.
Theyalsoensurethatthesellergetspaidthepurchasepriceandtitleis legallytransferredtoyouoncompletionday.
TYPESOFINSPECTIONSWEMAYDO
Planforthesecosts.Wecanreachouttoanyprofessionalstorequestaquote fortheserviceswerequire.
STRATADOCUMENTS
Ifpurchasingastrata,wewillgothrough2yearsofstratadocuments together,includingminutes,AGM’s,financials,DepreciationReports,Insurance andanyotherrelevantdocuments.Inmanycases,Iwillsuggestan independentreviewofthesedocumentsbyyourlawyeroraspecialstrata documentinspector.
WHATTOEXPECTBEFORECLOSING
Itcouldbeshorterorlonger,dependingonwhatyouneedandhaveagreedupon withtheseller.Theclosingdateisusuallythedaybeforeyoumovein.
Tohelpreducethestressofamoveandgetyouorganizedwellinadvance,here areafewthingstoexpectbetweentheofferstateandmove-ontime.
LAWYERSANDPAPERWORK
Wewilltakecareofsendingyourlawyer allthedocumentationtheyneedabout yourpurchase Youwillneedtoprovide thelawyerwithsomeadditional information:
Confirmationofhome/fireinsurance fromyourlender.
Acertifiedcheque,draftorwire depositforthebalanceofyourdown payment.Thisamountwillhave adjustmentsfortaxes,legalfees,and disbursements.
INSURANCE
Thelawyerwillneedacopyof yourhomeinsurancebefore closingsothatthefinancial institutionwillreleasethemoney tothem.Callyourinsurance brokerwiththelistinginformation. Theymaywanttoknowtheageof thehouse,conditionoftheroof, furnace,electricalsystem,aswell asothergeneralinformation.
Youwillmeetwiththelawyeraboutaweekbeforetheclosingtosign andfinalizeallclosingdetails.Haveyourfundsavailable.
CHANGEOFADDRESS
It’stimetostartgivingoutyournew addresstoeveryone.CanadaPost cantakecareofthatseamlesslyfor you!
UTILITIES
Itisimportantthatyoucallthelocal utilitiestogettheserviceschanged intoyourname.Theseincludephone, internet,television,gas,electricity, water,garbageandanyotherrental agreements.Don’tforgettocancel anyservicesatyouroldaddress.
MOVERS
Whetheryouareusingprofessional movers,rentingatruckorgettinga bunchoffriendstogether,planand organizeitearly.Ifyouwouldlike,I canmakesomerecommendations.
DOWNPAYMENTAND CLOSINGCOSTS
Makethenecessaryarrangementsto have the funds available when the lawyer asks for it. Liquidating some assetscanrequireadditionaltime.
STEPSIX
COMMONCLOSINGCOSTSFORBUYERS
AMOUNTSREQUIREDFOR: AMOUNTSREQUIREDFOR:
Balanceofdownpaymentafterinitial Balanceofdownpaymentafterinitial depositwithoffer depositwithoffer.
Mortgageloanadministrationand/or Mortgageloanadministrationand/or appraisalfees,ifapplicable. appraisalfees,ifapplicable Points,(orloandiscountfees),youpayto Points,(orloandiscountfees),youpayto rreceivealowerinterestrate,ifapplicable. eceivealowerinterestrate,ifapplicable. Creditreportfees. Creditreportfees.
Mortgageinsurancepremiums,if Mortgageinsurancepremiums,if applicable. applicable.
Titleinsurancepolicypremiums. Titleinsurancepolicypremiums
Surveyexpense,ifapplicable. Surveyexpense,ifapplicable.
LLegalfeesandassociateddisbursements egalfeesandassociateddisbursements (couriers,copies,etc). (couriers,copies,etc).
Pro-ratedamountsforyourshareofany Pro-ratedamountsforyourshareofany prepaidcosts,suchasutilitybillsand prepaidcosts,suchasutilitybillsand propertytaxes. propertytaxes
LLandtransfertax(ifapplicable)andtitle andtransfertax(ifapplicable)andtitle rregistrationfees. egistrationfees.
LANDTRANSFERTAXCALCULATIONS (SubjecttoChange)
BCTaxRates:
1%onthefirst$200,000
2%ontheportionofthefair marketvaluegreaterthan $200,000anduptoandincluding $2,000,000
3%ontheportionofthefair marketvaluegreaterthan $2,000,000,and Ifthepropertyisresidential,a further2%ontheportionofthefor marketvaluegreaterthan $3,000,000
IFthepropertyisclassifiedas residentialandfarm,oris residentialmixedclass(suchas residentialandcommercial),you paythefurther2%taxononlythe residentialportionoftheproperty.
ADDITIONALPOTENTIALTAXESTO CONSIDER
BCSpeculationTax:2%ofthe home’sassessedvalue,paid annually.Thepropertyisexemptif itisdeclaredasaprimary residence,orifitwasrentedout foratleastsixmonthsofthetax year.
BCForeignBuyer’sTax:an additionaltaxequalto20%ofthe fairmarketvalueofthe purchaser’sshareoftheproperty wherethepropertyisresidential propertylocatedintheCapital RegionalDistrict,RegionalDistrict ofCentralOkanagan,Fraser ValleyRegionalDistrictorthe RegionalDistrictofNanaimo,and thepurchaserisa“foreignentity”” or“taxabletrustee”.
MortgageBrokers
TriciaMcIntosh-McIntoshMortgages 250-830-4022/tricia@triciamcintosh.ca
ElizabethPrins-MortgagesbyLiz
250-812-1529/liz@mortgagesbyliz.com
CaronPrice-DominionLending
250-857-2355/cprice@dominionlending.ca
MaiPham-BMO
250-619-6889/mai.pham@bmo.com
Lawyers
SarahMichaelwood-SitkaLaw
778-265-2677/Sarah.michaelwood@sitkalaw.ca
TejpaulWirk-MullinDeMeoWirkLawCorporation
250-477-3327/tejpaul@mdlawcorp.com
DawsonMullin-DawsonMullinLaw
250-590-1154/dmullin@dawsonmullinlaw.com
ShayWelle-CorvusLaw
778-405-2260/swelle@corvuslaw.ca
SepticInspection/Maintenance
VortechPlumbing
250-746-0706/vortechplumbing@gmail.com
CanadianSewageSolutions
250-478-1158/info@sewagesolutions.com
OILTANKSCANS
WesternUtilities
250-220-8129info@westernutilities.ca
Rick-VictoriaOilTank
250-385-8221victoria.tank@gmail.com
Geoscan-250-891-9364 info@geoscan.ca
GLOSSARYOFTERMS
TITLE
Thisdocumentisregisteredatthe landtitleofficeatthetimeof completionanditisproofof ownership.Chargestothetitle,such asmortgagesandeasementswill showuponthisdocument.
PROPERTYDISCLOSURESTATEMENT
Thesellerfillsoutthisdocumentat thetimetheylistthepropertyforsale. Theformisarepresentationofthe conditionofthehometotheseller’s knowledge.
FIXTURES
Theseareitemsthatareaffixedto thewall/ceilingthatshouldbe includedwithpurchase.Theseare usuallyitemsthatwillhavebeen permanentlyattached(ie chandelierorTVmount)
CHATTELS
Theseareitemsthatareeasily removedandcanbetakenfromthe homebythesellerunlessotherwise negotiated(i.e.furniture,artand windowcoverings).
DEPOSIT
Thedepositformspartofyourdown paymentandbecomesduewhen youremovesubjects.Thiswillbeheld intrustwiththelistingbrokerage.
CONDITIONOFTHEHOME
Theconditionofthehomeatthetime ofcompletionshouldbethesame conditionwhenabuyerlastviewed thehome.Thechallengeisthat opinionscandiffer;however,weare withyoueverstepofthewayto ensureyourinterestsareprotected
COMPLETIONORCLOSINGDATE
Completionisthedaythatthe moneyandtitleoftheproperty exchangehands.Thisishandledby thelawyers.Afewdaysbefore completionyouwillneedtogoto yourlawyer’sofficetoreviewand signthedocumentsaswellas providetheremainingbalanceowed.
POSSESSION
Possessioniskeyday!Andtheday yougetphysicalpossessionofthe property.Typicallythishappensthe nextdayafterthecompletiondate.
RESCISSIONPERIOD
Therescissionperiodgrantsbuyers theprivilegetoretractfroma purchaseagreementwithina designatedtimeframefollowingthe acceptanceofanoffer.Thepenalty todosois0.25%oftheaccepted offerpricetotheseller.
MyNameisElysiaAllen
ElysiaAllenisareliableRealEstateAdvisorwithadedicationtomakingthehome buyingandsellingprocessstress-free.SpecializinginrelocationsforCanadian Military,RCMP,andciviliangovernmentpersonnel,Elysiabringsabundant expertiseandindustryexperienceforaseamlessexperience.Sheservesboth ruralandurbanareasinVictoriaandsurroundingregionsonVancouverIsland, offeringcomprehensivemarketinsightstoempowerclientsinmakingthebest decisions.
Elysia'sresults-drivenapproachandrecognitionasanMLSawardwinneranda memberofColdwellBanker'sSterlingInternationalandInternationalPresident’s Circleunderscoreherknackforexcellence.
WithaBachelorofArtsdegreefromtheUniversityofBritishColumbia(UBC)and abackgroundservingintheCanadianNavyforover14years,Elysiaapproaches transactionswithdiligenceandastrongsenseofresponsibility Hercommitment extendsbeyondthetransaction,fosteringlong-termrelationshipswithclients.
FamilyisaprioritytoElysia:herbelovedpartnerMelissa,herjoyfulyoung daughterEmma,smallbutmightdachshundsSiggyandMightyThor,Cleocatra theoneeyedmischievouscat,lovingcuddlycatJersey,andyounghorseJuno keeplifeexciting
Forallyourhomebuyingandsellingneeds,letElysiabeyourultimaterealestate resourcetoturnyourdreamsintoreality!
