Buying
Purchasing your largest investment is a critical process to be left only in the hands of one of our professionals. When buying a house in Vancouver, you are faced with a multitude of decisions!
At your side each step of the, we will make the process of purchasing a home easier, more enjoyable, less time-consuming, and less expensive than working with anyone else or even doing it yourself.
Our Buyer’s Guarantee:
- Help you prepare so that sellers perceive you as a preferred buyer
- Locate and assess on and off market properties that match your specifications
- Create enforceable contracts for your purchase looking out for your best interest
- Provide recommendations and referrals so that all your bases are covered
- Negotiate on your behalf to get you the best deal
- Ensure all details are covered for a seemless purchasing process
We are always familiar with the current homes on the market, and we know neighborhood values well, to better help you determine which properties are fairly-priced and in good condition before you start your search. We only work with five qualified buyers at a time. If you are interested in joining our qualified buyer group, please contact us immediately.
What to Expect from Us as Your Buyer Representatives
- Prompt, friendly 24 hour service
- A Copy of YVR RESALE Buyer Guide
- Automated email searches with listings that match your criteria
- Active searches for on market properties based on the criteria and provide advice on each of these properties
- Marketing to areas of interest to find people willing to sell their property that matches your criteria
- Once a property is determined, we will draft and negotiate your offer; putting you in the most desirable light to the seller
- Assist and provide recommendations during the subject period
- Total support with lawyers/notaries to ensure a smooth completion
- Provide you with keys on the possession date as well as our Complimentary New Home Package.
- Check-ins and invites to our Appreciation Events!
10 Steps to Buying a Property
- Choose a REALTOR
- Mortgage Pre-Qualification
- Make Your Wish List
- Go Shopping!
- Writing an Offer
- Negotiation
- Due Diligence
- Inspection
- Completion
- Possession
Closing Costs Overview
Closing costs, ranging from 1.5% to 2.5% of the purchase price, are the legal and administrative costs you will need to pay when your house closes. In addition to closing costs, there are other expenses and/or events that may require a cash outlay before, on or after your house closes.
Costs before you buy
- Home Inspection Fee - It is highly recommended that you contract a home inspection as a subject to your offer (this protects you as the buyer). A home inspector will assemble a report on the condition of the home for a fee of around $500, depending on the complexities of the inspection.
- Deposit - A deposit (usually 5% of total cost) is required when you make an offer to purchase. A deposit shows the seller you’re serious and committed to buying their property. It signals that you have the financial means to make the purchase and you’re comfortable taking on some level of risk until the deal closes. The deposit will go towards your downpayment.
Costs financed in your mortgage
- CMHC insurance/Mortgage default insurance - If you purchase a house with less than a 20% down payment, you will be required to buy mortgage default insurance, commonly referred to as CMHC insurance. This protects the lender in the case the borrower, defaults on the loan.
- CMHC insurance/Mortgage default insurance - is not normally considered a traditional closing cost as it is added to the total mortgage you require and amortized over the life of your mortgage. We have chosen to include it here to point out the major difference between it and traditional closing costs: it does not require a cash outlay upon closing.
Mandatory closing costs covered by the home buyer
The following is a list of closing costs that are incurred by the home buyer:
- Property Transfer Tax (PTT) - rate of 1% on the first $200,000 of the purchase price and 2% on the remainder up to and including $2 million. The PTT is 3% on amounts greater than $2 million. For example: If you buy a property for $300K, you will have to pay $4000 in PTT.
- Legal Fees and Disbursements - You can expect to incur a minimum of $500 (plus GST/HST) on legal fees, which account for the preparation and recording of official documents. Often using a notary can save your costs associated with the legal fees. However, this depends each client's needs.
- PST on CMHC insurance - Though CMHC insurance itself is financed through the mortgage, PST on the insurance must be paid in cash at the time of close.
The following is a list of closing costs that are incurred by some home buyers as they are only applicable to certain properties
- Septic tank - If the house has a septic tank, it should also be tested to ensure it is in good working order. Once again, you can negotiate the cost with the previous owner and list it in your Offer to Purchase.
- Oil tank - Most houses in Vancouver used oil burning furnaces up until 1960's. These furnaces had underground oil storage tanks periodically filled by tanker trucks. If you’re buying a house in Vancouver, always get an Oil Tank inspection and the average seems to be around $150. If an oil tank is found the Seller is responsible for having the tank removed and any contamination remediation and you the Buyer are safe.
Mandatory closing costs often covered by the lender
- Appraisal Fee - An appraisal, which is an estimate on the value of your home, is often covered by your mortgage lender. An appraisal is performed to certify the lender of the resale value of the home in the case you default on the mortgage. The cost is usually between $250 and $350.
Other costs to consider
- Property Insurance - Property insurance, which covers the cost of replacing your home and its contents, must be in place on closing day. This insurance is often paid in monthly or annual premiums.
- Prepaid Utility Bills - You may need to reimburse the previous owner of your property for prepaid costs such as property taxes, utilities and so forth.
- Property taxes - Property tax is calculated as a percentage of your home value, varies by municipality and must be paid each year. You may need to reimburse the previous property owner if he/she has already paid property taxes for the full year.
- Moving Costs - presuming you wlll want some assistance with the move itself, it's always good account for this in advance.
Closing Day
Closing Day is the day you finally take legal possession of your home! It's important the bulk (if not all) of your administration is completed by this point including transferring your down payment to your lawyer/notary. Transferring payment funds, especially from your RRSP can take time and should be done several days before closing date. On the actual closing date, the following events will take place:
- Your lender will provide the mortgage funds to your lawyer/notary.
- You must provide, your down payment less the deposit, to your lawyer/notary along with the closing costs.
- Your lawyer/notary pays the previous owner, registers the home in your name, and gives you the deed and keys to your new home.
