The Buying Process
The 'Other' Costs of Buying
My Home Search Criteria
1. Ideally, you will enlist a Real Estate Consultant that you feel comfortable with, and that has good references. We can supply or make referrals for the additional services you will need. We can find properties that are a fit for your needs and budget that you might not have thought about. Very importantly, we prepare protective contracts for you, and negotiate on your behalf when it comes time to agree on price.
2. Assess your financial situation and arrange financing. Most buyers will need a mortgage to purchase a home, even if you have a sizeable down payment. Before you start home shopping, you really should determine what size loan and monthly payment you can afford and the amount of mortgage you can qualify for. It’s best to get this over and done with before you ever start looking at homes. You can use a bank or a mortgage broker. Mortgage brokers will generally be able to offer better rates, and a wider variety of options.
3. Decide what you need in a home, and go looking at properties! This is the fun, yet sometimes frustrating part. A good real estate consultant is needed here to help you clearly define your needs, and suggest suitable properties that can fit them.
4. Once you’ve selected a home, it’s time to submit a formal written offer to the seller. Your real estate consultant will write up the Contract for you, making sure to include relevant subject conditions to ensure you are well protected. They will then present the offer to the Seller. Unless you’re offering full price or even above full price on the property, there will very likely be some negotiation with the Seller around the price and terms of the contract before they accept. This is when your friendly Real Estate Consultant becomes like a pit bull.
5. Once an agreement is reached, you now have what is termed an 'Accepted Offer'. This will likely have subject conditions. During the period agreed upon for subject removal, you get to carry out all your due diligence on the property. Your real estate consultant will help you find a home inspector, review titles and minutes, go over disclosure statements etc.
6. When you remove any subject conditions, you have an Unconditional Contract of Purchase and Sale. A deposit is generally due at this time. The uncertainties are now over. Roll up your sleeves and start packing while you wait for your Completion Date to arrive. When it does, move in and celebrate with a housewarming!
1. Purchase Price: This less the deposit held by your Real Estate Consultant in trust (and accrued interest if applicable)
2. Property Purchase Transfer Tax: 1% on first $200,000 and 2% on the balance. This is often the single biggest closing cost. First time homebuyers may be fully exempt from this if they meet certain criteria. The main ones are a) the buyer should not have owned a principal residence anywhere in the world b) the buyer should be a Canadian citizen or permanent resident and residing in BC for a minimum of 12 months c) the property purchase price is not greater than $425,000
3. Annual Property Taxes to City or Municipal Hall (net of Homeowner Grant): Pro-rated to completion date for the calendar year.
4. Utilities: Your share of the year’s utilities that the seller has already paid if applicable
5. 5% GST on New or Substantially Renovated Homes
6. Appraisal Fees Payable to the Lender: Appraisals cost approximately $200.
7. CMHC/Genworth Insurance Premium: This applies to high ratio mortgages where the down payment is less than 20%. The premium ranges from .75% to 7% of the mortgage, depending on the mortgage amount. This may be borrowed as part of the mortgage.
8. Survey Fee: Often required by lenders. First check to see if the current owner has an acceptable survey. If not, the fee is approximately $250-$350.
9. Title Insurance: If a Survey is not available, Title Insurance can be purchased to replace the Survey. This costs approximately $200.
10. Home Inspection: Costs range from $250-$350 for smaller properties. This is not mandatory, but we highly recommend it.
11. Legal Fees: These can range from $800-$1000
12. Moving Expenses: A local move could range from $500-$1000. Long distance moves may be as high as $10,000
13. Renovations: Your new home may require appliances, drapes, carpet, painting etc.
This new approach to home-buying is especially convenient for out of towners. No matter where you are, if you’re interested in purchasing a home in the Maple Ridge area, we promise that you won’t feel far away. We love that advances in technology are making it easier for buyers to make a speedy transition into their new home, and we are more than willing to help in the process.
When searching for your dream home, it’s important to be well informed of the Real Estate market. To help you with this process, consider the following factors: What features do you require in a home to satisfy your lifestyle now? Five years from now? Will your needs change? What’s your budget? These are decisions only you can make, but we will do everything possible to match you with your dream home.
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