Generally, the largest single financial transaction an individual makes is the purchase of their home.   This can be an exciting and emotional experience.   It is recommended that you elicit the experience and sound advice from a real estate professional to ensure that this experience is a smooth and problem-free process.  

Typically, there are many steps involved in the process of buying a home.   While not every real estate transaction will involve all of these steps, we have provided information on each so you will know what to expect.  

Selecting a Realtor
As with all major financial decisions, seeking sound professional advice is certainly prudent.   Selecting a competent realtor is an important part of this process.   As a licensed real estate professional, I adhere to our strict professional ethical codes and am committed to representing and promoting your best interests.  

Determining your Needs
What are you looking for? What do you need versus what you want? By determining your needs from the outset, this will provide a focus to make efficient use of both your time and your Realtor’s time.   I will help you put together a prioritized list of your requirements such as price, location, accommodation and other needs or preferences you may have.   Then I will guide and counsel you with regard to your various options.  

Financing Options
Before or during your home hunting activities you can obtain Mortgage pre-qualification.   Our in-house Mortgage Broker Service or your financial institution will discuss financing options and provide you with a mortgage amount and rate guaranteed for a certain period of time.   Being pre-approved is advantageous for a number of reasons:

• Helps refinement of your search parameters;
• Guarantees interest rate lock in period
• Protects you from interest rate fluctuations
• Permits quicker action when you find a property you wish to make an offer on.  

Looking at Properties
After you have defined your requirements and financing is in place, you're ready to begin looking at properties.   You may have already been looking at homes advertised in newspapers or on the Internet.   However, your Realtor has access to the database of all properties for sale on MLS ® and can provide you with specific information you may not have access to.   Further, they may also have access to listings on MLS ® that may not have yet been advertised.  

After looking at a number of properties, sometimes you may find it necessary to modify your search criteria after redefining your property wants and needs.   Depending on availability and market value, your Realtor will help you through this redefinition process search criteria modification and find you that perfect home.  

Making an Offer
Now that you’ve found the perfect home, your Realtor’s knowledge and training becomes invaluable when constructing a legally enforceable contract (Contract of Purchase and Sale) containing the terms that suit your needs and protect your interests.   Part of this process involves determining market value, ascertaining the condition of the property, stating how much you’re willing to pay, paying a deposit, suggesting a closing date, expiration of the offer, and a proposed set of conditions.   Additional services provided by your Realtor includes negotiating on your behalf under the terms of the agency outlined in the contract, explaining the whole legal process and what you are committing to.  

Typical conditions may include a subject to financing, subject to inspection, subject to survey, subject to the sale of another property, and so on.   Realtors are trained to use the appropriate legal terminology to suit the type of property you’re interested in purchasing.   The issues can be complex – for example, knowledge of the Strata Properties Act as it pertains to strata-titled properties, oil tank issues relating to single-family homes, and so on.  

The offering process often involves making or receiving counter-offers that your realtor negotiates on your behalf.  

Completion and Moving
When an Offer has been accepted and all subject clauses have been removed, a deposit of at least 5% is normally held in Trust in accordance with the Real Estate Act.   This amount forms part of the purchase price upon Completion.   Completion may be any date in the future as stipulated in the contract and is typically 60-90 days between Acceptance and Completion.   As Completion approaches, you will need legal representation – your Realtor can help you with this.   Your legal representative will arrange to transfer title of the property from the seller to you, the mortgage financing will be transferred to your legal representative’s trust account, then to the seller, and the financial closing details will be recorded on a statement of adjustments.   Once these activities have been completed, you then take possession of the property, normally a day or two later, as set out in the Contract of Purchase and Sale.  

Additional Costs
In addition to the purchase price, there are a number of Closing Costs that you will need to take into account.   The most customary cost is legal (Lawyer or Notary) fees and disbursements pertaining to the execution of documents associated with the purchase of property.   All property sales are subject to the BC Home Purchase Tax of 1% on the first $200,000 and 2% on the balance.   GST is applicable on all new home purchases and is covered in your Contract of Purchase and Sale.   If you have high ratio financing, a mortgage insurance premium of up to 2.5% may also apply.   Several other expenses will also be incurred at this time including:

• Moving Expenses;
• Home Insurance;
• Appraisal Fees;
• Surveying Costs;
• Your share of property taxes and utilities as outlined in the statement of adjustments