Essential Tips For Buyers
Caveat Emptor is Latin for "Let the buyer beware."
Get Pre-Qualified Talk to a Mortgage Professional to secure a low rate and find out your borrowing options. Ask to verify your borrowing limit and work out a comfortable home budget from there.
Select a Suitable Location Get an idea of the location you would prefer. Where do you spend most of your time? Would you like convenience or do you mind commuting? Choose a neighbourhood that is suitable for your needs. Get out and walk the area. Are the surrounding homes and yards kept in a tidy fashion? Are the businesses that service the area adequate for your needs? Identify the schools and playgrounds and check them out if necessary. Your REALTOR® knows the neighbourhoods and will help you choose the right one.
Decide on Important Features What are the physical features that you are looking for in a home? Floor Area, Bedrooms, Bathrooms, Age, Number of Levels, Suite, Outdoor Space, Parking, ETC... **If you're on a budget, you may have to make choices between desired Location and Home Features offered within your price range**
Verify Value When you find the property that you wish to purchase, make sure that the purchase price is commensurate with similar type properties that are selling in the same neighbourhood. There is usually a wide range of List Prices for similar homes, but Sale Prices are usually consistent. Your Agent can provide you with all the information necessary to help you make an informed decision. Don't rely on the Tax Assessment.
Inspect It Always make your purchase contingent upon you enlisting the services of a BC Licensed Home Inspector. Your inspector will alert you to any visual deficiencies that may be apparent, taking into consideration the age, and type of building on the property.
Check for Lot Restrictions/Easements/Conditions Always make your purchase contingent upon inspecting a copy of the Certificate of Title, registered at your local Land Titles Office. On it you will find the names of the registered owners, the interest the owner has in the land, plus any charges on the title which may materially affect your interest or usage of the property. If your purchase falls under the Strata Property Act request a copy of the Strata Plan. On it you will be able to identify the area exclusively assigned to your strata unit, its size, and your unit entitlement as a share of the common property.
Review the Seller's Report Request that the owner complete a "Property Condition Disclosure Statement", and make it part of the contract. There are answers to many questions that should be asked about the property, which may be crucial to the value, and your future enjoyment of the property. Keep in mind, these answers are not guaraneed accurate.
Verify Listing Information Do not rely on the listing brochure as your only source of information. Go to City Hall and verify such things as the age of the dwelling, lot size, building size, zoning, the taxes, work/occupancy permits and if there are any issues the city may have with the property. If the purchase you are making falls under the Strata Property Act you should also note in your contract of purchase and sale the following: A) the amount of the monthly maintenance fee and what expenses that fee is to be used for. B) Identify any storage locker and parking spaces that are exclusively assigned to the suite and specify under which type of ownership they are assigned. Your Agent will assist you in ascertaining this information.
Seek Legal Advice Sometimes there are questions in which the Buyer must seek independent legal advice. This should be done prior to entering into an unconditional, firm and binding agreement.
Read the Strata Documents (When Applicable) If the purchase you are making falls under the Strata Property Act, besides reading and approving of the financial statements and bylaws of the particular Strata Plan, you should also read the previous 24 months of the minutes of the meetings. This may give you insight into the way the building is run, as well as any additional expenses the owners may incur in the future. Ask the seller to provide a Form "B". Your Agent will ensure that you are provided with all these documents, as required by law, to help you make an informed decision.
First-Time Homeowners Grant Don't forget. If you are a first time Buyer, there may be exemptions and grants that you may be eligible for. These change from time to time. Your Agent will keep you up to date |