The Buying Process
We Are With You Every Step of the Way
The Accolade Real Estate Team understands that the home buying process can be a little daunting; though it does not need to be. To help you throughout the buying process we have assembled an extended Team of Professionals including, Mortgage Brokers, Financial Planners, Lawyers, Insurance Agents etc., who share our commitment to service excellence and stand ready to serve and are always there to help.
As part of our comprehensive service commitment, the Accolade Real Estate Team is pleased to match you with the appropriate professional at the right time to ensure the highest quality of service. This is one way we set the standard for leadership excellence.
There are many steps involved in purchasing a real estate property. The following is an overview of common procedures you may encounter:
- Mortgage Pre-Approval - Mortgage Pre-Approval is a key first step in an Accolade assisted Real Estate purchase. A firm commitment to this step is an excellent way to determine the level of professionalism of the Real Estate agent. A true Real Estate Professional would never show you properties without confirming your financial status. In fact, for your own peace of mind, you should confirm your financial capacity by securing mortgage pre-approval. Your search becomes a more pleasant and stress free experience, when you are armed with a mortgage pre-approval. Contact us for more information on getting approved for a mortgage or to be matched with a mortgage broker.
- Financial Considerations - Owning Real Estate can be very expensive. In many cases you may be required to pay a monthly Strata fee (also known as condominium or maintenance fees), property taxes, and various other expenses depending on the building or area you decide to buy in. These charges, when added to your current expenses, can quickly become overwhelming. As part of our commitment to exceeding your expectations, we have assembled a team of Financial Planners to consult, review your financial obligations, and assist in making the optimum financial decision. You may determine that now is not the right time for you to buy a property. That's OK! It is best to find out where the dragons are before you feel their flame. Whatever the case may be, the Accolade Real Estate Team is here to help you.
- Purchasing a Private Sale - Should you come across a private sale in your search, you can still enlist the assistance of a REALTOR® to help complete the sale. In most cases, private sellers will cooperate with your REALTOR®. Utilizing the services of a REALTOR® in a private sale gives you more credibility because you are already qualified for the sale and pre-approved for financing. Learn More about Private Sales.
- First Time Home Buyer's - All situations are unique; however, some exceptions do exist for First Time Home Buyer's. Having a Real Estate Professional on your side is beneficial. Do you qualify for the Federal R.R.S.P Home Buyer's plan? Do you qualify for an exemption under the provincial Property Transfer Tax? Are you planning on purchasing a condo? Can you claim a G.S.T. Rebate? The Lepore Accolade Real Estate Team can help you answer does questions that may help you save thousands.
- Goods and Services Tax (GST) - GST is a federal tax and is payable on all new or substantially renovated homes by the first occupier of the property. GST is charged at the rate of 5% and may be included in the purchase price or added to it depending on the language of the contract of purchase and sale. Buyers should review the language carefully with their Real Estate Agent so they are aware of what could be a significant added cost. Rebates are available for up to 36% of the GST, but only if the buyer is going to use the property as his or her principal residence. This full rebate is available for homes priced at $350,000 or less. For homes valued at more than $350,000, the rebate is phased out so that no rebate is available for homes valued at more than $450,000. For more information, discuss the GST New Housing Rebate with your REALTOR®.
- Property Transfer Taxes - Taxes can be a very large part of the costs associated with purchasing real estate. Property Transfer Tax is a provincial tax applied against purchases of real estate in the province at the rate of 1% on the first $200,000 of the purchase price and 2% on the balance. There is a full or partial exemption for "first time buyers". There are a number of criteria to qualify for the exemption, including: buyers must be Canadian citizens or permanent residents of Canada; have resided in B.C. for at least 12 months, or filed income tax returns as a resident of B.C. for 2 of the past 6 taxation years immediately prior to registration of the transfer; and never previously owned a principal residence anywhere in the world. The full exemption is available for properties with a purchase price of $425,000 or less and a proportionate exemption is available for properties with a purchase between $425,000 and $450,000. There is no exemption on properties with a purchase price greater than $450,000.
The Property Transfer Tax is submitted at the time of registration of the property transfer in the land title office, and the required amount must be provided to your lawyer or notary. - The Multiple Listing Service (MLS) - The MLS is a system that is provided to the public on behalf of all licensed REALTORS® that are members of the Canadian Real Estate Association. It is a partner agreement between REALTORS® that give all their listings to one main Real Estate portal which facilitates the sharing of listings.
- How Does the MLS benefit the buyer? You, as a buyer, have the power to choose the REALTORS® who you believe can best represent your interest. You no longer have to use the selling agent. The selling agent represents the seller, and as you would expect, the seller's interest. We strongly believe that ensuring your interests are well served is paramount.
- How Much Does using a REALTOR® cost when buying? - The Selling REALTOR®, as part of their contract with the seller, has agreed to list the property for a fee on MLS. As part of the MLS agreement, all properties listed on MLS. require full cooperation between REALTORS®. Part of the cooperation means that any Realtor representing a buyer that purchases a house listed on MLS is compensated by the Selling REALTOR®. Therefore, the buyer does not need to pay for being represented.
- New Property Developments - Many people are unaware that a Real Estate Professional can negotiate on your behalf when dealing with a Developer. The representatives in the sales centres, although very nice and knowledgeable, are working on behalf of the Developer. The loyalty of those individuals stands with the developer. Unless you work with a REALTOR®, as a buyer you will have to represent your own interests. Developers' contracts can be the most complex in the industry, unless you know what you are looking for. Your REALTOR® can ensure that you are not in for big surprises, or paying money for things you were not aware of.
- Assignments - Assignments occur primarily in pre-sale situations where a purchaser enters into a contract of purchase or sale for a condominium with a Developer prior to the completion of construction. An Assignment occurs when an existing contract of purchase and sale is assigned by the buyer to a third party. The third party then takes over the buyer's rights and obligations under the original contract. It is noteworthy that the assigning party remains liable under the contract. Assignments are a continuing part of the Greater Vancouver Real Estate Market and can be complex. A Realtor can help ensure that you understand your obligations and that no surprises occur during the process.
