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Buyer’s SeminarPresented by Team Nickerson
Matt Marg Sayo Laurie Doug
What you will learn today
How the Vancouver real estate market cycle works
Why it is important to have a good Agent/Team
What is currently happening in the Vancouver real estate market and latest statistics
The elements that need to be present to lead to a successful purchase
The importance of a well prepared offer
How to make your offer stand above others (aka Strategy in multiple offers)
Tips from Laura MacCormack with Clever Lending
Insurance tips from Jeff Myers with The Cooperators
Tips from Wayne DeJong with Pillar to Post Home inspections
1 Year Change 3 Year Change 5 Year Change
Condos 2.6% 6.9% 7.9%
Town Houses 3.6% 9% 16%
Houses 12% 18.4% 40%
Condos 3.1% 4.5% 7.5%
Town Houses 10% 13.5% 18%
Houses 9% 8.9% 42%
Latest Market Statistics
Why Buy Real Estate?
Growth of 3% Per Year
The power of owning real estate. It’s all about time!
Equity portion of your mortgage payments get bigger with every payment!
Cheap Money from the BankMultiplies Your Earning Power
Mortgage Payment on $150,000
Each 1% Appreciation = 4%Annual Return
Why you need to work with a good agent?
Benefits of working with an Agent in Real Estate Team
Everyone has their own role and area of expertise so nothing gets missed
We can be in more than one place at a time
We aren’t desperate for the sale so the focus can stay on you, the client
Every team member has some balance and even days off!
You have 6 experienced brains working for you instead of only one
We have a lot of listings so you can get the inside scoop on properties not yet listed
We are everywhere in the market place so have a real finger on the pulse of the market
We have fun working together, we all work out of the same office
We can cover much more ground then a single agent on their own!
Real Estate Industry Secrets
Reputation is everything – especially in multiple offers (Preparation, follow-through, execution)
Listing Agents want to work with agents they know
Some Listing agents will avoid working with agents they don’t like or know.
Working with a Realtor.
• Undivided Trust and loyalty.
• Full disclosure of all known facts about the properties.
• Confidentiality of your person information (Legal, personal, financial)
• Providing honest and professional feedback on the properties we see, on comparables, and on market conditions
Working with a Realtor.
• Preparing the contract and reading the strata docs
• Providing contacts to help you navigate the entire real estate process: financing, inspections, renovations, lawyers etc.
• Working with you both before and after this purchase to understand your situation and to help you make an investment that will serve your current needs and long term goals
The Search. Lets work together
• Setting up the search (Automatic so nothing is missed)
• Open houses (Working with your own agent)
• Scheduled appointments and tours
• Search Refinement and pinpointing the details. (Weeding out the ugly.)
• Honest feed back. (Don’t be afraid to say “No”)
You found a property! Writing the offer.
• Name, current address, occupation, ID is required to write an offer.
• Offer price.
• Deposit amount.
• Completion, Possession and Adjustment Dates.
• Subjects and conditions.
Determining the value and price.
• Market research, history, City Tax assessment, days on the market, for what and when the Sellers purchased.
• Past sales in the building and similar properties in the area.
• Building information
• Deciding on the price you want to offer.• Deposit amount. (5% is the Real Estate Board Standard and normally due on
• Completion (Clear Title and money change hands)
• Possession (The day you move in)
• Adjustment (The day you start pay strata fees, taxes etc…)
• There are some extremely common conditions, also known as Subject Clauses, written into the contract.
• Generally 4-10 days to satisfy these subjects. The end date we select will be our “Subject Removal Date”.
• Note: Subjects dates can be a point of negotiations
SUBJECT TO FINANCING• This subject allows for the purchaser to have sufficient time to
confirm the financing arranged when you were first pre-approved and allow the bank to approve the selected property.
• Note: Speak to your broker before starting your search to ensure this is a smooth process.
SUBJECT TO INSPECTION
• This subject is there to ensure that you have the option of having an inspector of your choice view and evaluate the property in order to provide you with an idea of what repairs are needed at present or in the future, and what costs may arise.
SUBJECT TO DOCUMENTATION OF THE STRATA CORPORATION
• Form B Information Certificate
• Current rules and bylaws
• Current budget and most recent annual financial statements
• Complete registered strata lot plan and strata plan & any amendments to the strata plan, and any resolutions dealing with changes to the common property.
• The Last 2 years Annual General Minutes
• The Last 2 years of Strata Council meeting minutes
• A copy of any and all engineer's reports or other consultant's report concerning this strata corporation
• a Copy of the Strata Depreciation report
• any Extraordinary and/or Special General Meetings
• SUBJECT TO PROPERTY CONDITION DISCLOSURE STATEMENT (PDS)-Completed by the Seller, this document provides information on the property to the best of their knowledge.
• SUBJECT TO TITLE SEARCH- This document allows us to confirm ownership and check for any encumbrances on the property.
• Subject to Obtain suitable fire/property insurance- detached homes
Your offer is ready to go!Have your agent present your offer in person
• The Seller may flatly reject your offer (Back to square one)
• The Seller may make a counter offer (Negotiations: reject, accept, or counter)
• The Seller accepts your offer as is! (Everyone's favourite outcome)
Your Offer is accepted!!Due diligence - 4-10 days for Subjects
• Strata Docs
• Oil Tank Scan (houses)
• Visit the City (Permits, Grow op, etc…)
• Insurance quote
Time is of the essence
Subject removal (SOLD!)
• Your Offer is now an unconditional Contract of Purchase and Sale. (The Subjects have to physically removed by the Buyer)
• Your Deposit is due (The Deposit held in trust and is transferred over to your lawyer for completion of the purchase)
Costs of purchasing a Property
• HOME INSPECTION FEE- $500 - $700 plus GST
• OIL TANK INSPECTION - $100 - $250 (applies to houses)
• BANK APPRAISAL FEE - $200 - $500
• CMHC INSURANCE – typically required on any mortgage with less than 20% down-payment.
• PROPERTY PURCHASE TAX - 1% on the first $200,000 and 2% on the balance. If you are a first time Buyer, are a BC resident, plan to live in the property for at least 1 year, and are
purchasing a property under $475,000, then you are exempt from this tax.
• LEGAL FEES- $800 to $1500
• PROPERTY TAX- You are responsible for property taxes that the Seller may have already prepaid. Depending on the time of year, this may or may not be an expense incurred at the time of Completion
• GST - 5% of the Purchase Price and is payable on New Construction only
• Home Insurance and move in fees.
• Choose a lawyer to conveyed the transaction. (Deposit, mortgage, remainder of your down payment)
• Preparing your property insurance
• Setting up your hydro/utilities
• Notify your strata and book your move in time.
• Relax and get ready for the move!
What if its Multiple offers….? Yikes!
Points to make your offer shine!!
• Seller’s preferred dates
• Remove your subjects before writing the offer or limit the subjects and/or the time of your subject period.
• Have the deposit cheque ready and in hand on offer presentation
• Have your agent present in person if possible and be close by if initials or changes need to be made.
• **Putting your best price forward in the first shot**
Start talking to a Mortgage Broker and Realtor before starting your search.
Use a Real Estate Team with a proven track record, not all agents are created equal
The power is in the details of your offer
Get your offer presented right
Do your due diligence!
Every mortgage payment is like a
Deposit into a savings account!
Matt Marg Sayo Laurie
Thank You! We look forward to being of service.