FAQ’s
1) First time home purchase - First step of the home buying process?
*Speak to us for insight and then seek pre-approval/pre qualification for a mortgage. This is the first, necessary major step to buying real estate. Not sure which broker to call? We have trusted mortgage professionals that can give solid info to help you out.
Knowing how much home you can afford narrows online home searching, thus no time is wasted considering homes that are not within your budget.
* Pre-approval helps prevent disappointment caused by falling in love with unaffordable homes!
* Pre-approval determines that you are serious buyers!
2) Current Listings: How will you tell me about the newest homes available?
Most everyone has been on realtor.ca perusing listings and are familiar with the current market! However, once you are determined to move forward, the Multiple Listing Service (MLS) powered through ONEHOME on your personalized search will provide up-to-the-minute information for every home currently on the MLS system. Creating a tailored search specifically with your needs and price in mind is the next perfect step.
* having a personalized search allows us to directly inform you of properties flagged to come on the market & can also provide personal insight & important historical information in relationship to properties of interest!
3) Will you inform me of homes from all real estate companies?
Absolutely! Your personalized search will automatically inform you of all homes in areas & with the criteria you have requested.
We want you to find your dream property and your tailored search means you have immediate access to new & current listings. As mentioned above, your agent can access important historical info on any property of interest, saving both time and energy, even prior to viewing, further defining what you seek.
4) New Construction: Can you help me find new construction homes?
Yes! We work with builders and can engage new home construction contractors to get you the information you need to make informed decisions. We will accompany you to meet the builder/contractor when considering a new home building contract and work together to ensure there is complete understanding of the process of acquiring your new home.
5) Zoning: What is zoning?
Property zoning is established by the local municipal government. Zoning confirms the type of buildings which may be built on a particular piece of property and how those buildings may be used: single-family residential, duplexes, multi-family residential, commercial, vacation/recreational, ALR or industrial. You may also want information about zoning on the surrounding properties to determine if, for instance, a factory or a park could suddenly appear nearby.
*We always attempt to ensure neighbourhood awareness.
6) Fees for Buyers: Is it expensive to use a buyer’s agent?
No! Generally there is no fee to the buyer. The fee that a buyer’s agent typically receives, comes from the seller’s proceeds. Most commonly, there is no cost for a buyer to be represented by a buyer’s agent. If a buyer is interested in purchasing a property NOT listed on the MLS, or is on the MLS for sale by owner, it is quite possible the seller will agree to a fee agreement to encourage a firm sale of their property. In this instance, a ‘Buyer’s Agency/Fee Agreement’ would be used to detail the buyer’s obligation to compensate their agent with the sellers agreement on that fee.
*Typically, but not always, with unlisted or For Sale by Owner properties, the seller compensates the buyer’s agent. The Buyer can also agree to pay the commission under certain circumstances.
7) Fees for Seller: Fees & how they are distributed when selling Your property
In British Columbia when utilizing a Multiple Listing Services (MLS) the seller of the property provides the fees/commission for both the listing agent (the agent/agency the seller lists their property with) & the buyer’s agent (the agent/agency who will bring the buyer).
The listing price includes this fee/commission to both agents - the sellers agent & the buyers agent.
For sellers: Please keep in mind the SOLD prices of all MLS properties in any MLS historical data reflects the inclusion of this fee. In other words, when researching a listing/potential sale price of your home (by having a current market assessment (CMA) done), the fee is within the actual ‘sold’ amount reflected within this data - not something arbitrary or on ‘top’ of your potential listing/sale price.
For sellers: Remember that when you purchase again there will be no fee to you* save for unusual circumstance.
When listing your property with us we strive for open communication & full understanding of the fees involved.
We disclose our fees (remuneration) within any Contract of Purchase and Sale & on all offers you receive on your home.
Open & straightforward communication provides for successful relationships & business transactions.
*Our current fee for listing your home is 7% on the first one hundred thousand dollars and 3% on the balance. Please remember this amount pays both the listing and selling agent which are legally separated for consumer protection to ensure fiduciary duties to both the buyer and the seller are met in one real estate property transaction.
8) Real Estate Agents & why you want a good one!
As real estate agents providing real estate services we have to work under an ‘‘agency’ by law and are licensed and regulated by the BC Financial Services Authority (BCFSA). Over the past 3 years, BC has tightened up significantly on real estate regulations and we see this as an excellent beginning to bettering the real estate process for the public.
BCFSA consumer protection link
My agency is with Re/Max Anchor Realty whom adheres to strict reporting & retention of all documentation utilized & formed in real estate transactions, by law.
Our administration ensures swift & competent conveyance of your Contract of Purchase and Sale to subsequent legal offices & financial institutions/mortgage lenders to move your deal to fruition.
This agency relationship provides the framework & reporting paper-trail for the benefit of all parties to the real estate transaction with many people working to ensure your deal comes together.
Within this process are: front & back desk conveyancers, 3rd party sub contractors including but not limited to, Webforms, OneHome, Touchbase, Supra Security/lockbox, Errors & Omissions Insurance & BC Land Title Registry - Title & encumbrances, and others. Through these services your property transaction is protected, seen & corroborated.
We are personally in communication with your legal and financial representation as required. This multi faceted transaction seeks to ensure subject conditions, if any and as required, can be met with recommendations & appointments for, but not limited to; building inspections, surveys, well, septic or electrical inspections, verification of building file through local municipalities & Regional Districts, historical research & data.
All appointments & deadlines are executed in a timely manner within the dates specified in your Contract.
*We are detail oriented professional communicators that oversight your transaction from the first showing to handing you the keys.
9) Dual Agency: What is a ‘dual agent’ or ‘dual agency’?
Dual agency refers to the practice of a single agent/licensed group representing both the buyer and the seller during a real estate transaction and is no longer permitted except with strict exception, such as buying in severely remote locations where there is only one agent/licensed group available. A Disclosure of Risks Associated with Dual Agency Form must accompany this exception. In a ‘dual agency’ relationship, both clients were supposed to be treated equally & fairly by the agent, an expectation that was practically very difficult to meet; neither the buyer or the seller had the benefit of the real estate agents undivided loyalty, a core element of the agency relationship.
You are best protected when working with one agent/licensed group because that one agent/licensed group owes you all of their Fiduciary duties - no misunderstood loyalties!
10) Unrepresented Buyer: What is an Unrepresented Buyer?
One example of an Unrepresented Buyer would be this:
A buyer goes to an open house or calls off a For Sale sign on a lawn, decides she would like to purchase the home and asks the ‘listing’ or ‘selling’ agent to write the offer for her. In this scenario the listing agent must inform the buyer that the Duty of Loyalty & other Fiduciary Duties traditionally owed to her are significantly altered as the agent is already representing another party to the transaction (the seller of the home). The listing agent can then advise the potential buyer:
1) To use another agent/their own agent (‘buyers agent’) , if they have one, to write the offer.
2) Can suggest a choice of buyer’s agents to assist them in writing an offer.
3) Or, the listing agent can write the offer once a mandatory disclosure form is filled out & signed by both the potential buyer and the listing agent. The buyer then becomes an Unrepresented Party to the transaction. The form, ’The Disclosure of Risks to Unrepresented Parties’ is used and this,
ensures that the unrepresented party provides the agent with informed consent to provide limited real estate services - i.e. Fiduciary Duty, Duty of Loyalty is affected
set appropriate expectations from the unrepresented party; and
minimize any confusion by the unrepresented party as to the role of the agent.
Though being an unrepresented buyer does happen you are best protected as a consumer by the Fiduciary Duties of your own real estate agent.
11) Open Houses: Can I go to open houses without my agent/Realtor?
Yes, however when meeting the listing realtor/representative hosting the open house it is very important to identify yourself as working with another agent/realtor. If you don’t, your realtor/agent might not be able to help you write an offer on that property in the future.
12) Can we go back through the property again once an offer is accepted, but before possession?
Usually & this can be stated in appropriate and reasonable terms in the offer on the Contract of Purchase and Sale. Terms for this can be set out in the contract that depict the number of times and the reasons for viewing.
13) Personal Information: What type of information will my agent need from me?
To do the best job for you, your agent will need the best information you can provide. This would include such things as:
1. preferred price range
2. number of bedrooms / bathrooms
3. style of home (single-story, two-story, etc.)
4. size of yard/land
5. preferred school districts, if any
6. geographical areas / neighbourhoods of interest
7. special needs / special interests which your home needs to accommodate
8. anything that personalizes what is really special to you - i.e. trees, garden, proximity to shops etc…
9. Drivers license or government i.d. for preparing an offer or for preparing a listing contract and current address
10. deposit for sale, downpayment & financing institution, as required
Keep in mind that a very specific set of criteria may narrow your list of potential properties, while a very broad list may lead to an overwhelming number of properties to view depending on the current market.
Shoot for somewhere in the middle! Sometimes, even if outside one’s original criteria, the perfect property is found!
14) What if I find a property on my own?
With the advent of the internet/realtor.ca, many buyers have begun searching for – and often find – properties of interest even while working with an agent, perhaps something that fell outside their original search parameters.
If you have an agent, contact them with the address or the MLS number of the property in question. Your agent can then contact the seller’s agent of the property and set up a time to view and further, may be able to provide valuable historical or other interesting information prior to viewing.
15) Foreclosure properties: When making an offer on a foreclosure property can the offer be ‘subject to financing’ approval?
Yes, if you are the first accepted offer. Your offer can be conditional - i.e. subject to inspection, financing etc - however, if there is already an offer that has been accepted (and a court date set), then your only option is to write an unconditional offer - no conditions whatsoever - which is presented in court on the set court date (alongside any other offers aside from your own).
16) Is it better to sell before buying?
It is usually better to sell before you buy as this eliminates the financial cost & (potential) risk of holding 2 properties & the subsequent costs associated, possibly for several months. If you have good equity in your current home and based on your lender, interim financing may allow you to purchase a second home without selling the first (or you have a vast amount of cash on hand!). Otherwise, your lender may require that you sell your home before granting financing on your new home.
17) ‘ Subject to the Sale of another property’ addendum on offers:
In a perfect scenario selling your home first is the best bet however different types of markets allow for different offer scenarios.
It is worth considering that when bringing a ‘subject to sale of’ on a home you have fallen in love with, there is a possibility that someone else will potentially ‘bump’ your offer if they like the home & have the ability to purchase without this subject condition.
Subject to sales utilize a time clause - 24, 48 or 72 hours - agreed upon when the seller accepts your initial ‘subject to the sale of property’ offer.
If you have sold your home or found alternative financing and can ‘remove’ the subject to the sale of’ within the time frame agreed on, the home is yours and you are obligated to complete the financial purchase by the dates set out in the original offer.
If you have not sold your own home or do not have alternate financing and a ‘new’ offer has been accepted by the seller, this will invoke the time clause (of 24, 48, 72 hours). If you cannot ‘sign off’ on the conditions agreed upon in your contract and withing the time frame, you must let the property go & that contract is now over.
The unknown outcomes in going through the subject to sale of property process can be emotionally exhausting & sometimes highly disappointing but they can work out in your favour too!
In very hot markets like some of 2021/22, some people bought a second home before selling their principal home to ensure they had a home to move to - this is traditionally most unusual & not a recommended practice.
18) Home Buyer Rescission
The B.C. government introduced the HBRP as a consumer protection measure to give home buyers time to consider whether a purchase is right for them. HBRP gives buyers the right to rescind their offer up to three business days after the offer is accepted. If a buyer changes their mind within that period, they must pay a 0.25 per cent rescission fee to the seller.