BENEFITS

• having someone there 24/7 to guide you through the entire process from finding that perfect home, to getting the best financing, hiring a qualified property inspector, etc.
• making sure you see all the properties in the area that meet your criteria, not just those listed on the local MLS, but also many unlisted properties that I find through my contacts and affiliations
• making sure you don't pay too much for your new home. As a local North Shore expert, I'm helping people negotiate and make home purchase decisions every day. This can help you avoid costly mistakes.
• answer all your questions about the local market area, not just about homes for sale, but schools, neighbourhoods, the local economy and so much more

A Step-By Step Guide to Buying a Home

1. The Benefits of Home Ownership
2. Our First Meeting
3. Selecting and meeting with a Lender
4. Looking at Homes
5. Selecting a Home
6. Making an Offer and Negotiation
7. Removing Subjects
8. Closing Costs
9. Completing Your Purchase
10. Moving Day

The Benefits of Home Ownership

• Tax Free equity gain - some years more, some less, and this figure varies from area to area.
• Fixed housing costs - depending on the term of your mortgage, you will know your monthly expenditures whereas with rental units the rent can usually be expected to increase every year.
• Freedom ... if you are renting, you are probably at the mercy of your landlord when it comes to doing any improvements to your home. Most landlords want to keep their expenses to the minimum so they are not apt to do any improvements other than those absolutely necessary. As a renter it also does not make a lot of sense for you to spend much money on someone else's property. If it's your own home you get the benefit of any improvements plus the creativity to do what you want.
• Forced savings plan ....trouble saving money? With home ownership you accumulate savings in two ways. Every month a portion of your mortgage payment is directed towards the principal loan and admittedly in the early years of a mortgage, it is not much, but over time, this amount will increase. Secondly as mentioned above the home appreciates in value.

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Our First Meeting
How often are you available to look at properties and your expectations in terms of communication between us, (ie. telephone, fax, email, etc.) and which mode you would prefer.

A brief overview of financing options will be discussed and you will be provided with teh names of several mortgage brokers and/or financial institutions.

Agency will also be discussed and you will be provided with the brochure "Working with a Real Estate Agent."

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Selecting a Lender
SELECTING & MEETING WITH YOUR LENDER Most lending institutions offer the same basic loan programmes (i.e. conventional, high ratio, fixed term, open term, etc.) but each will usually have their own special "niche" products. It is MOST IMPORTANT TO GET PREQUALIFIED as soon as possible in the buying process....that way you will know exactly what you can afford and will be able to concentrate on that price range...you will feel much more comfortable knowing what your total monthly pyaments will be, an estimate of how much cash you will need for down payment, etc. Most lenders can supply pre-approval pending certain requirements ...ie. income verification, down payment confirmation and appraisal.

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Looking at Homes
This is the fun part! It is important to limit the number of homes you're looking at in a day. If you look at too many homes, they begin to run together and you can't remember one from another. It's a good idea to use a checklist to help you track the properties you have seen. It is also helpful to actually begin to narrow down the properties after each visit. For example if house #3 was better than house #2, immediately eliminate house #2. Remember -- communication is crucial. It's important to let me know which houses you like and why as well as which houses you don't like and why. It usually takes one round of showings before you really have a good grip on exactly what you're looking for. If you happen to drive by a property that is new on the market call me and I will do the research on same for you, this is what I'm getting paid for. Some of the of "NEW" as opposed to resale home sites won't let you return with your own personal Realtor if you visit the site the first time on your own, so wait for me before you look at "NEW" homes.

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Selecting a Home
Once you've narrowed your search down to one or two homes that you really like, I will do whatever research necessary to help you make your decision, but the decision will ultimately be yours, and surprisingly enough, pretty easy to make. Information concerning the area, it's schools, zoning issues, and statistical data, etc. are available from a variety of sources including local municipal governments, school boards and Chamber of Commerce offices. Visit the Community Info page to view these links. Once you've selected one home to focus on, I will do a Comparative Market Analysis on that property. This involves determining "fair market value" by looking at what other buyers paid for similar properties in the same neighborhood or area.

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Making An Offer and Negotiation
When making an offer on a specific property it is important to decide ahead of time, how much you are willing to pay, and on what terms. You already know what fair market value is, now you have to decide:

• What price you will offer
• How much deposit monies you will offer
• What chattels you want included (i.e. appliances, security system, etc.)
• What dates do you want for completion, possession and adjustment
• What subject clauses do you want in your offer

Once your offer has been presented, the seller will either accept your offer outright, reject your offer outright, or counter your offer. The counter process can go back and forth many times. It's important for all parties to keep their cool and focus on the goal.

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Removing Subjects
If, as part of the offer, you asked for time to arrange for certain things to take place - you have written what is called a "SUBJECT" offer. Offers can be subject to things like:

• Financing approval
• Inspections
• Strata info
• Sale of property

If you encounter difficulty in removing any of your subject clauses, it is crucial to let me know right away, otherwise it is very important that all deadlines are met, and subjects are removed in the required time frame. I am responsible for making sure this is done correctly.

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Closing Costs

These expenses are payable either on or before the completion day of your purchase.

• Property Transfer Tax - 1% of the first $200,000 - 2% of the balance of the purchase price. If you are a first time buyer, the Property Transfer Tax is waived on properties valued up to $325,000 in the Lower Mainland. If your purchase price is above $325,000, the Property Transfer Tax is prorated between $325,000 and $349,900 (above $349.900 full property transfer tax is applicable).
• Lawyer/Notary Fees and Disbursements - Includes your lawyer's fees for preparation of Transfer of Estate in Fee Simple, statement of adjustments, mortgage documentation. Visit www.vancouvernotary.com for more information. (a thorough explanation of the buying process from a notary's perspective)
• Appraisal Fee - Most lenders require an appraiser's report confirming that the purchase reflects fair market value. Depending on your down payment, some lenders will wave this requirement.
• Home Inspection Fee - It is the buyer's option to have a home inspection done to pinpoint defects. This is highly recommended regardless of property type, age, or apparent condition. Visit www.metrohomeinspections.ca for more information. (an excellent web site and reference tool)
• House Insurance - Required by the Mortgagee as security for their loan.
• Insurance for a strata property - contents and liability only.
• Property Tax Adjustment - Based on the Adjustment Date, you may have to reimburse the Seller for his/her portion of the prepaid property taxes.
• GST (Goods and Services Tax) - Only applicable on new housing. 6% of the purchase price minus the applicable rebate.
• CMHC Mortgage Loan Insurance Application Fee - For high-ratio loans (i.e. less than 25% down payment)
• CMHC Mortgage Loan Insurance Premium - Again, only for high-ratio loans, this fee can be paid "up front" but it is much more common to include it in your mortgage and pay it back over the length of your amortization period (usually 25 years).

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Completing Your Purchase
This is the day you "sign your life away", as most clients say! Not really. You will be signing all the financing documents, statement of adjustments, etc. The lawyer/notary handling your transaction should be able to explain every document to you in a satisfactory manner. Do not ever feel intimidated. If you don't understand...ask for further explanation. At this time you will have to provide the lawyer/notary with a cheque for the balance of your down payment, the property transfer tax, (if applicable) legals, etc. Usually the lawyer/notary will call you in advance to give you the amount required to complete. They will require certifiied funds or a bank draft.

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Moving Day
This is the last and probably the hardest step in the home buying process! A little bit of planning and foresight will make for a much smoother move. You will want to make arrangements with a moving company as soon as you can. Call at least two, to get competitive quotes. They will usually ask to come to your present home to get an idea of how much they will be moving and the distance they will need to travel. Be sure to change your address with the post office, your banks, and any credit card companies at least 30 days in advance. To avoid late payments, it's a good idea to actually call and verify receipt of the address change whenever possible. Call to order your utility hookups approximately 30-45 days prior to your move.

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