Before you can go house hunting, there are some important steps you need to take!
The first part of the Buying Process involves finding your ideal home and the second part of process involves the legal steps.
Knowing how much you can afford directly influences the location and the type of property you can purchase.
The first step is to meet with your bank (or mortgage broker) so you know exactly how much your lender will advance for the mortgage. This pre-approval process saves you time and effort before an offer is presented! Your lender will provide written confirmation of securing a fixed interest rate for 60 days or more. If you are a first time home buyer, it’s a good idea to ask your lender about using RRSP’s towards your down payment.
It’s always a good idea to keep a list of professionals in mind. You’ll need a lawyer to prepare the legal documents, and there are other professionals that you should consider using such as a home inspector.
Now that you’re ready to purchase a home and you know your budget, it’s time to begin searching for properties:
Once you start looking, it won’t take long until you know exactly what you are looking for.
Once we have found your ideal home, the next step of the process is to prepare an offer:
Market Value – What should you pay for the property? I will provide you with a full market analysis of the surrounding area and/or building activity. This will give you a relative estimate of the current market value but improvements or features such as new flooring, additions or renovations will add value to the home. For example, in downtown Vancouver, a condo with 1 or more parking stalls and/or storage/locker(s) will most likely attain a higher purchase price than a similar unit on a higher floor that doesn’t have parking or additional storage space. I’ll advise you on the best strategies to proceed.
Presentation – I’ll prepare a Contract of Purchase and Sale and negotiate the terms with the Seller on your behalf. It’s my duty to negotiate the best price for you as well as other details like . I’ll recommend and specific subject clauses. The clauses are written in your benefit so that you have time to do a property inspection, finalize your financing and review all the documents.
There are 2 basic stages to an offer – Acceptance and Subject Removal:
Acceptance – Both you and the Seller have agreed to the terms set in the Contract of Purchase and Sale. Congratulations! What happens next? You need to remove Subjects!
Subject Removal – Now is the time for due diligence. Remember the list of professionals that you prepared earlier?
Now is the time to review documents, contact your lender or mortgage broker to finalize mortgage details, hire a home inspector etc. It’s also the time for you to confirm features such as the lot size, zoning, etc.
Once you’re satisfied with the property, then it’s time to remove subjects and prepare a bank draft for the deposit!
When subject removal and the bank draft are delivered to the Seller, the contract is considered firm.
This is the last stage before you officially own your home! There are a number of documents and details that your lawyer or notary requires to complete the purchase.
Don’t worry! I’ll ensure they have this information well before your appointment.
You officially own your new home once the funds are transferred to Seller and the Title of the property is transferred to you!
Congratulations! This the final step in the Buying Process! Today is the day you receive the keys to your new home!
At this stage, Completion is finalized, the funds have been transferred to the Seller and you’ve received Title in return.
Possession typically happens 1-2 days from Completion. The delay is meant as a safeguard in case there’s an issue with Completion.
A couple other important steps happen on Possession Day:
I’ll coordinate the key exchange with the Seller’s agent. Then we can do the final walkthrough of your new home!
1. We’ll check the property to ensure all the appliances are in working order as well as the general condition. The general condition needs to be in substantially the same as when you last viewed the property.
2. We’ll also double check that the Seller left any specified items as noted in the Contract (if any).
After the final walkthrough is completed, I’ll leave you to enjoy your new home! Congratulations again!
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