When it Comes to Offers, it’s Not Always about Price

When considering which of two or more competing offers to accept for your home, there is no doubt price plays a huge role. After all, if Offer #1 is $10,000 higher than Offer #2, that’s an enticing difference that puts thousands of extra dollars in your pocket. 

In that circumstance, accepting the lower offer may be your best move. 

There’s also financing to consider. Most sellers will attach a certificate from their mortgage lender to show that they can afford the home and will likely secure financing with little difficulty. If you get an offer where the ability of the seller to get financing is in doubt, that’s a red flag. 

The closing date is another important factor. Offer #1 might propose a closing date that’s perfect for you, while Offer #2 is four weeks later. If you’ve already purchased another home, you might require a month of bridge financing if you accept Offer #2. There’s nothing wrong with that per se, but the costs and additional hassle are factors you should consider. 

As you can see, assessing competing offers isn’t as easy as it looks. Fortunately, as your REALTOR®, I will guide you toward making the right decision. Call Alisa Sakamoto today at 604.644.1044

How Much Time Should You Spend Viewing Homes?

                                      


Figuring out how much time you should spend viewing properties for sale is a little like asking, “How long should I spend trying on shoes?”

The answer seems obvious: As long as it takes to make a decision!

Buying a home is significantly more complex than purchasing shoes – and the stakes are higher too! You need to make sure you have all the information necessary to confidently make the best decision.

There are basically three stages to viewing a property:
1. Macro
2. Micro
3. Professional

When you view a home on a macro basis, you’re looking at it from an overall perspective. For example, you may do a general walk-through to get a first impression and determine if the property has the basic features you need, such as the number of bedrooms and the size of the backyard.

Macro viewing is often the fastest stage in the viewing process and can sometimes take just a few minutes.
If you like what you see, then it’s onto the micro stage. At this stage you take a closer look at the details of the property. You might, for example, spend extra time in the master bedroom imagining how your furniture would look and fit.

The micro stage takes longer simply because the home is now on your shortlist. You’re interested and are considering making an offer.

Finally, the professional stage involves getting a qualified home inspector to go over the property with a fine tooth comb. That typically occurs after you’ve made an offer. As your REALTOR®, I will guide you through a viewing so you’ll know what to look for and can make a smart, informed decision. Call Alisa Sakamoto at 604-644-1044

Finding an Honest Home Improvement Contractor




You can’t call yourself a dentist unless you have specific hard-earned credentials. Just about anyone, however, can hang a shingle and call himself a home improvement contractor. That’s why choosing a reputable one is so difficult.

Here are some tips:
• Find out if he or she is truly in business full-time. A part-time or occasional contractor may not have the experience necessary to do a great job.

• Ask about licenses and other credentials. Some contractors have accreditations from professional and trade associations.

• Review his or her project portfolio. A reputable contractor will have photos and other evidence of work completed for similar clients.

• Check online for reviews. If there are more than five poor reviews within the past three years — that’s a red flag.

• Ask for references. Then, call at least one. Finally, the best contractors are those that get recommended by people you trust.

Looking for a contractor recommendation? Call Alisa Sakamoto 604.644.1044

Foreign Buyers 15% Property Transfer Tax (PTT)

This additional PTT applies to residential property buyers in Metro Vancouver communities including Anmore, Belcarra, Bowen Island, Burnaby, Coquitlam, Delta, Langley City and Township, Lion’s Bay, Maple Ridge, New Westminster, North Vancouver City and District, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, Surrey, Vancouver, West Vancouver, White Rock, and Electoral Area A. Exemptions include residential property on the Tsawwassen First Nation and non-residential property.

Residential property includes detached units, duplexes, multi-family units, apartment buildings, condominiums, mixed-use (residential portion only), manufactured homes, nursing homes, rest homes, bare, undeveloped land and farms.

This tax is charged when foreign entities, including foreign nationals or foreign-controlled corporations, register their title. The new PTT applies even if the contract of purchase and sale was signed before August 2, 2016.

The new 15% PTT is in addition to the current PTT which is charged at a rate of:

1 per cent on the first $200,000;
2 per cent on the portion between $200,000 and $2,000,000; and
3 per cent on any amount over $2,000,000.
Example

$1.5 million home

A foreign buyer of a $1.5 million home will pay

1% on the first $200,000 = $2,000

2% on the portion between $200,000 and $2,000,000 = $26,000

15% foreign buyer PTT = $225,000

Total PTT: $253,000

Revenue from the new tax will help fund a new Housing Priority Initiatives Fund for provincial housing and rental programs. The government will announce the details of this fund in September.

Learn more from this Ministry of Finance Tax Information Sheet.

This article is courtesy of rebgv.ca

The provincial government announced new rules regulating contract assignments, effective May 16.

Real estate contracts are now required to include two terms: one that requires the seller's consent to assign the contract, and one that requires that any profit from an assignment goes to the original seller. Clients can instruct REALTORS® to omit or change these clauses.

The buyer's Realtor is also required to inform the seller if one, or both, of these clauses are removed from their offer. The seller's Realtor must also disclose if the proposed contract is assignable or not - including any conditions that would be applicable to the assignment.

Be aware, if you're a seller and a buyer requests you waive the assignment clause, they may be looking to re-sell your property before the contract completes. If you have questions, talk to your Realtor or legal advisor before you sign anything.

To protect yourself as a buyer in an assignment deal, make sure that: 

1. You work with a REALTOR®. Your REALTOR® will help protect your interests and bring knowledge of the provincial legislation that governs real estate transactions.
2. the original Contract of Purchase and Sale has the mandated assignment clause requiring the seller's approval before it can be assigned;
3. the original seller is aware of, and approves of, the assignment;
4. if there is profit from the assignment, the profit reverts back to the seller unless otherwise specified in the original Contract of Purchase and Sale;
5. the property is or was listed for sale;
6. the identity of every individual involved in the transaction has been verified;
7. all money already paid and owed is accounted for and dealt with in the assignment contract;
8. you understand the additional risk associated with paying the assignment fee before the original contract is finalized; and
9. you consult an accountant to understand the tax implications.