Selling a house with a mortgage



If you are thinking of selling your home and you have a mortgage you have four options to think about.  I would recommend checking with your banker and looking at the mortgage documents to find the information you need before planning purchasing your next property. 


Option #1. What is the penalty for terminating your mortgage early?  Usually this is 3 months interest penalty or the interest rate differential which ever is greater.  But the truth is most consumers don’t know what the IRD is and how it is calculated.  The IRD is calculated by taking the difference of contracted mortgage rate and the current market mortgage rate multiplied by the amount of years remaining times your mortgage balance. 


For example if you owe $300,000 with 3 years remaining, and a IRD of 1.44% that would be a penalty of $12,960 which is far greater than 3 months interest penalty.    If the penalty is this big maybe also ask your lender if this penalty can be rolled into your new mortgage. 


Option #2. Can this mortgage be moved to another property?   If you look at your mortgage contract look for the term portable or portability.   If you have this term it indicates that you can move your current mortgage to another property.  


Option #3. Can you have a blended rate?  In most cases if you are upgrading your current home to another home, you may need to borrow more money.  If this is the case ask if you can instead carry on with your current mortgage and have the additional money borrowed at a different rate.  Or if you can re-structure to get a brand new mortgage with a blended rate to avoid paying any mortgage penalties.  


Option #4. Find out from your lender what your maximum mortgage would be if you sold your property to buy an new one.  


So there you have it the 4 options I would look at if I were looking to sell my home which has a mortgage.   If you have any questions please reach out to me.  


If you are thinking of selling view my playlist of videos here or reach out to my for a free home evaluation. 

Question of the day, would you consider breaking your mortgage early to sell your home?  Yes or No  Please leave it in the comments below. I will try my best to personally answer all comments myself.     

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How much do real estate agents make in Canada?


As you know being a real estate agent is commission based position.  Most agents work independently and are self employed.  The amount of money they can make depends on the brokerage they work with, the commissions they charge ,the total amount of transactions they do per year, minus their marketing expenses.  


Also remember as this job is commission based, No sales equals no money.  Here is a fact, many real estate agents, work part time jobs to supplement their incomes when sales dry up.  And also you may end up listing a million dollar home for over 6 months and not even sell it or work with a buyer for several years without them buying anything.  


 And Yes this is not like the show million dollar listing, we have no stretch limo, we don’t work with multi million dollar clientele,  plus we do not successfully negotiate a contract within a 60 minute tv episode. Thats fantasy versus reality.  


In greater vancouver we have about 15,000 real estate agents, and on a month to month basis we have around 3000 sales.  So that means 12,000 agents don’t get paid.   So if you thinking that being a real estate agent is a very lucrative business you should re-think that idea.  To make a living in real estate in greater vancouver you would need to do about 6 transactions per year.  6 Transactions a year is actually the average I would say.   And given all of your expenses, splits with your brokerage you would be lucky to earn $45,000 net in your first year of real estate.  Obviously I am being very conservative with my numbers, and if you are a total go getter it is possible for you to earn up to 1 million dollars per year in real estate.  But as I said its fantasy versus realty.  So there you have my observations on how much other real estate agents make in Canada.


Question of the day, would you consider a career in real estate?  Yes or No  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


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How to buy a house before selling your current house


Are you thinking about buying a new home but still need to sell your current one?  Thats what I am going to talk about right now.  


So your looking to upgrade, but need to sell your property as well.  In this video I will tell you how to buy a house before selling your current one in 4 simple steps.  Markets are always changing, but I would follow this approach during a buyers market.  This is when there is lots of inventories and no bidding wars.     


Step #1. First get approval in writing with your banker, that you would qualify for a new mortgage at the price point you are looking for.  Most likely this mortgage will be approved subject to selling your current home. And if you current home has a mortgage if that can me moved to your new home, pay a penalty, or have that penalty included into your new mortgage.  In Most cases if you terminate your current mortgage early it will cost your 3 months worth in interest payments.   


Step #2. Find out the average days on the market and the value of your home.  This way you will have a good estimate on how long it will take to sell your home and how much cash you will have to close on your new home.  


Step #3 Look at new homes, and secure the property with an offer subject to sale of your current home. Also remember to negotiate for long move in dates.  2-3 months would be recommended.


Step #4 List your home, price the home at the market price, also make sure that if the buyer has a subject clause say for financing it is a few days before your subject to sale clause on the home buying side expires.  This way you can ensure that your deal is firm on your home before proceeding to firm up your deal on the buying side of your new home.  Also make sure that your move out dates match up with your move in dates of your new property. 


There you have it, how to buy a home first before selling your current one and with zero risk of being on the hook for two homes.   If you have any questions please reach out to me.  


Question of the day, would you consider buying a home first or selling first?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


As always please like, share and subscribe and become smart savvy consumer.  I make educational videos every Tuesday and videos every Friday.  This is Alex from Vancouver and Thank you so much for watching this video eh?  

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Home home price reduction strategy


Is your home not selling?  Maybe its priced too high? Thats what I am going to talk about right now. 


As you know the Vancouver market has just shifted from a sellers market to a buyers market.   In a sellers market you would price your home at or above the most recent sold.  But when we are in a buyers market the opposite should be in effect.  When the markets shift so should your pricing strategy.  Pricing your home is pivotal to your home selling success.  In this video I talk about the strategy I would use to reduce your homes price.


First Ask yourself the following 4 questions.   


#1. How long have your been on the market?  You should be getting your most amount of viewing activity within the first 2 weeks of your property being available.  In most cases if it is priced properly it would have already been sold.  If your home has been on the market for over 3 months without any changes you will be risking that your property will look stale in the eyes of the buyers.  


#2. How many viewings are you currently getting per week?  On a well priced property on average your realtor should be showing your property about 3 times minimum per week.  The realtor should also be getting about 10 inquiries per week.  


#3 How does your homes price really compare to your competition?  Did you price your home based on recently sold comparable properties, or what the current active properties are sitting at?  Remember, buying in addition to selling is competitive.  Especially when down the street there is a similar home on the market for much less.  Your neighbourhood and home type may only yield a few buyers per month. So its essential to price your home to beat out your competition.  


#4 How bad do you really need to sell?  Markets are always up or down.  Only you will know if its truly the right time in your life to sell.  Remember you can never time the real estate market.  When markets begin to fall they can fall really fast.  


So now what??  whats the prescription to your home pricing headache?   If your home is priced under $1 million I would recommend that you do price reduction increments of $50,000 per week until you get 3-5 viewings per week.  On homes over 1 million the price reduction would be $100k per week.    Remember during a falling market you need to beat out your neighbours and sell fast.


There you have it the price reduction strategy I would use if you decided it was time to finally sell your home .   If you have any questions please reach out to me.  If you are thinking of selling view my playlist of videos here or reach out to my for a home evaluation.  


Question of the day, would you consider using your reducing the price of your home?  Yes or No  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


As always please like, share and subscribe and become smart savvy consumer.  I make educational videos every Tuesday and videos every Friday.  This is Alex from Vancouver and Thank you so much for watching this video eh?  




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So the July 2018 Real Estate Numbers are out now, Today I am going to dive deep into what these numbers mean in the Greater Vancouver Market and highlight which area you should think about buying. 


Usually at this time of year it is really busy, then it begins to slowing down in August and into the fall. 

Last month’s sales in July was 29.3 per cent below the 10-year July sales average.  The market in general has fewer active buyers, we’re seeing less upward pressure on home prices across the region. This is especially in the detached home market.   Demand in the townhome and condos are also down significantly from the years past.


Overall the residential active to sales ratio is at 17% which means that for every 100 properties forsale only 17 sell.  Broken down by property type Detached homes across metro vancouver at are 10% active to sales, Condos are at 27% and townhomes are at 22%.  Prices are usually start dropping when the active to sales ratio dips below 12 % mark for sustained periods of time. 


Inventories in general have increased 21.9 percent over all property types compared to last year.  That is a big increase in inventory. Broken down by property type we see detached homes with a inventory increase of 8.6%, Condos at 46% increase, and Townhomes with a 40.6% inventory increase. 


 Speaking to Most buyers and sellers in general they are taking the wait and see approach.  The buyers will come out if they notice a great deal and I have seen this over the past weekend.  For example, Detached homes in South burnaby currently have a benchmark price of $1.68 million, the house was listed at $1 million.  At the open house there was actually a long line up of buyers waiting to enter the home to view it. It was a total zoo.  So the buyers are out there!! They are just looking for a good deal.  Provide the deal now and the buyers will come.   


Looking at the home price index across metro vancouver, detached homes are at a benchmark price $1.588 million which is a 1.5% decrease from the same month last year.  Condo benchmark is at $700,000 

which is a 13.6 % increase in price. And townhomes are at $856,000 with is a 12.1 % increase compared to last year.  


So do I see a trend here?  Which areas have dropped the most?  The best thing to do is to look at 3 month price trends, this way you can firmly see a solid direction.  


For detached homes, West Vancouver had the biggest price change over the last 3 months from a benchmark price of $2.5 million with a decrease of 4.5%, Followed by Richmond with benchmark price of $1.64 million with 2.5% decrease and North Burnaby with a benchmark price $1.55 millon

 also at 2.5% decrease.  


For Condos the biggest price drop is again was West Vancouver with a benchmark price of $1.23 million at 4.8% decreases followed by Burnaby East with a benchmark price of $701,000

 at 4.1% and Port Moody $674,000 with a 2.6% decrease.  


For Townhomes, Squamish had a  benchmark price of $874,000 with a 6.8 %  decrease over 3 months, followed by Vancouver East with a benchmark price of $892,000 with a 4.4% decrease followed by maple ridge at $567,000 with a 3% decrease.     


So if I was a buyer I would look in those areas.  The market is definitely changing and to the buyers advantage.   Prices have dropped in some areas but not in all of them.  Please visit my website here to download the entire stats package.  Its always a good idea to have a pulse on the market.  


Question of the day, Would do you think the prices are heading the greater vancouver market?  Up or Down?  Answer in the comments below.  I will make it an effort to personally respond to all the comments.   If you are in the market to sell or buy I have linked up a playlist of helpful tips in the description below.


Dowload the full stats package here



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Pros and Cons of Condo Living


 What are the pros and cons of condo living?  Thats what I am going to talk about right now.  


Pro #1, Amenities:  Imagine living like you travel.  New Condos, have outdoor spaces to walk your dog, swimming pool, sauna, gym and party room.  Plus most new condos are build by rapid transit, shopping and recreation centres.  


Pro #2, Low Maintenance:  If you are not a handyman, and the thought of picking up a hammer or using power tools is something you dread, condo living maybe your thing. Just think about the last time your tried to assemble something bought from Ikea.  Oh goodness you know what I am talking about. The strata will maintain everything on the exterior of the building including the landscaping all you need to do is to maintain whats inside your unit and pay your strata fees.  


Pro #3 Affordability - Condos are priced for much less than a house.  I am talking about average prices here.  The price gap between a condo and a single detached home in Vancouver is about $750,000.  For the price of a house you can buy two condos.   


Con #1 Strata Fees are out of your control - Strata fees are fixed by your strata council, and you have no control.  Each year the strata council will create a yearly budget and in that budget they will determine the amount strata fees you need to pay.  


Con #2 Really Bad Bylaws -  when you are living in a condo, you are living with a community of residents.  You will be living with all types of people.  Thats where the strata comes in and develops a set of bylaws.  You are truly at the mercy of the strata council.  Imagine living in a building and being forced to leave when you realize you a pregnant.  Bingo some buildings have age restrictions.   So if you plan in buying a condo make sure to read those bylaws.


Con #3 Noisy Neighbours - when you are living in a condo you literally are living beside, above or below someone.   If the walls are thin enough you may hear them singing karaoke at 11:00 at night.   I mean karaoke is ok, but please sing only if you are good at it.           



Question of the day, would you consider living in a condo?  Yes or No  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


As always please like, share and subscribe and become smart savvy consumer.  I make educational videos every Tuesday and videos every Friday.  

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Just saw this article from CNBC saying that 1 and 3 Millennials are making a big mistake withdrawing there retirement accounts to fund real estate purchases.  I think that article is wrong.  Millennials are our future and super smart.  They where practically born with an iPad in there hands.

In this video I will show you the 5 reasons why you should consider using your RRSP as your downpayment to purchase your home now. 


#1. High Tax Rates In Canada -  With our current tax rate I would says its very difficult to even save $1000 per month.  I mean our tax brackets here in Canada are excessive, plus you are also taxed again GST and PST on everyday purchases.   Your RRSP have been growing yearly because its the only tax savings vehicle we have aside from your TFSA’s.  


#2 Rental Rates are constantly rising.  This year, what we consider as affordable in vancouver west is $3,700 per month for a 3 bedroom, $2,700 for a two-bedroom and $1,900 for a one bedroom.


#3 You can borrow up to 25k tax free and if you have a spouse who is also a first time buyer he or she can borrow an additional 25k making that 50k.  


#4 Investment growth in the housing market is greater versus the returns you would receive from an RRSP.  On typical RRSP investments you can be lucky to earn 5% per year but that is only on the RRSP amount.   Condos in vancouver or have double in price over the last 10 years so its a smarter to use the RRSP funds to get into the market now versus later. 


#5 Payback time -  You will have 15 years to repay your RRSP loan with the first year being an exemption.  For example if you borrowed 25 thousand dollars that would be divided by 15, making that $1666 per year or $138 per month.  If you are not able to make the payments you would need to add this as your yearly income.   



Question of the day, would you consider using your RRSP to purchase a home?  Yes or No  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


As always please like, share and subscribe and become smart savvy consumer.  I make educational videos every Tuesday and videos every Friday.  This is Alex from Vancouver and Thank you so much for watching this video.

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Condo as a Good Investment  


I will show you the 6 reasons you should consider condos as an investment here in Metro Vancouver in 2018.  


#1. Historical Prices ( See Chart) - Looking here at the graph, prices year over year across the over the last 10 years we have seen increases, impressive increases.  Prices have almost doubled in 10 years.    This is across the entire Greater vancouver.  I don’t have a Chrystal ball but affordability is a major issue here, and I feel that prices in condos will continue to go up the long run.  You will have your stagnant growth years but thats understandable, as every asset class you would need to have a longer holding period to reap the rewards.  Timing the market as you see in this graph is difficult from years 2009 - 2015, then it took off.  


#2 Rental Rates are constantly rising.  For this year, a new three-bedroom rental on the West Side of the city with a starting rate of $3,702 per month is considered affordable.

Also regarded as affordable rental rates in the same part of the city are $2,756 for a two-bedroom unit; $1,903, one bedroom; and $1,646, studio.


For 2018, a new rental in East Vancouver with three bedrooms with a starting rate of $3,365 is deemed affordable by the city.Also for the same part of the city, the following rates will be considered affordable: $2,505 for a two-bedroom rental; $1,730, one bedroom; and $1,496, studio.


#3 Supply and Demand - show active to sales ratio.  The supply can’t keep up with the demand.  Condos are perfect for first time homebuyers, downsizes, other investors, and new immigrants.  In Vancouver our estimated population growth per year is about 100k.


#4 Lower Money Down - in general condos are more affordable than houses.  The price gap between a detached house and a condo is about $750,000.  That means your downpayment would be much much less.  You would need a minimum of 5-10% down to purchase a condo.


#5 Pre-sale Condos -  with this type of purchase, you would buy a property directly from a developer in exchange for a deposit.  It takes about 3 years to build, and you don’t have any carrying costs except if you borrowed your deposit money from a line of credit.  The bonus of this type of investment is that you can assign the contract to another buyer before the building completes if the value has increased. 


#6 Its Trendy:  The trend now is to live in brand new smaller condos close to rapid transit.  Some young folks have given up on the idea of buying that big detached home because of its affordability.  This trendy ness will further contribute to the demand for condos.      


There you have it the 6 reasons your should consider a condo purchase now as an investment.  If you have any questions please reach out to me.  If you are thinking of buying a condo, please watch my video here as I explain the 20 questions I would ask if I were to purchase a condo.


Question of the day, would you consider investing in a condo now?  Yes or No  Please leave it in the comments below. I will try my best to personally answer all comments myself.     



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Can’t find the home your are looking for in your price range?  You should start looking at over priced listings, and write lowball offers on that house coming up next.  (Me pointing to the camera)


If you have been house hunting for awhile, you may not be finding much available in your price range.  I know it sucks……Why not look for properties at a higher price range and write low priced offers?  In this video I will show you 5 things to be on the look out for so you can write that low ball offer.    


#1 Look for Over priced properties - these are properties you know should be worth much much less but the seller has dreams of selling it for over market price.  If you are searching for condos look at increments of over fifty to hundred thousand.  If you are looking for a detached home look for homes that are over your price range by $100,000 to $200,000.  


#2 Look for Stale Properties that have been listed for over 90 days - When properties are listed this long the sellers start to doubt themselves.  At this time they maybe more vulnerable and look at low ball offers.  Its best to keep tabs on these type of homes, because you want to write an offer on them before they do a price adjustment.  In most cases you may get the home for much less than the sellers price reduction.


#3 Look at the realtor comments in the description -  a realtor usually has a sense of what the market is doing, but if the realtor is unconfident on the pricing of the home, they may reveal this in the realtor or public comments.  Be on the the look out for comments such as will look at all offers, and motivated seller.


#4 Look for Vacant homes - these are homes that you can tell nobody lives in.  There is no furniture, no food in the cubboards, and maybe nobody maintaining that lawn outside.  The sellers most likely already purchased another property, or this is just an investment property.  They may look at your low offers.  As these sellers may need the cash from the sale to fund other investments.  


#5 Look for Tenant Occupied homes - Sometime selling tenant occupied properties can be a nightmare.  The tenants usually restrict the amount of viewings and this also hurts the realtors marketing.  Look for these types of properties for writing offers as the sellers may begin to get desperate with the low viewing activity.   


Question of the day, What other strategies have you ?  If not why? Please leave it in the comments below. I will try my best to personally answer all comments myself.     


If you want to view other helpful videos why not consider subscribing to my youtube channel here


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As you may know purchasing real estate is already really expensive and closing costs can add thousands of dollars to your purchase price.  Closing costs should really be considered first before planning your real estate search.  In this video I will show you the 12 closing costs you should expect and the estimated costs of each.  

(Smile)


#1 the Appraisal fees - Before your lender approves your mortgage, you may be required to have the property appraised. Sometimes your lender will cover this cost. If not, you're responsible. The fee ranges from $300 to $450 plus GST.


#2 the Land survey fees - Lenders may require a survey of the property.  This is usually when you purchase a detached home.  The fee ranges and is typically $500 plus GST.


#3 Home inspection fees- A home inspection is a report on the condition of the home and includes structural and moisture problems, as well as electrical, plumbing, roofing and insulation. The fees range and is typically $500-$900 depending on the size of the home and the complexity of the inspection. Some inspectors also charge an additional fee for an older home or a home with a secondary suite, a crawlspace, or a laneway home.  Check out the cards here on how to find a good home inspector.


#4 GST,  Expect to pay 5% GST on all brand new homes with a purchase price of over $450,000.   


#5 Property Transfer Tax - which is calculated at 1% of the first 200k and 2% on the balance up to 2million, and 3% on the amount over 2 million.


Qualifying first-time home buyers may be exempt from paying the PTT if the purchase price of their home is priced up to $475,000. There is a proportional exemption for homes priced between $475,000 and $500,000. At $500,000 and above the rebate is Zero


Qualifying buyers of new homes may be exempt if the purchase price of their home is priced up to $750,000. There is a proportional exemption for homes priced between $750,000 and $800,000. At $800,000 and above there's no rebate. 


#6 Foreign Buyers Tax - This is an extra 20% applied onto your purchase price of your home if you are not a citizen of BC or a Permanent resident.  


#7 Mortgage insurance

The federal government requires high-ratio mortgages with less than 20% down payment to be insured against default. The cost ranges between 0.60 to 4.5 %of the mortgage amount which is added to the mortgage principal.  As of February 15, 2016, the federal government requires a 10 per cent down payment requirement on homes valued at $500,000 - $1 million, that need mortgage insurance. Homes valued at $1 million+ require a minimum down payment of 20 per cent. Mortgage insurance is not available for homes in this price range


#8 Mortgage life insurance

If the owner dies, this type of insurance will pay off the balance owing on their mortgage.  You can purchase mortgage insurance from your lender or term life insurance.  


#9 Home insurance

Most lenders require property buyers to carry fire and extended coverage insurance and liability insurance.  I would recommend that your insurance also cover water damage. As one small water leak can cause up more than $50,000 worth in damages.  


#10 Moving fees

Moving fees vary depending on the distance moved and whether professional movers do all of the packing. Rates vary.


#11 Adjustments 

Depending on the Contract of Purchase and Sale, a property buyer will likely be required to reimburse the seller for any prepaid property taxes. The lender may require the buyer to add property tax instalments to monthly mortgage payments. Utility bills, A buyer is typically required to reimburse the seller for any prepayments for municipal sewer and water fees.


Rent and security deposits - If you are purchasing a tenant occupied property and the tenancy continues, the buyer receives the security deposit from the seller with accrued interest because the buyer is responsible for reimbursement when the tenant leaves.


#12 - The Lawyer or notary fee, this fee is necessary as they are the ones that process the paperwork at the land title office and transfer your money to the sellers lawyer.  Expect to pay about $1000 for their services. 


So thats it, the 12 closing costs here in Vancouver, if you are interested in viewing my buyers video please click the playlist in the description below or on top in the cards.     


If you liked this post you can subscribe to my youtube channel here

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Yesterday the Bank of Canada announced that interest rates will go up another quarter percent and its the forth time they had increased it this year with another potential 3 increases for 2018. The dates are in Sept 5, Oct, 24 and December 5. As you can see with every increase they did it was a quarter percent. Here is the interest rate history from the Bank of Canada website. The BOC mentioned that they want to increase the rates up to “NORMAL LEVELS”, so what does that mean? My best guess is that the BOC would eventually increase interest rates up to what it was when we had our two most recent financial downturns in 2001 and 2008. So rates can go up as high as 4.0 % to 5.5 %


So what is a a quarter percent in real dollars? A quarter percent increase on every $100,000 borrowed is $20 extra per month. With a potential 3 extra increases that can be an extra $60 per month. Thats like a gym like a gym membership. Now things are starting to add up especially since most home owners owe more than $100,000. If you are a homeowner and you are on a variable rate mortgage you should begin to think about locking in. If you are a home buyer expect qualifying for a mortgage to be just a bit more difficult again. The Bank of Canada Stress test rate should also go up by another quarter point. So if you make a $100,000 per year you should only qualify for about $390,000 thats about a $10,000 decrease in purchasing power.

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Did you just miss out on your dream home? Let me show you how to use back up offers to your advantage, coming up next. As you may know purchasing real estate can be very competitive. When you finally find a property that you are interested in, their is a good chance that other buyers are interested in the same property. But as soon as you decide you want to purchase the property another buyer may have already tied it up. Hey, I understand!!!!! Its a bad feeling. As a realtor in this situation I would suggest writing a back up offer. In this video I will show you why you should write a back up offer and how it may save you money. New Videos: Real Estate Tips Every Tuesday, and Market Report Fridays. Subscribe: https://bit.ly/2yqdfVf
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So the June 2018 Real Estate Numbers are out now, Today I am going to dive deep into what these numbers mean in the Greater Vancouver Market.  With home sale activity dipping below long-term historical averages, the supply of homes for sale in Metro Vancouver* reached a three-year high in June.


The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,425 in June 2018, a 37.7 per cent decline from the 3,893 sales recorded in June 2017, and a 14.4 per cent decrease compared to May 2018 when 2,833 homes sold.


Last month’s sales were 28.7 per cent below the 10-year June sales average.
“Buyers are less active today. “Rising interest rates, high prices and more restrictive mortgage requirements are among the factors dampening home buyer activity today.”


There were 5,279 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in June 2018. This represents a 7.7 per cent decrease compared to the 5,721 homes listed in June 2017 and a 17.2 per cent decrease compared to May 2018 when 6,375 homes were listed.


The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 11,947, a 40.3 per cent increase compared to June 2017 (8,515) and a 5.8 per cent increase compared to May 2018 (11,292). This is the highest this total has been since June 2015.


“With reduced demand, detached homes are entering a buyers’ market and price growth in our townhome and apartment markets is showing signs of decelerating.”


For all property types, the sales-to-active listings ratio for June 2018 is 20.3 per cent. By property type, the ratio is 11.7 per cent for detached homes, 24.9 per cent for townhomes, and 33.4 per cent for condominiums.

Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.


The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,093,600. This represents a 9.5 per cent increase over June 2017 and is virtually unchanged from May 2018.

Sales of detached homes in June 2018 reached 766, a 42 per cent decrease from the 1,320 detached sales recorded in June 2017. The benchmark price for a detached home is $1,598,200. This represents a 0.7 per cent increase from June 2017 and a 0.6 per cent decrease compared to May 2018.


Sales of apartment homes reached 1,240 in June 2018, a 34.9 per cent decrease compared to the 1,905 sales in June 2017. The benchmark price for an apartment is $704,200. This represents a 17.2 per cent increase from June 2017 and a 0.4 per cent increase compared to May 2018.


Attached home sales in June 2018 totalled 419, a 37.3 per cent decrease compared to the 668 sales in June 2017. The benchmark price of an attached home is $859,800. This represents a 15.3 per cent increase from June 2017 and is virtually unchanged from May 2018.


So the results of the figures are obvious here, detached homes will continue to see softening in pricing, for condos and townhomes we still have an active market, but if demand continues to decrease and inventories continue to increase at the same rate as it has since May 2017 we should see a buyers market for condos and townhomes by the end of the year.


New Videos: Real Estate Tips Every Tuesday, and Market Report Fridays. Subscribe: https://bit.ly/2yqdfVf

Real Estate Tips for Buyers Playlist:
https://bit.ly/2tjGhRh

Real Estate Tips for Sellers Playlist:
https://bit.ly/2Kaelcf

Realtor Servicing: Vancouver, Burnaby, Surrey, Richmond, North Vancouver, West Vancouver, ,Coquitlam, Langley.



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I have sold a property at 413 19936 56 AVE in Langley.
Penthouse 2 bedroom 2 bath, luxurious 16' vaulted ceilings in the Master bedroom. Great floor plan boasting a spacious open concept Kitchen that's an entertainer's dream offering stainless steel appliances and plenty of countertop and cupboard space. North Facing with mountain views, bright unit with electric fireplace and balcony for your morning coffee. Exceptional Investment Property - RENTALS ALLOWED, NO RESTRICTIONS. Bring 2 pets of any size. Underground parking & storage locker, LOW fees, close to transit, shopping, entertainment.
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Want to purchase an assignment of contract?

 

 

 

 

Let me show you how

 

As you may know purchasing a brand new condo from the developer as a pre-sale is really difficult. You may line up for hours if not days outside a presentation centre and still miss out on an opportunity to purchase. Hey, I understand!!!!! Its frustrating, alot of these units are sold to “VIP buyers” or “insiders”. Another method to buy into these new condo developments is thru Assignment of Contract.
The first place to look for an assignment of contract is thru www.realtor.ca. On realtor.ca all properties marketed are managed by the agent for the seller. Realtors have a duty to go thru all the paperwork to confirm the property details before uploading it to realtor.ca. In my opinion Realtor.ca is one of my go to trusted sources.

 

A second source to find assignment of contracts can be from kijiji or craiglists. On these platforms you can easily be scammed as these photos can easily be copied from the developers website. If a realtor had posted the ad it should be more reliable.

 

A third source to find is thru your local realtor, which may have a personal database of assignment of contracts available to purchase. Why do they have this personal database? Because some developers do not allow assignments to be marketed on the MULTIPLE LISTING SERVICE system. So realtors, including the brokerages they work for form exclusive assignment groups to market properties between agents.

 

Now that we know where to find these assignments, what do you need to look out for as a buyer?

 

I would read all the developers disclosure statements, floor plans, and site plans to verify all the details of the project and the unit.

 

The second thing I would look out for is the residency of the seller. Why is this important?? If the seller is a foreigner you could be on the hook for unpaid taxes if you structured you deal incorrectly.


The third thing to consider is where will the assignment moneys be held and when it needs to be paid. Some contracts have it paid directly to the seller, while the safer bet would be to have the deposits paid in a real estate companies trust account or brokerage and monies to be released upon registration at land title office when the project completes.


The forth thing to do is go to the construction site. Is there people working? Is the construction progressing on time. There have been cases recently that the developer has halted construction and cancelled the project entirely. Why do they do that? They do it when it becomes more profitable to flip the land versus completing the project. The last thing I would be aware is the price the assignment is offered at. Is the price desirable and how does it compare to properties that are currently for sale?

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Home inspection tips for buyer 

 

Buying real estate? You may need a home inspection  

 

Buying a home can be super stressful, and buying a home with problems can be a nightmare.  This video will show you 5 great things you need to know about home inspections.

 

Spring and Summer time is usually the most busiest time for home inspectors as this is the time most buyers are purchasing real estate. Once you have an accepted offer, I would recommend finding a home inspector immediately 

 

You can start your search online by going to a website www.hiabc.ca which is the home inspectors association of BC. 

Then you can cross reference then on the Better Business Bureau Website and look for an A+ Grade, you can read their reviews there or you can even go to google to find home inspectors with good reviews. 

 

When you have found your home inspector, checked that they are certified and have a A+ rating on the Better Business Bureau website you should ask one more question.  Find out what is included in your home inspection contract.  Is there an extra cost to inspect the garage, the appliances, and mold.  You can find a complete list of whats included in a typical inspection and whats not included 

 

https://hiabc.ca/files/HIABC%20Scope%20of%20Inspection(1).pdf

 

 

If after viewing this scope of inspection list and you feel you don’t want an home inspection that is totally ok as Home inspections are always optional.

 

At the end of every home inspection, your inspector should be giving you a detailed home inspection report for you to go over.  This should include photos of the areas that need to be repaired. 

 

Here is a bonus tip, if the amount of deficiencies is more than $500 I would recommend negotiating a discount off the purchase price or ask the seller to complete the repairs before you move in.  

 

Did you hire a home inspector lately?  What did they find? Please leave it in the comments below.    

 

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So the May Real Estate Numbers are out now, Today I am going to dive deep into what these numbers mean in the Vancouver Market, Coming up next.

 

 

 

So lets start off with the number of sales compared to last year for detached homes in Vancouver West, the month of may had 91 sales, which is a 51% decrease from last year.  The prices for detached homes have decreased 4.4% to 3.43 million with inventories up about 34%.  We are in a Buyers market for homes in Vancouver west.  Which means you have time to negotiate as a buyer and prices are trending in a downward direction.

 

 

 

For Condo in Vancouver West, sales have decreased 31.9% with an increase in inventories of 26.7 % and a price increase of 13.4 percent compared to last year.  Vancouver west condo prices are still on the rise with a benchmark price of about $845,000.   Vancouver West condos are in a sellers market which means inventories are less than the demand, and prices are still increasing.  

 

For townhouses in Vancouver West, sales have decreased 37% as inventories increased by 66.7%, townhome prices are still on the rise with a benchmark price of $1.3 million.  Townhomes are in the balanced market, where there is an equal amount of supply and demand.  Prices should stay stable for this property type.  

 

In Vancouver East see detached homes at a balanced market.  The benchmark price increased 2 %  since last year at 1.54 million with an inventory increase of just 7%.  Prices for detached homes in Vancouver east should remain stable. 

 

 

 

Condos in Vancouver east have increased in price by 15.9% compared to last year with 175 sales and an increased inventory 32%.  Prices are still on the rise for condos in Vancouver East with a benchmark price $575,000. 

 

Townhouses in Vancouver East had an increase in price of 16.2% with 29 sales, and 98 listings.  Prices are also rising for townhomes in Vancouver East.   Vancouver East Condos are in a Sellers Market, with a benchmark price of $925,000.

 

Question of the day, Would do you think about this Vancouver East Market?  Are prices heading down?  Answer in the comments below.  I will make it an effort to personally respond to all the comments.   If you are in the market to sell or buy I have linked up a playlist of helpful tips in the description below.

 

I will be posting new market update videos every Friday for different areas across metro vancouver, and educational real estate tips every Tuesday.  This is Alex Lam from Vancouver and bye for now.

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What does being unrepresented mean?

 

 

Are you Buying real estate soon? Do you know what being an unrepresented buyer means?  

 

Hi I am Alex Lam from Royal Pacific Realty , and if this is the first time you are here, and you are interested in all things real estate in the Vancouver area, be sure to hit that subscribe button and that little bell.  I post videos every Tuesday, this way you won’t miss anything important. 

 

As you know buying real estate can be ultra competitive, stressful, and complicated.  Sometimes you write offers on properties and never get it.  Hey, I understand!!!!! Its frustrating.  Maybe you are thinking of buying real estate directly from the listing agent, and this would give you a leg up on the competition.  

In this video I will show you why you should only work with an agent under a designated agency and not as an unrepresented party.  

 

As an unrepresented party you are not entitled to the special legal duties.  That means No Loyalty, No duty to avoid conflict, No full disclosure, No confidentiality.  So whats bad about that???  That means that the agent helping you under this arrangement can share your information to other parties , even the seller, even use your offer to write their own offer and even help multiple buyers compete against you on the same property.  

 

Unrepresented Buyer in BC

 

 

 

Also If you purchased real estate as an unrepresented party you may not have much legal recourse except if something was fraudulently represented.  

 

Here is a pro tip.  Get to know a few agents that you can hire as your designated agent before you begin your home search.  If it happens that your current buyers agent is also the listing agent for the property you love, then you can write an offer on that property with that second agent you found.  This way you will not become an unrepresented buyer.   So thats it, If you are looking to buy real estate in the greater vancouver area please reach out to me.

 

Here is what you would get as a client: 

 

Client Relationship in BC Real Estate

 

 

Question of the day, Would you ever want to be an unrepresented buyer?  Answer in the comments below.  

 

If you like this video please give it a thumbs up and subscribe. I will be posting new videos every Tuesday from now on.  Bye for now.  

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So the May Real Estate Numbers are out now, Today I am going to dive deep into what these numbers mean in the Burnaby Market.

 

So lets start off with the number of sales compared to last year for detached homes in south burnaby, the month of may had only 29 sales, which is a 42% decrease from last year.  The prices for detached homes have stayed stable at 1.67 million with inventories up about 11.7%.

 

Burnaby South May 2018 Real Estate Report

 

For Condo in South Burnaby, sales have decreased 44% with an increase in inventories of 22.1 % and a price increase of 19.4 percent compared to last year.  South burnaby condo prices are still on the rise with a benchmark price of $729,000.

 

For townhouses in South Burnaby, sales have decreased 65% as inventories increased by 45%, townhome prices are still on the rise with a benchmark price of $841,000.

 

In Burnaby East, we see as similar trend compared to South Burnaby.  Detached homes in east burnaby had 11 sales with an inventory increase of 47% compared to last year.  Detached homes in Burnaby East have increased in price by 6.2% compared to last year with a price of $1,314,800.

 

Burnaby EAST May 2018 Real Estate Report

 

Condos in Burnaby east have increased by 20.5% compared to last year with 11 sales and an increased inventory 68%.  Prices are still on the rise for condos in burnaby east. 

 

Townhouses in Burnaby East 18.7% with 5 sales, and 11 listings.  Prices are also rising for townhomes.   

 

In Burnaby North, for detached houses we see a balanced market.  With 39 Sales out of 223 active properties.   Sales indicate a 30% decrease with an inventory increase of 18.6%.  The prices for North Burnaby Detached homes have increased by .8% since last year.  The prices will stable for this property type. 

 

Burnaby North May 2018 Real Estate Report

 

Condos in North Burnaby have increased in price 21% since last year with a benchmark price of $650,000 with 81 sales and 144 listings.  Prices for condos will continue to rise in the North Burnaby Area.

 

Likewise prices for North Burnaby for Townhouses have increased 13.7% with a price of $767,000.  Total sales for townhomes was 22 sales with 39 listings.   Prices will continue to increase for townhouses in North Burnaby.  If you are thinking of buying or selling real estate, I have a link to a playlist in description for buyers tips and seller tips.     

 

I will be posting new market update videos every Friday for different areas across metro vancouver, and educational real estate tips every Tuesday.  Subcribe to my youtube channel so you don't miss anything important:  

https://www.youtube.com/channel/UCPXb9c_dyeEIRd3KlDWsUvw?sub_confirmation=1

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Please visit our Open House at 413 19936 56 AVE in Langley.
Open House on Saturday, June 23, 2018 2:00PM - 4:00PM
Penthouse 2 bedroom 2 bath, luxurious 16' vaulted ceilings in the Master bedroom. Great floor plan boasting a spacious open concept Kitchen that's an entertainer's dream offering stainless steel appliances and plenty of countertop and cupboard space. North Facing bright unit with electric fireplace and balcony for your morning coffee. Exceptional Investment Property - RENTALS ALLOWED, NO RESTRICTIONS. Bring 2 pets of any size. Underground parking & storage locker, LOW fees, close to transit, shopping, entertainment. Open House June 23-24 Sat-Sun, 2-4pm
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