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?  

Read full post

 

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


Read full post

 

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

Read full post

 
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
Read full post

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?

Read full post

 

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.    

 

Read full post

 
If you’re a first-time homebuyer or haven’t purchased a home in awhile, today’s topic is for you. I have 10 tips you can use to make your next home purchase smoother and more efficient. The first tip I have is to check your credit. A good credit score is essential to buying a home, since it proves you’ve got a good track record for paying off past debts such as credit card bills and student loans, and help you qualify for lower interest rates. For the full list of tips, watch my latest video.
Read full post

 

The market can be a highly competitive place. Today, I’ve got five tips that will help you win a bidding war.

  1. Do your homework. Do you know if the seller has already bought a new home? If they haven’t, you could boost your chances by offering to let them close quickly and rent back the property from you until they find a new home. However, if they have already bought a home you can still get ahead by offering to match their closing date.
  2. Write a clean offer without subjects. Get your financing and inspection approved before writing an offer. Submitting a subject-free offer puts you in a better position than those who have submitted offers with subject conditions.
  3. Present the offer in person and quickly sign counteroffers. Face-to-face interactions are always better than those done via email or the phone. Since most offers aren’t carried out this way, your interaction with the seller is going to stand out.
  4. Provide a deposit check with your offer. The deposit check will demonstrate your offer’s financial strength. Deposits for amounts greater than 5% will also help your offer go the extra mile.
  5. Appeal to the seller’s emotional side. If you aren’t submitting your offer in person, take a photo of yourself and attach it to a letter explaining what you love about the seller’s home. Letting the sellers know how much this property would mean to you can add a lot of weight to your offer. I’ve personally seen a number of offers win using this strategy.

“Face-to-face interactions are always better than those done via email or the phone.”

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Read full post
Categories:   Aubrey Elementary | BC | BC Assessment | Big Lot Burnaby | Bolivar Heights, North Surrey Real Estate | Brentwood Park, Burnaby North Real Estate | Brighouse, Richmond Real Estate | burnaby | Burnaby home | Burnaby Home Buying | Burnaby Home seller | Burnaby House Forsale | Burnaby Lake, Burnaby South Real Estate | Burnaby Market Snapshot | Burnaby Real Estate | Burnaby Real Estate Market | Buye | Buyer | Buyer tips | Buyers | Buyers Tips | Canada | Champlain Heights, Vancouver East Real Estate | Closing Costs | Cloverdale BC, Cloverdale Real Estate | Coal Harbour, Vancouver West Real Estate | Collingwood VE, Vancouver East Real Estate | Commission | Condo | Condo Living | Coquitlam West, Coquitlam Real Estate | Crescent Bch Ocean Pk., South Surrey White Rock Real Estate | Downtown VW, Vancouver West Real Estate | East Newton, Surrey Real Estate | Edmonds BE, Burnaby East Real Estate | False Creek, Vancouver West Real Estate | First | First time home | First time home buyer | Fleetwood Tynehead, Surrey Real Estate | Fraserview NW, New Westminster Real Estate | Fraserview VE, Vancouver East Real Estate | Glossary of Real Estate Terms | Grandview Surrey, South Surrey White Rock Real Estate | Greater Vancouver | Guildford, North Surrey Real Estate | Hamilton RI, Richmond Real Estate | Hastings East, Vancouver East Real Estate | Highgate, Burnaby South Real Estate | Home | Home Insurance | Home Sell | Home Value | Homes | Interest Rates | July 2018 Greater Vancouver Real Estate Market Report | June 2018 | Killarney VE, Vancouver East Real Estate | Knight, Vancouver East Real Estate | Langley | Langley City, Langley Real Estate | Langley Condo | Main, Vancouver East Real Estate | mar | Mark | Market | Market report | Market Update | Market Value | May market recap | Metrotown, Burnaby South Real Estate | Mistakes | Morgan Creek, South Surrey White Rock Real Estate | Multiple Offers | North Coquitlam, Coquitlam Real Estate | November Market Report | Panorama Ridge, Surrey Real Estate | Parkcrest, Burnaby North Real Estate | Parkcrest, North Burnaby | Photography | Real estate | Real Estate tip | Realtor | richmond | RRSP Home buyers Plan | S.W. Marine, Vancouver West Real Estate | Scottsdale, N. Delta Real Estate | Seafair, Richmond Real Estate | Sell | Seller | Seller Tip | Selling | selling home | Selling Real estate | South Slope, Burnaby South Real Estate | Strategy | Surrey | Tips | Upper Deer Lake, Burnaby South Real Estate | Uptown NW, New Westminster Real Estate | Vancouver | Vancouver Condo | Vancouver Home | Vancouver Home Buyer | Vancouver Home Buying | Vancouver home seller | Vancouver Homeowner | Vancouver Market report | Vancouver Real Estate | Walnut Grove, Langley Real Estate | West Cambie, Richmond Real Estate | West Coquitlam, Coquitlam Real Estate | Whalley, North Surrey Real Estate | White Rock, South Surrey White Rock Real Estate | Yaletown, Vancouver West Real Estate
Categories