Purchasing real estate is an exciting period, especially if this will be the first home you will ever buy. At the same time, purchasing real estate for the first time can be a little intimidating for many people. To help you out, we have put together a short guide for purchasing real estate in British Columbia. With this guide, we hope that you experience in purchasing property is a smooth and enjoyable one.
Taking Note of Expenses
Buying property is a large financial commitment, so be sure your finances and expenses are all in order. In particular, be sure to take note that the expenses associated with your purchase far extend past the price of the home. Other expenses you should be aware of and set a budget for include:
- Legal Fees & Disbursements
- GST and PST (if applicable)
- Land Transfer Tax
- Property taxes and adjustments (reimbursed to the vendor)
- Interest on interim financing, if any
- Utility Payments
- Strata or Condominium Fees
- Estoppel certificate fee
- Survey Fee
- Home Inspection Fee
- Water quality and quantity certificate
- Appraisal Fee
- Mortgage broker’s fee (if applicable)
- Mortgage Loan Insurance Premium (if less than 20% down)
- Mortgage Loan Insurance Application Fee (if less than 20% down)
- Moving Expenses
- Renovations and repairs
- Furniture, paint, carpeting, window coverings, etc.
- Service and Utility Hook-up Fees
- Property/Condominium Insurance
- Mortgage Application Fee
- Deed and/or Mortgage Registration Fee
You should also consider recurring monthly fees you will need to take care of once you’ve moved into your new home:
- Mortgage Payment
- Water and/or Sewer Payments
- Electricity and Gas Services
- Cable, Telephone and Internet Services
- Property Taxes
- Strata or Condo Fees
- Repair/Maintenance Expenses
- Homeowner’s Insurance
Making an Offer
When making an offer to a seller, one of the best moves you can make is to offer the highest down payment you can afford. The higher the down payment, the more serious you come off as a buyer. The fact that you are offering more cash upfront can only endear you to a seller better, which can swing a decision in your favour.
As you make your written offer, be sure to work closely with your REALTOR®. An experienced REALTOR® can help you determine a fair offer in terms of price and the “terms”, a.k.a. conditions, of your purchase. These terms are especially helpful if a home inspection has shown that the home in question will require a few repairs.
After submitting your initial offer, negotiations between you and the seller may occur. In such cases, the experience and knowledge your REALTOR® possess will prove invaluable, which is why it is highly advised to have a trusted local REALTOR® on your side as you go around and look at homes for sale.
Get in Touch Today
If you require the help of a trusted REALTOR® in Kelowna, or if any of the homes for sale on our site have caught your eye, please do not hesitate to schedule a consultation. You may reach us by calling 1-250-801-2129, or by sending us a message through our Contact page. We look forward to hearing from you.