FAQ for Home Buyers, Learn the Basics

The most optimal time to make an offer is between November and February. In the winter, it can take longer to sell, which can create more pressure for sellers to accept any offer in front of them. The market picks up again in February, and when spring rolls around, it is very competitive for buyers. It shouldn’t be a short timeframe; give yourself a few months to study the housing market to see its trends for yourself. You’re better off avoiding the summer when buying a house, because the demand will be high. Give your wallet a break and move in during the winter when it may be more inconvenient, but you’ll save yourself money. It comes down to what you want and what you’re willing to pay in money and in time.

It is possible to buy a house in Canada without using a real estate agent, and many people sell their homes privately each year. However, you need to be realistic and set expectations for what you can do on your own. A real estate agent will have access to real estate property listings, handling of negotiations, asking the right questions and completing all the paperwork. Without these at your disposal, it can be tricky. That's why you should consider the grand picture when buying a house on your own. If you’re related to a seller, know the area, work alone, or want to save money, not using a realtor is an option.

Literally, home sellers. Real estate agents earn only when a deal goes through, the agents split the commission which is usually from 3%-10%. Generally the home seller would pay the full commission for both the listing agent and buyer agent as long as they have one. You can book consultations to find out at any time what the fees can be for your home. You can also use a realtor commission calculator to get a general sense of what you might have to pay in fees.

Obtaining a pre-approval is one of the best things you can do to streamline the process and boost your confidence in your purchasing power. A pre-approval tells you how much you can borrow with little risk. However, like with any mortgage transaction, you should thoroughly grasp the pre-approval procedure before proceeding. To be authorized, your lender will want a slew of documents from you to determine if you are eligible and qualified to handle the loan. After reviewing your entire financial profile, the lender will be able to decide whether to extend to you a pre-approval letter. As a buyer, this helps you get ahead and buy faster than those who don’t have a mortgage lending certification.

The down payment is ultimately what you are investing into your house at the start. The higher your down payment is, the lower the mortgage will be. The down payment price increases as the property does, so expect to pay more, if you’re investing in more. There are rules in Canada for minimums, such as:

• Properties under $500,000 will have a down payment of 5%.
• For homes priced between $500,000 and $999,999, you will need 5% for the first $500,000 and 10% for the remainder.
• The minimum down payment for a home worth $1 million or more is 20%.

Examine your budget to determine if there are any areas where you can cut prices and save money. While cutting your daily spending will help, be prepared to make even bigger sacrifices in order to achieve your goal.

When a purchase offer is made to a seller, there are four possible reactions. The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the last is an unreturned offer. If your offer is rejected, which means the seller says no and does not counter, you have the option of making another offer. Unless a seller is insulted by a low-ball offer, it is uncommon for an offer to be refused or not responded to. While there is no way to totally avoid having an offer rejected, speaking with real estate professionals will give you an advantage over the competitors. Although it is not an exact science, an agent can recommend changes such as raising your price or adjusting another component of your offer.

Closing costs are additional fees when purchasing a house in BC. You will have to pay them, so it’s best to put up to 5% away for any additional costs you may incur when closing the property. There are a lot of closing fees that you can run into, including and not limited to: land or property transfer taxes, title insurance, legal fees, HST, GST, inspection fees, appraisal fees, interest adjustments, and statement adjustments. Get an estimate with ULIX so you can get an idea of how much your particular closing costs may amount to.