When you make or receive an offer to buy a property, it's important that you read and understand every clause. It is especially important to understand any conditions or any changes that are made to the standard offer.

An offer may contain several types of conditions. The most common are "conditional upon arranging financing" and "conditional upon passing a professional home inspection." However, there may be other conditions as well.

You should be aware of – and fully understand – all of them.

In addition, the wording of an offer may change during the back and forth negotiations that often happen. Aside from changes to the price, other clauses may be added, removed or reworded as well.

A good agent will always ask you to initial changes. This is done primarily to ensure you know and approve of what you're signing.

A recent newspaper article tells the story of a buyer-seller legal dispute that resulted in a six-figure judgement against the seller. This was due, in part, to a lack of understanding of one of the clauses in the agreement.

You don't want that to happen to you. Take the time to carefully review and understand an offer.

Want to make sure everything goes smoothly with your next move? Call today.

Buyer demand increases while home prices edge up

The Greater Vancouver housing market enters the summer season with home buyer activity on the rise.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 3,406 on the Multiple Listing Service® (MLS®) in June 2014. This represents a 28.9 per cent increase compared to the 2,642 sales recorded in June 2013, and a 3.7 per cent increase compared to the 3,286 sales in May 2014.

Last month’s sales were 0.6 per cent above the 10-year sales average for June of 3,386.

“Competition amongst home buyers today is as strong as it’s been in the region since 2011,” Ray Harris, REBGV president said.

The sales-to-active-listings ratio currently sits at 21.3 per cent in Greater Vancouver, which is the highest this measure has been since June 2011.

“Over the last three years, we’ve seen changes in demand yet home prices at the regional level have remained relative stability,” Harris said. “While these numbers provide high level trends, it’s important to know that changes in prices always vary depending on neighbourhood and property type. Consult your local REALTOR® for information on trends in your area of choice.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $628,200. This represents a 4.4 per cent increase compared to June 2013.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,339 in June. This represents a 9.5 per cent increase compared to the 4,874 new listings in June 2013 and a 10.1 per cent decline from the 5,936 new listings in May. Last month’s new listing count was 2.6 per cent below the region’s 10-year new listing average for the month.

The total number of properties currently listed for sale on the MLS® system in Greater Vancouver is 16,011, a 7.4 per cent decline compared to June 2013 and a 0.4 per cent decrease compared to May 2014.

Sales of detached properties in June 2014 reached 1,462, an increase of 32.7 per cent from the 1,102 detached sales recorded in June 2013, and a 58.7 per cent increase from the 921 units sold in June 2012. The benchmark price for detached properties increased 6.2 per cent from June 2013 to $976,700.

Sales of apartment properties reached 1,308 in June 2014, an increase of 22.5 per cent compared to the 1,068 sales in June 2013, and a 27.5 per cent increase compared to the 1,026 sales in June 2012. The benchmark price of an apartment property increased 2.4 per cent from June 2013 to $378,000.

Attached property sales in June 2014 totalled 636, a 34.7 per cent increase compared to the 472 sales in June 2013, and a 53.3 per cent increase over the 415 attached properties sold in June 2012. The benchmark price of an attached unit increased 3.1 per cent between June 2013 and 2014 to $471,200.

Buying a foreclosure in British Columbia, Canada is somewhat different from buying a regularly owned property and it is certainly different from buying a bank owned property in the United States. First of all, please understand that in BC the courts will ensure the homeowner is protected and their property is marketed and sold for an amount as close to "Fair Market Value" as possible. Whereas in the US, the laws protect the banks and properties can sell substantially well below market value. Buying a foreclosure in BC could get you a deal and save you some money on the purchase price, but rarely does a property ever sell less than 20% off fair market value.

The Foreclosure Process in most cases works like this:

After a lender has been given the right to sell the property by the BC Supreme Court, the lawyer acting on behalf of the lender hires a realtor to market the property. Please keep in mind that in BC the property can still be owner occupied and showing may be limited and sometimes difficult due to the nature of the circumstances. 

When the foreclosure property, whether it's a house or condo, is listed on the MLS, the listing agent will showcase that property to as many purchasers as possible in hopes to get an offer that is suitable to the lender.

When a buyer submits a written offer, which includes a Schedule A (which amends the regular Contract of Purchase and Sale), to the listing agent, the listing agent will present that offer to the lender's lawyer and he or she will act of behalf of the lender during the negotiation. During this period the lender and the purchaser will negotiate a price they are both satisfied with. 

Upon accepting the offer, the purchaser will have 5 business days (in some cases) to do all their due diligence. After the buyer is satisfied with her due diligence and she has her financing in order, she then prepares a certified deposit cheque or bank draft and remove all subjects in regards to the lender. This is now a subject free offer as far as the buyer and the lender are concerned. However, there is one last subject which is "Subject to Court Approval". 

The lender's lawyer will now set a court date and this could take on average 2 to 4 weeks time. A few days before court, the listing realtor will disclose the price which the offer was accepted for. That will give any other perspective purchasers the ability to decide if they want to come to court and outbid the original offer or not. *** Unlike a regular property for sale, the first offer that comes in and is accepted by the lender is not necessarily the person who ultimately ends up owning the property at the end.

At Court the listing agent will collect all, if any, competing offers which must be subject free, contained in a sealed envelope, include a schedule A addendum, and be accompanied with a certified deposit cheque or bank draft. 

When the judge has this property address file in front of her, the judge may give the owner one last time to redeem the owner's mortgage and any other outstanding debts. If there is no attempt to pay off all the debts she will proceed with the offers to purchase the property.

Should there be mulitple offers, whoever has the highest subject free bid in the sealed envelope will most likely be awarded the property. Depending if the property is vacant or owner occupied, the completion and possession could be after the court date will be somewhere between 2 to 8 weeks.

It is strongly recommended that the purchasers are in court to either up their bid or be present to initial any changes that the judge may request. There are no second chances for anyone after the judge has made her decision and there is no chance to back out of the contract.

The property is now sold and all documentation is forwarded to the parties involved for conveyance.

Home buyer demand increases across Greater Vancouver housing market

It’s that time again….heading into summer and paying our property taxes. Taxes and sun, what could be better! You’ve probably just received, or will be receiving shortly, your tax notice in the mail. For your convenience, I have put together the various ways to pay your taxes and to register for your Home Owners Grant (HOG). Great acronym isn’t it!
 
Claiming Your Home Owner’s Grant: If your property is your principle residence you have to claim your Home Owners Grant (which is $570) some cities it is less.  There are 2 ways for you to claim: 

1.    Signing the tax notice and mailing or dropping it off at the city. 
2.    You can also complete it online if your city has an electronic payment capability on their website. If you are doing this online you will need the folio number and access code which is on your notice. It takes no more than 5 minutes to complete. Don’t forget to print off a copy for your records.
 
Paying Your Property Taxes: There are 4 ways this can be done:

1.    Some lenders allow you to pay your property taxes throughout the year with your mortgage payment. If that is the case, the lender will remit the payment directly on your behalf. Be aware your taxes can change from year-to-year so it is a good idea to call your current lender to ensure you have enough in your account. If you do not have the lender number we placed you with, simply give us a call and we can help. 
2.    If your lender does not collect your taxes, you can write a post-dated cheque for July 2nd. and mail it to the city. 
3.    You can also make your payment at most chartered banks. 
4.    A great way to pay your taxes is to use your cities monthly preauthorized debit program. If you do not, it is a convenient option to consider going forward. Instructions will be on your cities website or attached to your tax notice.
 
As a helpful tool, I have also provided some links for more information and electronic payment details. Please note that I could not find an electronic payment option for Richmond or Langley. Please feel free to pass this email along to friends, family members and colleagues. 
 
Delta:
http://deltaonline.ca/tempest/ecom/hog/login.cfm?title=Electronic Home Owner Grant
 
Vancouver:
http://vancouver.ca/fs/treasury/ehog.htm
 
Surrey:
https://secure2.city.surrey.bc.ca/tempestprod/ecom/hog/login.cfm
 
Chilliwack:
http://www.gov.chilliwack.bc.ca/main/page.cfm?id=847
 
Abbotsford:
http://www.abbotsford.ca/financecorporate/property_taxes/home_owner_grants.htm
 
Burnaby:
http://www.city.burnaby.bc.ca/cityhall/departments/fnnc/fnnc_txoffc/fnnc_txoffc_txbdgt.html#claim
 
Coquitlam:
https://e-civic.coquitlam.ca/tempestprod/ecom/hog/login.cfm
 
Port Coquitlam:
http://www.city.port-coquitlam.bc.ca/Citizen_Services/Online_Services_and_Payments/Electronic_Home_Owner_Grants.htm
 
Maple Ridge:
http://www.mapleridge.org/EN/main/residents/property_tax.html#Home_Owner_Grants
 
North Vancouver:
http://www.cnv.org/VCH2/modules/hog/hog_login.asp
 
New Westminster:
https://frontcounter.newwestcity.org/nwinfo/ecom/hog/login.cfm

Home sale and listing activity continue to chart a steady path for the region’s housing market

March home sales in Greater Vancouver outpaced last year’s total yet lagged the region’s historical average for the month.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,641 on the Multiple Listing Service® (MLS®) in March 2014. This represents a 12.5 per cent increase compared to the 2,347 sales recorded in March 2013, and a 4.4 per cent increase compared to the 2,530 sales in February 2014.

Last month’s sales were 17.2 per cent below the 10-year sales average for March of 3,190.

The sales-to-active-listings ratio currently sits at 18.2 per cent in Greater Vancouver, which is unchanged from last month.

“We continue to see steady and stable market conditions across the Greater Vancouver housing market,” said Ray Harris, REBGV president. “There has been a consistent balance between home seller supply and home buyer demand in our marketplace over the last year.” 

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,281 in March. This represents a 9.1 per cent increase compared to the 4,839 new listings in March 2013 and a 12.4 per cent increase from the 4,700 new listings in February. Last month’s new listing count was 5.9 per cent below the region’s 10-year new listing average for the month.

The total number of properties currently listed for sale on the Greater Vancouver MLS® is 14,472, a 6.4 per cent decline compared to March 2013 and a 7.9 per cent increase compared to February 2014.

“Home prices in the region have experienced incremental gains in most areas and property types over the last 12 months,” Harris said. “It’s important to remember that this is a diverse marketplace and trends will vary depending on area and property type.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $615,200. This represents a 3.7 per cent increase compared to March 2013.

Sales of detached properties in March 2014 reached 1,116, an increase of 19.6 per cent from the 933 detached sales recorded in March 2013, and a 5.7 per cent decrease from the 1,183 units sold in March 2012. The benchmark price for detached properties increased 4.2 per cent from March 2013 to $945,400.

Sales of apartment properties reached 1,106 in March 2014, an increase of 12.6 per cent compared to the 982 sales in March 2013, and a 7.1 per cent decline compared to the 1,191 sales in March 2012. The benchmark price of an apartment property increased 3.8 per cent from March 2013 to $375,800.

Attached property sales in March 2014 totalled 419, a 3 per cent decline compared to the 432 sales in March 2013, and a 16.2 per cent decline from the 500 attached properties sold in March 2012. The benchmark price of an attached unit increased 1.3 per cent between March 2013 and 2014 to $460,100. 

Home sales and listings continue to follow historical averages

In the first two months of 2014, the Greater Vancouver housing market has maintained the steady pace set throughout 2013.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,530 on the Multiple Listing Service® (MLS®) in February 2014. This represents a 40.8 per cent increase compared to the 1,797 sales recorded in February 2013, and a 43.8 per cent increase compared to the 1,760 sales in January 2014.

Last month’s sales total mirrors the 10-year sales average for February of 2,547, with just 17 sales separating the two figures.

The sales-to-active-listings ratio currently sits at 18.9 per cent in Greater Vancouver, a 4.9 per cent increase from last month.

“Home buyer demand picked up in February, which is consistent with typical seasonal patterns in our housing market,” said Sandra Wyant, REBGV president.  “We typically see home buyers become more active in and around the spring months.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,700 in February. This represents a 2.8 per cent decline compared to the 4,833 new listings reported in February 2013 and a 12.1 per cent decline from the 5,345 new listings in January. Last month’s new listing count was 0.5 per cent below the region’s 10-year new listing average for the month.

The total number of properties currently listed for sale on the Greater Vancouver MLS® is 13,412, a 9.3 per cent decline compared to February 2013 and a 6.4 per cent increase compared to January 2014.

“With the market continuing to perform at a steady, balanced pace, it’s important for home sellers to ensure their homes are priced correctly for today’s conditions,” Wyant said.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $609,100. This represents a 3.2 per cent increase compared to February 2013.

Sales of detached properties in February 2014 reached 1,032, an increase of 46.6 per cent from the 704 detached sales recorded in February 2013, and a 6.3 per cent decrease from the 1,101 units sold in February 2012. The benchmark price for detached properties increased 3.5 per cent from February 2013 to $932,900.

Sales of apartment properties reached 1,032 in February 2014, an increase of 35.8 per cent compared to the 760 sales in February 2013, and a 1.2 per cent increase compared to the 1,020 sales in February 2012. The benchmark price of an apartment property increased 3.6 per cent from February 2013 to $373,300.

Attached property sales in February 2014 totalled 466, an increase of 39.9 per cent compared to the 333 sales in February 2013, and a 9.9 per cent increase from the 424 attached properties sold in February 2012. The benchmark price of an attached unit increased 0.6 per cent between February 2013 and 2014 to $458,300. 

First-time home buyers received welcome news in today’s provincial budget. The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.

The partial exemption continues and will apply to homes valued between $475,000 and $500,000.

With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home.

The government estimates this measure will cost $8 million in lost tax revenue each year.

The Real Estate Board, together with BC Real Estate Association, has actively lobbied to make home ownership more affordable for first-time home buyers. This increase in the threshold clearly signals our efforts have paid off as in past years.

In 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000. 

In 2005, the government increased the threshold to $325,000 from $275,000.

The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price.

Here is a link to the Budget.: http://www.bcbudget.gov.bc.ca/2014/default.htm

Unless you're a real estate expert, you probably look at the market and think things are pretty confusing. You hear news about “bubbles bursting”, “higher or lower home sales in a particular month”, “new home starts” that are up or down, and on and on it goes.

It’s a lot of news and a lot of jargon.

If you're thinking of selling your home within the next year or two, you will want to understand what's happening in the market so you can make the right decisions and get a clear sense of what to expect. So, how do you make sense of it all?

That's where a good REALTOR® can help.

Even if you don't have any definite plans to move in the near future, a REALTOR® who is an expert in the local marketplace can help you understand what homes in a particular neighbourhood are selling for, and what you can expect to get should you decide to list your property.

Getting to know a REALTOR® also means you’ll have a trusted expert to talk to from time to time, when you have real estate-related questions.

You’ll have someone you can think of as "Your REALTOR®".

Plus, when the time comes to sell your property, you won't have to deal with a stranger. Instead, you'll be able to work with a REALTOR® that you know well -- and who knows YOU. Overall, that will make the buying and selling process go more smoothly and more successfully.

Looking for a good REALTOR® who wants to get to know you? Call today!

Steady trends continue in the Greater Vancouver housing market

5 Stats that show just how much curb appeal matters:

1. 63% of home buyers that viewed a home online and were interested, drove by the home shortly after. Curbside appeal counts!

2. It takes less than 30 seconds for a home buyer to decide on a home after seeing it in person. If you are doing all the work creating attractive online marketing pieces, you may be losing interested buyers when they drive by and not even know it.

3. Improved landscaping can increase property value by 7-14% and accelerate the sale of your home by 5 to 6 weeks.

4. Home sellers see an average return of 473% from investment in landscaping and curbside marketing dollars!

5. 87% of people say that home presentation makes a difference in most sales.

For the most part, people make upgrades and renovations to their homes specifically because doing so can increase resale value. It’s one of the best ways to prepare a home for the market—that is, if you take the right route. What often goes overlooked is the fact that certain renovations can actually cause more harm than good, lowering a home’s resale value and thus unnecessarily costing the homeowner a great deal of money. It’s one of the oldest issues in real estate, and it can be difficult to avoid. 

Understanding which projects are likely to actually lower instead of increase your home’s resale value is the first step towards not making these common mistakes yourself. Here are five projects to stay away from.

Turning bedrooms into office space

Having an office in your home can, of course, add resale value. This being said, many people believe that converting one of their home’s bedrooms into an office is the right way to go about this, but, in reality, a four-bedroom home without an office will typically sell for far more than a three-bedroom home with one. Things get even more confusing when the home is advertised incorrectly, which can serve to frustrate a potential buyer. If you’ve already got a fair amount of bedrooms in your home, don’t do anything to negate that.

Adding a swimming pool

There’s no getting around the fact that swimming pools can be fun for the whole family. Take into consideration the costs that are associated with installing one, however, and it becomes quite clear just how far from ideal they are for those who are trying to increase a home’s resale value. These costs often get absorbed into the cost of the home (rather than adding to it), and many families with young children may pass on even the most perfect homes simply because of fears regarding overall safety. If you’re going to add a pool, it should be specifically for your own enjoyment and not for increasing resale value.

Heavy landscaping

Quality landscaping can make just about any home look a bit more attractive. What many people don’t realize, however, is that the costs associated with landscaping cannot typically be added into a home’s resale value. As with pools, spending a ton of money on landscaping and then turning around to sell the home is usually nothing more than a great way to throw away hard-earned cash. All this said, a well-landscaped piece of property can increase your chances of finding a buyer who will take a look at the home instead of passing it up. Still, it’s simply not worth the extra money.

Too much carpeting

Depending upon the circumstances of a room, carpeting may be the right route to take. Wall-to-wall carpeting throughout an entire house, though, is simply not preferred by today’s home buyers. In general, hardwood floors are far more lucrative, and this can sometimes be a deal-breaker. Hardwood can be expensive to install, but the end result will be a far better chance of selling your home and getting the price that it’s worth.

Home automation

Home automation is a great way to streamline simple tasks that can otherwise get in the way of time and energy. While it may be considered by some to be the wave of the future, it’s simply not to the point where, in terms of popularity, it adds enough resale value to a home to warrant spending the money for installation. Unless you’re marketing to a very specific niche of potential buyers, it’s best to avoid automating your home before selling it.

Everyone wants to add resale value to their home, but sometimes these attempts are made in vain. Avoid the above projects, and you’ll have a much better chance of reaching your goals.