Buyer’s SeminarPresented by Team Nickerson

Matt Marg Sayo Laurie Doug

What you will learn today

How the Vancouver real estate market cycle works

Why it is important to have a good Agent/Team

What is currently happening in the Vancouver real estate market and latest statistics

The elements that need to be present to lead to a successful purchase

The importance of a well prepared offer

How to make your offer stand above others (aka Strategy in multiple offers)

Tips from Laura MacCormack with Clever Lending

Insurance tips from Jeff Myers with The Cooperators

Tips from Wayne DeJong with Pillar to Post Home inspections

1 Year Change 3 Year Change 5 Year Change

Vancouver East

Condos 2.6% 6.9% 7.9%

Town Houses 3.6% 9% 16%

Houses 12% 18.4% 40%

Vancouver West

Condos 3.1% 4.5% 7.5%

Town Houses 10% 13.5% 18%

Houses 9% 8.9% 42%

Latest Market Statistics

Why Buy Real Estate?

$200,000

Mortgage Reduction

Growth of 3% Per Year

$150,000

$412,000

The power of owning real estate. It’s all about time!

$150,000

Capital Appreciation

($1000’s)

Years250

Mortgage Pay-down

Equity portion of your mortgage payments get bigger with every payment!

Cheap Money from the BankMultiplies Your Earning Power

3% Interest

6% Interest

$709

$960

$342

$225Principal48.2%

Principal23.4%

Mortgage Payment on $150,000

Appreciation

Each 1% Appreciation = 4%Annual Return

Why you need to work with a good agent?

Benefits of working with an Agent in Real Estate Team

Everyone has their own role and area of expertise so nothing gets missed

We can be in more than one place at a time

We aren’t desperate for the sale so the focus can stay on you, the client

Every team member has some balance and even days off!

You have 6 experienced brains working for you instead of only one

We have a lot of listings so you can get the inside scoop on properties not yet listed

We are everywhere in the market place so have a real finger on the pulse of the market

We have fun working together, we all work out of the same office

We can cover much more ground then a single agent on their own!

Real Estate Industry Secrets

Reputation is everything – especially in multiple offers (Preparation, follow-through, execution)

Listing Agents want to work with agents they know

Some Listing agents will avoid working with agents they don’t like or know.

Working with a Realtor.

• Undivided Trust and loyalty.

• Full disclosure of all known facts about the properties.

• Confidentiality of your person information (Legal, personal, financial)

• Providing honest and professional feedback on the properties we see, on comparables, and on market conditions

Working with a Realtor.

• Preparing the contract and reading the strata docs

• Providing contacts to help you navigate the entire real estate process: financing, inspections, renovations, lawyers etc.

• Working with you both before and after this purchase to understand your situation and to help you make an investment that will serve your current needs and long term goals

The Search. Lets work together

• Setting up the search (Automatic so nothing is missed)

• Open houses (Working with your own agent)

• Scheduled appointments and tours

• Search Refinement and pinpointing the details. (Weeding out the ugly.)

• Honest feed back. (Don’t be afraid to say “No”)

You found a property! Writing the offer.

• Name, current address, occupation, ID is required to write an offer.

• Offer price.

• Deposit amount.

• Completion, Possession and Adjustment Dates.

• Subjects and conditions.

Determining the value and price.

• Market research, history, City Tax assessment, days on the market, for what and when the Sellers purchased.

• Past sales in the building and similar properties in the area.

• Building information

• Deciding on the price you want to offer.• Deposit amount. (5% is the Real Estate Board Standard and normally due on

Subject removal)

Dates:

• Completion (Clear Title and money change hands)

• Possession (The day you move in)

• Adjustment (The day you start pay strata fees, taxes etc…)

Subjects/Conditions

• There are some extremely common conditions, also known as Subject Clauses, written into the contract.

• Generally 4-10 days to satisfy these subjects. The end date we select will be our “Subject Removal Date”.

• Note: Subjects dates can be a point of negotiations

SUBJECT TO FINANCING• This subject allows for the purchaser to have sufficient time to

confirm the financing arranged when you were first pre-approved and allow the bank to approve the selected property.

• Note: Speak to your broker before starting your search to ensure this is a smooth process.

SUBJECT TO INSPECTION

• This subject is there to ensure that you have the option of having an inspector of your choice view and evaluate the property in order to provide you with an idea of what repairs are needed at present or in the future, and what costs may arise.

SUBJECT TO DOCUMENTATION OF THE STRATA CORPORATION

• Form B Information Certificate

• Current rules and bylaws

• Current budget and most recent annual financial statements

• Complete registered strata lot plan and strata plan & any amendments to the strata plan, and any resolutions dealing with changes to the common property.

• The Last 2 years Annual General Minutes

• The Last 2 years of Strata Council meeting minutes

• A copy of any and all engineer's reports or other consultant's report concerning this strata corporation

• a Copy of the Strata Depreciation report

• any Extraordinary and/or Special General Meetings

Other Documents/Subjects

• SUBJECT TO PROPERTY CONDITION DISCLOSURE STATEMENT (PDS)-Completed by the Seller, this document provides information on the property to the best of their knowledge.

• SUBJECT TO TITLE SEARCH- This document allows us to confirm ownership and check for any encumbrances on the property.

• Subject to Obtain suitable fire/property insurance- detached homes

Your offer is ready to go!Have your agent present your offer in person

(if possible)

• The Seller may flatly reject your offer (Back to square one)

• The Seller may make a counter offer (Negotiations: reject, accept, or counter)

• The Seller accepts your offer as is! (Everyone's favourite outcome)

Your Offer is accepted!!Due diligence - 4-10 days for Subjects

• Inspection

• Financing

• Strata Docs

• Title/PDS

• Oil Tank Scan (houses)

• Visit the City (Permits, Grow op, etc…)

• Insurance quote

Time is of the essence

Subject removal (SOLD!)

• Your Offer is now an unconditional Contract of Purchase and Sale. (The Subjects have to physically removed by the Buyer)

• Your Deposit is due (The Deposit held in trust and is transferred over to your lawyer for completion of the purchase)

Costs of purchasing a Property

• HOME INSPECTION FEE- $500 - $700 plus GST

• OIL TANK INSPECTION - $100 - $250 (applies to houses)

• BANK APPRAISAL FEE - $200 - $500

• CMHC INSURANCE – typically required on any mortgage with less than 20% down-payment.

• PROPERTY PURCHASE TAX - 1% on the first $200,000 and 2% on the balance. If you are a first time Buyer, are a BC resident, plan to live in the property for at least 1 year, and are

purchasing a property under $475,000, then you are exempt from this tax.

• LEGAL FEES- $800 to $1500

• PROPERTY TAX- You are responsible for property taxes that the Seller may have already prepaid. Depending on the time of year, this may or may not be an expense incurred at the time of Completion

• GST - 5% of the Purchase Price and is payable on New Construction only

• Home Insurance and move in fees.

What's next?

• Choose a lawyer to conveyed the transaction. (Deposit, mortgage, remainder of your down payment)

• Preparing your property insurance

• Setting up your hydro/utilities

• Notify your strata and book your move in time.

• Relax and get ready for the move!

What if its Multiple offers….? Yikes!

Points to make your offer shine!!

• Seller’s preferred dates

• Remove your subjects before writing the offer or limit the subjects and/or the time of your subject period.

• Have the deposit cheque ready and in hand on offer presentation

• Have your agent present in person if possible and be close by if initials or changes need to be made.

• **Putting your best price forward in the first shot**

Your Take-Aways

Start talking to a Mortgage Broker and Realtor before starting your search.

Use a Real Estate Team with a proven track record, not all agents are created equal

The power is in the details of your offer

Get your offer presented right

Do your due diligence!

Every mortgage payment is like a

Deposit into a savings account!

Matt Marg Sayo Laurie

Doug

Thank You! We look forward to being of service.