The 411 on Purchasing Real Estate in BC

You ask yourself -- 'Will I ever be able to afford my dream home?'

You come across a house you love, see the price -- and freak. How do people afford this? The truth: They don't; at least not when they're buying their first house. The key to getting your dream home is to buy a first home, and then let the market and equity go to work for you.

How to purchase your first property:

Step 1: Talk to a mortgage specialist at your bank or to a mortgage broker to see what you can be pre-approved for. Benefits are that you know your spending capabilities and when you're ready to put an offer on a property, you can do so with confidence. If you are not qualified for a pre-approval at this time, ask your broker or your mortgage specialist to tell you what steps need to be taken in order to be able to qualify in the near future.

Home Buying Costs

Down Payment 0% - 20% of purchase price

Home Inspection $300 - $600

Property Transfer Tax 2% on the 1st $100,000 - 1% on the balance of the purchase price (in BC)

Title Insurance $200 - $300 (only applicable if a survey certificate is unavailable)

Adjustments 1.5% - 3% of purchase price

Lawyer or Notary Fees $800 - $1,000

GST 5% of purchase price (only applicable if purchasing brand new construction)


Step 2: Now that you are pre-approved, find yourself a knowledgeable realtor to help you with your search. A buyer's agent works on commission and is typically paid by the Seller from the proceeds of the sale. In other words -- they work for you for free! Take advantage of one.

Your realtor should be able to tell you what style of home (condo, town home or detached) you can afford in your price range. Ask your realtor to explain to you the benefits of being a first time home buyer. There are grants, government programs and exemptions of property transfer tax that a first-time home buyer can enjoy depending on where you live in BC. Together with your realtor you should go over the features of your future home that are 'must haves' and 'nice to haves.' Discuss the areas and locations you want to focus on based on your price range.

Step 3: Now that you are shopping for your new home, be sure to remember that such items as: location, resale value, transportation, amenities, demographics, pet restrictions, age restrictions and school districts cannot be changed. Everything else within the home and property such as cosmetics and landscaping can be changed. Prioritize your search criteria.

The "Red Shoes" Experience
Women will relate to this. Say, you need a new pair of red shoes. You go to the mall. At the first shoe store, you find a fabulous pair of red shoes. You try them on. They fit perfectly. They are glamorous; priced right, too. Do you buy them? Of course not! You go to every other store in the mall trying on red shoes until you are ready to drop from exhaustion. Then you return to the first store and buy those red shoes. Do not shop for a home this way. When you find the perfect home, buy it.

Step 4: Now that you have found the home you want to place an offer on, you must do your due diligence in ensuring you are purchasing the home that is right for you. Make sure your offer is subject to you obtaining adequate financing (even though you are pre-approved, your bank will need a copy of your contract and may want an appraisal -- this takes processing time.) Another condition may be that you would like to obtain a professional inspection of the property. Have your realtor show you and explain to you the Title Search of the property. If you are buying a condo or town home ask to see the last two years of minutes, strata bylaws and financial statements.

Once you are satisfied with all of your conditions, go for it!

Purchasing a home is a rite of passage that most non-homeowners dream of. Besides the intangible benefits, homeownership lets you build equity, and is the single biggest tax break available to most consumers.


Angela Tecson
Re/Max Performance Realty
Office: 604-590-4888
Email: angelatecson@remax.net
Web: www.atecson.com