Leana Li - Real Estate Vancouver

Buying a property is probably one of the most important investments you will ever make. It is not simply looking at houses. It's about finding the right home, which satisfies every family member, at the right price, in the right location. In order to achieve these goals, it requires a lot of time and efforts. To minimize the amount of time and inconvenience, the best way is to work with a professional realtor who understands your needs and wants, your time frame and the financial boundaries to work within, also who has the time, sources of information, and contacts to make the home buying process as straightforward as possible. And you don't have to pay the REALTOR anything! The payment comes from the home seller - not from the buyer.

Assist you identify your needs, and figure out communities and homes most suited to you--size, style, features, location, accessibility to schools, transportation, shopping and other personal preferences.

Research all listings through a Multiple Listing Service (MLS) to find the right home for you.

Show you only those homes best suited to your needs and dismiss those that do not, saving you time.

Provide information on the subject property of current real estate values, taxes, utility costs, municipal services and facilities, and maybe local zoning changes that could affect your decision.

Promptly present your offer, manage counter-offers and negotiate a price and terms on your behalf.

Guide you through the process from offer to closing, including facilitating the completion of all paperwork and monitoring all closing activities

Once you have decided to purchase a home, the first question that comes to mind is, "How much can I afford?" Having a pre-approved mortgage will give you the confidence of knowing exactly what you can spend on a home before you start looking. You will also be protected against interest rate increases while you look for your new home.

A copy of the real estate listing of the property OR architect's or builder's plans and details on lot size and location for a new home under construction.

When buying, one of the most important decisions a homebuyer must make is choosing the right neighborhood. Although it is very personal, there are a number of concerns you should pay attention to:

Are there any environmental issues that affect your health and property value, such as the quality of air, water and polluted soil? Ask your real estate agent, neighbors and local media about any known environmental issues in the area.

The quality of neighborhood planning, future development plans and local zoning will have a substantial impact on a neighborhood's desirability. Significant neighborhood changes probably will affect re-sale values and even future property taxes. Keep an eye on any undergoing new development and find out what kind of projects developers have planned. Tree-covered empty spaces often become the location of new development in desirable areas.

For the area, are there major planned infrastructure projects planned such as building a new mass-transit station and widening the area's major roadway that are usually part of a long-range city, town or county plan. Although construction can be disruptive, you need to determine if it will have a positive or negative long-term influence on the neighborhood and its property values.

The home you are considering may be tidy and attractive inside and out, but how does it compare to the surrounding area? Explore the neighborhood, keeping an eye open for signs of neglect (overgrown lawns, houses in need of paint, trash and junked appliances littering yards). No matter how diligent you are in the upkeep of your property, a run-down neighborhood can drive your property value down.

By researching the selling prices of homes in over the past decade or so, you may be able to predict future trends. Your real estate agent may be able to provide helpful data.

Convenient access to public transportation and/or major highways can mean the difference between a pleasurable and not-so-pleasurable commute to work. It's a good idea to travel the new driving route to and from work during the appropriate times to see what traffic is like.

If you have children, the proximity and quality of schools is an important consideration. Talking to neighbours with school age children can be helpful. In some areas schools will provide data (such as average test scores) that can aid you in determining a school's quality.

Amenities like a grocery store, parks, recreational facilities, post office, dry cleaner and a doctor's office can make life easier if they are located nearby. Check out the availability of community amenities (such as public transportation, parks, stores, churches and schools). If you have school-age children you may even want to visit the local schools and daycare centres.

Avoid unpleasant surprises by finding out what utility costs are before you decide to purchase. Fees for water, electric, cable TV, phone and gas vary greatly by region.

It can be hard to get an accurate impression of a neighbourhood in just one visit. Be sure to return to the neighbourhood at different times of the day and night. Listen for traffic noise, barking dogs, low-flying airplanes and any other noises that could bother you as a resident.

Check with the local police department to find out if the home you are considering is in a safe neighbourhood. Police may be able to provide statistics regarding break-ins and other crimes.

Look into the local job market. You can expect property values to rise if area employers are creating more jobs, especially higher-paying jobs.

If you are considering buying in an unfamiliar neighbourhood, take the time to walk or drive around it, both during the day and in the evening. Remember when you checking the neighbourhood, keep the above factors in mind.

When you see a right house, you will ask, "How much do I have to pay for it?" Before answering this question, you'd better know the market. Market value is based on what price has been recently sold for similar properties, under the same market conditions after reasonable marketing exposure. Usually the asking prices of most properties reflect present market conditions and recent sale prices of similar homes in the area. However, there are also properties overpriced since some homeowners try to walk the fine line between getting the highest price and ensuring the asking price is competitive enough to attract serious offers.

So, before making an offer to purchase a home, ask yourself the following questions:

What type of market currently is it - is it a Seller's, Buyer's or a Balanced market?

By knowing the market, you will be in position to negotiate the best price and take advantage of any opportunities that may show up. Usually the price is a fair price for both buyer and seller. It is called an "arms length" deal, which means that there are no influences other than the market influencing the deal. You may of course pay more if your desire for the property warrants it. Conversely, you 'd better not to expect to pay less than established market value unless the property is being sold under duress. Your Realtor will assist you identify the scenarios.

To know the market you must know the market conditions that will have significant impacts on determining the property value.

The supply of homes exceeds the number of Buyers (supply greater than demand). There is high inventory of homes and few buyers compared to availability. In this scenario prices tend to drop and the properties stay on the market longer. The Buyer will have more choices, less competition and more rooms to negotiate a good deal.

The number of homes on the market is equal to the number of buyers (supply equals demand). Demand equals supply. In this market, prices are generally stable and homes sell within an acceptable time period. It is a more relaxed atmosphere and Buyers having a reasonable number of homes from.

The number of Buyers exceeds the number of homes on the market (demand greater than supply). There is smaller inventory of homes. In this market prices usually increase and homes sell quickly. As a Buyer you will probably have less negotiating room, need to pay more and possibly experience competing. You may have to make quick decisions. Conditional offers may be rejected.

The real estate market is always changing. By knowing the various market conditions you are able to position yourself properly as a Buyer and know what price to offer. In a Buyer's market, you will have a lot of selection of homes for sale and plenty of room to negotiate. In a balanced market you will have a good selection and reasonable amount of time to decide on a home and negotiate the price. In a Seller's market, there is fewer choices and may have to make a full-price (or even higher) offer if you are competing with others.

The main factors affecting market value are location, property, property value, market conditions and economy.

availability of community amenities, such as parks, playground, marina, library, churches and schools

general overall condition of main systems (roof, gas, heating, plumbing, electrical system, etc.)

The best way of establishing a range of value for a property is to have your REALTOR prepare a general market analysis of the neighborhood you are interested in. This will give you a good overview of the current market and will show what comparable properties have been selling for recently.

Home inspections are often an important part of the pre-purchase routine when purchasing a home. By hiring a home inspector prior to finalizing your deal, you are protecting both yourself and your investment and buying a little peace-of-mind. A home inspection will uncover the structural and mechanical soundness of your house.

provide a report summarizing the findings to the potential purchaser shortly after the inspection has taken place

Home inspection costs often range according to size, age, and location of the home. If you need help, I would be happy to recommend a reputable home inspection service or arrange for a home inspector to visit your property.

4. Bluntly ask the inspector to see what educational and/or training facility he attended. Does the inspector participate in continuing education programs to update his knowledge and expertise?

5. What will the inspection include? Inspections should include visual inspections covering exterior, structure, garage, plumbing, heating, cooling, electrical, interior, insulation and ventilation. Extras include radon testing, a pest infestation survey or inspection of septic systems or wells.

7. How much will it cost to do an inspection? Inspections cost from as little as $200 to as much as $1,000 depending on the size and which inspection services are requested.

8. How long will the inspection take? It depends on the size and age of the house. The average is 2 to 3 hours. If it is less than that, the inspection might no be done thoroughly.

9. Should you attend the home inspection? Definitely yes, this is a valuable educational opportunity. If an inspector refuses your appearance, you should look for a better-qualified one.

10. Does the inspector offer to do any repairs or improvements based on its inspection? Because this might cause a conflict of interest, it is not recommended.

11. Does the inspector belong to an association that will investigate a consumer complaint? Is he a member of a professional association, such as ASHI (American Society of Home Inspectors, NANB (National Association of Home Builders) or ICBO (International Conference of Building Officials)?

The majority of purchasers are not overly surprised by the findings of their home inspection since many problems are usually obvious and have already been reflected in the purchase price. A home inspection will let you know if your opinion of the property is correct. Sometimes, when an inspector uncovers serious unexpected problems it can save you from making a major mistake.

They can include asbestos, formaldehyde, leaking underground oil tanks, nearby gas stations, contaminated drinking water, lead-based paint and radon gas. Those issues can affect your health and property value. Therefore it is important to listen to a professional opinion.

This is the most common problem found. It often causes damp/wet basements. Depending on how serious they are, correction can range from installing new roof gutters and downspouts to replacing drainage pipes. You can also re-grade the surrounding lawn to channel surface water away from the house.

It commonly exists in older homes. Cheap repairs or expensive replacements are your choices. It will be a good idea to get a professional opinion.

It also commonly exists in older homes with undersized services, aluminum wiring, knob-and-tub wiring or inadequate/poorly-renovated distribution systems. It is important to have a professional check on these problems since they can be very dangerous.

Older and poorly maintained heating/cooling systems are outdated and inefficient. They can lead to a serious safety and health risk. It is encouraged to install newer and more efficient systems to substantially reduce heating/cooling costs to recoup your investment although replacement may seem expensive.

It usually happens in unventilated bathrooms and cooking areas. Excessive moisture can damage plaster, promote the growth of mould and fungus, deteriorate windows and cause allergic reactions. These problems should be corrected before the damages become excessive.

An asphalt roof usually lasts 15 to 20 years. It is difficult to estimate roof age accurately from the ground unless the roof is either very new or very close to the end of its lifespan. Also in order to determine if the roof needs to be completely stripped before installing the new shingles you need to know how many layers are under it.

Typical air leakage includes poor weather-stripping, badly fitted doors, deteriorated caulking and poor attic seals that contribute to a cold and drafty home. Repairs are usually simple and inexpensive.

Poor overall maintenance usually lead the property into a bad shape, and causes a large range of problems that will require the new homeowner's attention such as peeling paint, rotting decks and etc.

These problems are common in older homes ranging from cracked plaster to small movements in the foundation. Although they are not likely to cause the house to fall down, they should be corrected before getting more serious.

The largest one-time cost is the down payment. It usually represents between 5-25% of the total price of the property.

In addition to the actual purchase price, there are a number of other expenses that you might be expected to pay for. These are listed below:

EXPENSE	PAID
Mortgage Application and Appraisal Fee	At time of application
Appraisal Fee	At inspection
Property Inspection (optional)	Closing
Legal Fees	Closing
Legal Disbursements	Closing
Deed and/or mortgage registration	Closing
Property Survey / Title Insurance (sometimes provided by seller)	Closing
Land Transfer, Deed Tax or Property Purchase Tax (in Quebec within 3 months following signing)	Closing
Mortgage Interest Adjustment and Take Over Fee (if applicable)	Closing
Adjustments for Fuel, Taxes, etc.	Closing
Mortgage Insurance (and application fee if applicable)	Closing
Home and Property Insurance	Closing and on-going
Connection charges for utilities such as gas, water and electricity	Date of move
Moving Expenses	Date of move

Other costs may include landscaping, redecorating, furnishings, appliances and repairs.

Typical monthly costs incurred with home ownership are mortgage payments, maintenance, insurance, condo fees, property taxes and utilities.