The Buying Process
Once you have made the decision to purchase a home, there are some important things that you need to consider:
What you can afford – Purchasing a home involves both one-time costs (including your down payment) and monthly expenses (including mortgage payments, legal fees, taxes, insurance and District of Squamish water, sewer and garbage fees).
The market conditions – The real estate market is always changing and understanding the market will help you understand your position as a buyer.
As your buyer’s agent, your representative will take the time to understand what you are looking for and help answer any questions you may have about the current market conditions.
Here is a brief summary of the buying process:
1. The Selection Process
The first step is to decide what kind of property you would like to purchase and to narrow down the list of properties to those that suite your needs.
2. Viewing Properties
Once you and your Realtor® have narrowed down your search, you will head out on “tour” to view the properties. After which, you may want to write an offer on your chosen property or you may wish to return to the drawing board.
3. Making an Offer
Once you have made the decision to buy, your Realtor® will help you write up an offer to purchase. Once all parties have signed, this will become a written, enforceable contract.
This is where your Realtor® will assist you in getting the best possible price for your property.
5. Accepted Offer
Once your offer to purchase has been accepted and both you and the “seller” have agreed to a price and terms, your Realtor® will assist you in everything from home inspections to ensuring that your financing is secured through a reputable mortgage broker.
6. Firm Deal
A deal becomes firm once all subject conditions have been removed.
Once the purchase transaction has been completed, the property is officially yours.
This is the day you will receive the keys to your new home.
There are costs associated with buying any home, and buying a home in Squamish is no exception. Here is a brief summary of the costs associated with buying a home.
Mortgage -These may include the mortgage companies lawyer or notary fees, and an appraisal fee (if applicable).
Legal Fees -These are your lawyer or notary fees.
Property Transfer Tax -This is a Provincial Government Tax that applies to all transfers of real estate and is payable on the completion date. The rate of the tax is 1% on the first $200,000 of the purchase price and 2% on the balance that exceeds $200,000 but does not exceed $2M. A tax rate of 3% is applied on the balance above $2M. There are some exemptions from this tax for first time buyers.
Goods and Services Tax (GST) - This is a 5% tax that applies to the purchase of new construction and on the resale of accommodations that have been rented out for short term or nightly rental. The payment of the GST can be deferred if the new purchaser intends to use the accommodation for short term or nightly rental at least 90% of the time and she/he becomes a GST registrant. See the 'Finance & Taxation' page for more information on the GST.
Insurance - Buyers are required to arrange insurance on single family residential accommodations, and liability and contents insurance on strata-titled properties.
Strata Fees - Of special concern to condominium and townhouse purchasers, there will be monthly maintenance charges, and the Strata Corporation is also entitled to levy special assessments for extraordinary expenses if necessary.