Buying Comox Valley homes is not, or at least should not be, like buying a car or some other expensive object. There are many reasons for this and a number of them will be discussed in this blog. It is important to understand that the Comox Valley real estate industry is a highly regulated industry. As such, Comox Valley Real estate agents have a number of obligations placed on them by many different real estate laws, rules, and regulations as well as by other things such as a code of ethics.
Before discussing the Comox Valley home buying process, let’s briefly discuss the professional relationship that you may or may not have with a real estate agent. In British Columbia, when you work with a realtor you can either be a customer or a client. As a customer you will be treated more like someone who walks onto a car lot to buy a car. The customer relationship does not involve any agency relationship as explained in the British Columbia Real Estate Association (BCREA) brochure titled Working With a REALTOR ® (Designated Agency). As a customer, you can be provided a limited number of services but you will not be given the advice that is provided to a client. As a client, you are afforded loyalty and confidentiality, and your real estate agent works for you and represents your interests through an agency relationship. This relationship is known as designated agency when a brokerage designates a real estate agent to work solely on your behalf in real estate transactions.
According to the profile of home buyers produced by the US National Association of Realtors, nearly 9 of 10 buyers used the Internet and a Real Estate Agent during the home search process. This is not surprising given how widespread the use of the internet has become. Recent statistics show that Canadians spend more time online (an average of more than 40 hours a month) than any other nation in the world. This is often the start of the process for many home buyers but not all since some people either do not have the access or the inclination to use the internet. Comox Valley residents are no different. Many, if not most, turn to the internet to start the real estate process by looking at Crown Isle listings and other types of homes.
Let’s assume that you are thinking of buying a Como Valley home and that you start to look online. Before you do, however, ask yourself this question if you are seriously looking to buy a new home: Am I financially pre-approved? If the answer to this question is no, this should be your first step in the process. If you are not sure what this means, this refers to getting pre-approved for a mortgage. Remember that there is a difference between getting pre-qualified and getting pre-approved. There is also a difference between a Comox Valley mortgage broker and a mortgage officer who works for a specific financial institution. Your goal should be getting pre-approved so that you know what you can afford to spend on a mortgage, and therefore, on the purchase of a home. Many real estate agents should ask you this question before they agree to show you any homes.
Now that you have a pre-approved mortgage, you have started your property search online. The next question to ask yourself is: Do I have a good real estate agent to help me? Why? The question is not why but why not since having a real estate agent working for you (as a buyer) as your agent does not cost you anything. Real estate buyers’ agents are paid by commission and the commission is paid for out of the overall commission paid by the seller. While you can search online on your own, you can enlist the help of a real estate agent and be provided with online services to which you otherwise not have access. Remember that not all real estate agents offer the same level or type of online services. Some real estate agents have excellent online capabilities and online presence while others do not. Some do not even have their own websites. Why is this? Just like every other aspect of their business, real estate agents must spend time, effort and money on these and other capabilities. Real estate agents generally work as independent contractors. While they are affiliated with an agency (such as RE/MAX in my case) for licensing purposes, they are responsible for generating, operating, and maintaining their own businesses. They must make marketing, advertising, business planning, professional development, clientele, and other decisions each and every day. If a real estate agent is providing you with a service, they are paying for that service in some form. Contrary to popular belief, real estate agents have many different expenses each month just as does any other business.
Only so much can be accomplished online. At some point you will need to get out and actually see some Courtenay real estate listings and homes in Comox, Courtenay, Cumberland and other parts of the Comox Valley before making any decisions. A home can look great on the internet but does it actually look like that in real life? What do the surroundings look like? What is the neighbourhood like? Many other similar questions can only be answered through first hand experience.
The first time you view a Comox Valley home you should determine if you have any interest in the home. What questions would you need answered before getting serious enough about a home to consider putting in an offer. DO NOT think that any real estate agent will be able to answer every question you have during your first viewing of the home. This is simply not a realistic expectation. I recently encountered a young man who thought that I, as a real estate agent, should be able to answer every question that he had at the time that he first viewed a home. He clearly did not understand the real estate buying process. As an example, I am in hundreds of homes in any given week and thousands in any given year. If you think the home may meet your needs you will likely have some questions that will need answers. Your real estate agent has many sources of information from which to get answers. While it is conceivable that you may fall in love with a specific home the first time you see it, most people use a first viewing to either eliminate the home as a potential option or place in on a short list for a second viewing. Even after viewing a home for a second time, their may be questions that need to be answered and your real estate agent will help you get answers. Even after making an offer on a home, there are generally conditions in the contract (such as subject to a home inspection) that are included in the contract to enable you to get answers that your real estate agent is not either qualified or licensed to answer. For example, real estate agents are not lawyers and they cannot provide you with legal advice. Neither are real estate agents home inspectors. The real estate buying process often involves getting answers from a number of different professionals and your real estate agent can provide you with information and advice on how and where to get the information and from whom.
After you have seen a number of homes and have narrowed your choices down to the point at which you wish to make an offer, your real estate agent will prepare a legally enforceable contract offer and provide you with recommendations on the inclusion of a terms and conditions appropriate to the specific circumstances – yours and the home and property under consideration. After you review and sign the offer, your agent will present the offer and a process of negotiation generally follows that hopefully will terminate in an accepted offer. Once an offer is accepted, the real estate agent generally has a lot more work to get to the point where the offer becomes unconditional – finding and presenting information to the buyer and preparing addenda to the contract to remove conditions or add subsequent terms and/or conditions to the contract. Real estate agents also need to meet home inspectors at the home before and after the inspection to ensure access and lock up and to receive feedback that may affect the offer and how conditions are removed. There is related work for the agent getting the documentation to the conveyance staff in the agency so that they can coordinate the documentation with the lawyers and/or notaries for both parties (buyer and seller). Real estate agents then should follow the process through to completion and arrange to pick up the keys so that you can take possession of your new home on the time and date specified.
This blog is not intended to explain everything that real estate agents do during the Comox Valley real estate buying process. Instead, the information presented above touches on the major steps in the process. Your real estate agent does much more than merely schedule viewings and show you homes. They have a business to run, and most work with buyers and sellers – responding to questions and other needs, and providing updates on a regular basis. While showing a home is an important part of the process, it is merely one very small part.
There are currently many Comox Valley homes for sale. If you are thinking about buying one (or selling one), contact me today to discuss your needs and expectations.