Valuable Tips for Home Buyers | Comox Valley

How do I Prepare to Buy a Comox Valley Home?

February 19, 2014 by Brett Cairns

An often asked question lately is “Is it a good time to buy a home?’ Should I start to seriously look at browsing through all of the real estate listings in Courtenay? While there is no general answer that will apply to all specific situations and circumstances, there are a few tips that may help you decide for yourself.

First, do you currently own a home or do you rent? If you rent find out just how affordable buying can be given your personal financial circumstances. Why rent and pay someone else’s mortgage if you can afford to buy and pay your own. You cannot build up equity in a rental but you can in your own Comox Valley home.

Second, why are you buying? Are you an investor? Are you buying a home to live in? Do you have to buy in a specific amount of time? These are a few of the questions that I will ask clients to help them answer this question. Motivation to buy is a very important element.

Third, what is the Comox Valley home market doing? I addressed this issue in previous blogs. Contact me for information on this topic and be prepared to discuss your needs and wants as well as your location and price range preferences.

Fourth, what are mortgage rates doing? Some rates have been at or near 50 year lows. Some people appear to be waiting for the “bottom”. This may not be the best approach in a number of circumstances. Why? How does anyone predict the bottom? Based on my experience, Comox Valley real estate market predictions are often not any better than weather predictions when one needs some exactness in the prediction. If you are an investor you may wish to gamble a bit. If you are looking to buy a home to live in, other factors such as features, price and location may have more relevance to you.

Fifth, what do you plan to spend, can you afford to spend, and how much per month do each of these amounts represent to you based on current mortgage rates? Are you planning to buy an executive home in the Courtenay real estate market on a modest budget? Are you planning to buy a classic split level home in Comox on a substantial budget? What is the impact of interest rates rising a percent or two? Getting financially prequalified is an important first step. Getting pre-approved is the next step. Offers can, and do, collapse over financing. By getting these things done before you start looking for a home you will know how much you can afford to spend. Don’t forget to consider the other expenses associated with the purchase of property in BC. Also, be aware that even though you may be pre-approved for a mortgage, once in a while a specific property may not qualify. Your Comox Valley real estate agent and financial expert can help you address these issues.

Sixth, if you do not already have a great real estate agent, find one. Do not be afraid to talk to several and interview them. All real estate agents are not equal in competence. Moreover, real estate law in BC is not confined to a single Act. Real estate agents are not lawyers and they do not give legal advice, but they are responsible to write legally enforceable contracts. They also should have the knowledge and competence to provide you with information on many different issues relevant to the real estate purchasing process. Can you afford to trust your most important investment – your home – with someone who just “meets the standard”? This does not mean that you should merely seek out the agent who makes the most money in your area. Some agents may be more concerned about making a sale and making money than providing you with the service, information, and the personal attention you need for you to be fully informed, comfortable, and confident making decisions related to the purchase of your most important investment. If your agent misses something because they are too busy, you may be in for a surprise. When surprises appear after decisions are made, the result is often not good.

How do You Buy a Comox Valley Home?

February 19, 2014 by Brett Cairns

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.

What are 10 Comox Valley Home Purchase Tips?

February 19, 2014 by Brett Cairns

Comox Valley home purchase tips may save you time and effort when it comes time to buy your next Comox Valley home. Here is a few of them
Tip One – As a Comox Valley Home Buyer, Have a Plan. While this first tip may seem to be very basic, it is surprising how many people embark on the home buying process without having taken the time to develop one. Think about what you need and want before you spend time and resources on the home buying process. Start with the objective (what do you want to accomplish and by when). Then spend time thinking about the steps, timing, and resources to meet your objective.

Tip Two – Write Down & Prioritize the Steps of Your Comox Valley home purchase plan. Write down what you think you need to do and what you would like to do. Then organize all of the steps in order of priority. By doing so, you will have a point of reference from which to make decisions.

Tip Three – Start with an Assessment of Your Finances. While people have many reasons and motivations for wanting to purchase a new Comox Valley home, one common consideration among buyers is almost always money. This single consideration often can, and does, influence the entire buying process and the end result. This, therefore, is a good place to start. Know what you have. Understand the costs involved in buying a home. Find out what you can borrow (see Tip Four). Determine what you can afford to spend on a home.

Tip Four – Visit either a Comox Valley Mortgage Lender or a Mortgage Broker. A mortgage lender works for a specific financial institution while a mortgage broker works with (but not for) many different institutions. Get either pre-qualified or pre-approved financially by a mortgage lender or mortgage broker. When you get pre-qualified (financial step 1) you will get a sense of how much you might be able to borrow. When you get pre-approved (financial step 2) you will know how much you can borrow. Determine what you can afford to spend on the purchase of a home.

Tip Five – Real Estate Location: Area Before Neighbourhood. You have likely heard that real estate is about location, location, location. Think about Comox Valley locations near the start of the buying process. There are often two decisions to make on location. To what area (such as the Comox Valley) are you moving? Within a specific area, within which neighbourhood are you thinking of living? Visit the area to help you decide if it is to where you wish to move (assuming that you have control over to where you are moving). Decide on the area before you start looking at any homes.

Tip Six – Decide on Timing. Decide on when you want to make the move (assuming that you control when you wish to move). Timing is everything is a phrase that applies to real estate as well as many other things. Buying in a buyer’s market is often better than buying in a seller’s market but not everyone has control over when you move. If you do, give this some thought. When you plan to move has a bearing on when you should contact a real estate agent.

Tip Seven – Find a listing of all of the best displayed homes in the Comox Valley and an Agent Who Can Help. Statistics show that nearly 9 of 10 people begin their search for their next home on the Internet. Nearly the same of people use the services of a real estate agent to purchase a home. All real estate agents are not alike. While they all must meet minimum standards to become and stay licensed, they can vary widely in terms of their competence, experience, and knowledge. It is important to understand the difference between the provision of information and the provision of professional services. Real estate agents are licensed to provide real estate services to people in exchange for remuneration that is paid when a buyer or seller completes a home purchase or sale. The Real Estate Services Act defines real estate services in Part 1 of the Act. Services include, among other things, the showing of homes and advising on an appropriate price for real estate.

Tip Eight – Customer or Client? In British Columbia, a real estate agent can offer services to you as either a customer or as a client. This differentiation is important to understand. REALTORS are bound by the Canadian Real Estate Association REALTOR Code of Ethics and they must disclose the role and nature of the service that they will be providing at the earliest opportunity and before “providing professional services, which go beyond providing information as a result of incidental contact by a consumer.”

Tip Nine – Working with a REALTOR. There are two meanings to the phrase: Working with a REALTOR. One refers to the professional relationship that exists between a Comox Valley real estate agent and the person who is either the customer or the client of that real estate agent. It is important to note that the Canadian Real Estate Association Code of Ethics (article 20) states: “The agency or other contractual relationship of a Registrant (meaning REALTOR) shall be respected by all REALTORS”. For this reason, when you make contact with a REALTOR one of the first questions that they should ask you is: Are you working with a REALTOR? A second refers to the British Columbia Real Estate Association brochure titled: Working with a REALTOR (Designated Agency). This brochure explains the type of professional relationship that can exist between you and the REALTOR.

Tip Ten – Aim High for Peace of Mind. It is important to understand that the marketing of Comox homes and properties is accomplished in a highly regulated industry. Real estate agents have many obligations imposed on them by law (for example, real estate agents must identify and document the identity of people before they engage in real estate transactions). Real estate agents also must abide by many different rules and regulations and, depending on their local board, the Code of Ethics that applies to REALTORS. Beyond the regulatory regime, real estate agents may also have expectations. While some agents may take on all customers and/or clients, others may be selective when it comes to the clients for whom they choose to offer their professional services. When you are offered and accept professional real estate services as a client, the real estate agent is taking on a responsibility to represent you and your interests. Based on my own significant experience as a real estate client spanning over more than 35 years, how each real estate agent does this can, and does, vary greatly. Choosing a real estate agent is a personal and important decision. If you are like most people, your home is your most expensive investment. Choose wisely and contact Brett Cairns of RE/MAX Ocean Pacific Realty.

Why Buying a Comox Valley Home is Not Like Buying a Car

February 19, 2014 by Brett Cairns

Buying a Comox Valley home is not like buying a car for many different reasons. Several recent experiences with people prompted me to write this buyers info blog. In one instance, a couple contacted me to view a property. They wanted to meet me at the home on short notice. I asked them to first meet at the real estate office so that I could explain a couple of forms to them. When they arrived they appeared surprised that I was asking them for some information. They thought that they should be able to go and see a home just like they could walk onto a car lot and see a car. Buying a home is not like buying a car. This blog will discuss some of the reasons why this is the case in the Comox Valley real estate market.

The Comox Valley real estate industry is a highly regulated industry and as a professional Comox realty agent, by law, I have obligations to fulfill related to providing real estate services. Comox Valley agents are licensed to be able to provide real estate services to people in exchange for pay (remuneration). These services are defined by the Real Estate Services Act and they include things such as showing real estate, making representations about it, and advising on price.

Comox Valley real estate agents who are bound by the Canadian Real Estate Association REALTOR Code of Ethics must disclose the role and nature of the service that they will be providing and this disclosure must be made at the earliest opportunity and prior to providing professional services. This means that this disclosure must take place before the showing of a home. Agents must also explain the British Columbia Real Estate Association form titled Working with a REALTOR ® (Designated Agency) before providing any real estate services to people.

Real estate agents must also comply with the Federal Proceeds of Crime and Terrorist Financing Act. This Act was applied to real estate in December 2008 and it now requires that real estate agents collect personal identification information from Comox Valley home buyers and home sellers. Real estate agents must also, by law, identify and document the identity of people before they engage in real estate transactions. The Canadian Real Estate Association form titled Individual Identification Information Record is used for this purpose. Other versions of this form exist to identify businesses, third parties, and people who may live out of the local area served by the real estate agent.

When one walks onto a car lot to view a car, the person is viewing a car owned by the dealership. When buyers view a home they are generally entering a home and private residence of another person. Real Estate agencies represent both home sellers and home buyers. If you owned one of the terrific waterfront luxury homes that was up for sale through a real estate agency, would you want to know that the people entering your home were legitimate buyers, and that they could be identified if necessary? For the protection of sellers, our office requires that potential buyers be identified before they enter and view a home.

People who contact Comox Valley real property agents and ask them to set up an appointment to view a home should also be aware of what is involved. The real estate agent must contact the agent representing the seller and request a viewing. The other agent then must contact the seller to see if the time and date works. When a tenant is involved, the law requires that the tenant be given a notice of at least 24 hours before the home can be viewed. At times, this coordination can happen fairly quickly. At other times it may take time and several follow ups.

Time is money. Real estate agents who provide real estate services to people do so in exchange for remuneration. Most real estate agents do not get salaries. They get paid on a commission basis when a real estate transaction (such as the purchase of a home) completes. Like any other business, real estate agents cannot stay in business if they provide services for free. Showing a home takes time, effort, and some money on the part of the real estate agent. Having said this, showing real estate may only a very small part of what real estate agents are licensed and qualified to do.

It also normally takes time and effort on the part of the seller who has to get the home ready for the viewing. Sellers generally do not like people coming through their homes who are not at least prospective buyers. Sellers also generally like to know if the prospective buyers are financially pre-qualified. Peoples’ homes are their castles and their homes are a personal and private place. Viewing a home is not like viewing a car.

If you are considering the purchase of a home in the Comox Valley and would like to view a home or homes, contact Brett Cairns of RE/MAX Ocean Pacific Realty.

What are 10 tips for Buying Comox Valley Land?

February 19, 2014 by Brett Cairns

Buying Comox Valley land often has different considerations than buying Comox Valley homes. I often get asked questions related to the purchase of land in the Comox Valley so I thought that I would write a blog on the topic. Buying real estate in the form of land is similar to buying a home, but with some added and different buyers considerations.

First is location. Just like buying a home, real estate location is important. It is important to find out as much as you can about the Comox Valley land itself. What surrounds the land and what is nearby? Are there developments planned that may affect your future enjoyment of the land? Are there roads, highways or other things planned such as major power lines or water towers?

Second is municipal governance. Is the land located in a rural region of the Comox Valley Regional District or an urban area like the City of Courtenay? For example, the land may be located in a rural area controlled by a regional district or it may be in an urban area controlled by a city. If the Comox Valley land parcel is located in a rural area, are there any plans for annexation by a nearby urban area? Why is it important to know this? Because there may be differences in zoning regulations, servicing, property taxes, etc. It is important to do more than just surf the web for options on the purchase of homes in the Comox Valley.

Third is access. How accessible is the land. Are there highways and roads already established to allow easy access to the land? Is the access direct from a public roadway to the land or is the access via some other property?

Fourth is zoning. What kind of zoning has been established for the land? Find out what the zoning means so that you can find out the permitted principal and accessory uses for the land. Understand the regulations that concern minimum lot size, minimum lot frontage, maximum building and structure height, setbacks, etc.

Fifth is title. What is current on the title? The title will include things such as the registered owners, the type of estate and ownership and interests less than estates that apply to the land. Caveats, Covenants and a number of other things may appear on title that can affect your enjoyment and use of the land.

Sixth is Restrictive Covenants. A Restrictive Covenant imposes a restriction on the use of the land. Building Schemes are common forms of such covenants. Are there any? If there are, what restrictions apply to things like construction, siting, use, etc.?

Seventh is Easements. An easement is a privilege acquired by, for example, a Comox Valley landowner over the land of another. For example, there may be a right of way through the property to provide access to something else such as a lake.

Eighth is water. Is there water currently available to the property? Is the water available through a well? If it is, is the well shallow or deep? If shallow, is the well prone to drying out during the peak summer period? Is it prone to any adverse effect from the rainiest part of the year? If a deep well, are there any contaminants? Is there a Water Well Log, drilling report, water pump installation record, or water testing records? Was the test a Basic Potability or Comprehensive Water Test? If water is drawn from something like a nearby lake, is there a water license? Is there a municipal water supply that runs to the property?

Ninth is sewerage. What is the sewerage plan for the land? Will it or does it have a septic system? What type of system? Are there records of installation and servicing? Will it or does it have access to a municipal sewerage system?

Tenth is other. There are many other things that could impact the use of the land. For example, a rural property may be in the Comox Valley Agricultural Land Reserve. ALR land has specified uses and limitations on subdivision. If the land is near a watercourse such as a stream that is connected to a watercourse that provides fish habitat, the Riparian Regulation will apply. This regulation establishes a Riparian Assessment Area within which there are restrictions on what can be done with the land.

This blog just scratches the surface on the info on many of the issues that can affect the purchase of land in British Columbia. Since each situation is unique, each piece of land should be considered on its own merits. If you are considering the purchase of land in the Comox Valley and are looking for help and advice, contact me directly or through RE/MAX Ocean Pacific Realty in either Comox or Courtenay and I would be pleased to help you with this important purchase.

Why do Comox Valley Home Buyers Need Buyers Agents?

February 19, 2014 by Brett Cairns

Real estate agents can represent you as either a buyer (Buyers Agents) or as a seller (Sellers Agents). In June 2012 the law changed in BC. So did the way that you could be represented by a real estate agent when you buy or sell Comox Valley homes. It does not matter whether you are buying land or buying a home.

The professional relationship that can exist between you and a real estate agent is established in the Law of Agency in British Columbia.

Prior to 1994, under “Seller Sub Agency”, all real estate agents worked for the seller;
From 1994 – June 2012, under “Assumed Buyer Agency”, real estate agents could work for buyers and sellers BUT there were many instances where Limited Dual Agency relationships were offered and entered into; and
In June 2012, under “Designated Agency”, exclusive representation for buyers and sellers became more readily available in most situations

Think of representation in a legal setting. Let’s assume that you have been involved in a car accident and are injured. The insurance company of the person who caused the accident and your injuries offers you a settlement. What do you do? Conventional wisdom says that you obtain a lawyer to represent you and your interests. That insurance company will certainly not be looking out for your interests. You can bet that that insurance company has lawyers to represent their interests, and that they will not be concerned with yours.

Now, turn to the Comox Valley real estate setting. Can you think of any reason why would Comox Valley home buyer would not want to be represented exclusively by a real estate agent? Until Designated Agency was introduced, this was not an option in too many different situations.

Between 1994 and June 2012, let’s say that you saw a a number of specialized Comox listings of homes online and wanted to know more about them. Let’s say the listing was held by RE/MAX Ocean Pacific Realty (the brokerage) and the listing agent (an agent of the brokerage) was Agent A. Agent A was hired by the seller to represent them and their interests. Perhaps not commonly understood during this time period was the fact that the seller had also hired the brokerage to represent them and their interests. If a person wanted to place an offer on this listing and they were represented by any agent at the same brokerage that had the listing, they would have had to enter into a Limited Dual Agency relationship to do so. When this occurred, the brokerage represented the interests of both parties. In theory and law, both parties were to be treated impartially. If two different agents at the brokerage were involved, they had restrictions placed on them as to what they could and could not do for their clients. If the buyer called the listing agent to place an offer on the property, the same Limited Dual Agency would apply BUT both parties were supposed to have been treated impartially by both the Brokerage and the individual agent. If this were a legal issue, would you want to have one lawyer represent both parties in a lawsuit impartially? Why then would you want this type of relationship when you were buying or selling your most expensive investment? Clearly, others agreed and “Designated Agency” was introduced.

Under Designated Agency, the brokerage that has the Courtenay real estate listing is no longer a major determinant of the type of agency representation that could apply to a specific situation. Buyers and Sellers can now be exclusively represented by an individual real estate agent regardless of the brokerage affiliation of the agent. Under this new law, limited dual agency can still be used as follows: 1. when two or more buyers working with the same agent want to place an offer on the same home at the same time; and 2. when a buyer working with agent A wants to place an offer on a home listed by Agent A. Because of this narrowed application, Limited Dual Agency should not be nearly as prevalent as it may have been in the past. As well, there are alternatives to Limited Dual Agency in these two situations. First, one person can be offered no agency relationship and be treated as a customer. Second, one person can be referred to a different agent so that they and their interests are exclusively represented. Why would you not want to be exclusively represented throughout the real estate buying process ?

To find out more, contact Brett Cairns of RE/MAX Ocean Pacific Realty and to talk to him about exclusive representation as a real estate client.

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