Frequently Asked Questions:
Question:
Should I sell before buying?
Answer:
Yes. Generally it is better to sell your current property before making an offer to purchase. Not only, does this place you in a much stronger negotiating position, in this current market many sellers will not even consider an offer that is “subject to sale”. Also this eliminates the financial burden of paying two mortgages, including taxes, insurance and utilities for several months until you sell your current home. Which may force you to sell for less than top dollar. Of course this is only an option if you qualify for interim financing. The second part of this question is always: what if I don't find a place before I have to move from my current home? Nobody wants to move twice, but moving into temporary housing may save tens of thousands of dollars in the long run. In any negotiations you always want your position to be as strong as possible.
Q:
When is the best time to sell?
A:
Generally speaking, Spring and Autumn are the busiest seasons in the world of Vancouver real estate. People seem to concentrate on the holidays during the Winter and take vacations during the Summer. That being said, there are many factors that influence prices, and I feel the “best” time to sell is the timing that works best for you.
Q:
What are Subject Clauses?
A:
The purpose of ‘subject clauses’ is to allow a particular party (buyer or seller) a specific period of time to confirm and clarify specific types of information integral to the purchase and sale of property.
While there are hundreds of potential subject clauses, typically, when buying a detached single family home, there are at minimum five subject clauses that are placed within the contract. They are:
1. Subject to being approved for mortgage financing
2. Subject to satisfactory inspection
3. Subject to receiving and approving the title search
4. Subject to approving the Property Disclosure Statement (PDS)
5. Subject to arranging fire and property insurance.
Offers on “Strata Title Properties” can be more complex by nature than those on detached properties. Although a buyer and their agent may be looking to purchase one strata lot within a building of strata apartments, they rely on receiving specific types of information relating to the strata lot, the building and the strata corporation. Often, this information comes from the listing agent, the property management company (if applicable), and/or the strata corporation itself.
When buying an apartment or townhome, typically the same five common subject clauses are used as with detached homes plus subjects related to the review and approval of documents containing information about the strata corporation and the strata log.
These include:
• Form B
• Minutes
• Financial Statement
• Strata Plan
• Consultants Report
Plus confirming the relationship (ownership) of the parking stall(s) and storage locker.
Subject conditions must benefit a particular party to the contract (either buyer or seller) and must be removed by a specified date. Upon successful removal of all subject clauses, the contract becomes firm and binding. If subject conditions cannot be removed on or before the date specified in the contract, the parties may mutually agree to either extend the subject removal date or collapse the offer. Your agent will be able to explain the process and potential implications.
If you are presented with a "subject free" offer do not take this lightly. Subject Free Offers, if accepted, are binding and may not allow the Buyer to "walk away" for ANY reason. Remember " a bird in the hand is worth two in the bush"
The home selling process can be complicated and intimidating, if you have any questions please do not hesitate to call.
All the best,
Brad