"If we buy direct from the builder, do we still need a realtor? "
Regardless whether their sales person is a licensed realtor, or an unlicensed sales associate, they are working for the builder, not you. They possess invaluable product knowledge, and should be able to answer all of your questions about the new build, but their best interests are those of the builder, not yours.
You need someone on your side, a partner in the purchase who will lead in negotiating price, upgrades, improvements, terms etc . And that’s just the beginning. Perusing and understanding a lengthy contract, specification sheets, Disclosure statements, amendments, building plans and lots more, is something that we specialize in.
“So what happens if we change our mind?”
If you’ve just entered into a purchase agreement on a brand new condominium, townhouse or detached home, then changing your mind is your right.
Yes we are all licensed and yes we are all bound by the stringent laws of the Real Estate Services Act, but we all approach our profession a little differently. Real estate takes on many different guises; commercial, residential, recreational, waterfront, condominium etc. Some Realtors choose to generalize, knowing a little bit about each of the various categories (like your family doctor) and that’s healthy. But sometimes you need to see a specialist. So choose your specialist wisely. You probably wouldn’t go see a Podiatrist for a brain tumor. And it’s doubtful that a Wills and Estates lawyer would be your best bet to litigate your claim with ICBC.
If you are debating whether or not this is a good time to buy a home or revenue property, consider these three, very important points.
NEED: This is Paramount. What is your reason for buying? A transfer, a recent wedding, a new baby? Any of these three reasons would suggest that you should be considering your move sooner vs. later. If your needs are less urgent, then you should be more conscious of timing, and how to use it to your favor. We all know that buying in a heated, frenzied market or in a falling market (both of which, we have just come out of) are not good ideas. If your need is for an investment property, then this should be done with lots of good advice (that’s where we come in) and patient due diligence. This may even be a good time for you to be leveraging equity in your current real estate to buy another, and another.
TIMING:The perfect time to buy is when few others are, and when the market and interest rates are stable, as they are now. Too many people wait too long for prices to fall, or fall further and then find themselves out of the market. Keep in mind that real estate markets exist independent of other markets (we’ll expand on that more below) and are cyclical. History has proven that the market sees an aggressive shake up every 7 years or so. However, if you track the market over a longer span of time, (over 2 or 3 cycles) you will see that values are always up.
BENEFITS:Most home owner’s biggest increases in their net worth come through their real estate investment(s). Ask your mom and dad how much they paid for their first home. Not all jobs or professions have big pensions at the end of your working years. Equity in your real estate investments can serve that purpose. Lots of sage investors are using income from their investment properties to finance travel, home renovations, grandchildren’s educations philanthropic interests or car collections.
WHAT SHOULD YOU DO NOW?
What does “Rain Screen” mean?
In the simplest of terms, it is a wall built to protect a wall. It was an idea that was born out of necessity in the late 1980’s or early 90’s during the “Leaky Condo” era. Low rise condominium buildings were being built (mostly on the lower mainland) that were using exterior cladding that was not fully weather resistant.
The Royal Bank of Canada has lowered its 5 year fixed mortage rate from 3.89% to 3.74%.
In it’s wake the other major big banks will undoubtedly follow. Their reasons are typically analytical, thoughts that the economy is not recovering as expected, and a drop in bond yields. However, two other factors are at play offering welcome relief to home buyers. The market has mellowed somewhat and a volatile sellers market is transitioning to something much more buyer friendly. Also, the non big 6 lenders, are heeding quicker to this change and offering up more attractive rates and terms.