Determining your budget with a mortgage pre-approval is Step One. This will give us a clear understanding of what you can afford & what your monthly ownership costs will be. Furthermore, a pre-approval will improve your negotiation power, lock in an interest rate & catch any financial issues that you may be unaware of in advance to falling in love with your dream home & entering into a legal agreement to purchase it from a Seller. Need a mortgage broker recommendation? We work with experienced mortgage professionals in the Okanagan and are happy to make a connection to start the process.
Each journey is unique! Once approved our buyers typically find their dream homes within a few weeks to a few months. From there, offer negotiations can take a few days. Once an Accepted Conditional Offer is in place, a buyer will have 10 days to 2 weeks to fulfill themselves with their Due Diligence on the property. This involves Home Inspections, Title Searches, Financing, Reviewing Strata Documents, etc. Once a buyer is satisfied & makes the Contract unconditional, a Completion/Possession Date can be as early as two weeks after the Conditions are waived & the deposit is paid. Typically a Seller will require a month or two to move out. As a result, the entire process is usually around 60-90 days from submitting an offer to obtaining keys.
It is important to budget for ALL costs associated with purchasing. Typically, this can amount to 2-4% of the value of the property.
- Due Diligence Costs: This will include the costs associated with completing due diligence on the property. For example, home inspections, appraisals, surveys, well tests, pool inspections, accounting/legal advice, etc. Additionally, having a 5% deposit (which forms but is separate from the down payment) will be required to be paid within 24 hours of acceptance or within final subject removal depending on how the purchase contract is written.
- Closing Costs: This will include the additional purchasing costs like BC’s Property Transfer Tax, GST (if applicable), Legal/Notary Fees, Insurance, Balance of Purchase Price, CMHC Premiums, Tax/Utility Adjustments, Strata Move fees & any immediate repairs or renovations that may be required.
View Our Resource for Buyer’s Page for a breakdown of these costs
Not to be confused with annual property taxes, Property Transfer Tax or PTT is applicable when you purchase or gain an interest in property that is registered at the Land Title Office. The property transfer tax is based on the fair market value of the property (land and improvements) on the day it was registered with the Land Title Office unless you qualify for an exemption or purchase a pre-sold strata unit. You or your legal professional must file a property transfer tax return and you must pay a property transfer tax in the amount of
1% of the fair market value up to and including $200,000
2% of the fair market value greater than $200,000 and up to and including $2,000,000
3% of the fair market value greater than $2,000,000
If the property has residential property worth over $3,000,000, a further 2% tax will be applied to the residential property value greater than $3,000,000.
With Master Certified Negotiation Expert (MCNE) credentials, we skillfully craft every offer to your needs while identifying leverage points to use to your advantage. The negotiations may involve multiple discussions & counters until a win-win agreement is made between the Buyer and seller. While price is pivotal in a Contract of Purchase and sale, it’s just one of many considerations. Rely on our expert guidance to navigate essential details, make informed decisions around dates, timelines, and conditions that protect you, and work in accordance with your purchasing requirements.”
Interested in buying a condo, townhome, duplex, or bare land strata? With the growing number of strata buildings in the Okanagan, you will need to know how the ownership structure works vs. conventional freehold ownership of land + improvements (i.e. single-family home). Click here for more information on how strata corporations operate in British Columbia under the Strata Property Act.
- Any registered restrictions like covenants or easements will be registered on Title with the BC Land Title Office. Before purchasing, a Title search will be conducted (& is oftentimes a condition in any offer), which will provide details on such restrictions. It’s essential to review these details with your lawyer to understand any property limitations that may conflict with your intended use & enjoyment of the property.
- For property usage, it is important to review municipal zoning bylaws which may further restrict what you can and cannot do with your property.
- It is also important to consider if the property is located in the Agricultural Land Reserve or in a Development Permit Area zone where further restrictions may exist.
- Finally, strata properties will be governed by strata rules and bylaws which should always be reviewed prior to subject removal.
Like any investment, the Okanagan real estate market ebbs and flows and is often influenced by Canada’s broader economic landscape. Long term, we firmly believe the Okanagan Valley will continue to stand out as a prime investment destination for homeowners & investors alike. Bear or Bull market, we always recommend that a real estate purchase should be made with a long-term horizon in mind. Whether it’s your primary residence or a 2nd income-generating property, you can count on our extensive analytics & expertise to pinpoint the right opportunities for you.
With every challenge, there’s a solution. Sometimes this comes down to renegotiating the price or addressing these issues via our vast network of professionals. From general contractors to electricians, plumbers to pool experts we know who to call when a professional opinion is required.
Competitive markets require innovative strategies. Our team has a proven track record of crafting standout offers. Give us a call to learn our secret recipe for preparing an effective offer!