BuyersGuide

BUYERS BUYING INGUIDE VICTORIA, BC BUYER’S GUIDE FROM ANDREW PLANK | 1

CONTENT04/05WORKING WITH A REALTOR®TESTIMONIALS 06 08/09BUYER AGENCY 07 ABOUT ANDREWABOUT ANDREW 08/09 Check out my approach to real estate and how I can serveTHE TEAM & THE TOOLS 10/11 you best.CONSIDERATIONS 12/13VISIONING 14/15MORTGAGES 16/17 16/17 14/15 MORTGAGES VISIONING It’s important to confirm the fi- What’s your ultimate goal? Do you have certainnancial side of purchasing a home ‘must haves’ and in what areas would you com- from the beginning. promise? Be completely ready to act when you find that perfect home!Kelsey Goodwin - Photography | Cora Bilsker - Editor | Andrew Plank - Writer | Matayius Timothy - GraphicsRich Woznicki - Copy Editing2 | BUYER’S GUIDE FROM ANDREW PLANK

18/19 28/29 CUSTOMIZED OPEN HOUSES MLS SEARCH Open houses can be a fun part of yourThis free tool will be essential in your home search. Getting a feel in personhome search. You will be notified the for the type of house you want is very moment a property matching your helpful. search criteria hits the market.18/19CUSTOMIZED MLS SEARCH THE OFFER PROCESS 32/33OWNERSHIP TYPES 20/21/22 34/35CLOSING THOUGHTS & COSTSINVESTMENT PROPERTIES 23 CHECKLIST 36 MOVING 37GREATER VICTORIA 24/25/26/27OPEN HOUSES 28/29 GLOSSARY 38/39/40“DON’T PANIC” 30/31WELCOME I’m interested in making this world of Real Esta- te more accessible and less threatening. With aThanks for opening up my Buyer’s Guide! With no-judgement additude I think you’ll find my na-over 10 years experience in Real Estate, I’ve ture welcoming and fun. Let’s make this processpicked up valuable knowledge that I would love more enjoyable than you’d ever expect it to be.to share with you. The articles in this magazinebarely scratch the surface of the resources and BUYER’S GUIDE FROM ANDREW PLANK | 3reccomendations I will provide to you as yourREALTOR®.Please do not hesitate to contact me for moreinformation, to see houses, to asses the value ofyour home, or to just go for a coffee and discussthe market.

PAGE 1 OF 2WORKING WITH A REALTOR® (DESIGNATED AGPAEGEN1COFY5 ) AN EXPLANATION OF THE RELATIONSHIP BETWEEN YOU AND A REALTOR® AND OF THE COLLECTION, USE AND DISCLOSURE OF PERSONAL INFORMATIONYOUR RELATIONSHIP WITH A REALTOR® LIMITED DUAL AGENCYBuying, selling or leasing real estate is a significant financial transaction. Limited Dual Agency occurs when the Designated Agent representsTo help you ensure your experience is a rewarding one, it is advisable both the buyer/tenant and seller/landlord in the same transaction orthat you learn the legal and professional guidelines that will define the two buyers competing for the same property. In this arrangement, theworking relationship you have with your REALTOR®. REALTOR® cannot be concerned exclusively with your interests in the transaction, since they are acting on behalf of the other party as well.This brochure also explains the collection, use and disclosure of Both the seller and the buyer or the competing buyers should fullypersonal information under Privacy guidelines. If you are still unclear consent to a limited dual agency arrangement in writing.about any of these concepts, feel free to seek legal counsel. A REALTOR® who has consent to work as a limited dual agent mustREAL ESTATE DEFINITIONS YOU SHOULD KNOW adhere to the following restrictions:REALTOR® is often used interchangeably with licensee, real estate A. Deal with both parties impartially;agent or representative to describe someone licensed under the Real B. Have a duty of disclosure to both clients, except that:Estate Services Act. A Designated Agent is the person(s) designatedby the Brokerage to act for you, the Client, as your sole agent in i. REALTOR® must not disclose that the buyer/tenant isreal estate transactions. This person is almost always a licensed willing to pay a price or agree to terms other than thoseREALTOR®. Brokerage refers to the real estate company where your contained in the offer, nor disclose that the seller/landlordREALTOR® is licensed. is willing to accept a price or terms other than those contained in the listing;The Boards are the real estate boards of which the Brokerageand the REALTOR® are members. The Boards set and enforce the ii. in the case of competing buyers, the REALTOR® must notprofessional standards of members, and will help resolve disputes disclose the amount or terms of any offer to purchase orbetween member REALTORS® and the public. The Multiple Listing lease made or contemplated by either buyer/tenant;Service® System (MLS®) comprises a computerized database of realestate listings and sales, operated by the Boards in conjunction with iii. REALTOR® must not disclose the motivation of one ClientThe Canadian Real Estate Association. In documentation, the buyer/ to the other Client, unless one of the Clients has authorizedtenant is often referred to as the purchaser, the seller/landlord, such disclosure themselves;the vendor, the landlord the lessor, and the tenant the lessee. Theclient (sometimes called the principal) is someone who has engaged iv. REALTOR® must not disclose buyer/tenant’s or seller/a Designated Agent and their Brokerage to act for and on his or her landlord’s personal information to the other Client, unlessbehalf either to buy, sell or lease real estate. The customer is a buyer/ authorized in writing. (This refers to information not otherwisetenant or seller/landlord who receives services from a REALTOR(S)® disclosed in the transaction documents.)who is not their Designated Agent. C. Must disclose to the buyer/tenant any defects about the physical condition of the property that are known to the REALTOR®. Real Estate Co.THERE ARE THREE POSSIBLE MODELS YOU CAN USE TOBUY, SELL OR LEASE PROPERTY THROUGH A REALTOR®DESIGNATED AGENCY Buyer REALTOR® SellerWhen a brokerage designates a REALTOR® or REALTORS® to work CUSTOMER RELATIONSHIP:solely on your behalf in real estate transactions, the REALTOR® and Working With a REALTOR® Who is Not Your Agentbrokerage are bound by ethics and the law to be honest and thorough inrepresenting you. The REALTOR® appointed as your Designated Agent You may also choose to use the services of a REALTOR® without havingmust: any kind of agency relationship. This might occur, for example, when you contact or are being shown a property by the seller/landlord’s Designated• Provide undivided loyalty to you (Client) by protecting your Agent who will treat you as their customer rather than their client. negotiating position at all times, and disclosing to you all known facts which may affect or influence your decisions. Your Designated In this situation, the REALTOR® is not permitted to recommend or Agent will not be able to disclose to you confidential information suggest a price, negotiate on your behalf, inform you of their client’s obtained from other clients; bottom line price point or disclose any confidential information about their client unless otherwise authorized by the client (or if in special• Act within the scope of the authority granted by you and obey all circumstances, the law required it). However, the REALTOR® can lawful instructions which you give the REALTOR® to act on your provide you with other services, such as: behalf; • Explaining real estate terms, practices and forms• Maintain the confidentiality of your information (financial, legal, • Assist in screening or viewing properties personal, etc.) (See following PRIVACY section); • Prepare and present all offers and counter offers at your direction • Inform you of lenders and their policies• Use reasonable care and skill in performing all assigned duties in • Identify and estimate costs involved in a transaction the role as agent. YOUR RESPONSIBILITIES AS A BUYER/TENANT OR• Unless the brokerage and you agree otherwise the duties of your A SELLER/LANDLORD Designated Agent do not apply to the brokerage or any of its other REALTORS®. As a buyer/tenant or a seller/landlord, you should:The brokerage must: • Carefully read all documents and understand what you are signing. • If you need special or expert advice, seek other professionals for advice.• Supervise your Designated Agent;• Maintain the confidentiality of your information; BC 1007-F REV DA JUN 2014 COPYRIGHT• Account for all money and property placed in its hands while acting for you;• Treat you and all of its clients in an even handed, objective and impartial manner. 4 | BUYER’S GUIDE FROM ANDREW PLANK

WORKING WITH A REALTOR UNDERSTAND WHAT KIND OF DUTIES ARE AVAILABLE WHEN YOU WORK WITH A REALTORThe law of Agencygovernshow of which are included fact to all parties. here. It explains agency in a REALTOR® depth and I highly recommend A mutual decision must you review it. then be made whether to must conduct The main take-away here is to limit agency contractually be aware of the agency service through a “Limited Dual themselves and you are being provided and Agency Agreement”, ask the possible scenarios where the buyer to search outprovide services. The duties agency may be formed or another property, or request altered. Whether you are a the buyer to use a differentand responsibilities will customer (no agency) or a agent for representation client (agency), a REALTOR® on this particular property.vary depending on who I still has a duty to treat you professionally and ethically. Obviously none of theseam working with, the depth However, within the scope of are ideal options, but what is legal, an agent follows thankfully this is a relativelyof prior services provided their client’s instructions and rare circumstance. As in this is sometimes a source most situations, lots ofto them, any contractual of confusion and conflict advance communication is for those who do not have essential toavoidingconfusionobligations we’ve signed representation. and misunderstanding.(a listing agreement One common area of conflict This is only scratching the is when both a potential buyer surface of possible scenerios,for example) and any and the seller of a property so please get in touch if you have agency with the same have any questions aboutrepresentation owed to any REALTOR®. Working With A Realtor® and Agency relationships.other parties for the same In this case, because there is now a conflict (the agent hasproperty. a duty of undivided loyalty to these two parties with“Agency” may form simply opposing interests!) the REALTOR® must disclose thisout of our working together,or may be establishedthrough a formal agreementwhich clearly outlinesthe responsibilities andexpectations of eachparty. Within an agencyrelationship, my clientsreceive confidentiality,undivided loyalty, and theexecution of their lawfulinstructions. The Real EstateCouncil of BC publishes abrochure entitled “Workingwith a REALTOR®” portions BUYER’S GUIDE FROM ANDREW PLANK | 5

TESTIMONIALS “Moving from a more affordable Okanagan market to Victoria, my wife and I had to learn about the potential neighbourhoods for our family, adjust our expectations on price and availability, and get up to speed on common issues with older homes. This put us at an initial information disadvantage that could have been exploited by a real estate agent trying to simply ‘close a deal’. As luck would have it, we met Andrew. He always been very patient and honest, and has worked hard to understand our needs. After over a year of looking at homes, we my wife and I both consider Andrew Plank a friend. I wouldn’t hesitate to recommend Andrew to anyone looking for a patient and understanding realtor that is willing to invest the time necessary to help them find the right home.” -M.H “The way that you handled the negotiation was excellent. You were frank and honest about what you thought but did not push us through the process. And getting 4500 off of the price in very tactful way was very good. I appreciated all the up front work that you did for us in such a short amount of time. But the other piece of it was that I felt less burdened by all the rest of the process once we put an offer in. I didn’t know how much work there would be, but you kept us on track and made sure we were aware of any major things. You let me know exactly what to ask of the strata council which made my life easier. And thanks again for coming here to video the place for us. You went above and beyond most realtors in doing that.” -N.P “We would like to thank you for helping us to purchase our new home in Victoria. Working with you was a rewarding and enjoyable experience. In particular, we appreciate: Your thoughtful and well-considered advice, which helped to keep us focussed on our objectives; your style, which we found supportive, sympathetic and at no time made us feel pressured or rushed; your forthrightness and honesty, in particular the way you helped identify potential issues and problems in some houses that we looked at. We are certain that this helped us avoid many pitfalls; your fundamental decency as a person. We have come to respect and appreciate greatly who you are as an individual. We will not hesitate to recommend you to other potential clients and look forward to staying in touch. With best wishes, R. & S.” “Andrew, We want to thank you so much for finding our house. Although we looked at many houses together over the course of roughly a year, you stayed patient and kept finding houses on our wish list. Eventually we found the ri- ght one and we love it. You were very prompt in getting us viewings and your years of experience were very useful. You showed us many things in houses that we may have overlooked or not noticed at all as first time home buyers. Your easy going professionalism made house hunting a pleasure. We gladly recommend you to anyone looking to deal in real estate. Sincerly, C. & K. Z.”6 | BUYER’S GUIDE FROM ANDREW PLANK

BUYER BENEFITSAGENCY BUYER AGENCYGood news! My services are Working as your agent, I am My services includeoften free for the buyer. duty bound to represent sourcing, searching for andYou see, it’s usually the and protect your interests showing homes, researchingseller who pays all the with undivided loyalty. properties and helpingreal estate fees through Confidentiality is important establish market valuesthe listing contract with and I’m further duty for offers, assisting intheir agent. Sometimes bound to keep my clients negotiations and helpingthe commission offered motivations as well as smooth out any bumpsby sellers is less than my personal and financial and avoiding any pitfallsminimum fee of 1.5% of details protected. I’m your along the way. Essentiallythe purchase price. In those advisor and consultant, I leverage my years ofcases I will notify you and but ultimately it is you experience to protect andwe can discuss options but who provides lawful promote your interests as ifthis is rarely necessary. instructions that I as they were my own. your agent must follow Contact me today to get in regards to real estate started. duties. BUYER’S GUIDE FROM ANDREW PLANK | 7

ANDREW CELEBRATING 10 YEARS IN REAL ESTATE IN 2016People often ask me what areas I specialize in. My services are client-focused and provided in a Simply put, I specialize in helping people friendly and easy-going manner. Yet I’m firm and as- recognize and achieve their real estate goals. sertive when protecting and promoting your interests And it must be working. Much of my business these in negotiations. past years is through repeat and referred customers. Self-employed since 1997, I’ve built my success By taking a results-oriented approach and leveraging throughhardwork,innovation,integrityandvision. Ifirst the best systems, tools and techniques, I work to established “Camera Traders” in Market Square, whe- ensure you remain well-informed and highly suc- re I honed an entrepreneurial vision that eventually cessful in making your real estate dreams come true. led me to begin my career in real estate in 2006. I take pride in my work and am dedicated to I’ve lived in many areas of Victoria throughout my life providing you with the kind of exceptional service and including Saanich, Victoria, Oak Bay, Esquimalt and guidance I myself would appreciate if I were buying Langford. I currently live near the Uptown Mall in or selling a home. My intention is to streamline your Saanich. I find the area perfectly central whether I’m process to keep it uncomplicated and hassle-free working in town, in the Westshore, or on the from start to finish. Peninsula.8 | BUYER’S GUIDE FROM ANDREW PLANK

MODERN TOOLSOLD FASHIONED SERVICEI am dedicated to providing my clients with industry best tools to successfullybuy and sell their homes.The real estate industry is rapidly evolving. I work to stay up-to-date on thelatest technology, news, tools and systems, ensuring that I stay ahead of thecurve. These new tools and techniques allow me to facilitate faster and moresuccessful outcomes for my clients.However, it is not just about technology. I also focus on offering my clients highlypersonalized services. I take the time to get to know your unique needs andsituation. I put you “First and Foremost,” providing you with industry information,timely advice and regular feedback.Your success is my success. With humor and fun, I work to build clients for life,from your first home to your retirement home and everything in between.My interests outside of real estate include trail run- I am passionate about photography and I havening, volleyball, paddle boarding, fishing, sailing, extremely high standards. This means I either hireand most anything else that lets me explore this the best, or take the photos of your home myself.beautiful West Coast. This is essential to quality advertising and some- thing often neglected.I’ve always been a collector and appreciate the Learning more about interpersonal communica-rare and unique. Whether its cameras and optics,mid-century modern furniture, books, old tion has been vital in my growth and commu- nication skills. This led me to participatephotographs and rare films, or a vintage in the powerful counselling training“Barth” RV, I find the past fascinatingand sometimes wish our society program offered by Citizens Coun-was less ‘disposable’ than it etsMatcayloLtketfetrfr’oeeseeava.tel!r selling Centre. This organiza-is today. I also love fin- tion provides counsellingding great homes for my at an accessible fee for theclients. people of Victoria. ThisI have a few interests that training allows me to com-directly influence the municate even more effec-benefits you’ll recieve with tively with my clients and fellow REALTORS through negotiations.me as your REALTOR®:Caring for our earth is deeplyimportant to me, which is why I’m proud I pride myself in being very accessible toto offer a mostly paperless process by using my clients and welcome questions or inqui-modern tools such as digital signing sessions, ries related to real estate sales and acquisitions.Dropbox, email, and more.As of July 2016 I am fufilling a second term on the My intention is to streamline the buying and sellingVictoria Real Estate Board as a director. This allowsme to stay up to date with current information about process for my clients, keeping it uncomplicated and hassle-free from start to finish.the market in Victoria. BUYER’S GUIDE FROM ANDREW PLANK | 9

&THE TEAM“A SUCCESSFUL TEAM IS A GROUP OF MANY HANDS AND ONE MIND” -Bill BethelPEMBERTONHOLMES I’ve been with Pemberton Holmes Ltd since my licensing in 2006. After considering numerous agencies, I decided to hang my hat at Pemberton Holmes for many reasons. 1.The Pemberton Holmes motto, “Clients first and foremost” aligns well with my own approach. 2.The owner is not a salesperson; he is a real es- tate lawyer with years of experience in real estate law. 3.There is a real ‘family’ feel amongst the staff and realtors. Cooperation in real estate is impor- tant for success. 4.Pemberton Holmes has strong local roots, established in 1887 and still in the same family. 5.Pemberton Holmes is the largest local agency on the island with offices in Sooke, Westshore, the Gulf Islands, Duncan and Victoria. Joseph Despard Pemberton10 | BUYER’S GUIDE FROM ANDREW PLANK

& THE TOOLSCora Bilsker has an extensive assistant:history of client-centered cora bilskercustomer service and is dedi-cated to creating smooth wor- CHECKLISTS &kflows. ORGANIZATION: REALVOLVECora takes care of the CUTTING EDGEbehind-the-scenes details to TECHNOLOGYfree up time for the rest of theteam to focus on serving you BUYER’S GUIDE FROM ANDREW PLANK | 11best.Realvolve allows me to ensureno task is passed over or mis-sed in their sale of your homeor the purchase of your pro-perty. This is a great exampleof the modern tools I use be-cause it allows for branchingworkflows that are more flexi-ble than linearchecklists. Realvolve allowsme to be efficient and free upmore time for personalservice.I’m always looking for newways to enhance my lis-tings or give buyers a bet-ter sense of homes. Betweenusing a drone to create anaerial video or building 3Dinteractive models of a home,you know you’re getting themost up to date options.

DO YOU HAVE A PROPERTY TO SELL AS WELL? considerations ASK ME FOR A COPY OF MY SELLER’S GUIDE12 | BUYER’S GUIDE FROM ANDREW PLANK

If you haven’t already done so, Once you’ve been pre-appro- it’s very important that you have ved (which is different than your financial ducks in a row pre-qualified) for financing, please before actively looking at share your mortgage broker or bank properties. For faster access to pro- liaison’s name, their email address and perties, smoother negotiations, and to phone number with me so I can coor- avoid unnecessary delays, please en- dinate with them. Connection and sure you’ve clearly established your communication between your service affordability range and connected with providers is essential for a streamlined a lender if you need access to additional process. funds for your purchase. If you won’t be financing your Many wheels are set in motion in purchase please ensure that order to view properties. Sellers the source of your funds is secu- must clean and vacate their home, re and there won’t be any delays often arranging for tenants, chil- accessing those funds. Consult your dren, and pets to be out. Agents accountant, and if you’re planning coordinate key exchanges, and some- on borrowing from a 3rd party or times meetings are re-scheduled to family member it may be wise to con- accommodate timelines. sult a lawyer. As a buyer’s agent, I’m expec- If you don’t have a pre-approval in pla- ted to ensure that my clients are ce, or need a mortgage broker let me pre-qualified for the homes they’re know and I can recommend a few na- shown. I’m sure you’d feel the same if mes. the roles were reversed and your home was for sale. If your home must be sold in order to buy, we need to discuss strategies and time-lines in order to ensure your best chance of a successful transition.Ask me about“time clauses.” BUYER’S GUIDE FROM ANDREW PLANK | 13

VISIONING14 | BUYER’S GUIDE FROM ANDREW PLANK

sometimes hear you’ve shared with me Are we realistically down and hone in on colleagues express able to find what you the right property for frustration when (and that I’ve subse- want in this market? you. By looking at the Are we limiting the reasons for the detai-Ibuyers who initially quently set as search search by focusing on ls, rather than just the say they want one rigid parameters rather details themselves, I thing end up buying parameters). This is than bigger picture end can sometimes find a something complete- results? Can we make needle in a haystack. ly different.It can take to ensure you only adjustments? quite some time and a Can we get where you Realize that when lot of work to find the receive properties want to be with some we’re working within right property, but even limits such as price, longer if there’s a mis- from me that are re- area, size or condition, match between what’s compromise may be stated and what’s ac- levant to your search. necessary. It’s a good tually wanted. idea to be open to pro- But if your needs have perties that might not Why does this happen? immediately grab your Sometimes it’s a mat- changed, let me know interest. Even with ter of asking the right multi-million dollar questions. so we can adjust your properties, there are almost always compro- This illustrates just how “Big thinking precedes mises to be made. That important it is to ensu- great achievement.” said, I’ll do my best to re there is continuous, — Wilferd Peterson get you as close to your clear, two-way commu- vision as possible. nication between us. search. If I have the ri- flexibility in the pa- If you find a property ght information rameters, like unfini- If you’d like to have of interest on MLS® plugged in, there shed space instead of a meeting to review that’s not in your PCS should be no need to a 4th bedroom? what you’re trying to results, there’s likely waste time and energy accomplish in real es- a good reason it’s not looking on other MLS The clearer picture I tate, please feel free to in your search. Most sites. give me a call. likely it doesn’t meet If we’re not having any have of what you’re one of the key criteria luck finding you the perfect home there looking for, and more are some questions we should be exploring;. importantly, why you’re looking for it, the better I can narrow our search BUYER’S GUIDE FROM ANDREW PLANK | 15

MORTgAGESMost people who purchase a save, or lose thousands of dollars when the home require some financial terms, interest rates and payment schedules are assistance. That is, they require not working in your favor. These items are often someone to lend them sufficient negotiable. funds to cover the price of a home. Most often, this financial Mortgage Amount arrangement is handled through a bank or other institution through a mortgage. A mortgage is a When interest rates are lower, your monthly legally binding agreement that states a certain payments are lower, so you might qualify for a party (mortgagor) lends money to another party larger mortgage. However, the larger the (mortgagee). The mortgagee agrees to pay back mortgage, the more you will pay in interest the money at a certain rate, plus interest, over a over the length of the mortgage, Therfore your certain time period. home may cost you more. If you can afford a There are two parts to this financial agreement: higher down payment, without sacrificing your principal and interest. Principal is the actual lifestyle, this will greatly contribute to reducing amount borrowed. Interest is the lender's fee you your financial obligation. are charged for borrowing. You also have to determine the amortization period (the length of Down Payment time it will take to completely pay off the mortgage) and the term, or length of time each To qualify for a conventional mortgage, you need mortgage agreement guarantees the interest a down payment of 25% of the purchase price. rate. The mortgage cannot exceed 75% of the When you are considering a mortgage, you appraised value. have many options to consider such as type of If you have less than the 25%, you may mortgage (closed, open, high ratio, vendor take qualify for a high ratio mortgage. If you qualify, back, convertible), payment schedule (weekly, you can purchase a home with a minimum 5% bi-weekly, monthly) amortization period. Before down payment through CMHC (Canada Mortgage you sign any documents, shop at several institu- and Housing Corporation). Insurance, for an tions and compare rates and features. You could additional 0.5% to 2.75% of the mortgage amount, is mandatory with a high ratio16 | BUYER’S GUIDE FROM ANDREW PLANK

CALCULATORhttp://invis.ca/in/calculators/mortgage-calculator/mortgage. The house price may also be Competitive Interestcapped. RatesGet pre-approved prior to home shoppingHouse hunting takes a great deal of Check out all options and interest rates.time and energy. And that is even with Sometimes, flexible features may costpre-approval. Before you start shopping more.for your dream home, go to the bank. Talkto the lending officer and review your 90-day Rate Guaranteemortgage options. Fill out the necessarypaperwork (which only takes a few You will be protected against risingminutes), and you will know within a interest rates while allowing you to takematter of days whether you are approved advantage of falling rates.for a mortgage, and for how much. Youwill know what you can spend on a home Flexible Payment Optionsbefore you start looking, you will beprotected against interest rate increases, With these areas, you can tailor theand most importantly, you will be well mortgage to your lifestyle. Discussprepared to make an immediate offer on payment frequency and lump-suma home you like. A seller is more likely to payment options. Can you skip a paymentconsider an unencumbered offer. in special circumstances or double-up onWith pre-approval, you are showing you your payments?are serious and ready to buy. With thissimple and free service, you will eliminate Closing Costsproblems down the road.When you are shopping for a Be sure you have a clear understandingpre-approved mortgage, here are some of the fees involved. (You will find moreareas to consider: information on this area further along in the guide on page 34 & 35.) BUYER’S GUIDE FROM ANDREW PLANK | 17

CUSTOMIZEDMLS® SEARCHPRIVATE CLIENT SERVICES™ALLOWS YOU TO SEE THELISTINGS YOU WANT, THEMOMENT THEY HIT THE MARKETYour very own “Home” Page - featu-ring just the listings you want to see.Private Client Services™ isa customized portal into theMLS® that I provide you with.You’ll recieve real-time emailupdates of new Victoria area listings,sales, and price changes. This systemallows you to monitor and track theGreater Victoria real estate marketon your desktop or your mobile pho-ne.And most importantly, it’s Free!You’ll have the opportunity to If you see something you love, add it to your favourites and letcustomize your search- create basic me know.searches using criteria such as loca- I’ll set up a showing so that we can go see it in person and sendtion, price, size, age, etc. Or get more you floor plans if they are available.specialized and find only what you’respecifically interested in, eg. water- A percentage of the current listings on market represent thefront properties, pet friendly con- outdated, the overpriced, and the poorly located. Many of thesedos, homes with suites, fixer-uppers,foreclosures, west-facing properties,etc.18 | BUYER’S GUIDE FROM ANDREW PLANK

Tools like PCS help us work together to quickly find the best available properties.homes are priced “out of the market,” and Houses priced reasonably with popular features ortheir prices must fall, or the market must rise, a great location will often sell quickly and it’s im-if they’re to sell. If a home is on the market for portant to be financially, emotionally, and mentallylonger than average, there is usually a reason. prepared if you want the best value.You may have already experienced this firs- You are part of a large pool of active buyers watchingthand when looking at properties, but it’s and waiting for the right property, so how do you beatworth emphasizing; the best properties go the pack?fast. BUYER’S GUIDE FROM ANDREW PLANK | 19

OWNERSHIP TYPES FREEHOLD (FEE SIMPLE) “Freehold” is the type of land interest we generally mean when we refer to outright “ownership’ of property. The owner of the freehold interest has full use and control of the land and all the buildings on it. This ownership is subject to the rights of the Crown, if any, as well as local land-use bylaws and any other restrictions that existed at the time of purchase. Freehold interest is also known as a fee simple. Pros of freehold ownership: Unless you are the ruler of your own country, this is the form of ownership least subject to the rights of others. The Torrens Land Title system we use in Canada is very secure and many protections are in place for property owners. Cons of freehold ownership: Very few. If you hold a mortgage, you are obviously expected to pay it, and some people prefer the freedom of renting. Common Examples: Most single-family homes in residential neighbourhoods are freehold, though some bare-land strata units can look very similar. LEASEHOLD Although it’s not uncommon to rent or lease a property from a homeowner on a monthly or annual basis, for our purposes let’s take a look instead at a longer-term lease situation. Leasehold units are commonly mistaken for condos, but the difference is significant. Generally, a parcel of land or building is leased by a company (often up to 99 years) which then sells sub-leases to individuals for use of specific areas within the building or land. This gives the right of use for an extended period but the head lease company generally controls upkeep, sets monthly fees for maintenance and common costs, and so on. When the lease is up, the right of use and occupancy reverts back to the original landowner, along with any improvements. It’s very important to review the head lease carefully when considering this type of interest in land. Pros of leasehold interest:CUTE SECTIONLeasing is more secure than renting.OVERHETEThere is more leeway for owner improvements and renovation within the unit. Often less expensive than freehold ownership. This form of interest can be assigned (sold) to another party, so depending on the time remaining on the lease there is potential to profit on your investment. Cons of leasehold interest: Difficult to obtain financing. Risk of large assessments and no say in building upkeep or fees (see strata). What happens when the lease term is up? Common Examples: Townhouses and Mobile homes on First Nations land. 20 | BUYER’S GUIDE FROM ANDREW PLANK

OWNERSHIP TYPESRESIDENTIAL LEASE/TENANCYRental agreements are governed by the Residential Tenancy and there are protections in place for both owners andrenters.Pros:Maximum commitment is generally one year, allowing for flexibility if you anticipate a move or travel.Cons:Money paid for rent is non-recoverable.There is no investment value and, subject to the act, landlords can reclaim the space for their own needs whichmeans it is difficult to make long-term plans for the property.CO-OPCo-operatives are a form of ownership where each owner owns a share in a co-operative company or venture. Thebusiness venture in turn owns the property which contains the housing units. Each shareholder is assigned oneparticular unit in which to reside. As well, co-operative shareholders may instead be designated a lot on which tobuild.Pros of co-ops:Allows for a group of people to purchase a building or large swath of land which may not be obtainable individua-lly.Cons of co-ops:Does not have the same protections as strata ownership (the typical form of group ownership).Very difficult to financeGenerally found in older buildings in Victoria that pre-date condominiums.Common Examples:There are numerous examples in Oak Bay, generally older buildings with 5 to 10 units. BUYER’S GUIDE FROM ANDREW PLANK | 21

OWNERSHIP TYPESSTRATA TITLE OWNERSHIP & BARE LAND STRATAOwnership of a strata lot is similar to ownership of any freehold or fee simple lot. A strata cor- a building – it is only the land which is parceled. poration owns the freehold parcel which has In bare-land stratas, a fee simple property is divided into strata lots, usually sharing a common assetbeen divided into strata lots. Individuals purchase such as a road or septic field, but the structures builtstrata lots within the parcel. Consider this a sub-set of onto the land are owned by and maintained by eachfee-simple ownership. The strata title ownership gives individual owner rather than by the strata corporation.exclusive use and ownership of a specific residential Pros of strata title ownership:unit or lot (the strata lot), typically a condominium ortownhouse. These units are all contained in a larger Recognized by banks and lenders and generally easierproperty known as the strata property. to finance than anything but freehold ownership.There is shared use and ownership of limited common Group decision making for common assets.property within the strata property. A document called Generally good investments.the Strata Plan is registered with Land Title Authority Cheaper than freehold.and outlines various types of areas, such as common Cons of strata title ownership:property areas for use by all owners, areas of commonproperty for the sole use of the owner (eg, parking or The owners also share financial responsibility forstorage), and areas which are part of the strata lot. The its maintenance. If a strata project has unknown orstrata property act governs how strata are run. Strata unannounced issues, strata fees can rise dramatically.titles come in various forms. Strata councils are not always functional,A condo building is generally set up on a common personalities may clash and poor decisions may beproperty parcel of land, with a building containing made. It’s important to know what you are buying intocommon areas on this land, and individual strata units and read carefully the documentation that comes withavailable for purchase within the building. Owners are this ownership.generally responsible for upkeep and repair of the Common Examples:interior of their unit, but common area repair is theresponsibility of a strata corporation which is made up Some rural developments which appear to be feeof all the strata owners. Fees are collected and rules simple may in fact be “bare-land” stratas. This can beand bylaws are enforced by an elected strata council. determined by looking at the title documentation.Decisions are generally made by vote of the owners. Most commonly seen as condos and townhouses.A bare-land strata does not parcel out units withinFRACTIONAL OWNERSHIP Pros of fractional ownership:Fractional ownership is a form of property owner- A more affordable way to own a vacation property. ship where several people can divide the cost of a piece of real estate among them, typically to Common Examples: use as a vacation home. Owners share in the cost and use of the property, and fractional ownership makes it Often sold as 1/4 shares, agreements are generally in possible to own one quarter, one eighth, or even one place which outline how often and for how long each tenth of a property. This real estate tool is similar to owner has access and use of the unit. timeshares. However, with a timeshare you are buying Victoria has a few fractional ownership units in time at the property and receive little else. Fractional boutique hotels (unused time can be placed in a ownership is generally seen in strata buildings, but rental pool) on Bear Mountain, and in some downtown could also exist in freehold. The interest is shown on residential buildings. title and registered at land title office.22 | BUYER’S GUIDE FROM ANDREW PLANK

INVESTMENT THINKING There’s a number of factors to consider when you’re purchasing a ABOUT property as an investment and are planning to live in another location. For properties that have tenants in place currently, you’ll PURCHASING want to consider if they would like to remain renting, if they have a A PROPERTY lease or are they month-month, what’s included in their rent, and more. As with any choice in property, location is an important factor. You’llTO RENT OUT? want to think about your potential renters and keep in mind bus route locations. Not all municipalities have the same regulations for a suite to be considerered legal. I can help you look into these policies when we find a property you like. Obtaining financing for a rental property can be more difficult as well. I would advise you to discuss this with your mortgage broker. COFFEE’S ON ME. I’D LOVE TO SPEAK WITH YOU ABOUT YOUR REAL ESTATE NEEDS 250-360-6106 BUYER’S GUIDE FROM ANDREW PLANK | 23

GET TO KNOGREATER VICT Victoria is a unique blend of old world charm and new world experiences. Click on the map to learn more about each Victoria is located Many communities, buil- region and narrow your search. on the far southern dings and institutions tip of Vancou- associated with Victoria24 | BUYER’S GUIDE FROM ANDREW PLANK ver Island off the coast are not within the city of British Columbia. As proper, but are distinct the provincial capital of cities, towns and dis- the province and oldest tricts within the Greater city in Western Canada, Victoria Capital Region. Victoria is well known 13 municipalities make throughout the country up the Victoria Region, for its temperate ocea- including Victoria, Saa- nic climate, spectacular nich, Esquimalt, Oak Bay, gardens, ocean views, and Colwood, Langford, View large number of heritage Royal, Highlands, Met- sites and buildings. The chosin, Sooke, Central city of Victoria has a po- Saanich, North Saanich, pulation of 80,000 peo- and Sidney. ple living in over 47,000 homes, while the much The city of Victoria is larger Greater Victoria small but vibrant, and Region has a population each community has of over 344,000 and its own unique charms, 167,000 homes. as do the neighbouring

OW Cherry blossoms bloom as early as February!TORIA This video eblow says why you should municipalities, districts and vacation here. But why not just move? villages within the larger metro area.https://youtu.be/LUXZ1OjFUIM The commercial and enter- tainment hub of Victoria is the Downtown area, which is also home to over 240 designated heritage sites and buildings. Many theatres, shops, hotels, restaurants, pubs and night clubs are found here, and the Downtown area is home to most of the Victoria Region’s high rise residential and commercial towers. Homes range from high-end condo- miniums to work-live studios, and the area is popular with young professional singles and couples. BUYER’S GUIDE FROM ANDREW PLANK | 25

he city of every summer on a live around the Victoria is barge in Victoria’s corner from bear a compact, Inner Harbour called Symphony Splash, mountain golfTw a l k a b l e drawing over 40,000 course and fit in as urban city people through the many rounds as youthat mixes modern day. The Electronicand old-world style, Music Festival is also like!embraces both young well attended, andand mature interests,and provides lots ofinteresting things forboth residents andvisitors to see anddo.The shopping scenein Victoria is fantas-tic, with hundredsof unusual and one-of-a-kind shops thatcarry everythingfrom British importsto Aboriginal art. TheDowntown area hasseveral very popularshopping areas, in-cluding GovernmentStreet and Trounce DJs come from far and wide to show offAlley, featuring their skills.European imports,dining and fashion; In addition to the Pacific Opera andCanada’s oldest Ballet Victoria, theChinatown districtwith grocers, artist region has several theatre companiesstudios, shops and and venues includingrestaurants; FortStreet, known for its the student Phoe- nix Theatre at therow of antique shops, University of Victo-art galleries andauction houses; and ria, Intrepid Theatre, and Belfry Theatre.a cluster of 10 Theatre enthusiastsbookstores in thenearby township of look forward to the annual VictoriaSidney known locally Fringe Festival, andas “Booktown”. the city is home to North America’sMusic of all kinds longest running solois popular in Victo- performance festival,ria, and the Victoria Uni Fest.Symphony puts ona series of outdoor Victoria has amusic performances number of national26 | BUYER’S GUIDE FROM ANDREW PLANK

historic sites, grand Victoria has Many opporunities topublic buildings, explore historyand native culturepreserves that make This is the beautifully restored Emily Carrthe city a fascinating house, located in James Bayplace for those inte-rested in the historyof both the native is-land cultures and thefirst European sett-lers. The prestigiousRoyal BC Museum islocated in Victoria, asare the MaritimeMuseum and Avia-tion Museum. Peaceful pathway in the heart of Swan Lake BUYER’S GUIDE FROM ANDREW PLANK | 27

OPEN HOUSESClick on the map above to go to www.OpenHousesVictoria.com and see what’s open!OPEN houses can be Open houses are a You may also notice sig- but the door is usually fun and informative. great way to get ns as you go about your unlocked, and at an a feel for the real day on the weekend or open house you are You may find your estate market. drive through a neigh- welcome to just walk preferences becoming REALTORS® hold open bourhood of interest. in. Please be courteous houses to sell the and remove your shoes, more clear. homes of course, but It’s good form to po- especially if the agent also to meet new clients, litely inform the host has placed signs to that so be aware of that fact if you’re already wor- effect. Please leave pets before you go in. king with a REALTOR® outside. (I would be happy to The most compre- provide you with some You will usually be hensive sources for of my cards for that greeted by the host, and open house listings purpose). Most agents may be asked to sign are www.openhou- will be respectful of a guest register. You sesvictoria.ca and the another agent’s clients can add your name, or Real Estate Victoria and they should be include mine instead weekly listings tabloid. helpful and not pushy. if you are concerned There are often ads about getting onto a placed on usedvictoria Feel free to knock or mailing list. Most open and craigslist as well. ring the bell if you wish, house hosts will have28 | BUYER’S GUIDE FROM ANDREW PLANK

some sort of property appropriateness to your used against you in ne-information sheet avai- needs, etc., is always gotiation!lable, which is always appreciated informa-useful to take for refe- tion. It is best to simply tellrence. Depending on the the agent you are alre-REALTOR®, they may Attending open houses ady working with aguide you through the can be fun, and you may REALTOR®, and keephouse, or let you simply just find your next home your poker face on.wander on your own. at one. If you’re interested inThe hosting REALTOR® a house you view, callmay give you informa- The REALTOR® hosting me immediately, astion on the house, offer the open house often open houses can oftenyou a tour and answer works for the seller so generate interest fromany questions you may be careful what you say other potential buyers.have. to them. They may try to engage you in discus- My cell is the quickestFeel free to poke around sion about your wants way to get a hold of me.you can check out the and needs. A lot of in- Feel free to call or textsize of the closets and formation can be glea- 250-360-6106. Don’tcupboards, for instan- ned about you from a let the hosting agentce, but anything that few innocent questions. convince you to write anwouldn’t be sold with Rememeber, anything offer through them.the house would gene- you say can, and will, berally be off limits (furni- I try to answer myture drawers, for instan- OPEN phone at all hours, but if Ice). don’t answer I’ll check it HOUSE shortly and a follow upThe hosting REALTOR® text from you might bemay ask you for feed- ETTIQUETTE easier for me to check,back when you’re fini- so feel free.shed. Your assessmentof the condition, price, BUYER’S GUIDE FROM ANDREW PLANK | 29

REFERRALS $250 REWARD Refer a family member, friend, or even a completestranger and I’ll pay you when they successfully buy or sell with my assistance* *one referral bonus per client served“DON’T PANIC”Ifind that regardless of what the market is things to unfold and make their decisions based upon their doing, it is the internal subjective world of intent and positive attitude. Invariably, these people tend individuals which affects their outcome to come out on top. They make informed decisions in the more. I’m not saying the market is irrelevant, moment based on the best information at hand. but time and again I find that attitude and belief system are the larger factors affecting The flip side is those people who feel little faith in the success or failure. process or are fearful of things going wrong, and so they As Mahatma Ghandi said, attempt to feel safer by trying to control all elements of “Your beliefs become your thoughts, a process which, in many ways, is uncontrollable. They Your thoughts become your words, make their decisions in the present based on fears of an Your words become your actions, imagined but unknown and unknowable future. Your actions become your habits, Your habits become your values, Now, a healthy sense of scepticism is not what I’m talking Your values become your destiny.” about. I think it’s important to be aware of risks and pitfalls. I want to talk about something I call “panic I’m not suggesting people blindly trust in the process. I’m management”. I don’t mean managing panic, simply suggesting that they not blindly mistrust it either. but instead I mean a form of life management I’ve worked with buyer clients who “need to get a deal” for in which people allow panic and anxiety to run no more reason than they are trying to catch up with the their decision making processes. While some people run their entire lives this MARKET way, others find they are anxious and stuck in ANALYSIS panic management only at certain times and in certain situations. Real estate transactions tend Once you find a home you’re to be one of those situations… interested in, I can help Buying or selling a home can be a smooth and research the market and peaceful process. I’ve worked with many clients who, despite market conditions, have felt a sense share my information on the of trust that everything will work out… They will property’s perceived value find a good home for a fair price with favourable terms… Their home will sell to the right people, at the right time, and in the right way. They deal with problems as they come up, but don’t dwell on the infinite range of potential problems that “might be”. Knowing that we have little con- trol over some parts of the process, they allow30 | BUYER’S GUIDE FROM ANDREW PLANK

Joneses. They fear loss so greatly that beliefs may be resident, and are you gathering all this data? Whatthey orient their decisions around explore whether there is reason is the underlying motivation? Whatthese fears. Unfortunately, with that for holding on to them. do you fear? What are you hoping tolens, they will miss out on the perfect I’m exposed to many sales and justify? Yes, looking at the facts andhome for their family, fairly priced marketing programs in my pro- figures is one part of the process, butand in a great location. They won’t fession and there are two com- not to the degree I see some peopleeven recognize it. They will end up mon sayings amongst sales peo- depend on them.buying the fixer-upper in a bad part ple I’d like to share with you… “Fear of loss is a stronger motivatorof town and sink all their extra time “People make buying decisions than opportunity to gain”and money into it. based on emotion and justify Time and again, I see the validity ofI’ve worked with seller clients who them with logic.” this saying. Some salespeople willdesperately want a change but If this is true, doesn’t it make sen- utilize this motivator to help elicit a“Won’t take a penny less” than their se to check your overall emotio- sale, but often it is the clients them-asking price, a price already well over nal state? If you are in a state of selves who are motivated (or morewhat the market indicates as value. virtual panic about the process, often hindered) by fear of loss.And today they sit in their homes can you see how your decisions So, why do I share all this with you?still, despite their hopes and dreams will be impacted? Yes, I’m using Because I too have a fear of loss…to move on. logic now to sell you on this your loss. I want the best for myI’ve also seen seller clients drop argument… perhaps not the most clients and friends, and I want totheir price too quickly or too slowly, effective tool… but it’s important work under a mutual understandingtheir own subjective fears keeping to know that most of your buying of best intentions and best practices.them from adjusting to true market decisions will be based on emo- Buying or selling a home is actuallyconditions. I’ve seen panic tion. quite easy when we remove all themanagement backfire so many times, “Ah, but wait a minute Andrew, layers of fear and emotional tur-in so many ways. I always use logic when making moil which inhibit the process. AndI’m not saying these things aren’t va- decisions, I even have spreads- ultimately, the satisfaction, relief andlid. But it’s important to check these heets and graphs and gather lots joy of achieving your real estate goalsthoughts, look at what underlying of data before ever making a is the happy end result we strive for. decision, I’m not doing this based on emotion.” Are you sure? why BUYER’S GUIDE FROM ANDREW PLANK | 31

The offer process Once you’ve found the Most people think that transaction. Once you’ve right property, we’ll negotiating a contract removed your conditions sit down to craft an simply comes down to the and 100% committed to offer together. I’ll then be dollar figure. Certainly the purchase, your depo- working hard to negotiate price is important, but sit is to go towards the favourable terms and the there are many elements purchase price and may best price on your behalf. to a successful negotia- be forfeit as damages to tion. Each can have a pro- the seller if you subse- Making and negotiating found impact on the out- quently do not complete. offers can be a stressful come. time for buyers, but unders- Obviously loss of a $500 tanding the offer process Here are some key deposit (for example) and having realistic expec- elements. doesn’t provide much tations of the possible out- “skin in the game” should comes will help. Price – What you as the you default on the purcha- se, so the seller and their I’ve successfully negotiated buyer are willing to pay agent will be looking at many purchases and each and what the seller is wi- this number carefully as it is unique. This is one of my lling to take. Unless there indicates your willingness favourite parts of the real is an overlap in these va- and ability to complete. estate transaction, second lues, there is little likeli- only to presenting you with hood of coming to terms. Deposits often range from the keys to your new home $5000-$35,000 depen- on possession day. Deposit – The depo- ding on the size of pur- chase, and make up a part sit is a sign of good faith and a commitment to the32 | BUYER’S GUIDE FROM ANDREW PLANK

of your down payment so original asking price to share.don’t worry, it’s not an extra may take those “inclu-cost. When competing with ded” items off the table I have years ofother buyers for the same (or at minimum require experience, training, andproperty, the deposit is a additional negotiation). tools to draw upon inkey indicator of ability to negotiating the bestcomplete. R E A LT O R ® terms for your upco- Commission - ming purchase.Dates - In some cases the Sometimes after heavy Pro Tip:dates are more important negotiations the sellersthan the dollar figure. I’ve ask for a commission Don’t let a good deal getseen multiple offer situa- rebate from the away because you’retions go to the buyer with REALTOR® to help more focused on gettingthe best dates, not the hi- bridge a gap. It is not money off the askingghest bidder. Some people my policy to nego- price than in getting awant more time to move, tiate my commission, good deal. I think sa-others want to move on which I work hard to ving $10,000 on a hou-quickly. Knowing some- earn. I promise to se that’s $20,000 overthing of the seller’s needs, work hard to get you priced isn’t nearly asand being willing to work the best price and the smart as paying $5,000with them, can pay off. best property. over asking for a pro- perty listed $20,000 un-Subjects – Your subjects You - In some cases der market value with 3 people bidding on it.are the conditions under an emotional story maywhich you are willing to carry weight as well. The negotiation willpurchase. They usually in- Sellers have many probably involve someclude inspections, finan- different reasons for back and forth, and maycing, title search, property selling, and humani- take longer than you’ddisclosure statements, and zing you to the sellers like while people thinkinsurance verification. In makes your offer more about things, checka bidding war, fewer or no than just a piece of pa- their resources, and ma-subjects and/or shorter pe- per with numbers and ybe call a friend. In theriods for a subject removal letters. end we’ll either nego-can make all the difference. tiate something you’re For example, a grandma happy with, or get theIncluded items - I’ve who’s clearly raised her next one. If you have own kids in the home any questions about theseen negotiations stall over may sympathize with a process give me a call ora stove, some draperies, or young family starting send me an email.a lawn-mower. Although out who want to crea-some properties advertise te their own memoriesincluded appliances and in the home. Considerother such items, keep in sending me a picture ofmind that they must be your family and a bit ofwritten into the contract, backstory you’re willingand offers different from the “This might sound like a lot to remember. That’s why I’m here to advise you. “ BUYER’S GUIDE FROM ANDREW PLANK | 33

CLOSING ThOUGHTsAny contrast between what dirt, or garbage in the backyard Remember when the seller said you expect at closing and which becomes yours on possession they’d include those garden tools what you ultimately receive day. with your purchase? Did you getwill likely affect your satisfaction Other conditions that may be rele- that in writing? In real estate, it’s vi-with your purchase. Much of my vant to your purchase can include; tal that all agreements be in writing.job is managing expectations and Verbal agreements are not enfor-anticipating challenges. Here are Rural properties often have a septic ceable.some examples I’ve found where field. In order to assess the condi-expectation and experience don’t tion of the system, the septic tank Appliances and systems in the homealways align. usually needs to be pumped. are not warrantied by the seller. Q. Who pays for that? What may have appeared to be wor-Most sellers will go through and A. Negotiable grey area. king during the inspection may notclean the home before vacating, Tenants on a month-to-month te- be working when you receive theand most times things are just fine, nancy are entitled to 2 full months’ keys. Remember, it’s up to you tobut sometimes they leave a mess notice and a month’s rent if you conduct any inspections you requi-or their cleaning is done to their plan to reclaim their space for your re during your conditional period. Ifstandards and not yours. There is own use. Make sure it’s clear who’s a warrantee is important to you, wenothing in the standard contract paying the compensation and that can include wording in the contractwhich obligates the seller to leave the damage deposit is accounted but keep in mind that this may re-you a clean home. If you have con- for. When the tenants are to first sult in the seller negotiating morecerns about the state in which the be given notice is also a matter for strenuously in other areas such asproperty will be found on comple- discussion and is limited by the resi- price.tion day you may wish to address dential tenancy act.this contractually or arrange for These are just a few examples of thecleaners on move-in day. Ensure that any chattels you want grey areas that can cause conflict if included in the sale are listed in the not addressed or understood clear-Most of the time you will receive a contract. Common chattels include ly. Negotiated terms and conditionshome that’s been vacuumed, clea- the fridge, stove, the hot tub, bar can be added to a purchase contractned and dusted, but the Seller’s stools, etc. But what about that wall to protect your interests. Each tran-standard of cleanliness may not be mount for the flat screen TV that’s saction is as unique as each Buyerthe same as yours. Remember, the going to leave big holes in the wall and Seller. Give some considerationstandard contract states you will if it’s removed? Fixtures are items to your expectations and be surereceive the home “in substantia- that are permanently affixed to the to communicate them to me clear-lly the same condition as viewed”. property, while chattels are more ly and often to ensure that they areThis means the stain on the carpet, like “accessories”. Fixtures are con- addressed before or within contractthe picture hook holes in the wall sidered included within the stan- negotiations. I want to ensure youand the baked-on apple pie on the dard contract of purchase. Chattels are happy on move-in day and anybottom of the stove may still be are not. There are some grey areas, difference between expectation andthere when you move in. like that TV wall mount, so best to reality is a positive one.There may also be a pile of wood, make it clear by outlining it in the contract.34 | BUYER’S GUIDE FROM ANDREW PLANK

ClOsing COstsGenerally, the seller pays all REALTOR® fees and the costs associated with clearing financialcharges from the title of the property. Real estate fees are often a percentage of the sale pri-ce, but may be a set amount as well. Various charges which are the buyer’s responsibility canadd up though. Here are some of the common costs you should keep in mind:Home inspection: The cost is usually in the range of $300- $400 but can vary widely depen-ding on the type of property or it’s findings. On rural properties it is advisable to obtain aninspection of the septic and well water systems.Appraisal: Your bank may require this. Usually $300+.Deposits: Usually held “in trust” by my brokerage. Deposit amounts vary, and when they aredue is defined in the contract. Most often due upon acceptance of an offer, or with removal ofall conditions with an offer. Most common range $5,000-$25,000 depending on the size ofyour purchase.Down Payments: The amount you are putting towards the purchase price that will not be mort-gaged.High Ratio Mortgage Insurance & Application Fee: Depending on the amount of your downpayment, you may require “High Ratio Mortgage Insurance”. For a mortgage with less than20% down payment the lender requires mortgage insurance on the difference.Legal fees: Most legal fees include investigating the title of a property, arranging a propertysurvey if necessary, drafting documents and handling other disbursements as required. Whenasking lawyers to quote, be sure to get the end cost, not just what they charge. Expect about$800-$1200 for a lawyer.Survey certificate or title insurance: A requirement of the lender to ensure there are no encroa-chments. A survey will ensure you know where the property lines are, or while title insurancemay protect you in the event of a defect on title. Title insurance will range, but likely about$300+/.Property transfer tax (PPT): This provincial tax is payable at the rate of 1% of the first $200,000of the fair market value and 2% on the balance and 3% over 2 million.Sales tax: GST is payable on all new homes, with rebates available based on the purchase pri-ce. A resale residential home is usually exempt from GST.Adjustments at Closing: You may also be required to pay the costs of such things as reimbur-sement of property taxes already paid by the seller, or other yearly costs prepaid by the sellerand adjusted by the lawyers to reflect the actual use in the year.Mortgage life insurance: (Optional) Guarantees that if you die your mortgage will be paid infull. Usually offered by your lender. (Tip: Regular life insurance is usually less expensive andinsurance monies can be applied as the beneficiary wishes)Property insurance: This insurance covers the replacement value of your home and its con-tents. Most mortgage lenders will require proof that you have this insurance before processinga mortgage. Many insurers will allow monthly payments.Property Taxes: Paid annually and based on the property’s assessed value, to your municipa-lity. For a high ratio mortgage, your lender may require that the tax installments be added toyour mortgage payments.Hookups: There may be hookup charges required for appliances and services such as telepho-ne, TV cable, hydro and other utilities.Moving costs: Don’t forget the basic costs involved in moving from your old place into yournew home, particularly if you use a professional moving company.I’d be happy to explain further details on these closing costs, just remember to add them toyour financial plan! BUYER’S GUIDE FROM ANDREW PLANK | 35

CHECKLIST Secure a funding source (If you need names of mortgage brokers I can help) Confirm the type of agency and level of service you require. Familiarize yourself with costs associated with a property purchase. Consult with Andrew to answer any outstanding questions and review the entire process. Sign up for email news and tips from Andrew about the market and purchase process. Carefully review a sample copy of an offer contract as provided by Andrew. Make a list of your hard ‘needs’ vs your negotiable ‘wants’ to help you re- cognize the right home. Clarify and communicate your purchase requirements including, size, area, price and timelines Familiarize yourself with the various neighborhoods and property prices in your search area. Receive regular property updates from an online custom search portal su- pplied by Andrew Create a folder, on your computer or physical, to record and organize your purchase documents. Read this “Buyer’s Guide” from start to finish. Know your risk tolerances and limits, and communicate them with Andrew and anyone sharing the process with you. Have patience yet be prepared to act quickly when the time is right.36 | BUYER’S GUIDE FROM ANDREW PLANK

THE MOVE MOVING CAN BE STRESSFUL, BUT IT DOESN’T HAVE TO BE. You can find many recommended moving and cleaning companies listed in my business directory. Ask for a link to my list. Moving to a new neighbourhood and community may sometimes seem a littledaunting. Did you know there are a number of Newcomer’s Clubs in the GreaterVictoria area which are here to help? These clubs offer the opportunity to meet new people and develop friendships whilst getting to know the area through avariety of social and activity groups. Membership is usually open to people who have moved to the area within the last two years. It’s a great way to get acquainted! Victoria Evening Newcomer’s Club: www.victorianewcomers.ca Victoria Women’s Newcomer’s Club: www.vicdaynewcomers.ca Victoria Men’s Newcomer’s Club: www.vmnc.ca Peninsula Newcomer’s Club: www.peninsulanewcomers.ca BUYER’S GUIDE FROM ANDREW PLANK | 37

GLOSSARY Adjustment The day from which all calculations of interest, tax adjustments, utility bill adjustments (if applicable) are made to the credit of the either the buyer or seller. This is usually (but not always) the same as the possession date. Amorization The number of years it takes to repay the entire amount of the mortgage. Appraised Value An estimate of a property’s market value used by lenders in determining the amount of the mortgage. Assessed Value The value of a property, set by BC Assessment, and used by the local municipality for the purposes of calculating property tax. Buy-Down When the seller reduces the interest rate on a mortgage by paying the difference between the reduced rate and the market rate directly to the lender or to the buyer. Closing Completion of the real estate transaction when the parties involved agree that all legal and financial obligations have been met and the deed to the property is transferred from the seller to the buyer. Closing Cost Expenses in addition to the purchase price for buying and selling a property. Conveyance The term used to describe the process of transferring the seller’s title to the buyer and indicates all the necessary steps to complete the transfer. This process is usually undertaken by a conveyancing lawyer (or notary) acting for the buyer. Counter Offer An offer made by the seller back to the buyer altering one or several terms and/or conditions of the offer as originally written.CUTE SECTIONDept Service RatioOVERHETEThe percentage of a borrower’s income that can be used for housing costs. Gross Debt Service (GDS) Ratio is the amount that a lender will permit a borrower to use from his/her gross income in order to qualify for a loan for housing costs, including mortgage payment and taxes (and strata fees when applicable). Total Debt Service (TDS) Ratio is the maximum percentage of a borrower’s income that a lender will consider for all debt repayment (other loans and credit cards, etc.) including a mortgage. Easement A legal right to use or cross (right-of-way) another person’s land for limited purposes. A common example is a utility company’s right to run wires or lay pipe across a aproperty. Equity The difference between the price for which a property can be sold and the mortgage(s) on the property; equity is the owner’s stake in the property. 38 | BUYER’S GUIDE FROM ANDREW PLANK

GLOSSARYForeclosureA legal process by which the lender takes possession and ownership of a property when the borrower does notmeet the mortgage obligations.LienAny legal claim against a property filed to ensure payment of debt.MortgageA contract between a borrower and a lender. The borrower pledges the property as security to guaranteerepayment of the mortgage debt.Mortgage InsuranceGovernment-backed or private-backed insurance protecting the lender against the borrower’s default onhigh-ratio (and other types) of mortgages.Mortgage - BlendedEqual or regular mortgage payments consisting of both a principal and an interest component.Mortgage - ConventionalA first mortgage issued for up to 80 per cent of the property’s appraised value or purchase price, whicheveris lower.Mortgage - High RatioA mortgage that exceeds 80 per cent of the loan-to-value ratio; must be insured by either the Canada Mortgage andHousing Corporation (CMHC) or by a private insurer to protect the lender against default by the borrower who hasless equity invested in the property.Mortgage - OpenA mortgage that can be prepaid or renegotiated at any time and in any amount, without penalty.Mortgage - Variable RateA mortgage for which payments are fixed but whose interest rate changes in relationship to fluctuating marketinterest rates. If mortgage rates go up, a larger portion off the payment goes to interest; if rates go down, a largerportion of the payment is applied to the principal.Mortgage - Vendor Take-Back (VTB)When sellers use their equity in a property to provide some of all of the mortgage financing in order to sellthe property.PrincipalThe mortgage amount initially borrowed or the portion still owing on the mortgage. Interest is calculated on theprincipal amount.Property Disclosure StatementThis form enables sellers to disclose known material latent defects and other defects. The form also serves as achecklist for buyers enabling them to address concerns about the property’s condition on the spot. The BC RealEstate Association developed the form. Submission of the form is required before any listing is placed on theVictoria Real Estate Board’s Multiple Listing Service® (MLS®) system. BUYER’S GUIDE FROM ANDREW PLANK | 39

GLOSSARYProperty TaxesLocation and the value of the property as determined by BC Assessment affect this levy. Local governmentdetermines the rate of taxation. Property taxes are payable on an annual basis.Property Transfer Tax (PTT)Payment to the provincial government for transferring the property from the seller to the buyer. Certainexemptions are available for first-time buyers. This is calculated as 1% of the first $200,000 and 2% of the balanceof the purchase price or fair market value.REALTORS®Real estate professionals licensed by the Real Estate Council of BC who are members of the Victoria RealEstate Board and the British Columbia and Canadian Real Estate Associations. Only these professionals can callthemselves REALTORS®.Rights-of-WayThese are indicated on title and the Land Title Office; often for use of utilities or city or municipality in order tomake repairs to pipes, etc. No permanent structure may be build on a right-of-way.Statements of AdjustmentsClosing statements in a real estate transaction which set out the sources of funds which make up the purchaseprice, adjustments to and from the purchase price, the final amount required from the purchase and the amountdue to the seller. Lawyers will prepare a statement for the seller and the buyer.State of Title CertificateA copy of the title which lists charges against a property, e.g. liens, mortgages, rights-of-way, etc.Strata Common Property or Common ElementsThe portions of a strata development owned in common (shared) by the unit owners, e.g. pool exercise room, lobby,etc. A strata fee is charged to every unit owner for the use of the common property.“Subject-to” ClauseA statement of a condition to be fulfilled before the contract will become firm and binding; must include a specificdeadline for removal.principal.TitleA detailed examination of the ownership documents to ensure there are no liens or other encumbrances on theproperty and no questions regarding the seller’s ownership claim.Utility TaxesExamples may include water, sewer and garbage (may include recycling levies).Working with a REALTOR® BrochureA brochure given to prospective buyers and sellers that explains the different kinds of agency relationship thatmay be entered into with a REALTOR®.Zoning RegulationsStrict guidelines set and enforced by municipal governments regulating how a property may or may not be used. 40 | BUYER’S GUIDE FROM ANDREW PLANK