Looking for some real estate help :)

[CJ Tylers]

Hello folks... I'm looking to make my escape from renting into the wide, wide world of property owning.

Finally.

That said, I'd like to appeal to the members who are far more knowledgeable about the subject than myself... specifically, any tips to do better in my search or pit falls to avoid.

Other than that, I'd really appreciate being pointed in the direction of a cracker jack real estate agent and a kick ass mortgage broker (unless the board feels that banks are a better mortgage option... :O ) I do want the best bang for my buck, and an objective outside opinion might just keep me from making a huge mistake.

Thanks a million!

 

[CJ Tylers]

cool pointer...thanks!

 

[visiting]

get your own agent...

I am not in BC, but agents are like everyone, they want to get the most commission possible with the least amount of work. Where I do not totally agree with oceanic, (nothing wrong with his suggestion) and will give you the other side of the coin....... your not buying a house to save a few dollars on the agent's commission, but get the best house at the best deal. Remember this, the agent selling the house does not work for you he works for the seller, and has a contract with them, so I would suggest getting your own agent, who will negotiate with the selling agent, on your behalf, and will be in your corner giving you advice, and better yet, his fee come from the seller. I would suggest oceanic's suggestion is more suited towards a seller who could give the agent an exclusive or pocket listing, so that you the seller could try and save a few dollars, but not to a buyer, even less to someone buying their first place....

Anyway, best thing you could to start is see a mortgage broker, to get pre-approved, so you will know much you have to work with, do a little research as to what area you are interested in, ... Location location location. It does make a difference if your purchasing for an investment, or to live in it. Most people who start looking for their first house, have too many expectations, so I would suggestion is to make a list of the items you want, then list items you "must have", this will help you later

Good Luck..

 

[Gotee-man]

How are agents generally paid? %? commision?

 

[visiting]

How are agents generally paid? %? commision?

approx 7%, split in 2. It's not set in stone, you can negotiate, and this is for residential.. (for Commercial or revenue properties, it will change even more... ) Also after a certain value the 7% will drop... The commision is normally decided when signing the listing contract.

 

[CJ Tylers]

Thanks everyone... I'm very much a newb in the real estate market. I'll definitely be bringing in a home inspector for any property that I'm serious about... but it's a great reminder.

1) It will be my primary residence... investment property can come later, for now I need to get out of burning cash on rentals.
2) I'm a tradesman with tools & friends who are also tradesmen. Everything but plumbing is covered, and I can probably get a deal through my job. Where I'm going with that is that I can take on a project house, if it's worth my while.

What's the take on foreclosures? I used to watch those on Forclosures.ca, but it went to a pay system a while back and I stopped checking in. I'm very capable of doing renovation work, but if the general consensus is that they aren't worth it in the end, I won't bother paying the online access fee...

Thanks again everyone!

 

[chilli]

I'm in the US and so the relationship may vary in B.C., but here is a tip. Assume that the commission is split 50-50 between the Listing Realtor's agency and the Buyer's Realtor. So do not use your own realtor. Instead, browse the internet for an attractive property. Then call the Listing Realtor to show you the property. If you like it, make the offer through that realtor. The listing realtor will get both halves of the commission, a major plus to the realtor. So they will push the Seller to take your offer in order for the realtor to reap that fatter commission. This will save you far more money than seeking a cut-rate commission.

The biggest mistake I ever made was buying my first house through the "Seller's agent".

Really poor advise imo for 2 reasons (unless you really know what you are doing):

1) The best money you will ever save is using a good agent who will be working for you - not the seller. They will advise you if you should or should not buy that property - the Sellers agent will not ever do that.

2) And about saving money - if your agent is any good they will negotiate a savings for you anyway.

If not, get a different agent - some are pretty crappy negotiators and they just want to put the deal together so they can make a commission - that's why getting a referral from someone you know is so important.

Ask your friends for a referral - ask any potential agent for 3 referrals - if they don't have 3 references - don't use em.

 

[gpchillin]

Don't limit your options when going to find a mortgage, I went to the mortgage center after a horrible experience at my bank which I have dealt with for years and years trying to get a mortgage from them. The mortgage center sends out what your looking for in a mortgage to lots and lots of banks then gives you the options the banks send back. I got my mortgage for a hell of a lot less then the royal bank rates and it was a pretty easy experience overall. I felt like the options I got through the mortgage center were banks wanting my business not like the royal bank who wanted to tell me how I could spend my own dam money.

 

[kickback]

Don't buy anything right now. Wait as prices drop another 10-30% and you'll be glad you did. Don't listen to real estate agents and do your own research on debt, jobs and incomes. Canada (not all areas but most) has a crumbling real estate market and with 70% ownership it's only natural that everyone will tell you it's a good time to buy.

 

[nmjoff]

IMO most realtors are no better then a used car salesman in a $10.00 suit. I have always bought and sold my homes by myself you have to use a Notary and a lawer to protect and write your contract, get a thorough inspection buy low fix her up and flip.
Dont pay some smuck salesperson 20 K just to fill out a few forms make a few calls and bullshit you to death...

Due diligence and do your homework... The market is slow right now and will likley stay that way so you are in a good position.
PM me with questions if you need.

 

[PlayfulAlex]

IMO most realtors are no better then a used car salesman in a $10.00 suit. I have always bought and sold my homes by myself you have to use a Notary and a lawer to protect and write your contract, get a thorough inspection buy low fix her up and flip.
Dont pay some smuck salesperson 20 K just to fill out a few forms make a few calls and bullshit you to death...

Due diligence and do your homework... The market is slow right now and will likley stay that way so you are in a good position.
PM me with questions if you need.

Is there even any such thing in Vancouver anymore? Or how far would one have to go out of the city? Hope, BC? And if the market's that slow, how easy is the flip part?

 

[hmm3030]

Realtors are paid by the seller - generally 7% on the first 100k and 2 - 2.5% on each 100k after that with the selling realtor getting about 55% of the commision. I do not recommend you do your first purchase without having an experienced realtor representing your interests. Do some research, ask some friends who's finance and business acumen you respect for some names and then interview them. Go with the one that you think will do the best job for you.

 

[CJ Tylers]

Thanks, I appreciate all the info!

My plan is to actually buy next December, if possible...as I understand that is the lowest selling price-point in the year (on average). For me to hang on even longer as a renter, the prices would have to drop significantly more than 10k/year... which is a very tough call to make.

 

[storm rider]

If you can manage it put down 26% of the purchase price of the house as the down payment
so you can get the CMHC out of the picture.....this is a tall order as you do live in Vancouver
and the real estate market there is badly over priced.....and also due for a correction....something
you might be able to take advantage of by holding off.

SR

 

[InnocentBoy]

Dont waste your time buying a condo. If you buy something it better come with land. Do a comparison of prices after 25 years on a house vs a condo and you'll be in for a treat.

 

[riceraw]

from what I understand Vancouver is an anomaly in the cnd real estate world
here in sk commsion rates of an agent usually run something like 3/2/1 on an progressive scale of the house
I would suggest getting your own agent as they have your interest in mind, trying to deal with the listing agent is hard because they represent both parties

they been forecasting a correction in market values for the last 5 years
best way (I find) is to keep an eye out on rental prices as they reflect what is going on at ground level
getting 20% would be ideal, if it is your first house and are single and can move within 2-3 years buy within your means, I know so many people that have bought
their first homes with the idea they ll live there forever and then become house broke.

if its an option, do bi weekly payments with the option to lump sum at the end of the year towards the principle
find a lender/broker that if you do decide to move you have the option of porting your existing mortgage to a new home the option is always nice never know what might come up in life.

 

[CJ Tylers]

If I could afford property anywhere near where I work (within 1 hour drive time), I would be a happy to buy it. Sadly, I'm likely going to be be stuck in a condo for the foreseeable future, simply because I don't have the capital to put down on real estate with any real property. The further out I go, the better the chances I have for a row house/town house rather than a 1 level apt... in fact, I've noticed that some town houses in MR are only around 20k outside of my current price range (based on attaining a CMHC, which I can almost qualify for at my current price point).

Not an insurmountable number at all (either 2 more years of saving or pull out stock and have immediate access).

As for the housing correcting, they've been forecasting that in Vancouver for almost 10 years... I have to admit that I'm a little disheartened that a proper correction hasn't happened yet (and starting to despair that it ever will in any kind of useful time).

As far as being house broke, as long as I stay within my current price point, I should actually have more money in my pocket than I currently do (after all RRSP/Mortgage savings and rent are taken into account). Going outside of that.... gets dicey, unless I can get a smoking hot deal that mitigates the higher payments significantly.