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How to Buy Your First Home in Vancouver Presentation by Geraldine Santiago

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How to Buy Your First Home in Vancouver (2005) presentation by Geraldine Santiago Author and RE/MAX Realtor

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How to Buy Your First Home in Vancouver Presentation by Geraldine Santiago

  1. 1. WELCOME FIRST-TIME HOME BUYER SEMINAR 2005
  2. 2. Geraldine Santiago ■RE/MAX Crest Realty (Westside) ■Exclusive Buyer’s Agent Designation
  3. 3. Seminars ■ Free to the public ■ Offered at all community centres ■ Guest speakers ■ Professionals ■ Helpful tips ■ Free advice ■ Referrals ■ Information on trends, grants, payment options ■ Resources
  4. 4. Community Centres ■ Douglas Park Community Centre ■ Trout Lake Community Centre ■ Renfrew Park Community Complex ■ Roundhouse Community Centre ■ Dunbar Community Centre ■ Riley Park Community Centre ■ False Creek Community Centre ■ Killarney Community Centre ■ Mount Pleasant Community Centre
  5. 5. Published Author Published Author
  6. 6. EXPERTS Ask a first-time home buyer expert
  7. 7. Mission Statement Help my clients get the best possible price for their home.
  8. 8. BUY SMART (NOT WITH YOUR HEART!—and save money!)
  9. 9. BUY SMART Show you examples Of how to SAVE $20,000
  10. 10. LESSON 1 DO YOUR HOMEWORK FIRST
  11. 11. TYPE OF MARKET? ■ BALANCED? ■ BUYER’S? ■ SELLER’S? www.cmhc-schl.gc.ca
  12. 12. SELLER’S MARKET 1. MORE BUYERS THAN SELLERS 2. LESS PROPERTY TO CHOOSE 3. LIMITED CHOICES 4. COMPETING OFFER* 5. BIDDING WAR*
  13. 13. HOW DO YOU GAIN AN ADVANTAGE?
  14. 14. GET READY GET FINANCING FIRST
  15. 15. GET READY GET AN AGENT EXCLUSIVE BUYER’S AGENT DESIGNATION
  16. 16. No two agents are alike
  17. 17. GET READY ■ KNOWS THE MARKET ■ MAKES APPOINTMENTS TO VIEW PROPERTIES ■ MLS 5 DAYS SOONER EXCLUSIVE BUYER’S AGENT DESIGNATION
  18. 18. YOUR AGENT ■ SEVICES ARE “FREE” ■ AVAIL OF THEIR SERVICES ■ AVAIL OF TECHNOLOGY ■ PROVIDE YOU WITH NEW LISTINGS EXCLUSIVE BUYER’S AGENT DESIGNATION
  19. 19. GET READY BUYER’S KIT INCLUDES-- •SAMPLE CONTRACT OF PURCHASE AND SALE •LIST OF DO’S AND DON’TS •CHECKLIST FOR BUYERS •BUYER’S RESOURCES •BUYER’S SERVICES •10 IMPORTANT QUESTIONS TO ASK ABOUT A PROPERTY “SCRIPT MY BUYERS”
  20. 20. REALTOR’S ROLE OFFER TO PURCHASE ASSIST WITH FINANCING ASSIST WITH SUBJECT REMOVALS LAWYER OR NOTARY SET UP A BUILDING INSPECTOR TO COME IN SECURE FINANCING 1 2 3 4 COMPLETION/P OSSESSION 5 6
  21. 21. MY MISSION SAVE MONEY KNOW COMPARABLES SHOW YOU HOW TO CHOOSE WISELY BUY SMART 1 2 3 4
  22. 22. But you have to learn from what I say tonight and practice it!
  23. 23. LESSON 2 What type of property increases faster?
  24. 24. If you had $350,000…. ■ Detached home ■ 3 bed/2 bath ■ OT (50 years) ■ Unfinished basement ■ Needs work ■ Repainted ■ Needs updates
  25. 25. If you had $350,000…. ■ Townhouse ■ 4 bedrooms/2 baths ■ Sundeck ■ 1993 ■ $100.00 maintenance
  26. 26. If you had $350,000…. ■ Apartment ■ Richards street ■ 2 bedroom/2 bath ■ Gas fireplace ■ Sauna, Recreation Centre ■ $239.00
  27. 27. Which would you choose? 1. Detached homes 2. Row/townhouse 3. Apartment unit
  28. 28. Detached Home ■ 2780 Napier Street ■ $262,000 SOLD ■ March 24, 2003 ■ OT ■ 3 bed/2 baths ■ 1500 square feet
  29. 29. Townhouse ■ Fraser area ■ January 2004 ■ $319,000
  30. 30. Apartment Unit ■ Richards Street ■ 2 bed/2 baths ■ 880 square feet ■ $182.00 maintenance ■ List : $289,700 ■ Sold: $290,000 ■ February, 2003
  31. 31. What is a “better buy”? 1. Detached homes
  32. 32. Lesson 3 New vs. old condo
  33. 33. Resale vs. New condo ■ 10 year old building ■ Maintenance charges are higher ■ Absence of warranties ■ Less expensive
  34. 34. Resale vs. New condo ■ New ■ 2-5-10 warranty ■ Cost of everything new ■ GST
  35. 35. Older condo ■ Healthy contingency (reserve)fund ■ Pro-active strata council ■ Owner occupied ■ Restricted rentals ■ Maintained building ■ Roof, plumbing
  36. 36. What is the better buy? Presence of warranties but only a few years old.
  37. 37. Lesson 4 Have realistic goals.
  38. 38. Desires and Needs Ask yourself what your top 3 needs are
  39. 39. First time home buyers Choose one goal you want to achieve
  40. 40. Desires=$$$$$$ ■ Balcony, patio or deck
  41. 41. Desires=$$$$ ■ Gas fireplace
  42. 42. Desires=$$$$ ■ View
  43. 43. Desires=$$$$ ■ Kitchen
  44. 44. Desires=$$$$ ■ Soaker tub
  45. 45. NEED ■ PRICE OR ■ LOCATION OR ■ NO. OF BEDROOMS
  46. 46. FIRST TIME HOME BUYER ASK YOURSELF WHAT IS THE ONE THING YOU WANT TO ACHIEVE WHEN PURCHASING.
  47. 47. First time home buyers ■ Baby steps ■ First home vs. second home ■ Build equity ■ Fix-it-up
  48. 48. First-time home buyers ■ Realistic about goals and expectations ■ Practical ■ Restricted to price points
  49. 49. LESSON 5 SHOP LIKE “INVESTORS”
  50. 50. BUY SMART! SAVE MONEY! SHOP BY COMPARISON
  51. 51. SHOP BY COMPARISON COMPARE APPLES WITH OTHER APPLES AND SAVE MONEY!
  52. 52. SHOP BY COMPARISON Which would you choose? $1.00 $1.50
  53. 53. 989 Beatty 16th floor 455 square feet $129.00 maintenance fees Parking stall Northwest facing Studio Murphy Bed $205,900 SHOP BY COMPARISON
  54. 54. 989 Beatty 18TH FLOOR IS CHEAPER MORE SQUARE FOOTAGE LESS MAINTENANCE CHARGE HIGHER FLOOR DIFFERENT SIDE OF THE BUILDING $19,000 DIFFERENCE BUY SMART! COMPARISON
  55. 55. 989 Beatty BUY THE LEAST EXPENSIVE PROPERTY IN THE BUILDING $19,000 DIFFERENCE BUY SMART! COMPARISON
  56. 56. 989 Beatty LESSON 4 “SHOP LIKE INVESTOR” SAVE MONEY,MAKE MONEY BUY SMART! COMPARISON
  57. 57. BUY THE LEAST EXPENSIVE PROPERTY ON THE BLOCK WITH THE SAME GENERAL COMPARISONS BUY SMART! COMPARISON
  58. 58. EAST 44TH 5 BEDROOMS KILLARNEY 2 BATHROOMS UNAUTHORIZED SUITE 1810 SQUARE FEET $385,000 BUY SMART! COMPARISON
  59. 59. EAST 44TH 5 BEDROOMS KILLARNEY 2 BATHROOMS LEGAL SUITE 2474 SQUARE FEET $374,000 BUY SMART! COMPARISON
  60. 60. EAST 44TH “BETTER BUY” LEGAL SUITE * 2474 SQUARE FEET DIFFERENCE $16,000 *POSITIVE VALUE (+$3,000) BUY SMART! COMPARISON = $19,000
  61. 61. SHOP BY COMPARISON LOGIC SAYS $1.00 $1.00 $1.50 HEART SAYS $1.50 CORNER GROCERY SAFEWAY
  62. 62. BUT, MANY BUYERS OVERLOOK DOLLARS AND SENSE! BUY SMART! COMPARISON “SENSE AND SENSIBILITY”
  63. 63. LESSON 6 SENSE AND SENSIBILITY
  64. 64. Statistics on purchasing 95% of Buyers purchase on emotion— (Buy smart, not with your heart!)
  65. 65. BUYERS HAVE A LOT OF EMOTION! MOST BUYERS WILL PURCHASE THE HIGHER PRICED PROEPRTY IN A COMPARISON.
  66. 66. STAGING COMPANIES ■PROPERTIES THAT LOOK ROUGH COMMAND 10-15% LOWER ■AND SELL 30% SLOWER THAN STAGED PROPERTY
  67. 67. Staging companies
  68. 68. BUY SMART! SENSE AND SENSIBILITY DO NOT BUY “LOVE AT FIRST SIGHT”!
  69. 69. LESSON 7 LEARN THE PSYCHOLOGY OF NEGOTIATING!
  70. 70. WHAT DRIVES THE PRICE UP? BUYERS!
  71. 71. WHAT DRIVES THE PRICE UP? NEGOTIATIONS START AT THE VERY FIRST VIEWING!
  72. 72. PSYCHOLOGY 101 ■ DON’T LOOK INTERESTED ■ DON’T BE EAGER ■ TELLTALE SIGNS ARE SMILING ■ TAKING PHOTOGRAPHS ■ ASKING TO SEE THE PROPERTY AGAIN
  73. 73. DON’T ■ ASK TO SEE A PROPERTY WITH FRIEND/FAMILY MEMBER ■ DON’T RUB YOUR CHIN ■ DON’T NOD YOUR HEAD ■ DON’T SAY POSITIVE THINGS ■ DON’T SAY, “THIS WILL BE ALMA’S ROOM”. ■ DON’T SAY, “MY ARMOIRE WILL FIT HERE.”
  74. 74. DON’T FREELY GIVE AWAY YOUR BARGAINING POSITION
  75. 75. LESSON 8 LEARN RETURN ON INVESTMENTS (ROI) IN REAL ESTATE
  76. 76. BUY SMART 1.Kitchen upgrades 44% 2.Gas fireplace 11% 3.Bathroom tubs 56%
  77. 77. BUY SMART 1.Carpet -38% 2.Wall removal –22% 3.Hot tub –40% 4.Repaint -29%
  78. 78. LESSON 9 Whenever possible, use rebates, refunds and rewards!
  79. 79. ■ 1% /100,000 2% balance ■ $275K or less ■ 70% + mortgage loan ■ Mortgage term must be one year + ■ First home, anywhere in the world Property Purchase Tax Exemption
  80. 80. GST Rebates on new homes ■ Under $350k, 4.48 ■ Gradual rates $450K 7% ■ Excise Act of Canada Canada Customs and Revenue Agency www.ccra-adrc.gc.ca
  81. 81. Home Owner’s Grants Home Owner Grant ■ Provincial program in British Columbia ■ $470.00 a year tax relief ■ Principal residence
  82. 82. Home Owner’s Grants Surrey-Home Ownership Assistance Program ● $15,000 for first time home buyers ● $51,500K or less annual income ● www.gvrd.bc.ca/services/housing
  83. 83. CASH BACK PROGRAM (604) 76-HOUSE
  84. 84. Lesson 10 Location, location, location
  85. 85. If you don’t buy the “area” Don’t buy the home!
  86. 86. First-time home buyers ■ Downtown ■ Yaletown ■ Gastown ■ Kitsilano
  87. 87. LESSON 11 In any type of market condition, PLACE AN OFFER!
  88. 88. PLACE AN OFFER ■ GOOD PROPERTIES ■ GOOD LOCATION ■ GOOD PRICES DON’T LAST!
  89. 89. Lesson 12 Learn the difference between a seller’s agent and a buyer’s agent.
  90. 90. Two types of agents ■ Seller’s agent (represents the seller) ■ Buyer’s agent (represents the buyer)
  91. 91. CAN REPRESENT BOTH THE SELLER AND THE BUYER
  92. 92. DUAL AGENCY ■ HOW CAN ONE AGENT REPRESENT ONE? ■ HOW CAN ONE AGENT HAVE BOTH PARTIES’ INTERESTS AT THE SAME TIME?
  93. 93. Lesson 14 Protecting your own interests.
  94. 94. Contract of purchase and sale Instrument that allows both parties to communicate in writing.
  95. 95. Contract of purchase and sale ■ Subject conditions ■ Dates: completion and possession ■ Acceptance time ■ Any issues you want addressed: (garbage, fixtures or chattels, inclusions and exclusions, etc.)
  96. 96. LESSON 14 Choose qualified professionals.
  97. 97. Choose qualified professionals. 1. Go through an interview process 2. Research 3. Look at their web sites, testimonials, referrals. 4. No two professionals are alike.
  98. 98. BUY SMART! GERALDINE SANTIAGO www.geraldinesantiago.com Help my clients get the best possible price for their home.

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