Langley BC Real Estate | Condominums And Town Homes

Not all loans or lenders are created equal. If a loan sounds too good to be true, it probably isn’t. There are a few tell-tale signs that something is amiss to warn you against bad loans. You may be able to negotiate a couple of unfavorable terms. But a multitude of bad loan terms in combination could create a financial disaster.

Falsifying information
There is no such thing as a “little white lie” when borrowing money. You can be prosecuted or forced to pay the entire loan amount right away if you falsify information.

Borrowing more money than you need
More is not always better. Generally, lenders suggest you borrow more than necessary to increase their commission. Raise the red flag if a lender is trying to talk you into a larger loan. If you have to borrow, take the least amount for the shortest time period with the lowest APR.

Suggests monthly payments you can’t afford
Figure out whether you have enough funds to cover all your monthly bills, including a new or larger mortgage. And don’t forget to have a little cushion for emergencies. If your outflow is more than your inflow, you will find yourself in trouble rather quickly.

Fails to provide you with the required loan disclosures
By law, lenders have to inform you about the APR (annual percentage rate) and also provide an itemized list of closing costs within three days of application. Be cautious if the lender fails to provide the required loan disclosures or suggests that you don’t need to read them.

Promises one thing and delivers another
It is a good idea to walk away if you are presented one set of terms when you apply for the loan and a completely different set at closing.

Asks you to sign blank forms
It is never okay to sign a blank form. Don’t allow the lender to fill in the blanks later. If there is a blank, cross it out and initial your mark.

Binding mandatory arbitration clause
Before you sign for the loan, you may be asked to forgo any rights to sue for any reason and instead agree to binding arbitration. This should not be a condition for obtaining the loan.

Upon receiving the offer to purchase, it is only natural to focus on the price. But there are other aspects to consider – contingencies, concessions, requests, etc. Your agent will help break down the offer but it’s a good idea to have a working knowledge of the contract beforehand. Here’s a look at the offer components that could affect your bottom line.

Earnest money deposit
The deposit establishes the intent of a buyer to purchase the property. A buyer may include a large deposit to show their commitment if their offer is weak. And usually dictates where the deposit is to be held - a third party, such as escrow, an attorney or the broker’s trust account. If either party is unable to meet the agreed upon contingencies and the deal falls apart, the buyer receives their deposit back.

The deposit is not the same thing as the down payment. When an agreement is reached and the transaction is completed, the deposit will be credited in full towards the purchase price.

Purchase price
It is the most important aspect of the offer. But the net price may vary depending on the concessions requested by the buyer.

Mortgage contingency
The Mortgage contingency is the most significant contingency of the offer. Here, their offer is based on acquiring a mortgage for a certain term and rate. Make sure the rate and term are realistic. If a practical time limit is not set, the buyer can take as long as they want looking for terms that they may not get. To protect yourself, ensure that the buyer has been pre-approved for a mortgage big enough to purchase your home.

Seller concessions
The seller concessions may include sharing closing costs, fees, or paying discount points to lower the mortgage rate. You may need to offer more concessions in a buyers market than in a sellers market.

Inspection contingency
It is one of most common contingency, and is usually paid for by the buyer. To avoid disputes, clarify if the offer requires you to pay for additional specialized home inspections and the cost of repairs.

Fixtures and Chattels
Anything that is physically attached to the property is considered part of the transaction. This would include light fixtures, appliances, etc. Make sure to state it in your listing or counter offer the items that you do not wish to include when selling your home.

Appraisal contingency
The buyer may include the appraisal contingency to confirm that the house is worth the sale price.

Buyer selling property contingency
An offer contingent on sale of the buyer’s home is risky. If the buyer’s property does not sell, the sale is off and the buyers’ deposit is usually returned. The key to this contingency is to make sure there is a time limit. It is a good idea to include a release clause in the contract, which allows you to continue marketing your home.

Possession Date
Possession date is the agreed upon date the buyer takes over the possession of the house. If possession is prior to or after closing, execute a rental agreement to protect all parties.

Fees
Spell out in detail who pays the fees. Sometimes fees for title, escrow, county or city transfer taxes can equal one to two percent of the sale price.

Completion Date
Often referred to as the Closing Date, it is the day when the parties expect to complete the transaction. Closing dates are often scheduled for 30-60 days from the date of the agreement. Your realtor can help to negotiate a mutually acceptable closing date.

Offer Expiry date
It is the date until which you have the offer open for consideration. If you do not notify the buyer before the precise time and date specified that their offer had been accepted, the offer becomes “null and void”.

VANCOUVER, B.C. – July 3, 2009 – The combination of low interest rates and more affordable pricing helped propel Greater Vancouver home sale numbers to the second all-time highest total for the month of June.

The Real Estate Board of Greater Vancouver (REBGV) reports that sales of detached, attached and apartment properties increased 75.6 per cent in June 2009 to 4,259, from the 2,425 sales recorded in June 2008. The figure is just short of the record-breaking 4,333 sales which occurred in June 2005.

New listings for detached, attached and apartment properties declined 17.9 per cent to 5,372 in June 2009 compared to June 2008, when 6,546 new units were listed. However, new listings increased 13.5 per cent from May to June of this year. Total active listings in Greater Vancouver currently sit at 13,252, down 27 per cent from June 2008 and 2.9 per cent below the active listings count at the end of May 2009.

“Price reductions and low interest rates have created an improvement in affordability, which is causing the number of sales to rise to levels comparable to 2003 to 2007,” Scott Russell, REBGV president said.

“Many people who were reluctant to purchase a home last fall and earlier this year are returning to the market because they see conditions that appeal to their personal and financial needs,” Russell said. “However, the current marketplace is such that buyers are more inclined to walk if they don’t like the terms of an offer.”

Residential benchmark prices, as calculated by the MLSLink® Housing Price Index, declined 8.2 per cent to $518,855 in June 2009 compared to June 2008.

The number of sales of detached properties increased 81.6 per cent to 1,667 from the 918 detached sales recorded during the same period in 2008. The benchmark price for detached properties declined 8.4 per cent to $701,384 in June 2009 compared to June 2008.

The number of sales of apartment properties in June 2009 increased 69.3 per cent to 1,790, compared to 1,057 sales in June 2008. The benchmark price of an apartment property declined 8.2 per cent from June 2008 to $356,880.

The number of attached property sales in June 2009 increased 78.2 per cent to 802, compared with the 450 sales in June 2008. The benchmark price of an attached unit declined 7.3 per cent between June 2009 and 2008 to $441,620.

For Immediate Release: July 3, 2009

(Surrey, BC) – Crediting low interest rates and reductions in house prices, Fraser Valley REALTORS® had their fourth busiest June on record.

The Fraser Valley Real Estate Board’s Multiple Listing Service® (MLS®) processed 1,982 sales in June, an increase of 40 per cent compared to the 1,418 sales in June 2008 and 32 per cent higher than sales in May 2009. June’s numbers were comparable to sales achieved during the same month in 2006 and 2007 during the strongest real estate cycle in the Lower Mainland’s history.

“The combination of historically low interest rates and sellers reducing their asking prices has created greater affordability,” Board President Paul Penner said.

“Buyers are looking at monthly mortgage costs that are 20 to 25 per cent less than they were a year ago. For a home in Fraser Valley, that translates into hundreds of dollars a month in savings.”

A recent market poll conducted by the Board confirms that first-time homebuyers and people ‘buying-up’ are taking advantage of the current market conditions. The survey, looking at buying trends, was issued to Fraser Valley REALTORS® who completed a sale during the first two weeks of June. Results show that 32 per cent of buyers were first-time homebuyers and 22 per cent were buyers moving from an apartment or townhouse to a detached house.

Penner observed, “We’re essentially seeing two markets right now. Sellers have the advantage when it comes to more affordable homes, but buyers hold more sway with higher-end properties.”

The benchmark price measures the value of a ‘typical’ Fraser Valley home as determined by the MLSLink® Housing Price Index (HPI). The HPI benchmark price of a detached home in June was $471,788, a decrease of 8 per cent compared to June 2008 when it was $512,850 and a 1.3 per cent increase compared to May 2009 when it was $465,939.

The HPI benchmark price of Fraser Valley townhouses decreased 10.1 per cent from $335,090 in June 2008 to $301,103 in June 2009, and increased 0.9 per cent compared to May 2009 when it was $298,308. The benchmark price of apartments also decreased year-over-year by 9.6 per cent, going from $255,670 in June of last year to $231,014 in June 2009, and decreased 0.5 per cent compared to $232,170 in May 2009.

The Fraser Valley Board’s MLS® showed 9,300 active listings at the end of June, a decrease of 17.7 per cent compared to the 11,295 listings available in June of last year. It received 11.5 per cent fewer new listings in June, 2,863 compared to the 3,236 new listings received during the same month last year.