Buying a home in Vancouver is a big deal! Home prices are considered to be some of the highest in the world, yet there continues to be huge demand for homes on the coast of British Columbia.
When thinking about taking the next steps, there is a process to follow that will allow you to be prepared, without being overwhelmed by the whole process.
In this guide, you’ll learn about this process and what you need to do to start buying a home in Vancouver. Let’s jump in.
Table of Contents
- Build Your Wishlist
- Understand Your Finances
- Use a Mortgage Broker
- Find a Trusted Real Estate Agent
- View Properties and Make an Offer
- Negotiate and Finalize the Deal
- Closing Date
- Getting Possession
- Other Home Buying Resources
Build Your Wishlist
Before finding a real estate agent, securing a mortgage pre-approval, and even looking at properties on the market, it’s important to build your wish list for the ideal property.
This can be broken down into the following categories:
Must Haves
These are the must-have features in the home you’re looking to buy. This could include items like a nursery if you’re planning a family, a large patio if you like to entertain, etc. These areas of the home that will be essential to your happiness, so make sure to put some time into it.
Nice to Haves
The nice to haves is a list of things that would be nice to have, but won’t be essential to what you’re looking for when buying. This could be things like two walk in closets (instead of one), a master bedroom with french doors to a south facing patio, etc. The items that are more specific but not necessarily essential to your criteria.
Location
When building your wishlist, having specific locations in mind will be useful for finding the home you want to buy. If you’re looking specifically in the Vancouver area, it will be best to break down where you want to live by neighbourhood. This could include places like:
- Mount Pleasant,
- YaleTown,
- Coal Harbour,
- East Vancouver,
- Gastown,
- Shaughnessy.
Find a few neighbourhoods you’d like to live in to help narrow down your wishlist. This will also help the real estate agent you work with by narrowing the search criteria.
Home Type
The next step to developing your wishlist for buying in Vancouver is to define what kind of home type you’d want. Remember to be realistic when it comes to budget.
For instance, a 2,000 square foot detached home can have a million to multi-million dollar price tag, which may be out of budget for most first time home buyers.
The different home types to choose from are:
- Apartment / Condo
- Townhouse
- Detached Home
Home amenities + other wants
These types of amenities and other wants for your home should be broken up using the must haves and nice to haves list. This will help you determine what is actually important so your real estate agent can find the best home for you.
If you’re looking to buy a condo, you may be able to have a longer list of nice-to-have amenities, as buildings build out more fun things for residents. For example, some condo buildings have:
- Saunas
- Basketball courts
- Swimming pools
- Hot tubs
- Business Centers
- Etc.
Or if you’re buying a townhouse, you may want things like extra parking, access to a yard, a fireplace, etc.
Understand Your Finances
The next step to buying a home in Vancouver is to understand your finances and how this aligns with your home buying wishlist.
When breaking down your finances to understand what you can afford, there is some specific areas you’ll want to consider:
The Deposit
The deposit, also called the down payment, for your home will need to be accounted for before a home is purchased, as it needs to be paid down before the deal is closed.
Mortgage Needs
Depending on your income and other assets you hold, most home buyers need a mortgage to purchase a home. You’ll need to get an estimate of the amount of mortgage you’ll need to get the home you want, and also a realistic amount that a lender will provide given your current income and other debts and assets you hold. A mortgage broker can help you with this step.
Closing Costs
A commonly missed area that home buyers don’t budget for is the closing costs of a home. Common closing costs can include:
- Lawyer Fees,
- Property Taxes,
- Property Transfer Taxes (PTT),
- Maintenance or Move-in fees for Strata Properties,
- Morgtgage default insurance,
- Home insurance,
- Title insurance,
- Appraisal fees,
- GST.
And more…
Recommended Reading: The Guide to Down Payments for Condos in Metro Vancouver
Use a Mortgage Broker
There are many reasons to use a mortgage broker when buying a home. First, a mortgage broker can help you find the best mortgage rate possible. They have access to many different lenders and can shop around for the best deal.
Second, a mortgage broker can help you with the paperwork and process of applying for a mortgage. They know what documents are needed and can guide you through the process.
Third, a mortgage broker can offer advice and guidance throughout the process of buying a home. They can answer any questions you have and help you make the best decisions.
Get Pre-approved
When you are ready to buy a home, getting pre-approved for a mortgage is an important step. By getting pre-approved, you will have a better idea of how much home you can afford. This can help you narrow your search to homes that are in your price range.
For example, if you want to buy a townhouse in Kitsilano for $1.7 million, but can only get pre-approved for $1.2 million, you may have to adjust what kinds of homes you’re look to purchase.
In addition, being pre-approved for a mortgage will put you in a better position when it comes to negotiating with sellers. They will know that you are a serious buyer who is already approved for financing.
Find a Trusted Real Estate Agent
Now that you have an understanding of your finances, you are pre-approved for a mortgage, and have a wishlist of nice-to-haves and must-haves, it’s time to find a trusted real estate agent.
One great way to find a real estate agent is to ask family and friends if they have any recommendations for who to work with. Another route is to see who is an expert agent in the areas and budget you want to buy in. They will have amazing insights to share and will make the home buying experience easy.
Choosing to work with a real estate agent can be one of the best decisions you can make when it comes to buying or selling a property.
An agent’s expertise is used extensively to help you navigate through the ever changing real estate market. When you work with a fair real estate agent, they’ll make sure to charge you a fair commission for the effort required to sell your home for what you’re looking for.
That’s why Metro Vancouver Life, your friendly local guides to Metro Vancouver real estate are here to help. Get in touch with us today by call or text at: (604) 253-0788.
View Properties and Make an Offer
With a trusted Realtor on your team, it’s time to view those properties that fit your wishlist.
When working with a strong agent, they’ll be able to narrow down listings to the ones that fit your criteria and within your budget. They’ll work with you to short-list homes so you can view a few in a day. It’s also common for home buyers to go and check out open-houses that they see could be a good home for them, as well.
Once you’ve viewed several properties and have found the one you like, it’s time to make an offer on a home.
Your real estate agent will help you prepare the offer documents and will coordinate that offer with the seller. This is the area where it can go into negotiations on price, offer subjects, etc.
Negotiate and Finalize the Deal
Once you have found a home that you would like to purchase, you will need to work with a real estate agent to finalize the home buying process.
In the homebuying process, the real estate agent will be responsible for negotiating on behalf of the buyer. The agent will have a general idea of what the buyer is looking for in a home, as well as what their budget is. The agent will then use this information to try to get the best deal possible for the buyer.
If the seller’s agent is unwilling to budge on the price, the buyer’s agent will then try to negotiate on other terms of the sale, such as the closing date or repairs that need to be made. If the two parties cannot come to an agreement, the buyer’s agent will inform their client on what is happening. The client can then look to meet the seller’s needs, or walk away from the negotiation and look for another property.
Once everything has been agreed upon, the real estate agent will help you to fill out the paperwork and will coordinate the closing of the deal.
Closing Date
The completion date, also called the “closing date”, is when the buyer assumes the title of the property at the local Land Title Office.
All closing costs and remaining payments for the deal are to be paid by this date.
Learn more about everything that happens on closing day.
Getting Possession
Possession day is the day that the new homeowners officially take possession of their home. This is after the closing day, anywhere from 10 to 45+ days. All of the paperwork has been signed, the money has been transferred, and the keys have been handed over.
On possession day, the buyers should do a walk-through of the property to make sure that everything is in order and that there is no damages.
Moving in
If you have furniture or other large items to move, you may need to hire a professional moving company. Or, if you’re feeling up to the task, you can enlist the help of friends and family to get everything moved in. And as a buyer, you should also change the locks and alarm codes, as well as inspect the smoke detectors and carbon monoxide detectors.
Buying a Home In Vancouver
When looking to buy a home in Vancouver, there are several steps you’ll need to take, but if you do it in the order presented here, there will be a lot less overwhelm. And you’ll have a team of professionals on your side to make sure you find the right home and get the right financing to make it happen.
If you’re looking for an educated real estate team to help you with your home buying journey, learn how we can work with you to help you buy your home in Vancouver.
