Buying a home in Metro Vancouver is exciting, but it can also feel overwhelming. It’s usually a significant financial investment so you want to be sure you’re making a well-informed decision. And the competitive real estate market in British Columbia can make that even more overwhelming if you’re a first-time buyers.
This guide is here to help you have some clarity on what to watch out for when buying a home, specifically in Metro Vancouver. By the end, you’ll have confidence that you can get out to a few viewings and know some of the major red flags to look out for.
(Looking for something more detailed? Here is our guide on The Top Questions to Ask When Buying a Home in BC)
1. Legal or Permitting Issues
One of the major risks when buying a home, especially a detached home, is uncovering legal or permitting issues after the sale. For example, a homeowner may do a renovation, like adding a secondary suite, without obtaining necessary permits.
This can ultimately lead to complications down the road including fines or the requirement to reverse unauthorized changes from the city.
What to watch for
Unauthorized renovations: Request to see all permits related to renovations or additions. For example, if a home has a secondary suite advertised as a mortgage helper, make sure it’s legally permitted by the city. Or if there looks to be recent additions, verify that they did or did not need a permit to get that done.
Building code violations: Ask your Realtor about any open building permits or code violations that haven’t been addressed. This comes up with things like plumbing and electrical work if there weren’t any permits or a professional trades person involved.
Property line disputes: Verify the property boundaries with an official survey to avoid potential disputes with neighbors. Sometimes the fence isn’t always on the property line.
2. Convoluted Property Titles
A clear and clean property title is typically a priority for any buyer. And it’s not uncommon to encounter convoluted titles that could signal hidden risks.
For example, homes sold through foreclosures sometimes come with unexpected charges, liens, or encumbrances.
What to watch for
Easements and Rights-of-Way: Be cautious of shared driveways or utility easements that might impact your property’s use or future development potential.
Liens on the property: Previous owners may leave debts tied to the property, such as unpaid taxes, utility bills, or contractor liens, making it your responsibility once you take ownership.
Restrictive covenants: These can limit what you can do with your property, such as height restrictions or architectural controls common in some Metro Vancouver neighbourhoods.
Always request a comprehensive title search through your real estate agent or lawyer. The Land Title and Survey Authority of BC (LTSA) maintains the province’s land title system, providing secure land titles through timely registration of interests.
3. Special Properties
While unique properties might seem appealing, they can present their own sets of challenges either while living there or when you go to sell.
What to watch for
Heritage designations: Homes under historical protection or heritage designation tend to be more expensive to maintain and have significant restrictions on what changes can be made, even for energy efficiency upgrades.
Leasehold properties: Common in some Vancouver neighborhoods like Burnaby Mountain or False Creek, these properties may have complex lease arrangements with the city that affect financing and resale value.
Character homes: While charming, older character homes in neighbourhoods like Kitsilano or Mount Pleasant often require specialized and on-going maintenance. Beware of potential special levies or high strata fees.
If you do find a unique property that you absolutely fall in love with, it’s important you work with your Realtor to understand if those unique qualities will hinder your future real estate goals.
4. Unknown State of The Property
It can be tempting to skip the home inspection, especially if you’re in a competitive bidding situation. However, it’s not always recommended to take that risk. Failing to assess the true state of the property can lead to costly surprises.
What to watch for
Hidden moisture and mold issues: Water can get anywhere. If there are any moisture or mold problems, this could be extremely costly down the line.
Aging infrastructure: Verify the condition and age of plumbing, electrical systems, and the roof. Many Vancouver homes built in the 1970s or earlier may still have knob-and-tube wiring or asbestos insulation. If it’s a condo, the meeting minutes and the deficiencies report should contain any upcoming problems that need to be addressed.
Consider making your offer conditional on a satisfactory home inspection.
5. The Noise Nightmare
Living next to inconsiderate or disruptive neighbours or loud city areas can turn your property into a total headache. If you’re buying in almost any Metro Vancouver city, there is a high chance that you’ll be in a high density area.
What to watch for:
Noise concerns: If you’re sensitive to noise and consider living in a dense neighbourhood like Yaletown, you’ll have to think about the potential noise concerns from a big city.
Boundary disputes: If you’re looking to buy a detached home or duplex, check for encroachments or shared features that could lead to conflicts, like fences built on property lines or overhanging trees and shrubs.
Ongoing disputes: For strata properties it’s important to review council minutes to identify any recurring complaints like noise violations or loud neighbours that may impact your daily living.
If possible, visit the property twice at different times if you’re going to be making an offer. It’s important you get a sense of the noises around the neighbourhood but also in and around the property, too.
6. Odd or Unfair Contracts & Terms
Pay close attention to the terms and conditions of the sale agreement. Sellers in competitive markets sometimes include clauses designed benefit only them at your expense.
What to watch for
“As-is” clauses: These types of clauses attempt to absolve the seller of any responsibility for the property’s condition. Leaving you vulnerable to discovering major issues after purchase.
Excessive deposit requirements: In Metro Vancouver’s hot market, some sellers may demand unusually large deposits that exceed the standard 5% of the purchase price.
Unusual closing timelines: Be careful of extremely short closing periods that don’t allow adequate time for financing and proper due diligence.
Working with an experienced Realtor will help you avoid getting into a sticky contract situation. Remember that many terms are negotiable. Even in a competitive market.
7. Mismanaged Strata
If you’re considering a condo or townhouse, you need to look into how the strata are managed, as it can be an important aspect of having a peaceful and financially strong property.. Mismanaged buildings can lead to skyrocketing fees, deferred maintenance, and ongoing problems.
What to watch for
Inadequate contingency reserve funds: BC law requires a strata to maintain reserve funds for future repairs and financial needs. But some buildings have insufficient funds for future major repairs, potentially leading to special assessments or much higher monthly dues.
Depreciation report problems: It’s also important to review the most recent depreciation report to see if there are any upcoming major expenses, and whether the strata is financially prepared.
Pending litigation: Check if the strata corporation is involved in any lawsuits or if the unit you’re buying into in particular has any pending litigation to look into.
Deferred maintenance patterns: You’ll want to watch out for any signs that the strata has been postponing necessary repairs to keep fees artificially low. This often leads to larger expenses later on that you’ll be responsible for.
Request and thoroughly review at least two years of strata minutes, financial statements, bylaws, and the depreciation report before making an offer. It’s important to look for any mentions of water issues, building envelope problems, or major upcoming projects like a boiler replacement.
8. Poor Historical Maintenance
A home’s maintenance history offers a clear picture of its overall condition. Prolonged neglect can lead to hidden costs for buyers.
What to watch for
Deferred maintenance patterns: Look for consistent maintenance records for HVAC systems, roofs, and plumbing. Missing or sporadic records often indicate neglect. If there have been significant DIY repairs to defer a professional from coming in, that is also a major red flag.
Building envelope integrity: For homes built during BC’s “leaky condo crisis” (roughly 1985-2000), verify if proper remediation has occurred and what warranties remain.
Request maintenance records, warranties, and receipts for major repairs or upgrades. For older homes or detached properties, consider specialized inspections for the roof, forced-air, plumbing, and electrical systems even if they appear functional.
9. You End up In a Bidding War for a Home That’s Not Ideal
Metro Vancouver’s competitive housing market often leads buyers into bidding wars. While it can be tempting to outbid others, you want to be careful you don’t fall for the problem of bidding to win, when it’s not your dream home. It’s important that if you’re going to get into a bidding war, you know your limits and your why behind potentially paying more.
What to watch for
Artificially low listing prices: Some sellers intentionally list properties below market value to attract multiple offers and create a bidding war. If you’re working with an experienced Realtor, they can help you spot these.
Pressure tactics: Be wary of sellers setting arbitrary deadlines for offers designed to force quick decisions without adequate time for due diligence.
Waiving important conditions: In the heat of competition, buyers sometimes waive financing, inspection, or title search conditions, exposing themselves to significant risk. Learn more about the Home Buyers Rescission Period.
Establish your maximum price and non-negotiable criteria before entering a bidding situation. Sometimes walking away is the best financial decision you can make.
Stay Smart and Purchase Confidently
If you’re ready to start your home-buying journey or have questions about a specific property in Metro Vancouver, reach out to us at Metro Vancouver. We’re here to help you find your perfect home in BC while avoiding costly mistakes that many buyers make in this unique market.
