LANCE LUNDY E-BOOK GUIDE TO BUYING A WHISTLER OR PEMBERTON PROPERTY

Transcription

1 LANCE LUNDY E-BOOK GUIDE TO BUYING A WHISTLER OR PEMBERTON PROPERTY

2 A MESSAGE FROM LANCE For the past 20 years, I have had the pleasure of calling this area home. From the mountains to the golf courses to the events and activities down in the valley, I know what makes this community unique. It is my pleasure to help people realize their dreams of buying and selling their properties in the Sea to Sky area. With over 25 years experience in real estate, I have gained considerable knowledge about the processes and procedures involved in purchasing and selling properties. I understand that purchasing a property can be exciting, but stressful particularly if you are not familiar with the Whistler or Pemberton real estate market. My goal in creating this guide specifically for Whistler and Pemberton area purchasers is to help inform and educate you about the property purchase process. I hope you will feel confident as we work together towards the purchase of your dream property. This guide will provide you with an overview of the purchasing process, as well as tips and information to help you make the most of the experience. I look forward to working with you as your Realtor and to helping you achieve your property goals! Regards, Lance Lundy 02

3 AS YOUR REALTOR What happens once you select me as your Realtor? Here is a brief overview of my roles and duties once you have officially become my client. MY ROLE As a Realtor, my principal roles in representing a buyer include: Understanding your unique property wants and needs Helping you find properties for sale that match your wants and needs, at a price you can afford Making appointments to view properties and bringing you on a personal tour Explaining the forms and processes involved in the real estate purchase \ transaction Helping you prepare an offer to purchase Presenting your offer to the property seller Negotiating the terms and conditions of the contract of purchase and sale on your behalf Recommending professionals, such as notaries, lawyers, certified home \ inspectors, property managers, builders, etc. Following up post-purchase to make sure you are comfortable and deal with any issues that may have arisen Essentially, my role is to assist you through every step of the home buying process from start to finish. MY DUTIES As a Realtor, I proudly abide by the Canadian Real Estate Association s (CREA) REALTOR Code, which defines the high standard of performance the public has a right to expect from those licensed to display the REALTOR trademark. 03 The complete REALTOR Code can be found online, but among the code is included: My duty to be informed of essential facts My duty to have primary duty to my client, protecting and promoting the client s interests My duty to ensure that all service agreements are in writing My duty to inform the client of any expenses/fees directly related to the transaction My duty to comply with board and association bylaws and with statutory requirements

4 OVERVIEW OF THE REAL ESTATE PURCHASE PROCESS PREPARATION & PRE-APPROVAL Discovering the Whistler real estate market Understanding the costs associated with purchasing a Whistler property Obtaining financing pre-approval SETTING PRIORITIES Understanding Whistler property types Establishing property priorities and goals VIEWINGS & OFFERS Reviewing and visiting potential properties Submitting a competitive offer and counter offer if applicable CLOSING Navigating conditions of sale Hiring property professionals Moving in 04

5 PREPARATION & PRE-APPROVAL DISCOVERING THE WHISTLER REAL ESTATE MARKET The local real estate market is unique (especially in Whistler), to say the least. Whistler property owners are a mix of full-time residents, part-time residents, and investors. Property types vary, and zoning bylaws and title covenants dictate use restrictions on several types of property. For example, if you are hoping to purchase a property with the intention of renting it out nightly when you are not using it, you need to be aware that only certain properties allow this type of use. Another factor that distinguishes Whistler from many other markets is that most property owners do not live in Whistler full-time. It is not uncommon for both the buyer and the seller to live in other provinces or other countries. This can affect communications and timelines pertaining to a property purchase. Despite the fact that Whistler is only an hour and a half from Vancouver, the local real estate market does not always reflect trends observed in Metro Vancouver. As a resort municipality, Whistler is subject to very different market forces. For example, Whistler has a limited number of bed units that are permitted within the Resort Municipality (in other words, there is a cap on how many units can be built), and new developments are not as common as they are elsewhere in British Columbia. As such, it pays to have an expert on your side with local knowledge. 05 Before you begin your property search, take some time to learn about the Whistler market. This will help give you realistic expectations about the property purchase process. I m happy to sit down with you and tell you more about the local market, answering any questions that you might have about buying and living in Whistler.

6 PREPARATION & PRE-APPROVAL UNDERSTANDING THE COSTS Before you begin your property search, it is important to understand the costs associated with purchasing a property, and to ensure that your financial situation can comfortably accommodate these expenses. Costs to consider include: The property transfer tax* (generally 1% on the first $200,000 and 2% on the balance of the purchase price up to $2 million, then 3% on the amount exceeding $2 million) Legal fees and disbursements Goods and Services Tax (GST) (applies to new construction and on the resale of properties that have been rented for short-term or nightly rentals) Inspection fees Appraisal fees Property tax adjustments Moving, cleaning, and storage expenses *There are certain exemptions to the property tax, including the First Time Homebuyers Program, which provides BC residents purchasing their first principal residence with a full or partial exemption on the tax. The fair market value of the property must be less than $475,000 to qualify for an exemption. In addition to the one-time costs listed above, additional ongoing fees may be involved in your property purchase. Stratified properties (typically condominiums and town homes) will have a monthly strata fee payment, and several properties are affected by a Tourism Whistler fee, which varies depending on the property s use. Home insurance is another expense to consider. If you are thinking about renting your property, you will need to account for property management fees as well. OBTAINING FINANCIAL PRE-APPROVAL One of the greatest factors that will guide your property search is your budget. If you will be financing part of your purchase, I highly recommend obtaining pre-approval from a mortgage broker or lender before proceeding to the next step in your property search. This will help you limit the pool of prospective homes, avoid any unexpected surprises later in the process, and make you a more attractive contender in the eyes of a property seller. I am happy to recommend local lenders and brokers who are familiar with Whistler and Pemberton properties. 06

7 SETTING PRIORITIES UNDERSTANDING WHISTLER PROPERTY TYPES There are several different residential property types in the Sea to Sky Corridor. Depending on your goals as a homeowner, different properties may be more suitable to your needs. A chalet is the term used for a single-family home. Short-term (nightly) rentals are typically not permitted in chalets, though some exceptions do exist. A town home is a unit with its own exterior entrance in a multi-family complex. A duplex is like a chalet, except that it shares a wall and a roof with another unit. A condominium is a unit in a multi-family complex that typically shares interior common spaces such as a lobby and corridors. It s entrance often faces an internal hallway. Vacant land is undeveloped land that is zoned for certain specific uses. Phase I and Phase II The terms Phase I and Phase II are unique covenants for certain properties in Whistler, often seen in units located in and around Whistler Village and the Benchlands. These designations impose restrictions on owner occupation and property rentals. A Phase I property is the more flexible option: these properties permit full-time owner occupation, long-term rental (such as a monthly tenant), and short-term (nightly) rentals. A Phase II property is more limited: it allows owner occupancy up to 28 days in the summer and 28 days in the winter, the unit must be placed in the building/hotel rental pool for the remaining 44 weeks of the year. Phase II properties are commonly found in hotel-type properties. Knowing which property type best suits your needs is an important first step, but it is also helpful to keep an open mind in the selection process. As you learn more about this unique market and how it can meet personal requirements your initial ideas may alter. 07

8 SETTING PRIORITIES ESTABLISHING PRIORITIES & GOALS As a purchaser, you and your family have unique priorities and goals. As your REALTOR, my role is to help you determine your purchase goals and prioritize your wants and needs. For example, an investor living abroad will have very different property needs than a family planning on living in Whistler/Pemberton full-time. Factors to consider include: Location. Whistler is home to many different neighbourhoods, each with unique attributes. Many buyers prefer to stay close to Whistler Village, but it is well worth exploring opportunities elsewhere in town and throughout Pemberton. The minimum number of bedrooms and bathrooms needed to accommodate family and guests. Lifestyle aspirations. Perhaps you d like to be close to a lake to enjoy in the summer months, Whistler s world famous golf courses or maybe a ski-in ski-out property is a priority for you. Amenities, such as ski and bike storage, hot tubs, etc. 08

9 VIEWINGS & OFFERS REVIEWING & VISITING POTENTIAL PROPERTIES Once the preliminary work has been completed, I will have a good idea of what your dream property entails. At this stage, I will present you with potential listings that may suit your needs. This process typically begins with online listings from the Whistler and Pemberton Listing Services, which we will then narrow down based on preferences and availability. Your personalized property tour is a crucial step of the property search. This is when you will get a real idea of what your budget can afford, what factors you might have to compromise on, and what aspects stand out the most to you. Your property feedback will allow me to continually improve my understanding of your ideal property. Property Tour Tips Property tours can be tiring and overwhelming. The following tips will help you get the most out of the process: I will provide you with a listing data sheet on each property we visit, take notes to help jog your memory later on. Ignore noise. Some properties will show better than others, but remember: ultimately, you are buying the home not the dirty dishes in the sink or the piece of artwork over the fireplace. Keep an open mind. A property can go from good to great with a fresh lick of paint or a simple kitchen renovation. Factors like location and layout are much more difficult to change. 09

10 VIEWINGS & OFFERS SUBMITING A COMPETITIVE OFFER Once we have found the Whistler or Pemberton home that meets your needs, the next step is to submit an offer. As your REALTOR, I will walk you through the various legal documents involved in submitting a contract of purchase and sale (CPS). These outline your general duties and responsibilities as a purchaser, should the sale go through. One of the primary negotiable factors in the CPS is the selling price. Using market data, comparable sales, the property s unique attributes, and my own extensive experience, I will help you determine a suitable sales price that you feel comfortable with. While price is one of the main negotiable elements of the CPS, there are several other factors to consider as well, including dates, deposits, terms, and conditions of the sale. We will typically add conditions that the sale will be subject to, which will allow you to complete your due diligence on the property (e.g. inspection, financing approval, etc.) Note than in a very competitive seller s market, it is sometimes recommended to complete the due diligence prior to submitting a competitive offer where sellers may compare competing offers. Sellers can respond with a counter-offer, in which they change some of the terms in the initial offer. I will review each counter-offer with you, explaining the changes that were made and providing you with the information you need to determine whether to accept this counter-offer, or to present a counter-offer of your own. THE ACCEPTED OFFER Congratulations we have an accepted offer! 10 Once both you and the seller have agreed upon and signed the terms outlined in the contract, including the sales price and conditions, you officially have an accepted offer. The contract will specify the amount of the deposit and when it is due. I will help you explain how the process works, and then we can move on to satisfying the conditions outlined in the contract.

11 CLOSING NAVIGATING CONDITIONS OF SALE The CPS outlines certain conditions of sale (sometimes referred to as subjects, as they often begin with Subject to ). Depending on your needs and the seller s needs, these conditions will vary with each individual property. Typical conditions include obtaining approval for financing, completing and approving a property inspection, and reviewing strata documents if the property is in a multi-family complex, such as a town home or condominium. My role in this process is to provide you with the contacts, documents, and information to help you complete your due diligence. In this step, it is often necessary to hire other service professionals (discussed in the next section). I will provide them with the property information needed, including access to the property if necessary, to complete the services required on their end. Where conditions include reviewing strata documents and/or obtaining and approving an inspection, I will help you navigate through these documents and reports, and can help provide you with the tools you need to determine whether you are satisfied with these conditions or not. Assuming all goes well, we will complete the due diligence required and sign off on the conditions according to the dates outlined in the contract. At this point, the contract is said to be firm. If the due diligence uncovers some surprises, we will work together to extend the contract to allow more time for additional research; renegotiate certain terms of the contract to reflect this new information; or decide not to pursue the property and to resume our property search. 11

12 CLOSING HIRING SERVICE PROFESSIONALS It takes a team of professionals to make your property dreams come true. To help you complete your due diligence and to close on the property, you will need to hire a team of professionals, which may include the following: Mortgage lender Mortgage broker Lawyer or notary Property inspector Builder Painter Mover Designer You are more than welcome to use your own service providers, or I am happy to provide recommendations if needed. With more than 20 years experience in the local market, I have developed relationships with the best of the best in the Whistler and Pemberton real estate services industry. I can help you assemble a team that will address all of your real estate needs. MOVING IN A Whistler real estate market quirk: many vacation properties are sold furnished, or furnishings may be negotiated into the CPS. You may need to move less than you think! 12 If your property is not sold furnished or if you d prefer to furnish it yourself, the final steps will likely involve hiring movers (or enlisting a few friends to help with the task!) I am happy to recommend movers, storage options, and even local furniture and home décor stores and specialists who can help you give your home a special touch.

13 WHISTLER MARKET OVERVIEW Just as Whistler is a unique community, its real estate market is notably different from many other markets. For instance, traditional real estate rules (like the market slowing down in the winter and picking up in the spring) do not necessarily apply. Understanding the Whistler real estate market will help you establish realistic sales price expectations. It will also help you understand how long it might take you to find your dream property, the impact of location and property type, and what elements you may need to be flexible on in order to purchase a Whistler property. When you begin your home search with me, I will provide you with a detailed overview of current market conditions. However, the following overview will give you a general understanding of the Whistler real estate market. INVENTORY (NUMBER OF ACTIVE LISTINGS) 13

14 WHISTLER MARKET OVERVIEW NUMBER OF SALES AVERAGE DAYS ON MARKET (NO. OF DAYS PROPERTY LISTED BEFORE SALE) 14

15 WHISTLER MARKET OVERVIEW MEDIAN SALE PRICE 15

16 LET S GET STARTED! Now that you have a better understanding on the process of purchasing a property in Whistler and Pemberton, you re ready to take the next steps. I will guide you through the property buying process step-by-step, answering any questions that might come up and making sure that you feel comfortable and confident throughout the entire transaction. 16 Contact me to set up a meeting, and together we can start searching for your dream property!