I met a very sweet woman last night at Lansdowne mall in Richmond. The brokerage where I hang my license has a real estate kiosk there and I spend a few hours a month meeting and talking with people. Mostly about real estate but some folks just want to talk about nothing inparticular. I was talking with someone and noticed this woman who seemed to be anxious to get my attention. I asked how I could assist her and she said that she had made a mistake. She had purchased a condo in another city that she didn't want to live in and is thinking of selling and buying in Richmond. Okay so far. Easy to list one and look for another. But not exactly.

 

She explained that she had attended a developer's open in 2009 with her friend and that today she had done the "walk through" (for deficiencies). So, my question to her "When does your purchase complete"? She didn't know and didn't understand the question. "Do you know when you have to give the seller the rest of the money?" No. Do you know when you get your keys to move in?" No. She had given a substantial deposit and did arrange for a mortgage though with a reputable lender. It isn't that she can't afford to buy it, but she had no idea about the process, who to call, where to turn when she had a question or a problem and the developer's representative rarely returned calls and most answers were "in a few days". Now she just feels trapped, confused and concerned.

 

It was her friend's intention to purchase, not hers. While they were in the lineup the representative gave everyone little sticky dots and told them to put on the unit they were interested in. She got a dot and put it on a number she liked. Then the representive placed contracts and pens in front of everyone (her explanation not mine) and said, "sign here, here, here" etc. and everyone did. Did she have her own realtor at the event? No.

 

 

She pulled out a ragged, rolled up copy of the contract. I asked her if she had taken the contract to a lawyer. Not yet but she had called one and the receptionist said she had to pay HST while her contract clearly indicates all taxes had been paid while it was still GST. Looking at the contract the developer is well past the date of completion and past 120 days. The lovely lady can understand spoken English but can't read it. She has no idea what her contract says. In her estimation, the whole thing was over in less than 5 minutes. The correct documents are there and in correct form. Dual agency, Working with a Realtor, Disclosures, developers contract etc. 

 

The question is bigger than simply providing the right documentation. Is the client served by just having them sign prepared contracts? Do they understand and will they be fully and properly represented when issues come up? So, I explained two things to her: 1) she needs to speak with her lawyer at this point as there appears to be a violation of her rights as the buyer and highlighted the section of the contract for her where there is discrepancies; 2) I explained the role of a realtor to educate buyers and sellers and to protect their interests and to help them navigate what can sometimes be a complex process. It doesn't matter if it's a developer as seller or a private homeowner - everyone should have someone on their side.

 

 

   

First Steps in starting to think about selling your home.

So, you've made the decision to sell your home either to upsize, downsize or free up some needed equity. As a realtor, while I'm happy to hear from you and look forward to going on this journey with you, I want to know that you've had the most important conversation to start the process . . . the one with your mortgage broker, lender or financial adviser.  It can sometimes be a painful process for a homeowner to find out too late that there are penalties or other costs that make it impossible or at the very least difficult to buy their next home. Even if you are buying down you may have debts, liens, charges, penalties etc. that may prohibit your next purchase. You could also end up with a rate that messes up your comfortable monthly payments.

Make sure your understanding of the money related to your home is in order before you sell or start looking for your next home regardless of buying up, buying down or just trying to free up equity. A lot of folks are surprised not only by the costs attached but what sometimes isn't there! I have spoken to several homeowners who believe that because Vancouver has a robust real estate market that home values across the board have soared! It isn't the case everywhere and the perceived equity may not exist.

Buying out your mortgage early or moving it can cost a lot of money. If you are selling a home, then that also means that you are not a first time home buyer and your next purchase is subject to Property Transfer Tax. This can be and will be several thousands of extra dollars. Considering moving to a condo or townhome? Those monthly strata fees can push the costs outside of what you are approved to purchase.

Your mortgage specialist will walk you through the process and ensure that you know how much you are working with, the best rate possible and then you can decide if this is the right to sell.