HST Resources for Buyers and Builders from CHBA

Many potential Buyers of new homes in B.C. have been unsure of the impact of HST on their purchase.

I found this useful Fact Sheet and HST Calculator on the Canadian Home Builders Association Website.

Main Office
#14 - 1470 Harvey Avenue
Kelowna, Bc, V1Y 9K8
Tel 250 860 7500

Savvy Investors Take Advantage of a Depressed Real Estate Market

Having read this article, I thought there were some good points for investors to consider i.e. Real Estate is a good 'long term' investment and 'why now'.

I hope you find this useful.

What is Exclusive Buyers Agency ? A guide for Buyers of Real Estate in BC.

For those of you who are thinking of buying Real Estate in BC, at some point you will come across the phrases ' Buyers Agency' or 'Exclusive Buyers Agency'.

The following information is provided as a guide to help you understand these terms, and what you should expect from your Agent.

Disclosing the types of Agency Representation

The Okanagan Real Estate Board (OMREB) requires a Disclosure of Agency (a Working with a Realtor form, which is signed by the Buyer and the Agent)  by which every registered Agent is required to explain their legal relationship with a Buyer at first substantive contact i.e. when you start discussing information with that Agent which would compromise your bargaining position in any way. The Agent should immediately explain 'Agency' and give you a choice in how you wish to proceed.

Any licensed Real Estate Agent in British Columbia can legally act as a Buyer’s Agent, while working for a brokerage focused on representing Sellers’ Listings. You should expect your Agent to ask you to sign an acknowledgement to this effect.

Why choose Exclusive Buyer’s Agency ?

While any Agent can and will arrange property showings, suggest sources of financing, provide accurate information, prepare contracts and agreements, and assist you through the entire process, an Exclusive Buyer’s Agent can perform services for you that many Seller’s Agents can’t.

An Exclusive Buyer’s Agent can -:

1. Provide an unbiased opinion on each property- remember a Listing Agent has a fiduciary duty (defined as - a legal relationship of confidence or trust regarding the management of money or property between two or more parties), to the Seller, and is therefore unable to discuss such sensitive issues as price.

2. Recommend and negotiate the best price and terms for you alone.

3. Ensure that the conditions placed in a Contract of Purchase and Sale protect you, rather than the seller.

4. Keep confidential any information that could compromise your negotiating position.

To work with your Agent and appoint them as an Exclusive Buyers Agent, you will need to sit down with them and discuss the 'terms' of this arrangement, which is usually done in the form of a standard written contract ( in the same way as you would sign a Listing Contract when you are listing your property with an Agent).

What if the house you want is listed by the same Agent or Real Estate Company that is representing you as Buyer’s Agent?

In that case, you can agree to  'Dual Agency', in which case the agent represents both the Buyer and the Seller, and has to be very careful not to breach the confidentiality of either party, or  you can use an Agent from an alternative Real Estate Company.

Who pays the Real Estate Agents commission ?

In most cases, the Seller is going to pay a percentage of the sale price to the Listing Brokerage, as a commission fee. ( There are cases where the Buyer may agree to pay part of the commission under their Exclusive Buyers Agency agreement with their Buyers Agent).

Most Sellers agree to allow the Listing Agency to split the commission with the Buyer’s Agency, which means the Seller is paying the Buyer’s Agent to represent the Buyer’s interests.

Why would a Seller agree to allow a proportion of the commission to go to a Buyer’s Agent, who is representing a Buyer against the Seller? It is simple - the seller wants to sell!  But it is really the transaction that funds the commission? Yes, the Seller is paying the commission, but without the Buyer’s money there would be no sale. The whole idea is to be fair and reasonable.If the Buyer is bringing the money to the table to buy the house, it is only fair that the Buyer has full representation.

I hope this guide helps?

If you have any further questions, on this or any other Real Estate topic, please do not hesitate to contact me.

Kind Regards

Trish Cenci

Cell 250 864 1707
E.Mail trishcenci@shaw.ca

Coldwell Banker Horizon Realty
#14 – 1470 Harvey Ave, Kelowna,
British Columbia, V1Y 9K8

Kelowna Real Estate Newsletter January 2011

For people selling their Real Estate in Kelowna during the last 12 months, I am sure, in most cases, you are glad to see the back of 2010, and for the people thinking of buying, many of you are sitting on the fence asking the question "has the Kelowna Real Estate market reached the bottom yet" ?

In my opinion, we have' largely' hit the bottom of the market. In the short-term, prices will remain very flat, and we will see our usual 'winter price lull' in the Central Okanagan.

I continue to see some great bargains, particularly in the investment / recreational side of the condo market, but I am getting a sense from Sellers that they are not prepared to 'sell at any price', particularly as the rental market has improved, and is providing a reasonable short-term alternative to selling.

I believe we will continue to see lower sales numbers, low sales to inventory numbers and a rise in inventory in the spring.

So what is going to be the balance side to this? As we progress through the year, I believe we will see more investors coming back to the market, as economic confidence improves, particular in Alberta and British Columbia. Also a number of local buyers have put off moving, preferring to see where the real estate market is going and how strong their ongoing employment situation is.

The Central Bank also continues to give messages, that whilst interest rates may rise, it will not be too quickly, as the economy, as a whole, remains fragile and will not stand interest rate 'hikes'.

Central Okanagan Real Estate Sales for December 2010

Type       Total    S Fam   Strata    Lot    Manuf

Dec 10     157       93          46          10         8

Nov 10    199      117          68           7         7

Oct 10     246      149          74         10       13

Dec 09     245     131          93         13         8

As you can see from the latest Central Okanagan sales figures for December, we have seen a further fall in numbers, both on the previous month and on the previous year. I do not believe this is too much to be concerned about, as December is normally a very slow month in this area.

My Kelowna Real Estate advice for 2011.

For Buyers - It will remain a good time for you to buy, as it will remain a Buyers Market this year. Don't be afraid to make an offer, but don't be surprised when the Seller comes back with a counter!

For Sellers - it remains very important that your initial list price is realistic, if you are going to achieve a sale within a reasonable time scale and that your property is well presented. It will also probably take longer than you had hoped to sell you property. It is a good time to sell if you are moving up the market, however, not so much if you are down scaling.

I hope you find this update useful in keeping you up to date with the Kelowna market, and if you have any questions about you specific buying and selling needs, please do not hesitate to call or e.mail me.

May I take this opportunity to wish you all a Happy and Prosperous New Year!

Kind Regards

Trish Cenci

Coldwell Banker Horizon Realty

3A 3185 Via Centrale Kelowna, BC V1V 2A7

Cell: (250) 864 1707

Website: http://www.mykelownarealestate.com


Main Office #14 – 1470 Harvey Avenue, Kelowna, BC, V1Y 9K8

Tel 250 860 7500