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DEXTER REALTY BUYER S GUIDE from the desk of:

Congratulations on taking this first step toward buying a home Buying a home whether it s your first time or your fifth can be a little overwhelming While it s easy to get swept up in the excitement it s even more important to keep your eye on the big picture Your new home might be the single most valuable purchase you ll ever make one that can increase your future net worth as you build equity in your home We have condensed four decades of in house expertise into an easy to use guide for first time home buyers and seasoned investors alike When it comes to buying a home we know real estate stakes are high That s why we set our standards even higher

Contents Key questions 5 Choosing the right realtor 9 Dexter s promise 13 Mortgages pre approvals 17 Making an educated offer 21

Conditions inspections waivers 23 Closing costs 25 Preparing to move 29 Moving checklist 31 Notes 37

Key questions to decide before purchasing a home Pride of home ownership can be one of life s greatest joys and biggest accomplishments It is an exciting time and our hope is that this guide will offer helpful insights and peace of mind during your home buying journey Let s get started When embarking on your journey the first step is to focus your search through the answering of key questions These will help you determine where you want to live 5

what type of home you re looking for and ultimately separate the must have features from the would be nice to have features in your new home What type of home are you looking for Single family semi detached Apartment or townhouse What about the age of the home How many bedrooms and bathrooms do you need What are you looking for in a kitchen or family room Do you want a separate dining room What is your preferred layout What are your high priority features Hardwood floors ensuite fireplace View What other types of rooms do you need Main floor laundry room home office What about parking storage space Is proximity to transit schools important Is energy efficiency important Newer windows or a high efficiency furnace How is your daily commute How easy is it to get to the places you need to go 6

How close do you need to be to transit shopping schools hospitals Are there any important location factors Backing on to parks road traffic What size of yard or balcony are you looking for Is the backyard important Or is a side yard okay What about the front yard What other landscaping features are important A fenced yard play areas pool gardens Is it important what direction the house or condo faces How much do you want to invest beyond the purchase price of the home in terms of financial or sweat equity if you can t find all the features that you want How long do you plan to live in your new home This can impact the type of home the location and how much you will spend If you are looking for a condo is the possibility of having a pet important Invariably there will be tradeoffs but rest assured that the right REALTOR is here to help you sort through your options and help you find your new home

Choosing the right REALTOR What do we mean when we talk about the right REALTOR We mean finding the professional real estate agent whose expertise and approach to finding a new home will perfectly compliment your particular style Why work with a REALTOR In the purchase of a property you ll be negotiating with a home owner who has an experienced REALTOR working for their best interests and you deserve the same But the reasons for working with a professional agent backed by a reputable brokerage don t stop there First it s important to understand whose interests REALTORS are legally bound to serve in a real estate transaction The Listing Agent The Listing Agent is under contract with the home seller to market and sell their property for the best possible price 9

A listing agent can Arrange a showing of a property of interest Act in the best interest of the seller at all times Provide details about the property Cooperate with agents working with buyers Your Personal REALTOR As a buyer when you engage the services of your own personal agent you get an experienced professional working in your best interests who provides 11

Showings for all properties that match your search criteria Expert advice on essential clauses such as home inspections and financing to ensure you re fully protected Expert negotiation of the offer to purchase to achieve the best possible price and terms for you the buyer Expert advice on market value and inclusions and insight into when you might want to walk away from an offer Discovery and disclosure of all information about the property including liens warranties disclosures market statistics and planning activity in the area As your Personal REALTOR your agent s job is to ensure you are an educated buyer in all aspects of your home buying process It s our goal at Dexter Realty that every buyer enjoys the highest standards of professional service from their Real Estate Professional 12

Dexter s promise Dexter only accepts the most dedicated empathetic and motivated agents When we use the title of agent to describe our 160 team members that designation was earned not given Our clients can rest assured that they re always getting the cream of the crop we wouldn t have it any other way We don t just follow the standards for quality we set them We re meticulously above board in every dealing Our agents and clients alike take confidence in the faultless integrity that defines our very DNA Integrity we believe is what ultimately defines the highest level of service It s also a fundamental aspect of what defines us as a company That s why we re careful to have honest thorough discussions with each and every one of the buyers we work with We don t inflate expectations or badger clients into making a quick purchase because our goal is your best experience not a fast sale We re happy to show you every property of interest and to seek out others that meet your must haves we ll support you in your search for as long as it takes to find the home you want at a price you re happy to pay 13

A Reputation Earned Through our unwavering dedication to our clients we earned our place as the company to use in the Lower Mainland No one gets lost in the shuffle at Dexter A proud independent brokerage we re big enough to be effective compact enough to offer an unmatched level of personal attention This care is reflected in our approach to every segment of the marketplace extended to customers of every kind and any price range and seen in every Dexter agent from anywhere in the Lower Mainland Each buyer s purchase is of the utmost importance to their lives and we feel the same way about their success Enjoy the security and confidence that comes from dealing with professionals who care Well Informed Being well versed in rules and regulations requires ongoing commitment not just a license We re typically the first to hear about any changes to British Columbia s real estate process Our agents are so well informed that others often compliment their professional skills even when representing the other side on a contract 15

Dexter Realty is completely independent and not affiliated with any financial institution which means that if we are asked to help arrange financing we are free to seek the best rates and terms There is no conflict and no bias Our loyalty is to you alone That s the quality of professional you deserve to have on your side making sure you get the best deal and avoid any unwanted surprises 16

What to know about mortgages The mortgage industry is a highly competitive field one where interest rates can change at any time Partnering with a reputable mortgage broker or financial institution to help you find the right mortgage product at the best rate is a key aspect of the home buying process What is pre approval Put simply pre approval is confirmation that a lender has stated in writing that you qualify for a mortgage loan based on your current income and credit history This approval usually specifies a term interest rate and mortgage amount and will be valid for only a specified amount of time So if your search for the perfect home takes a bit longer you may need to re do your pre approval While there s really no downside to getting a mortgage pre approval there are a lot of potential benefits especially if you re house hunting in a competitive city like Vancouver Not only can this confirmation of your mortgage give you confidence that you re looking in the right price range but it can also let sellers know 17

you re serious about buying a home In a multipleoffer situation a pre approval might be the difference between losing that perfect home and a successful offer Benefits of Pre Approval While it is not mandatory mortgage pre approval is strongly recommended particularly for first time buyers as it can offer several advantages that can save you time and money Know your budget Start your search with the confidence of knowing what you can afford and what you d be looking at for monthly payments Simplify your search Save time by focusing on properties in your ideal price range Save money Rate guarantees and mortgage terms can save you money for years to come 18

Enhance your credibility With a pre approval in hand you are announcing that you are a serious buyer and that your financial situation is sound Get a better deal That credibility can translate into negotiating power Sellers like to know that buyers already have financing in place and can be more willing to negotiate with those buyers which can mean you ultimately get a better price 5 easy steps to get your mortgage pre approved 1 Talk with a mortgage specialist There are hundreds of options to choose from when it comes to lenders Independent mortgage brokers tend to offer the most options because they do not just work with one lender However if you have a good relationship with your bank or financial institution contact them as your first step towards finding the right mortgage for you But be sure to compare rates 19

2 Complete and submit your application with the mortgage broker They will collect your financial and personal information in order to find out how much mortgage you can carry This can be done online if your schedule is too busy for a face to face meeting 3 Gather all the necessary documents The mortgage broker will give you a list of documents that the banks lenders need to finalize the mortgage 4 Verification of your details They will do their checks and balances to make sure that you are not getting in over your head 5 Obtain a copy of your pre approval This is a powerful negotiating tool The seller of your dream home will feel more confident that you are the right person At Dexter we only recommend trusted advisors And while we don t have any industry affiliations we also don t hold back when it comes to telling our clients about the best in the business In the mortgage industry that s Jerry and Stephen Jackman of ThinkMortgage com 20

Making an educated offer You ve found the right REALTOR and secured your mortgage pre approval And now you ve found that perfect new property the one that meets your must haves and fits in your budget Fantastic You re doing everything right and you re ready to work with your REALTOR to make an offer What happens now 1 Your REALTOR will conduct a detailed CMA Comprehensive or Comparative Market Analysis complete with comparable active and expired listings recent solds and historical data relevant to determining the market value of the home This will empower you to make an informed decision 2 Your REALTOR will then prepare an offer that protects you follows your instructions and matches your schedule and needs 3 Your REALTOR will explain the details of the offer the terms and suggest options for specialty clauses 21

ensuring you know exactly what you are agreeing to 4 Your REALTOR will present and negotiate the offer on your behalf to get you the home that you want at the best price and terms available 5 You will need funds for a deposit typically approximately 5 of the purchase price This can be paid upon acceptance or upon subject removal and will go towards your purchase price on closing What happens next The seller may accept your offer congratulations The seller may reject your offer not common but it can happen and your REALTOR would endeavor to find out why The seller may counter your offer changing the terms of the offer and presenting that counter offer to back to you Negotiations then continue until agreeable terms between the seller and yourself are reached or until your REALTOR knows an agreement cannot be reached and it is time to walk away 22

Conditions home inspections and waivers Your offer has been accepted Congratulations Now we need to satisfy the conditions of your successful offer This usually involves performing a home inspection getting the rest of your personal information and the property information to your mortgage broker or bank and arranging for any other information that might be necessary such as surveys reviewing the title and any strata documents Your REALTOR will help you make all the necessary arrangements to ensure that the entire process runs smoothly before the deadline and help obtain answers for any questions you might have Finding a Home Inspector Home inspections allow you to scrutinize the details of the home and can be vital in saving you from unpleasant 23

surprises Your Dexter REALTOR will be happy to recommend a number of highly reputable home inspectors We advise considering the following when making your final decision as to which inspector to bring onto your team and what to look for when working with them Ensure that the home inspector is a qualified and licensed professional Ensure the home inspector checks for visible issues with plumbing electrical systems the roof insulation walls ceilings floors and windows and the condition of the foundation They can also check that included chattels like furnaces and air conditioners are in proper working order Ensure your home inspector gives you an up close and personal look at your new home It takes at least 3 hours to go through all the systems and complete the home inspection and if there are any problems you ll want to see them first hand Your inspector will also give you maintenance tips and recommendations for easy fix ups if necessary Ensure that in the end you receive a detailed report that summarizes the condition of your home At that point it is your decision whether or not you proceed with your purchase or walk away from the property 24

Closing costs You ve done it all identified your needs found the right REALTOR gotten pre approved for a mortgage found the home of your dreams and had your offer accepted With the help of your REALTOR you have navigated negotiations conditions home inspections and waiver So all that s left to do is hand over your down payment collect your mortgage funds pay the seller and get the keys right Not quite You re near the end of your journey But there are still some final costs between you and your new home You may have to pay fees taxes and legal fees when the purchase of your new home closes Here are some costs to consider Please note that all prices are approximate GST 5 OF PURCHASE PRICE ON NEW CONSTRUCTION THERE IS A POTENTIAL REBATE ON THE GST INSPECTION 400 TO 800 WE CAN PROVIDE YOU WITH A LIST OF QUALIFIED HOME INSPECTORS WHICH YOU CAN CHOOSE FROM 25

PROPERTY THE TAX IS CALCULATED AS 1 PURCHASE ON THE FIRST 200 000 AND TAX 2 UP TO 2 000 000 3 UP TO 3 000 000 AND 5 ON THE BALANCE FIRST TIME HOMEBUYERS ARE EXEMPT FOR PURCHASES UNDER 500 000 AND PARTIALLY EXEMPT UP TO A MAXIMUM OF 525 000 HAVE TO BE A RESIDENT OF BC FOR ONE YEAR SURVEY 250 TO 350 THIS CERTIFICATE CERTIFICATE THAT SHOWS THAT THE HOME HOUSES AND OUTBUILDINGS ON A PROPERTY DO NOT ENCROACH ON OR CROSS PROPERTY LINES THE VENDOR MAY BE IN POSSESSION OF THIS CERTIFICATE AND IT IS NOT NEEDED FOR STRATA BUILDINGS USE THE STRATA PLAN STRATA THE VENDOR WILL BE COST COMPENSATED FOR STRATA ADJUSTMENT FEES AND PAID AFTER ADJUSTMENT DATE FORM A 50 REQUIRED BY THE STRATA STRATA ACT TO SHOW VENDOR DOES NOT HAVE OUTSTANDING STRATA FEES 26

INSURANCE 35 NECESSARY TO SHOW BINDER THE MORTGAGE LENDER THE PROPERTY IS SUFFICIENTLY INSURED PROPERTY THIS AMOUNT WILL VARY TAX DEPENDING ON THE AMOUNT ADJUSTMENT OF THE PROPERTY TAXES AND THE CLOSING DATE OF THE PURCHASE PROPERTY TAXES ARE TRADITIONALLY DUE ON OR ABOUT JULY 1 ST OF EACH YEAR IF ONE PURCHASES A PROPERTY BETWEEN JANUARY 1 ST AND JUNE 30 TH THEN THE SELLER WILL OWE THE PURCHASER TAXES AS THE PURCHASER WILL BE RESPONSIBLE FOR PAYING THE YEARS TAXES COME JULY 1 ST IF ONE PURCHASES A PROPERTY BETWEEN JULY 1 ST AND DECEMBER 31 ST THEN THE PURCHASER WILL OWE THE SELLER TAXES AS THE TAXES WILL HAVE BEEN PAID FOR JULY 1 ST PROPERTY TAXES ARE ADJUSTED TO THE EXACT DAY THE PROPERTY IS TRANSFERRED 27

INSURANCE INSURANCE IS AN IMPORTANT PART OF OWNING A HOME WHETHER THAT HOME IS A STRATA PROPERTY OR A DETACHED HOUSE YOUR OFFER SHOULD BE SUBJECT TO OBTAINING INSURANCE COVERAGE AND REVIEWING THE COSTS INVOLVED FOR A STRATA PROPERTY THERE WILL ALREADY BE AN INSURANCE POLICY IN PLACE FOR THE STRUCTURE YOU WILL WANT TO RECEIVE A COPY OF THIS POLICY AND SPEAK TO YOUR OWN INSURANCE AGENT AS TO WHAT ADDITIONAL COVERAGE IS NEEDED GST REBATE 36 OF THAT PORTION UP TO 350 000 PHASED OUT UP TO 450 000 BUYERS WHO ARE NOT CANADIAN CITIZENS OR PERMANENT RESIDENCE ARE SUBJECT TO A 20 TAX 28

Preparing to move Congratulations you re about to move into your new home Typically you will have anywhere from 30 90 days to get everything ready for your home This period could be shorter or longer though depending on what you need and have agreed upon with the seller The closing date is when you take ownership of your home You take possession a day or two after typically and that s when you ll be able to move in It is a good idea to get things organized well in advance of the closing date to reduce the stress of the move Lawyers Notaries Your REALTOR will send your lawyer notary the information about your purchase You will need to provide them with additional information such as insurance down payment information fee payments adjustment payments and possibly other signed documents that they ask you for You will then meet with the lawyer notary about a week before the closing to finalize everything sign all the required documents 29

Down Payment and Closing Costs Make the necessary arrangements to have the funds available when the lawyer asks for it Liquidating some assets can require some additional time Movers Whether you are using professional movers renting a truck or getting a bunch of friends together plan and organize it early Insurance The lawyer notary will need a copy of your home insurance before closing so that the financial institution will release the money to them Call your insurance broker with the property information They might also want to know the age of the house the condition of the roof furnace electrical system as well as other general information Change of Address It s time to start giving out your new address to everyone Use our checklist to make sure you have everyone covered 30

Utilities It is important that you call the local utilities to get their services changed into your name These include phone internet television gas electricity water and any rental agreements Remember too to cancel the services at your old address Moving checklist There are few times in our lives that are busier than when we re moving homes We ve compiled this checklist to help you feel confident you ve covered all the details as you approach and reach the big day 6 Weeks Before Get estimates hire a mover Here are several questions to ask FF Are on site estimates offered FF How is pricing determined FF Will the movers pack items If so additional cost FF What insurance is included FF What additional charges may arise 31

FF Or call and get an estimate on renting a moving truck FF Get all estimates in writing and request signed copies FF Contact your insurance company for additional coverage optional FF Create a binder to hold all move related paperwork checklist contracts receipts 5 Weeks Before FF Conduct a room by room survey Sort items to keep donate discard sell FF Organize hold a garage sale if desired FF Have valuable items appraised Photograph or videotape note any damage FF Phone to arrange for transfer of homeowners rental insurance FF Locate health practitioners in the community you are moving to make arrangements to have standing prescriptions at a pharmacy near your new home FF Notify kid s schools transfer records FF Register at a new school 32

4 Weeks Before Gather packing supplies including FF Boxes various sizes wardrobe specialty boxes FF Box cutters FF Tape packing masking blue painter s FF Tape dispensers FF Wrapping materials bubble plastic tissue paper FF Labels FF Fill out the Change of Address form with the post office FF Send friends and family a we re moving announcement 3 Weeks Before FF Pack contents of garbage attic and storage areas as well as other infrequently used items FF Mark boxes and furniture with appropriate labels FF Label number each box Keep a master inventory list with contents of each box FF Make arrangements to have electricity phone gas water sewer garbage recycling cable satellite 33

disconnected in your old home the day you leave and installed in the new home the day before you arrive FF Call a locksmith to have your new home changed on moving day or shortly thereafter FF Arrange to have a cleaning company prepare the new home before you arrive if desired 2 Weeks Before FF Pack the bulk of your items FF Notify magazines newspaper deliveries banks and credit card companies of your new address 1 Weeks Before FF Print an information sheet for the movers Include new address directions your cell phone number FF Finish packing Set aside enough clothing for the week ahead plus a suitcase to pack FF Place small valuables important documents in a box bag Ask a friend to hold onto it until your settled or keep it in a safe place on moving day FF Discard any hazardous materials that cannot be moved in the moving truck 34

Create a last out first in box with all day to day necessities including any of the following that are acceptable FF Bedding Towels FF Toiletries Toilet paper FF Basic tools FF Cleaning supplies FF Medications FF Snacks FF A few dishes FF Make sure essential tools are handy screwdrivers wrench pliers tape etc FF Consider hiring a cleaning company to come in and do a quick clean after the movers leave or schedule a day that you will come back and make sure everything is in place for the new occupants Moving Day FF Do a walk through before the movers arrive to make sure everything is packed labeled FF Make sure there are no items left behind FF Give keys to your Dexter REALTOR 35

FF Arrange for someone to direct the movers at your new home Moving Into Your New Home FF Test faucets toilets utilities smoke detectors phone systems FF Begin to unpack FF Flatten boxes Set them out for recycling or store for future use FF We recommend getting new locks or re keying the current locks at your new home and making at least 2 copies of your new keys Within 30 Days of Your Move Pick up mail being held at the local post office and change address for the following FF Driver s License FF Bank FF Revenue Canada FF Auto Registration FF Nexus Card if you have one 36

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