A Little Help to Purchase Your First Home!

• The ability to withdraw up to $25,000 from a RRSP for a downpayment, interest and tax free. (A couple can draw out a total of $50,000). Talk to your bank for more information.
• A $750 First-Time Home Buyers Credit that can help with closing costs.  
• Qualifying first-time buyers may be exempt from paying the BC Property Transfer Tax of 1% on the first $200,000 and 2% of the remainder of the purchase price of a home priced up to $425,000. There is a proportional exemption for homes priced up to $450,000.
• The BC Home Owner Grant, which helps reduce property taxes by up to $570 with the basic grant and a further $275 for those who qualify.

You qualify as a first time home buyer for the Property Transfer Tax  if:

• you are a Canadian citizen, or a permanent resident as defined by the Immigration and Refugee Protection Act (Canada),
• you have lived in British Columbia for 12 consecutive months immediately before the date you register the property, or you have filed 2 income tax returns as a British Columbia resident during the 6 years before the date you register the property,
• you have never owned an interest in a principal residence anywhere in the world at any time (a principal residence is the usual place where an individual lives), and you have never received a first time home buyers’ exemption or refund.
• the fair market value of the property (land plus improvements) is not more than the qualifying value of $425,000 (only if purchasing an existing home),
• the land is 0.5 hectares (1.24 acres) or smaller, and
• the property will only be used as your principal residence.

Listing Your Home...Seller Beware!

So you’ve decided to sell your home and have an idea of what you think it’s worth. You schedule appointments with three local listing agents who have been referred by a friend or relative, or work in your neighbourhood regularly. Each Realtor recommends a list price and shows you comparative data to back up their opinion.

Two of the Realtors have come up with prices that are lower than you hoped. Although they back up their recommendations with recent sales data of similar homes, you still think your house is worth more.

The truth is, you may have just met an agent engaging in a questionable sales practice called "buying a listing". By suggesting he might be able to get a higher sales price than the other agents recommended, he raised the odds considerably more in his favour that you'd choose him and essentially "bought" the listing. Most likely, he is quite doubtful that your home will actually sell at that price.

The intention from the beginning was to get that listing and eventually talk you into lowering the price. In the long run, you may sell at a price similar to what was suggested by the other agents, or may even lose money if the property is on the market too long.

Remember that, ultimately, the market place establishes your home’s value. There are many factors that determine the market - regional economics, time of year, and condition of the property, to name a few. Realize that a good agent must consider all of these factors and that marketing plans and negotiation abilities are far more important than just a high market estimate.

Choose your agent based on honesty, ethics, experience, marketing, and how comfortable you feel working with them. After all, you are trusting them to advise and act in your best interest.