Realtor FAQ’s

 

On this page, I’ll be sharing some of the most common FAQ’s (Frequently Asked Questions) that I have received over the years.  Some are obvious and some not so much. I update this page regularly to keep it current and if there’s something on your mind or you have a question about something here, please fire away because that’s what I’m here for.  My goal is to help you in any way I can on your Real Estate Journey.

Thank you for visiting and please feel free to share on Facebook or with friends – the more the merrier 🙂

 

WHAT IS THE MARKET LIKE?

  • Right now it is definitely a Buyer’s market. House prices are falling and historically, the mortgage rates have never been lower.

 

NO REALLY, WHAT IS THE MARKET LIKE?

  • There are lots of good buys to be had at this time. Obviously, the whole world including Canada is trying to pull themselves out of the financial quagmire that has affected just about everything, including Real Estate. No one can predict what will happen in the future, so my answer would be, “If you find the right home, don’t hesitate”. Remember, we all have to live somewhere, so why not your choice.

 

WHY SHOULD I USE A REALTOR®?

  • Realtors have the expertise to provide you with sound advice and procedure guidance in the selling and buying of Real Estate. They are working for you to protect your interests in all matters. Realtors are highly trained, continuously educated, ethical, insured, held legally responsible and have exclusive rights to the MLS listing service.

 

HOW DO I FIND AND CHOOSE A REALTOR®?

  • Agents have different styles and how they deal with clients. Probably the best bet is an excellent referral for your first choice. However, be prepared to interview 3 or 4 Realtors before deciding who would be best to represent you.

 

WHY CHOOSE JOHN JUKES FOR MY REAL ESTATE NEEDS?

  • It’s a fair question and – let’s face it – there are a lot of Realtors around the Cowichan Valley – that’s for sure!  So a little about me and how I work…

I like to specialize in Residential and Family homes on Southern Vancouver Island and I am very much a family man at heart.  I am very friendly, approachable and fun to work with and my clients are always my first priority.  I invite you to contact me with any questions you may have or even just for some advice, a second opinion, tips and help in any way on your Real Estate journey.

IF I AM PURCHASING A HOME, WHY DO I NEED A REALTOR®?

  • Right off the bat, the Seller is going to be represented by an agent who has the Seller’s interest at heart. You had better know what you are doing when presenting an offer as there are many obstacles and steps to overcome (least of all negotiating the price); on your own could prove to be costly and very STRESSFUL.

 

AS A BUYER, DO I BEAR ANY OF THE COMMISSION COSTS?

  • In the majority of cases, the Real Estate commission is paid by the Seller.

 

I HAVE BEEN ASKED TO BE REPRESENTED BY A BUYER’S AGENT WHEN LOOKING FOR A HOUSE.

  • This means that a Realtor® would be working for you under a legal agreement as a Designated Agent. You would be asked to sign an Exclusive Buyer’s Agreement, which is a contract that sets out what is expected of both parties. You will not be able to work with another agent until this contract expires or you mutually agree to void the contract.

 

WHAT IS IN THE CONTRACT?

  • The information within the contract will give both parties a complete understanding of their rights and responsibilities. One of the most important topics is that of compensation; this should be thoroughly discussed so you are aware of the amount of compensation, sources of payment and when the payment is to be made. Remember, that in most cases the commission is paid by the seller. There are circumstances where a Buyer will pay the Realtor® for working on their behalf or, in the case of purchasing a “For Sale By Owner” or if the commission payable is less than the agreed figure in the contract.

 

WHAT IS DUAL AGENCY?

  • Limited Dual Agency occurs when a single Designated Realtor® or two Designated Realtors from the same brokerage are working for both the Seller and the Buyer or two buyers competing for the same property. In this arrangement, the Realtor® cannot be concerned exclusively with your interests in the transaction, since they are acting on behalf of the other party as well. A Realtor® who has consent to work as a limited dual agent must adhere to the followings restrictions:
  1. Deal with both parties impartially
  2. Have a duty of disclosure to both clients except
    1.                                                i.         Realtor® must not disclose that the Buyer is willing to pay a price or agree to terms other than those contained in the offer, nor disclose that the Seller is willing to accept a price or terms other than those contained in the listing.
    2.                                              ii.         In the case of competing Buyers, the Realtor® must not disclose the amount or terms of any offer to purchase made or contemplated by either Buyer.
    3.                                            iii.         Realtor® must not disclose the motivation of one client to the other client, unless one of the clients has authorized such disclosure themselves.
    4.                                             iv.         Realtor® must not disclose the Buyer’s or the Sellers personal information to the other client, unless authorized in writing. This refers to information not otherwise disclosed in the transaction documents.

 

C. Must disclose to the Buyer any defects about the physical condition of the property that are known to the Realtor®.

 

I AM LEGALLY ALLOWED TO GROW MARIJUANA FOR MEDICINAL PURPOSES, WILL THIS AFFECT THE SALE OF MY HOUSE?

  • Absolutely! First, you have to disclose the fact and having done that, most Buyers and all of the realtors are aware of the complications and significance that arise from the situation. Mortgage companies will not lend money and no insurance company will insure the property. My personal advice is, find alternative means of getting your “medicine”.

 

 

WHAT IS THE DIFFERENCE BETWEEN A PATENT DEFECT AND A MATERIAL LATENT DEFECT?

  • A patent defect is one that is visible or blatantly obvious under normal inspections. It may also materially affect the use or value of the property. A material latent defect is one that cannot be discerned through a reasonable inspection including the following.

a)     It can be a defect that renders the property, being dangerous or potentially dangerous to occupants.

b)    Unfit for habitation.

c)     Unfit for which a person is acquiring the property for.

d)    A defect that would involve great expense to remedy.

e)     A lack of appropriate building permits or other permits respecting the real estate

 

WHAT IS THE IMPORTANCE OF “DISCLOSURE”?

  • Full disclosure is very important when selling your property. Failure to do so could end up causing you a lot of grief and money if you knowingly neglected to report an issue. The purchaser would be within their legal rights to go after you for compensation.

 

DO I NEED A BUILDING INSPECTION?

  • In my opinion, absolutely. Having a professional inspector to check the condition of a property is critical and very cheap compared to the purchase price. It could save you thousands of dollars and prove grounds to negate the contract. Inspections also may also include septic systems and well water being integral parts of a property.

 

DO I NEED A BUILDING INSPECTION FOR A NEW HOME?

  • Again your call, but from personal experience on many new properties, as they can have fairly significant issues too. Do not rely on just the builder “walk through”.

 

WHAT IS THE PROPERTY TRANSFER TAX?

  • In British Columbia, each time a property is bought and sold the property transfer tax (PTT) normally applies. There are circumstances especially for first time buyers, where they can be exempted. However, there are restrictions placed upon them too as follows: The fair market value cannot be greater than $425,000, the land is 0.5 hectares (1.24 acres) or smaller and the property has to be used as your principal residence. One important matter to consider is, you cannot have previously owned or had an interest in, a principal residence anywhere in the world. The PTT is currently 1% on the first $200,000 and 2% on the balance. Whatever the amount is, it cannot be added to a mortgage, it has to come from personal funds. Check online at www.gov.bc.ca/sbr for full details.

 

Have a Question about something you’ve read here?  Please fire away because that’s what I’m here for.  My goal is to help you in any way I can on your Real Estate Journey. Thank you.