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Frequently Asked Questions

Why Vp3?

VP3 is the premiere real estate brokerage in the North Okanagan

 

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FREQUENTLY ASKED QUESTIONS

 The VP3 team has answered your questions! Understand the ins and outs of Vernon Real Estate with the help of the VP3 team.

Frequently Asked Questions

  • All
  • Buyers
  • Luxury
  • Sellers
Do I need a pre-approved mortgage?
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Pre-approved mortgages are not required, however, they do offer specific advantages for improving your position as a buyer. Mortgage pre-approval can define your budget, strengthens your standing with the seller by confirming your interest, and reduces the time between purchase agreement and closing,

Are home inspections worth it?
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Yes. Real estate is one of the most significant investments you can make, so you should have as much information as possible before making your buying decision. The cost of home inspections usually falls on the buyer, but it is tough to put a price on peace of mind. Make sure your inspection covers the following areas at least: Structural, environmental hazards, roof, EMP (electrical, mechanical, plumbing), and termite/wood damage.

What is title insurance?
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Titles insurance falls into two categories: Lender’s title insurance & Owner’s title policy. The “Title” refers to the right to own a piece of property. 

Lender’s title insurance is required by most banks when applying for a mortgage, as it covers the balance borrowed, protecting the banking institution from potential losses. 

Owner’s title policies, commonly known as residential insurance, protect owners from the various factors that could stop you from selling your property, such as lawsuits, fraud, transactional errors.

Title insurance is only paid once, unlike most other insurance premiums, and the cost depends on several factors including, but not limited to, location, mortgage type, property type, and property value.

What is home insurance?
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Home insurance, hazard insurance, and homeowners insurance are different names for insurance that covers private homes/property. Policies cover losses to the home, contents, personal possessions, and more. The depth of coverage varies depending on the policy. For example, a standard coverage policy might only insure your personal property and land value, while an extensive all-risk policy would insure against essentially everything from natural disasters to costs incurred by blocked gutters.

What is my property worth?
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Determining the Market Value of your home or property is complex. Intricate knowledge of the local market and how your property fits into that market are essential to determining its market value. Our Realtors understand these factors and can use their local knowledge and expertise to find an accurate and fair price.

Will Home Improvements increase my property value?
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Generally, yes. Most home improvements will increase the value of your property, but not necessarily by as much as you would expect. There are many factors that influence this, such as market trends, age of the home, and the quality of the improvement. The safest bets for the best return on investment are kitchen, landscaping, bathroom improvements.

What advantages do Realtors have over For Sale By Owner?
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Because a Realtor’s job is the business of selling properties, they are more likely to sell your property faster and for a higher price while providing you with peace of mind knowing that the technical and legal details will be handled correctly by a professional. This means the Realtor costs will be offset when you receive more for your property and don’t have to spend your valuable time doing the actual selling!

How should I prepare my home for viewings/showings?
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In the end, you want the property you have for sale to make the best possible impression. This means a clean, well-lit, uncluttered, and updated interior can net you the best results. Many REALTORS® offer professional staging services and advice for helping your home look its absolute best.

What are sale contingencies?
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A sale contingency refers to the requirements you put as conditions to finalize the sale of your property. Common sale contingencies including the buyer selling their previous home before taking possession, having a pre-approved mortgage in place, and home or property inspection approvals. Sale contingencies are put in place to protect everyone involved and facilitate a smooth transaction.

What qualifies as Luxury Real Estate in Vernon?
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There is no hard and fast definition of luxury,  but in general, factors such as location, amenities, and finishings play an important role. These factors will influence the price, and in Vernon properties above $800,000 usually fit the bill for luxury properties.

Should I hire a Realtor for luxury real estate?
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We recommend working with a Realtor regardless of the property you’re buying, however, the advantages a Realtor brings are specifically useful when looking at the luxury market. Your agent’s local knowledge can help determine the true value of the property, reduce the time it takes to close the deal and will save you time and effort so that you can sit back and actually enjoy the process.

Are home inspections necessary for luxury properties?
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Yes. Luxury real estate is one of the most significant investments you can make, so you need to have as much information as possible before making your buying decision. Just because a home looks pristine, doesn’t mean it doesn’t have significant issues hiding just under the surface. Ensure your inspection covers the following areas: Structural, environmental hazards, roof, EMP (electrical, mechanical, plumbing), and termite/wood damage.

How much is GST in BC on new homes?
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The GST is a Federal tax of 5% on the purchase price of a new home or a substantially renovated home. New home buyers can apply for a rebate of up to a maximum of 36% of the tax if the purchase price is $350,000 or less.

What is the Property Transfer Tax?
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The Buyer is responsible for paying transfer fees as prescribed by the Property Transfer Act of BC amounting to a rate of 1% on the first $200,000 of the purchase price and 2% on the remainder up to and including $2 million. The PTT is 3% on amounts greater than $2 million. If the property is residential, a further 2% PTT is payable on the portion greater than $3 million.

What is the First Time Home Buyers’ program?
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The First Time Home Buyers’ program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home.

What is the newly built home exemption?
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The newly built home exemption reduces or eliminates the amount of property transfer tax you pay when you purchase a newly built home.

What is a completion date?
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At its simplest, the completion date in a real estate contract is the date the property is transferred, and the day the money for the purchase is transferred from the buyer to the seller.

What is a possession date?
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The possession date is the day a seller gives up access to the home and keys are released to the buyer.

What is an adjustment date?
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The adjustment date is when the buyer will assume and pay all taxes, rates, local improvement assessments, fuel utilities and other charges.

What costs are associated with selling a home?
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Some of the costs to consider when selling a home include:
  • Lawyer or notary fees and expenses, including:
    • Attending to execution documents
  • Costs of clearing title, including:
    • Investigating title
    • Discharge fees charged by encumbrance holders
    • Prepayment penalties.
  • Real estate commission (plus GST), and
  • Goods and services tax (if applicable)
What costs are associated with buying a home?
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Some of the costs to consider when buying a home include:
  • Lawyer or notary fees and expenses
    • Searching title
    • Drafting documents
  • Land title registration fees
  • Survey certificate (if required)
  • Cost of mortgage, including
    • Mortgage company’s lawyer / notary
    • Appraisal (if applicable)
  • Land title registration fees
  • Fire insurance premium
  • Sales tax (if applicable)
  • Property transfer tax, and
  • Goods and services tax (if applicable)

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