Buying real estate in Vancouver in this crazy market can be an emotionally thrilling process. Entering in a competitive market with many eager buyers may tempted you to submit an offer with no subject clauses, before performing typical due diligence such as a Financing, home inspection, title search review, or review of strata documentation. This is a risk for each buyer as you.
You should ask your Realtor in Vancouver to advise you on the risks of subject free offers. He is providing the information and advice you to make fully informed decisions, about the property purchase, that is in your best interest.
It is crucial to understand your situation and legal responsibilities as a buyer, when competing in a competitive market.
Here are three things you’ll need to know in order to be well-prepared.
- Know Yourself
Are you a seasoned investor, with deep market knowledge, experience and financially approved? Or are you a first-time buyer, relying on family for your deposit and needing high-ratio financing?
You may fall somewhere in between these two profiles. What are your needs? What are your resources? What is your level of sophistication and degree of reliance on your agent? What can you afford?
Considering all above factors, have a discussion with your agent. Make sure that you understand that before you make an offer on a home you are aware of how much you can afford to pay. Ensure that you understand the potential consequences of taking risks, before considering throwing a subject-free offer.
- Employ a Realtor with Expertise
Receiving advice or opinions from an agent without knowledge and usual practice can put you you – at risk.
If you considering making a subject-free offer, you should seek the advice of a mortgage broker, home inspector (for a pre-offer inspection, when possible), property insurer, lawyer or other appropriate, specialized professional before making an subject-free offer.
- Know the Property
Ask your real estate agent to do his due diligence to discover relevant facts and information regarding the property tempt to buy.
Here are a few areas to explore and review with your agent. This list is not though complete. Depending on neighbourhood, the property type and the location, the matters that need exploration will change and/or expand:
- Comparative Market Analysis (CMA)
- Title search
- Property Disclosure Statement
- Strata Documentation
- Scan for Oil storage tanks
- Scan for Septic and wells
- Right of ways and Easements (Rights in favour of the government or other agencies. For example, Ministry of Transport dedications, restrictions and expropriations, Agricultural Land Reserve, Islands Trust, Heritage Conservation Act, Riparian Areas Regulation.)
- Check with City for ongoing or pending applications
This ensures that your can make an informed decision about whether to proceed with a no-subject offer. The role of your Realtor is couturial in this process.