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Reduce Your Stress Level When Buying Real Estate

Far too often Sellers in Vancouver and the Fraser Valley agree to do things that they don’t end up following through with.  In a Vancouver Real Estate transaction this could result in a Buyer being responsible for thousands of dollars in repairs or future payments if a Seller does not do what they agree to do.

A Hold Back is a good way to ensure that what a Seller agrees to in an Accepted Offer actually gets done.

Here is an example of how the hold back works.
Let’s say that at the time of the negotiations the Seller agrees to replace the garage door opener prior to the buyer taking a possession of the property.
The the time of completion arrives and the Garage door open is still not replaced.  The sellers are gone and their agent has a hard time contacting them. The buyers are upset and although they have the right to sue the sellers for not fulfilling their obligations, they do not want to push it too far since the item is only worth $300. So the buyers just exhale a few nasty words and replace the opener themselves.

Here is what should have happened...
At the time of negotiating the contract when the sellers agreed to replace the non-functioning garage door opener, the buyers should have made a note in the contract to make the Sellers agree on a $300 hold back at the completion.
The money will go into their lawyers trust account and once the buyer confirms that it is done the money will be released to the sellers. If not, then the $300 will go back to the buyers to fix the opener. This is just another example of how the experienced consultant /negotiator can reduce your stress level when buying or selling Real Estate.



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What is a pre-sale?

Example scenario: When the developer intends to build an apartment building and applies for financing, the bank will grant financing under certain conditions. One of them will likely be a certain percentage of pre-sales the developer will need to secure before receiving the funds.
It is common practice for a developer to approach several real estate investors and offer them an opportunity to purchase units of the non-existent building at a discounted price, and on good terms.

Once the number of pre-sales is accomplished, the developer goes ahead with the construction, which will likely take two years or longer to complete. During construction, their marketing team offers the remainder of the units for sale at market value to the public.

If you are a RE investor, you know that it is preferable to be buying at the pre-sale prices, not market value prices.

The question is, how do you get the invitation to buy a pre-sale?
In the past many years, investors have made substantial income by buying at wholesale prices and selling at retail prices even before they needed to complete their purchase. I saw many of them lining up and sometimes even camping overnight in front of the sales center to get a chance to buy at lower prices, but not everyone was lucky enough. You needed to be well-connected to get an opportunity, and you had to act fast.

Today is a bit of a different story. Several projects in the Lower Mainland and Fraser Valley offer really good prices and incentives to secure a unit now and complete the purchase two or three years later. The list of incentives varies from one project to the next. Besides attractive prices, you can get low deposit amounts (5-15%), low or no assignment fees, free updates, a mortgage rate buy-down program, extra parking and more.

A month ago, I helped a few of my clients purchase a presale in Surrey that sold out in 2 days, and I know of another good developer that will be offering a few units for sale as well.

If you would like to know more about these opportunities, I would encourage you to call or email me, and I’ll be happy to send you details on those projects.
Kind regards,
Tibor Bogdan
Century 21 Creekside Realty Ltd.
45428 Luckakuck Way #190, Chilliwack, BC V2R 3S9
cell: 604-855-2521
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