We live in a world of information overload! Information used to be protected.
Now it is available to everyone that wants it Free!

We used to call our stockbroker to find out what our portfolio is doing.
Now I can access my account within 60 seconds and get up to the minute information.

We used to call our travel agents to find us a vacation deals.
Now the deals come to my junk mail folder just about every hour of the day.

We used to call our realtors to ask them to find us a house.
Now we find a house and then call our realtor.

However, the fact that we have the access to the information does not mean that we understand the issues and/or challenges that are associated with the action. That is where an expert comes in picture.

I may know that my stock is up or down but I may not know why? I need an expert.

I may know about the cruse to Caribbean for $500/person but what I may not know is that the ship is been constantly worked on due to many technical problems.

I may know about this cheap house that looks so good on the MLS but I may not know that this house has a potential to turn into a money pit.

So here is my advice; Find yourself a trusted advisor before you commit your life savings and the peace of mind.

You will be happy you did!

Tibor

I received a call yesterday from a man that was complaining to me how expensive it is to own a property in the Fraser Valley. I could not convince him that he is wrong but I told him a story about a good client of mine that thought otherwise.

Jeanne is a single mother with two children that was renting a 2 bedroom condo. When I met her she was making just a little over minimum wage, and received a few hundred $ in child support, but was really struggling financially. Her rent was ½ of her monthly income leaving very little to live on.
Fortunately her credit rating was reasonably good and with the help from a qualified Mortgage Broker, we were able to secure a mortgage with no down payment and the lender even paid for her closing costs!
Jeanne moved from renting a condo for $1,100 /month
to owning her own condo for $860.00/month.

Now Jeanne and her children have a home they can call their own!


Tibor

Interesting Facts:

Someone once said that, “If you can read but you don’t, you have no advantage over a person that can’t read at all.”

Many people in North America purchase two or fewer books every year.
Many of those people have seen every single episode of American Idol. There is clearly a correlation here.

Access to knowledge, for the first time in history, is largely unimpeded for the middle class. Without effort or expense, it's possible to become informed if you choose. For less than your cable TV bill, you can buy and read an important book every week. Better yet Share the buying with six friends and it costs far less than coffee.
Or you can watch TV.

Choose wisely where you are getting your information from. Especially when you are making important decisions (like buying a home). Read and educate yourself, talk to the experts that are often offering their knowledge and experience for free (If they ask you to pay for it, watch out.)

The only way to make an intelligent decision is by collecting intelligent information.

Tibor

Here is a quote from a teacher I respect that explains it all.

"Discipline yourself to do the things you need to do, when you need to do them. The day will come when you will be able to do the things you want to do when you want to do them"
-Zig Zigler

How can this tool save you thousands of dollars?

Many buyers, sellers and even realtors have never heard of this!
What is BPP?
Let me explain by with an example:
John and Marie have been looking for a home to purchase for almost a year and they have found a number of homes that they would happy to own. What is holding them back is the fear that the market will dip and they will pay too much.
So instead of making a move, and making a potentially wrong decision they chose to make no decision at all and continue to rent.
John and Marie are the type of clients that this program is customized for.

Lets assume that they find a house listed at $350,000.
It is well priced at today’s market value but John and Marie think that the market will drop another 3% in the next 3 years. Fortunately this home has a BPP sign on it.
Therefore the buyer can bring an offer that will include the clause that says, 3% ($10,500) of the purchase price shall be set aside in the non interest bearing trust account for a period of 12 months" and if John and Marie are right and the market dips 3% they will get that 3% back. If they are wrong and the market value increases or stays the same the seller gets their money back and John and Marie will enjoy the investment.

This is just one of the tools that I have to save my clients thousands of dollars $$$.

If you want to learn more

Often in our lives we are asked to make decisions; small, medium and some of them really big. It is rarely an easy thing to do.

You see, the decision making process carries some Fears;
1. Fear of doing the wrong thing
2. Fear of not doing the right thing

Let me explain.
Often we are so paralyzed by the fear of doing the wrong thing that we unintentionally commit to not to do what is right or worst yet do nothing at all.

In my opinion not doing the right thing carries deeper consequences then doing the wrong thing. Why? Because to do a wrong thing is an understandable mistake, one we can learn from.

On the other hand, not doing the right thing carries no lesson, no future benefits. But it does carry feelings of guilt for some time into the future.

Here is an example from my past…
In 1992, I was approached by a friend to buy a condo.  He had just purchased in a small village north of Vancouver. I think I recall it being in Whistler.
He was asking $80,000, which was less then what he paid just 6 months before.
I thought about it for some time (maybe too long) and then made a decision based on fear of not doing the right thing and said no.

See in 1992, the Real Estate market was not fun to be around. Instead of me asking myself questions based on some facts I was afraid to say yes to something I knew was an opportunity.

So next time you are faced with a decision, try to identify your fear and where is it coming from. Then write down all of the Pros and Cons.  The last thing to do is assume the worst case scenario.

If I had known this in 1992, I would now own a condo in an area that is currently selling for as low as $500,000.

Tibor

A few days ago I was approached by a client with the question, "Do I need to have an inspection done when I am buying a condo?"

As a realtor I never discourage a buyer from the inspection report on the property they are purchasing. However, let me talk about the purpose of the inspection and once you understand it, you will be able to make better decision.

When you are buying a residential detached home (house), you hire an inspector to give an idea as of what kind of expenses you will be facing in the next few years in regards to the exterior, structure, and the roof. You also want to know the current state of the electrical and plumbing. This information will help you to determine the yearly maintenance budget since you own the whole building.
You do not need an inspector to tell you that the faucet is leaking, the switch is not functional or that the carper is stretched. You can do all these things by yourself in about 30 minutes.

When you are buying a condo, keep in mind that you do not own the building. It is owned in common with other owners. Therefore your maintenance costs are already established and included in your monthly strata fee.
When you hire a regular inspector they will spend most of their time researching whether your faucet is leaking, or checkin the light switch functionality.
If you decide to  hire an inspector, ask them to perform the inspection on the building itself, especially if you suspect that the building may have some water penetration issues (you may have heard of the Leaky Condo Phase).
It's very important to read the strata documentation to research whether the building had any issues in the past and if there is any indication of future problems.

There are a few inspectors that specialize in determining the health of the building and they will be able to give you good idea if you are making right choice buying your new condo.

Have a conversation with your realtor about these issues and they will be able to point you in the right direction. If you don't have a Realtor, call me or leave a comment on this article.

Tibor

Do Not Forget About Your Property Insurance When Buying A Home!

When you finally reached that goal of saving your 5% down payment you thought, "This is it, I can now say goodbye to my landlord." Then you started to look for a property and found one you fell in love with. Once your offer was accepted, you were scheduled for an exciting day at your lawyers office to transfer the title to your name.

After signing the documents, the lawyer asked for a bank draft that you proudly showed to him. The draft included your 5% down payment, your Property tax, and lawyer’s fees (that you did not know about before but your mom and dad generously covered that bill.) The smile on your face started to disappear when watching  your lawyer’s head shake from side to side and his puzzled look over his glasses said, "This is not enough.”
Then you said, “What? Why not?”
Then your lawyer informs you that your mortgage company is lending you the money with a few conditions and one of the conditions says that you have to have fire property insurance ($500 to $800 bill).  Now you only have 2 hours to find an insurance agency-- and do not forget to call mom and dad to ask for more $$$.

This is not a story that I’ve just made up. This happens more often than it should. Why? --Because of the lack of preparation and information. The lesson here is BE PREPARED.
Remember there are differences between the fire insurance on a house and the insurance on a strata property. Often the strata properties fire insurance in covered in your monthly strata fees.

Do you have a question in this regards? Write me a comment and if I can’t answer your question I will pass it on to my wife Blazena, who has been practicing insurance for the past 12 years.

Tibor

Should I use Lawyer or Notary when closing my real estate transaction?

There is no real difference between a Lawyer or Notary (the cost is often the same) when we assume that everything in a Real Estate transaction is going well and there are no problems on the day of closing.

Most of the time that is true, but once in a while all hell breaks loose and every party involved is pulling out their hair. At this point the Realtor can do very little no matter how upset or motivated he/she is. This is the time when you need an experienced and able professional on your side.
The notary cannot give any legal advise. Once they discover a problem they have to send you to a lawyer for legal advice. So...now you are paying for two professionals.

All lawyers are notaries but none of the notaries are lawyers.
My advise is ask your realtor if he/she has a trusted professional that they do business with. Trust their advise since your realtor will be the one overseeing the transaction details.

If you need my advice send me a message.

Tibor

Don't be afraid to ask for help
There is nothing weak about it
It shows character, strength and trust.

Don't be afraid to ask for clarity
More clarity earlier means fewer emergencies later
It is not a sign of ignorance when you don't understand.

Don't be afraid to say,
"Can you explain this"
or "I can't do this alone
I need your help."

Tibor