Tag Archive for: COmox Valley

Closing on a Home Avoid Doing These 4 Things

Closing on a Comox Home? Avoid Doing These 4 Things

You may breathe a sigh of relief once your offer to purchase a home has been accepted, but you’re not quite done yet. There are still a lot of things to do between the time you come to terms with the sellers and the moment you finally put your key in the front door.

You still have to navigate the closing process; costs are associated with this next step. There are multiple steps involved in the transfer of a home from seller to buyer. Closing times between the time you have an accepted offer and when you move in can vary from a couple of weeks to a few months. This includes time for processing the deposit, conducting a title search, getting a home inspection organized, finalizing the purchase agreement, the lender’s property appraisal, and getting final mortgage approval.

Buyers should budget about 3% of the purchase price towards closing costs, over and above the deposit.

What a lot of people don’t understand is that lenders don’t only evaluate the buyer’s ability to make the mortgage payments. They also look at their ability to pay for all other credit obligations, such as student loans, cars, and lines of credit. And they evaluate the property to make sure their investment is protected and that the value is there.

Below are four things you should not do during the closing process:

Go on a shopping spree

We get it; it’s exciting to start imagining yourself in your new home, and many buyers want to rush out and buy new furniture. Those buy-now-pay-later programs are calculated into the debt servicing ratios. If the lender revisits the buyer’s credit report before completion, which they very often do, and it has changed at all, they actually have the right to withhold financing. It’s important for buyers to maintain the same credit position as at the time of the financing application with their lender.

The same goes for buying a new vehicle. You might be purchasing a home farther from work, but now is not the time to add a car loan to your list of debts. It’s different when you have a car payment before applying for a mortgage—the lender has already taken that into account. But after you’ve been approved for a mortgage, a new car payment will change your credit position. This could cause consequences. You could be scrambling for a different lender at the time of completion, which is stressful for both sellers and buyers. In fact, any new big-ticket item purchases can raise red flags and delay your financing approval—or even ruin it.

    Quitting your job

    Sure, it would be great to have a higher salary now that you’ll be tackling monthly mortgage payments, property taxes, and home insurance. However, wait until the closing process is finalized before you blitz the internet job boards with your resume. Taking a higher-paying job between getting an unconditional accepted offer and completing on the deal could cause issues with the lender. Some of these new jobs, even though the buyer thinks they’re in a better position, come with a probation period. If it’s a temporary or casual position, that could cause a problem.

    Start booking renovation projects

    It’s so tempting to make plans for opening up all the walls in your new home. You may want to rip up the old carpet or gut the kitchen. Although wait times to book contractors can be long, don’t get ahead of yourself. Putting down deposits and signing remodeling contracts is a bad idea until you officially own the home. It’s a good idea to live in the house for 12 months, or some period of time, before doing renovations. This way you can get to know the property and figure out where it’s best to spend your dollars. Of course, if the home you’re buying needs a massive overhaul before it’s even livable, you can get started as soon as all the final paperwork is signed and completed.

    Getting overwhelmed

    Being patient makes sense during the closing process. Your REALTOR will be able to help guide you through it. There are many moving parts to the closing process, and getting overwhelmed can ultimately make it an unenjoyable experience for you. It can become complicated and stressful. It’s important to slow down, take the proper steps, and have a successful completion. Your REALTOR is there to help along the way.

    Reach out to me to learn more!

    buy a home in Comox Valley

    What to do before you buy a home in Comox Valley

    When you decide you’re ready to buy, there are a few simple things you can do to make the home-buying process as seamless as possible. These will also help you get the best possible deal on your new home. Your REALTOR® will help build a plan for your specific needs and timing, but you can start with the basics. Some things to consider are:

    • Making a list of your wants and needs in a home. This will help to narrow your possible choices and give you an idea of what to look for. Do you want a single-family home or a townhouse/condo? How many bedrooms or bathrooms? What other features are important to you?
    • Identify which neighbourhoods you prefer. If you’re thinking about moving to a new area, do a bit of homework online, ask other people you know, or ask your REALTOR® for advice.
    • Find out your credit score and see what you can do to improve it if necessary.
    • Use an affordability calculator or speak to a mortgage professional to figure out how much you can afford to spend on a home. Create a budget to make sure you stay on track financially.
    • Get pre-approval or pre-qualification for a mortgage so you’ll know in advance exactly what price range you should be looking at. Keep in mind that getting pre-approved is a more in-depth and formal process. Pre-qualification gives you an idea what will work for you without going through the more exhaustive pre-approval application.
    • It’s a good idea to find out if you’re eligible for any rebates, home buying plans or other federal home buying programs and incentives. There are several available in certain circumstances. If you aren’t sure what these programs are or whether you qualify, check with your REALTOR®.

    I always recommend as a first step to my clients to get their pre-approval. In this way, you are not going to spend time and energy looking at properties that are above your purchasing capability. This can lead to disappointment so it’s better to begin with a realistic approach. Additionally, it will make you more comfortable in making an offer with the knowledge that financing is not going to be an obstacle.

    Also, as mentioned earlier, decide what your top neighbourhoods are. Make a list of things you are not prepared to compromise on and those that would be nice to have. When you are prepared and organized, you won’t get caught up in an emotionally charged decision.

    Maximize your down payment

    If you still have time between now and when you’re planning to buy, try to save as much as you can. The down payment is an important part of the equation when purchasing. It will help maximize your chances of getting approved and getting the best possible rate on your mortgage. If you don’t have enough saved up to afford the home you want, creating a budget can help you save more.

    You can also grow your down payment in the meantime. Put what you’ve already saved into a safe, liquid investment like a GIC or high-interest savings account, or temporarily invest your savings in an RRSP, TFSA or the new First Home Savings Account. Investments with a short time frame, such as 12 months or less, should be in savings accounts or cashable GICs. There are a number of providers that offer high interest bonuses to new accounts, so it’s worth doing a bit of shopping.

    Buyers who haven’t owned a home in the last four years should also take advantage of the FHSA, which lets you contribute up to $8,000 per calendar year. You get a tax deduction for each contribution, and there is no tax payable when you use the funds to buy your first home.

    Additional considerations for first-time home buyers

    If you’re a first-time home buyer, there are some additional things you may need to be prepared for. For instance, some first-time buyers aren’t aware of how long the home buying process can take. The time involved in the home buying process can differ from buyer to buyer. Some people are able to find a home in a couple of weeks and others can take much longer. It will depend on your particular must-have list, what is available in the market place, how active it is, and how many others are out there looking.

    Something else to keep in mind is that sellers will want a certain time to close. It can vary and may depend on where they are going. Final transfer of ownership could take place in a short or longer period of time after the agreement is signed.

    Depending on your budget, you may need to start with a smaller or more modest home for your first property. This can allow you to build both your equity and your experience, while still getting your foot on the first step in the property ladder. Don’t put yourself in a situation where you buy more home than you can realistically afford or maintain. While you may be tempted to stretch your budget to get a home that seems perfect, try to resist. Being “house rich, but cash poor,” can be a very stressful and risky way to live.

    For people who are currently renting, a mortgage payment may be close to what they pay in rent. But there are all kinds of other expenses associated with homeownership. Property taxes, insurance, and upkeep are some. If you don’t have exact numbers, use 2% or 3% of the purchase price to estimate your added monthly ancillary costs. You could try living for six months as though you already own the home. See if you can manage it before you make the leap.

    Get in touch with me to learn more about how to buy a home in the Comox Valley!

    decide between renovating and relocating

    Is your home still ‘the one’? How to decide between renovating and relocating

    Is your home still ‘the one’? How to decide between renovating and relocating

    At first, your home may have felt like true love, the perfect match. It had you full of excitement and possibilities. As time goes on, the honeymoon phase can fade.

    Maybe you’re craving more space, a shorter commute to work or school, or modern features that other homes seem to have. If you’re feeling restless, you might be wondering, “Is it time for a fresh start? Or maybe this relationship can be saved with a little TLC?”

    Deciding whether to move to a new home or renovate the one you’ve got is no small decision. It’s a mix of emotions, finances, and practicality all rolled into one. Think of it and weigh the pros and cons of both options to figure out what truly fits your family and lifestyle.

    The following suggestions will help you determine if your home is still “the one” or if it’s time to move on.

    Top reasons to renovate your home

    It might be better to renovate if you love your neighbourhood, have sentimental attachments to your home, or see potential in upgrading your space.

    Here’s when improving makes sense:

    1. Your home has good bones
      If your home is structurally sound and doesn’t require major foundational work, a renovation could be a cost-effective way to address your needs. Open up your floor plan, update outdated features, or add square footage. These changes could create a home that feels brand new.
    2. You love your location
      If your home is in a desirable neighbourhood, close to work, or within a top school district, improving your home allows you to enjoy these benefits while adapting your space to meet your needs.
    3. Renovations increase value
      Consider renovations that will add significant value to your property. Projects like modernizing the kitchen, updating bathrooms, or adding energy-efficient upgrades often provide a good return on investment.
    4. Moving costs are prohibitive
      Between realtor fees, closing costs, and moving expenses, relocating can be expensive. If your renovation budget is less than the cost of moving, it might make more financial sense to stay put.

    Top reasons to move to a new home

    Sometimes, no amount of renovation can fix a home that no longer suits your lifestyle. Here’s when moving to a new property may be the better option:

    1. Space is limited
      Your family may have outgrown your current home. There’s no room to expand, or zoning restrictions make it impossible to do so. Moving to a larger property may be the best solution.
    2. Your needs have changed
      Life changes may make your current home impractical. A growing family, a new job, or aging parents moving in could prompt a change. In these cases, finding a home that meets your new needs can be more effective than extensive renovations.
    3. Renovations are too costly
      If renovations required to make your home suitable are extensive and expensive, the ROI might not justify the investment. In this case, moving may be more cost-effective.
    4. You’re ready for a change
      Sometimes, the desire for a fresh start or a completely different style of home outweighs the convenience of staying. If you’re feeling uninspired or constrained in your current home, it might be time to explore new options.

    Key questions to help you decide whether to renovate or relocate

    Still stuck between renovating and relocating? Here are a few crucial questions to ask yourself to find an answer.

    1. What’s my budget? Compare the costs of renovating versus moving. Don’t forget to factor in hidden costs like permits, temporary housing, or realtor fees.
    2. How disruptive will renovations be? Living through major renovations can be stressful and time-consuming. Consider whether you have the time and patience for the process.
    3. Will I get the features I want? If your renovation can’t deliver your dream home, moving may be the better choice.
    4. How long do I plan to stay? If you plan to stay in your current home for many years, renovations could be a worthwhile investment. If not, moving might make more sense.

    How we can support your decision

    The choice between moving and improving is deeply personal and depends on your unique situation. By evaluating your needs, budget, and long-term goals, you can make a decision that works best for you and your family.

    Whether you decide to renovate or relocate, having the right team on your side makes all the difference. Royal LePage professionals specialize in helping homeowners navigate these pivotal decisions. From finding trusted contractors to discovering your dream home, they’re here to guide you every step of the way.

    Get in touch with me to learn more!

    Comox-Valley-real-estate

    How Depreciation Reports Impact Property Value in Comox: An Important Factor for Strata Owners

    When assessing property value, location and amenities are key. For strata properties, another crucial factor is the depreciation report or reserve fund study.

    With BC’s updated regulations, all stratas must now update their depreciation reports every five years. Beyond compliance, these reports impact property values, buyer confidence, and financial stability in the following ways:

    Lenders Prefer Properties with Financial Transparency

    • Buyers aren’t the only ones reviewing depreciation reports; lenders do, too. Before approving a mortgage, banks assess the strata’s contingency reserve fund (CRF) and long-term financial planning.
    • Stratas with well-funded reserves and updated reports are considered lower lending risks. Stratas with missing or outdated reports create higher buyer hesitation and financing challenges.
    • Impact on property value: Properties in financially stable stratas sell faster, while those in underfunded buildings may struggle.
    • Buyers Feel More Confident Investing in Well-Managed Stratas
    • Today’s buyers and their agents scrutinize strata documents before making an offer. If a depreciation report reveals financial gaps, it can deter buyers or lead to price negotiations.
    • For example, if a buyer learns that a $500,000 roof replacement is due soon but the CRF is underfunded, the risk of a special levy makes the purchase less appealing.
    • Impact on property value: Stratas with clear maintenance plans and stable finances attract stronger buyer interest.

    Strata Owners Avoid Unexpected Special Levies

    Comox-real-estate
    • A depreciation report maps out long-term maintenance costs, preventing sudden financial shocks. Without it, owners risk large or unexpected levies for emergency repairs.
    • Poor planning leads to higher financial stress for owners and reduced resale value.
    • Impact on property value: Strata properties with proactive financial planning are more marketable and financially stable.
    • BC’s New Strata Laws: Compliance = Market Trust

    As of July 1, 2024, all BC stratas must update depreciation reports every five years.

    Deadlines:

    • Metro Vancouver, Fraser Valley, Capital Region: Due by July 1, 2026
    • Rest of BC: Due by July 1, 2027

    Impact on property value: Stratas that stay compliant maintain buyer confidence and prevent financial risks.

    Final Thoughts About Depreciation Reports and Property Value in Comox

    A depreciation report isn’t just a legal requirement. It’s a financial roadmap that protects property value. Strata corporations can use it as a maintenance guideline and be proactive about repairs and replacement of assets. Get in touch with me to learn more!

    1. Strata councils and property managers: Is your depreciation report up to date?
    2. Buyers and real estate professionals: Have you seen depreciation reports influence property values?
    selling your comox valley home

    Considering Selling Your Comox Valley Home?

    Are you considering selling your Comox Valley home? Have you been maximizing your home’s value?

    Maximizing your home’s value before a future sale can be achieved. With thoughtful, strategic updates you can make a lasting impact on potential buyers. Start with curb appeal; a well-maintained exterior creates a positive first impression. It sets the tone for the rest of the home.

    Simple tasks like fresh paint, updated landscaping, and a new front door can go a long way in boosting the perceived value of the property. Small upgrades to outdoor lighting and an inviting entryway can also enhance the look and feel of the home. These could act to draw in buyers from the start.

    Inside the home, focus on key areas like the kitchen and bathrooms. They tend to yield a high return on investment. Simple improvements can give these rooms a refreshed, appealing look without major renovations. Consider things such as modernizing fixtures, repainting walls in neutral tones, and updating hardware.

    Decluttering and staging are also essential. They allow buyers to envision their own lives in the space. This will make the home feel larger, cleaner, and more move-in ready. By focusing on these areas, homeowners can increase their property’s value and appeal to prospective buyers. Ultimately this is likely to attain a smoother, more profitable sale.


    If you have any questions, don’t hesitate to contact me!

    weather in comox valley and the impact on homes for sale vancouver island

    Are You Considering Weather When Buying a Home on Vancouver Island?

    You consider price, location, commute time, and school districts when house hunting. Have you thought about adding climate and weather-related risks to your list?


    Heat waves, severe flooding, violent hailstorms, tornadoes, rising sea levels, and raging wildfires—these extreme weather events all present major challenges for Canadians. This includes those in the market to buy a home.


    Changing climate conditions means home buyers should be asking lots of questions and thinking about how the weather could impact their property. For example, if your dream house is in a neighbourhood susceptible to floods, how much will you have to dole out for added insurance?


    Will excessive amounts of snow make commuting a huge pain, or even damage your roof? Will your area’s rising temperatures impact how much you pay for air conditioning? Here’s what you need to know.

    The cost of extreme weather hits the real estate market—and your wallet

    Major weather events seem to be a more regular occurrence these days. With an increasing number of climate-related storms, fires, and floods comes a surge in insurance claims, which have more than doubled since 2005.


    Kathryn Bakos is managing director of finance and resilience at the Intact Centre on Climate Adaptation, University of Waterloo. She conducts research on the impact of flooding on Canada’s residential real estate sector and mortgage markets.


    “We’re seeing extreme weather events growing, and we track the catastrophic loss claims data— any event that triggers $25 million or more of insured losses, which is what your insurance company pays out—from flood, wildfire, hailstorm on a year-to-year basis,” says Bakos.


    From 1983 to 2008, insurable losses ranged from $250 to $450 million per year. Today, they’re up to $2 billion annually. And that’s just what insurance companies pay out. So, if the average flooded basement costs $43,000 to repair, there’s a cap on what insurance covers. That cap would usually be $10,000 to $20,000. The rest comes out of the homeowner’s pocket.


    Flooding and wildfires are the costliest extreme weather events in Canada. In Calgary and Edmonton, hailstorms cause most damage, while East Coast residents deal with severe lightning storms and hurricanes, according to Bakos.


    Recently, Bakos’ team performed the first quantitative analysis of the impact flooding has on the Canadian housing market, and the numbers were alarming. “We determined that six months after a flood event, homes located in flooded communities experienced an 8.2% reduction in the sold price of their home compared to their non-flooded counterparts,” she says.


    With the average Canadian home worth roughly $650,000, that would equate to about a $53,000 reduction in value. Roughly 1.5 million Canadian homes, about 10% of the housing market, are considered uninsurable for flood risk.

    Do your due diligence when shopping for or protecting your home

    The federal government plans to develop the Climate Adaptation Home Rating Program. Canadian home buyers could check to assess the risk associated with their property. Until then, Bakos recommends doing some research into any major floods in the area you are looking at. Ask if the property sits on a floodplain. Does the driveway slope away from the home to help prevent water from seeping in? Does the home sit up on the street? Does it have extended downspouts to direct rainwater away from the house?

    If your basement windows are at ground level, are there window well coverings? Is there a sump pump and backwater valves in the basement? These all stop water from coming in. Cleaning out your eavestroughs and sweeping leaves away from sewer grates helps to prevent flooding. In some areas, installing hail-resistant roofing and siding material will help guard against hail damage.

    Other preventive tips for homeowners who are buying a Home on Vancouver Island

    Wildfire zones

    • Look for homes with ample separation between them.
    • Look for homes with Class A roofing/metal roofs and non-combustible siding.
    • Standard homeowner insurance policies in Canada cover damage caused by fires, and also provide coverage to help with the cost of mass evacuations
    • Keep combustible materials at least 10 metres away from your home.
    • Prune trees to create a 2 m clearance from the ground to the lowest tree branches.

    Severe winter storms

    • Arrange for snow or ice removal from roofs and balconies to reduce the weight and the risk.
    • Keep your home stocked with the essentials in the event of a power outage or road closures due to snow or ice.
    • Ensure your walls are properly insulated, your weather stripping is in good shape, and consider storm windows.
    • Install snow fences in rural areas to reduce drifting snow on roads and paths.

    Tornadoes and hurricanes

    • Consider using class 4 impact-resistant roofing when completing upgrades or repairs.
    • Most home insurance policies cover windstorm or tornado damage such as losses caused by flying debris and falling branches or trees, and losses to your home and contents if water enters through openings caused by wind or hail.
    • Home insurance policies generally do not cover damage caused by coastal flooding and storm surges.
    • Be aware of large or aging trees on a property that could be at risk of falling or breakage due to strong winds.

    Knowing your climate risk helps prepare you for future costs. As your REALTOR®, I can provide insights on the neighbourhood and what it usually experiences, so please, tap into my expert local insight.