Jay Peterson

The process of buying or selling a property seems to involve a million details. It is important that you educate yourself on as many parts of this process as you can-this knowledge could mean the difference of thousands ofdollars in the long-run. The legal issues involved in the process are often particularly intricate, ranging from matters of common knowledge to subtle details that might escape the untrained eye. Any of these issues, if not handled properly, could develop into larger problems

With so many legal issues to consider, your first step should be to seek out experienced professionals to help educate you and represent your best legal interests. Begin with an experienced real estate agent, who can help guide you through the initial hoops. S/he should also be able to point you in the direction of a reputable local real estate lawyer to assist you in all legal matters involved in the purchase or sale of your house.

While there are countless legal details involved in a real estate transaction, some seem to pose larger problems than others. We've outlined a legal clause that is commonly misunderstood and may cost you money if not worded correctly. Handle these carefully and you will be on track to a successful sale or purchase!

1. Home Inspection Clause

Some real estate transactions have been sabotaged due to the wording of the home inspection clause. This clause originally allowed that the buyer has the right to withdraw their offer if the home inspection yielded any undesirable results. However, this allowance was known to backfire, as Buyers took advantage of it, using some non-issue stated in the inspection as an excuse for having changed their minds. Of course, this was unfair to the Sellers, as they'd poured time and money into what they believed was a sure deal. Not only might they have missed out on other offers in the interim, but their home might also now be unfairly considered a "problem home." Additionally, they'd now have to shoulder the costs of continuing to market the property. All of this adds up.

In order to remedy this potential problem, the clause should indicate that the seller has the option of repairing any problems the home inspection might point to. With this slight change in the clause, both buyer and seller are protected.

To ensure this clause is fair from one side of the bargain to the other, work closely with a lawyer experienced in these transactions and all the nuances that may affect the outcome for you.

FOR MORE INFORMATION ON REAL ESTATE MATTERS, VISIT http://jaypeterson.com/

Cheers,

Jay Peterson

Many times I have been questioned about the word "co-op". There seems to be some confusion among co-op owners and especially the public about the distinction between private co-ops and government subsidized co-ops with respect to the real estate market. In Vancouver, the term "co-op" is often used to describe some forms of Government subsidized housing but please note that this type of housing is not handled by the Real Estate Board and the difference between the two is quite clear to all of its members.

The term "Co-op" is used to describe self-owned apartments pre-dating the Condominium Act. The proper name for this type of apartment building is ‘Apartment Corporation.' The land and the building belong to a private corporation and apartment owners are given shares to this corporation. Co-op owners then, share ownership of the land and the building much like strata units but without the separate land titles to each unit. The term "co-op" as used by the Real Estate Board, does not imply government subsidized housing.

According to the Real Estate Board and the B.C. Real Estate Council, Realtors have three choices for describing an apartment unit;

1) Strata

2) Leasehold

3) Co-op

There are advantages and disadvantages to each type of unit.

Strata

Strata units are the most flexible because of the separate land title given to each unit (suite ownership is transferred on an individual, per-unit basis) but other suite owners have no control over the type of purchasers (good or bad) that may buy into their building. In a co-op, purchasers must first be approved by the other owners in the building. In New York City, for example, a past U.S. President and may profile celebrities have been turned down by co-op boards because of the unwanted attention that would have been focused on the building. There is no such power to restrict entry for any other type of apartment ownership.

Leasehold

Leaseholds sometimes appear very similar to co-ops in that the right to lease can be sold or purchased in the same way that shares to the corporation owning a co-op can be sold or purchased. However, the lack of any title to the land generally results in a selling price of 10-15% lower than similar co-op apartments. The term "co-op" there fore, implies a higher form of ownership than a leasehold. No ownership or rental restriction are usually in place in leaseholds.

In terms of financing, obtaining a mortgage for a co-op unit is more difficult than obtaining one for a Strata unit because of the ownership structure and the minimum 35% down payment requirement. This may appear to be disadvantage, yet it is viewed by many as an added advantage since this restriction means that co-ops attract people of greater financial stability which in turn, also tends to result in a lower ownership turnover in the building.

To many, private co-op ownership is considered to be a premium form of ownership. The buyers that I have worked with throughout the years request co-ops for very specific reasons - the charm of hardwood floors, the solidity of an older building, often larger rooms, the lower turnover and perhaps the most importantly, the ability to restrict rentals, pets and children.

I consider "Co-op" to be a premium term for a property. Using the term "Co-op" is the best way to describe the advantage that your property has on the market.

For more information visit http://www.onlyco-ops.com/index.html

Cheers,

Jay Peterson

It's important to educate yourself about the current market before approaching the purchase of a home. The market will always influence a property's value, regardless of the state of a home, or its desirability. Here are the types of market conditions and how they may affect you:

1. Seller's Market:

A seller's market is considered a "hot" market. This type of market is created when demand is greater than supply-that is, when the number of buyers exceeds the number of homes on the market. As a result, these homes usually sell very quickly, and there are often multiple offers. As a buyer, you need to consider that many homes will sell above the asking price; in other words, you may have less room to negotiate, and may encounter competing offers. Though most buyers want to get a home for the lowest price possible, reducing your offer could mean opening the door for another buyer instead.

1. Buyer's Market:

A buyer's market is a slower market. This type of market occurs when supply is greater than demand, the number of homes exceeding the number of buyers. Properties are more likely to stay on the market for a longer period of time. Fewer offers will come in, and with less frequency. Prices may even decline during this period. As a buyer, you will have more selection and flexibility in terms of negotiating toward a lower price. Even if your initial offered price is too low, the seller will be more likely to come back with a counter-offer, so you can begin the process of negotiation.

1. Balanced Market:

In a balanced market, supply equals demand, the number of homes on the market roughly equal to the number of buyers. When a market is balanced there aren't any concrete rules guiding whether you should make an offer at the higher end of your range, or the lower end. Prices will be stable, and homes will sell within a reasonable period of time. You will have a decent number of homes to choose from, and may encounter some competition for offers on the home of your choice, or none at all.

Before you make an offer to purchase a home, establish whether the current market is a Buyer's, Seller's, or Balanced market. Also, evaluate the price similar properties have sold for in the area, and the length of time these properties spent on the market. Determine how the home you're considering compares to these other sales. Is this one over-priced, under-priced, or a fair price? By establishing this information prior to making an offer, you will be in a position to negotiate the best price for the home and be prepared for any additional opportunities that may come your way.

Keep in mind, a realtor is trained to provide clients with this information about the market, helping you make the most informed decision possible. The right realtor will guide you through the ups and downs of the market and keep you up-to-date with the types of changes you might expect. These realtor resources and connections will prove to be invaluable as you navigate the real estate market.

The other main factors that affect market value are:

1. Location:

The proximity of the home to amenities, such as parks, public transportation, and stores will affect its status on the market. Also, the quality of neighborhood planning, and future plans for development and zoning will influence a home's current market value, as well as the ways in which it might change.

1. Property:

The age, size, layout, style, and quality of construction of the building will all affect a property's market value, as well as the size, shape, seclusion and landscaping of the yard.

1. Condition of the Home:

This includes the general condition of the home's main systems, such as the furnace, central air, electrical system, etc., as well as the appearance and condition of the fixtures, the floor plan of the apartment, and its first appearances.

1. Comparable Properties:

Examine the selling and asking prices of similar homes in the neighborhood. Ask your Realtor to prepare you a general market analysis of the neighborhood you're interested in, so you can determine a range of value for a particular property. A market analysis will provide you with a market overview and give you a glimpse at what other similar properties have been selling for in that area.

1. Market Conditions/ Economy:

The market value of a home is additionally affected by the number of homes currently on the market, the number of people looking to buy property, current mortgage rates, and the condition of the national and local economy.

For more information visit http://jaypeterson.com/

Cheers,

Jay Peterson

News Release

VANCOUVER, B.C. . February 3, 2009.

The first month of 2009 saw a continued reduction in the number of homes listed for sale in Greater Vancouver, while sales volumes in January were the lowest for that month since the early 1980s. The Real Estate Board of Greater Vancouver (REBGV) reports that sales of detached, attached and apartment properties declined 58.1 per cent in January 2009 to 762 from the 1,819 sales recorded in January 2008. New listings for detached, attached and apartment properties declined 20.9 per cent to 3,700 in Janu- ary 2009 compared to January 2008, when 4,675 new units were listed. Total active listings in Greater Vancouver currently sit at 13,966, down nearly 6,000 listings from October 2008. Overall residential benchmark prices, as calculated by the MLSLink Housing Price Index®, declined 10.9 per cent to $489,007 between Januarys 2008 and 2009. .Home sales and consumer con! dence are at a low point at the moment, but the long-term strength and security of our housing market are beyond the reach of the economic clouds of today,. Dave Watt, REBGV president said. .Today.s short-term conditions are creating long-term opportunities. Buying opportunities have not been this strong in a decade, with low interest rates, broad selection and more affordable prices,. Watt said. Sales of detached properties declined 54.4 per cent to 292 from the 641 detached sales recorded dur- ing the same period in 2008. The benchmark price for detached properties declined 11.2 per cent to $659,638 in January 2009 compared to $742,490 January 2008. Sales of apartment properties in January 2009 declined 58 per cent to 361, compared to 860 sales in January 2008. The benchmark price of an apartment property declined 11.6 per cent to $334,602 com- pared to $378,336 in January 2008. Attached property sales in January 2009 were down 65.7 per cent to 109, compared with the 318 sales in January 2008. The benchmark price of an attached unit declined 8.1 per cent to $425,309 compared to $462,627 in January 2008.

To search for homes in the Vancouver area visit http://jaypeterson.com/