How to Buy a Condo in Vancouver - The 30 DAY Buyer Guide to Success

You have decided to buy a condo in Vancouver, congratulations! I have put together this Buyer Guide to help get you through everything you need to learn and do to buy a condo in Vancouver.

Take a look at our 30-day guide to help you buy a condo, the information will arm you with the knowledge you need to be an informed smart Buyer in Metro Vancouver's competitive real Estate Market.

Now the good news - It doesn’t really have to take 30 days! Most of these steps can be completed in a week and half to two weeks.
Now the bad news is sometimes, it takes a lot longer to buy a condo in Vancouver this all depends on your motivation but also the following: low inventory, competitive bidding wars or changing needs can mean it takes longer to get what you want, but with our help you will be one step closer to reaching your goal.

Contents:

 How to Buy a Condo in Vancouver: Days 1-10 -Get Your Finances in Order before you Buy

 How to Buy an Apartment in Vancouver: Days 10-15 - Figure Out What You Want and Need

 How to Buy a Condo: Days 16-20 – Start your Property Search

  How to Buy a Condominium in Vancouver: Days 21-30 – Dealing with the Offer Time & Closing

How to Buy a Condo in Vancouver: Days 1-10 -Get Your Finances in Order before you Buy

* Day 1= Let’s Prepare the important paperwork. Your lender will need a few things from you to pre-approve you for a mortgage, so let’s get ready. These are some things you will need.

A Credit Check - Your credit check the lender or mortgage advisor will run this report for you.
Employment letter, stating your status, start date, position and salary, signed and dated.
Last two year’s T-4 that will verify your income
Your previous year’s Notice of Assessment (Your NOA), confirming that your income taxes were paid.
Depending on your employment type and income this paperwork may be different, we can help you determine what you need: When your ready give me a call for a no-obligation free consultation so we can confirm the paperwork needed in your particular situation. Adan Sprauer 604-340-7778

* Day 2: Get your down payment together. You’ll need at least 5% of the purchase price as a downpayment to buy a condo under 1 million CDN, and a 20% downpayment for condos priced over 1 million dollars.
If the money isn’t easily accessible, for example, it’s locked away in mutual funds or is in an international bank put a plan together to liquidate it so that you have access to it on closing or when you require your deposit. We will help you explain how to make sure the funds are available and usable.
If your downpayment is in a high-risk investment, consider cashing it out now so that it isn’t subject to any blips in the market.
If some or all of your down payment is being gifted, your lender may require that it’s in your bank account for a minimum number of days usually 30 to 90 days depending on the lender and the bank will request a letter from the person who gave you the gift. This is also true for non-gifted funds being used.
If your downpayment is coming from outside of Canada, it’ll need to be in your bank account for at least 90 days before closing, it is important to verify lender requirements.

*Day 3: Make sure your deposit is ready and accessible. You’ll need to provide a deposit, usually 5% of the purchase price in Vancouver although this may be negotiable, within 24 hours of your offer being accepted, this could be possibly earlier if you are in a multiple offer situation. The deposit forms part of your downpayment come closing time. If your deposit is in an RRSP or an online bank, it can take a few days to get the funds, so plan for it now.
If your deposit in an online bank, make a withdrawal and transfer it to an easily accessible bank account.
If you are using an RRSP, you usually have one year to buy the home after the downpayment is withdrawn from the RRSP but check with your lender to be sure.

*Day 4: Find out about Government programs and rebates – everybody loves free money! There are several programs to help first-time homebuyers buy a condo in BC:
The Home Buyer Plan, where first-time buyers can borrow up to $35,000 tax-free from their RRSP Keep in mind that you have to pay it back within 15 years.
Credits- The First-Time Home Buyer Credit is a tax credit of up to $5000 to help defray closing costs, which results in a refund of up to $750 dollars.
CMHC loan insurance if your downpayment is less than 20% and the purchase price of the home is less than $1 million. You will have to get CMHC insurance.

*Day 5: Get pre-approved for a mortgage. It’s important to know how much you can afford before you start looking for a Condo, so getting pre-approved for a mortgage is an important step. Getting a mortgage for a condo is slightly different than getting a mortgage for a house so it’s important to know the extra considerations for financing a condo in Vancouver.
Banks or Lenders will take into consideration the expected maintenance fees when determining how much you can afford and calculate this into your debt servicing ratio.
Many banks will require a 20% downpayment for properties under 500 sqft (and some banks won’t finance them at all).
Many banks won’t finance condo-hotels.
CMHC and most lenders have a secret list of condos they won’t finance, usually because of problems with the building.

*Day 6: Inform yourself about closing costs and expenses. While the Seller likely pays your realtors fees, you’ll have to pay Property Transfer Tax when buying a condominium in the city of Vancouver. Other closing costs include legal fees, lender or appraisal fees and any adjustments , for example, reimbursing the Seller for prepaid expenses such as strata fees or municipal taxes.

*Day 7: Be ready for the costs of owning a Vancouver condo:
Condo Maintenance Fees and expenses: It may come as a surprise to learn that condo fees vary significantly between buildings in Vancouver. While maintenance fees will almost always include water, garbage, common elements and building insurance, they may or may not include hydro, gas and air conditioning. What’s included or not included in your maintenance fees can significantly change your financing options and monthly carrying costs. Condo Strata fees generally increase each year. If you’re buying a new condo, you can expect the first few years of increases to be quite significant.
Other Expenses: You’ll also need to pay for home insurance, internet or cable, and property taxes.
Special Assessments: Sometimes, condos have unexpected or unbudgeted expenses that must be paid by the residents. These special assessments, while not that frequent, can be expensive. Find out the history of special assessments and review the depreciation report and other documents.

*Day 8: Work with the right people. Buying a condo in Vancouver is a team effort, and you’ll want to work with the right people and someone that knows their stuff, over the years we have built a team of top professionals, this allows me to adjust your needs and have the rights answers for different situations.

Your Real Estate Agent – Your realtor plays an important and critical role in making sure you buy the right condo, in the right neighbourhood, negotiating the price and terms of the agreement. Do your research before hiring a real estate agent read online reviews and get recommendations from friends and family. Trusting the wrong agent could cost you tens of thousands of dollars and cause you a lot of grief. As an experienced Vancouver Realtor, I can tell you I have seen many instances where buyers have not been protected properly, this is very important. My team of trusted advisors will help you navigate purchasing your Vancouver Condo or Townhouse making with the only goal is making your experience as smooth and professional as possible.
A Good Real Estate Lawyer – Your lawyer will review building documents and contract details, manage the closing and deal with any closing issues. Make sure to hire a lawyer who is experienced in helping condo buyers. We can help you with this.
Banker or Mortgage Broker – Whether you choose to work with your current bank or bring in a mortgage broker to find you the best deal, involve them early in the process. As a licensed mortgage adviser I can also help you from the beginning of the process making it an easy one-stop-shop and providing you the correct information making your transaction flow easily from all aspects. Working with someone that understands mortgage financing and lender requirements are important and can come in handy.
Friends and Family– Friends and family involved in the purchase – It’s not unusual for first-time Vancouver condo Buyers to involve family and friends in the purchase. Decide who you want to be involved and make sure to communicate with them exactly how you want them to help.

*Day 9: Determine your needs and wants: Neighbourhood – Condos can be found in almost every neighbourhood in Metro Vancouver, though of course there’s a massive concentration of them downtown and surrounding areas. Do you want to live in the middle of the action or on a quieter residential street? How important is easy access to highways and the Skytrain or public transit?

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How to Buy a Condominium: Days 10-15 – Figure Out What You Want

*Day 10: Determine Your Needs and Wants: Type of Vancouver Condo
Condos vs Townhomes vs Lofts – Which one is right for you? Condominiums come in all shapes and sizes.
Condos in low-rise, mid-rise or high-rise buildings and have varying degrees of shared and private outdoor spaces, services and amenities
Lofts – authentic loft conversion with lofty finishes like exposed brick and beams
Townhomes – Condominium townhomes attached to a building or separated units that also form part of the strata.
SQF and Size – Would you rather live in a small boutique building with fewer units and amenities or do you dream of a high rise with all the bells and whistles and a concierge to help you?
Building Amenities – In Vancouver, we’ve got condos with fitness centres, pools, 24-hour concierge, bowling alleys, billiards rooms; media centres, golf driving ranges, hot tubs, aerobics classes and more. Think long and hard about which amenities you will use – you’ll be paying for them every month as part of your condo fees.

*Day 11: Decide Your Needs and Wants for your Condo Unit

Apartment SQF- Size – How much space do you want? How much do you need? Condos are usually priced by the square foot, meaning that the bigger the condo, the more expensive it is. How will you use your space? Is a second bedroom for guests worth the extra $100,000 or $150,000 it might cost?
Unit Features – Fancier finishes = money. Don’t forget: there are some great opportunities to buy slightly older condos in need of a refresh and save some cash and put your touch down the road.
Parking – Not all condos in Vancouver have private parking. Owned parking spots are expensive, and can add anywhere from $35,000 to over $65,000 to the price of the condo. If you don’t absolutely need parking, this might be an opportunity to save some money. Also: it may be cheaper to rent a spot in the building than buy one (check the bulletin board or talk to the concierge).However keep in mind that when you sell, not having a parking spot will mean a reduced price compared to a unit that does have a parking spot.
Condo Storage – How much storage do you need in the condo? Do you need a locker? Lockers add anywhere from $5,000 to $20,000 to the price of a condo. Can you build in storage in the unit?
What compromises are you prepared to make? Everybody makes compromises.

*Day 12: Get To Know the Market
Read market reports get to know the market, start looking at sold prices too. Talk to your realtor and understand what the sold prices and reports mean.

*Day 13: Get Your Helpers Onboard- If there are others involved in the process your spouse, partner, parent, get them onside. See open houses.

*Day 14: Settle on your Budget, you should be pre-approved for a mortgage, so you know how much you can spend; you’ve become familiar with asking and sold prices in the neighbourhoods and buildings that interest you; now it’s time to decide: how much do you want to spend to buy a Vancouver condo?

*Day 15: If you haven’t already called me it’s time, give me a call now 604-340-7778! I have helped many homebuyers with the important step to becoming homeowners, and I pride myself on helping condo Buyers navigate the path to condo ownership with the most professional and smooth experience.

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How to Buy a Condo: Days 16-20 – Start your Property Search

*Day 16: Start searching online, most condo Buyer first sees the condo they eventually buy online. There are a few ways to search for properties online:

www.realtylink.org is a great website you also have www.realtor.ca which is the website owned by the Canadian Real Estate Association. It pulls available properties for sale directly from the system that agents use, the MLS (multiple listing services). Unfortunately, realtor.ca is usually a day or two behind what’s happening in the real world, but a great way to explore what’s for sale and start to get a feel for what’s available.

Custom Listings information from your real estate agent. Another way to get quick and easy access to properties for sale is to have your agent send you a daily email with new listings that match your criteria.
The best way to search online is to have your agent set you up on a realtor MLS system. It’s a great tool that allows you to set up multiple searches and get instant notification of new listings , that way you will be sure to not miss a property.
Contact me and I will set you up with a defined property search.

*Day 17: Begin looking at condos in person and let the house hunting begin!

Working with your Vancouver realtor, you’ll be able to book private showings at the condos that interest you.
You can also visit open houses, though note that they aren’t as frequently held for condos as they are for houses, also it is important to get there first to see the property. Just make sure to tell the open house host that you’re working with an agent, so you don’t get endlessly harassed by them.

*Day 18: Building Due Diligence is important - When you find a building or condo unit that interests you, it’s time to do some due diligence. Your agent will play a big role here, as will the status certificate that your lawyer will review after you’ve successfully negotiated an agreement of purchase. Here are some of the things to be on the lookout for:
Developer and building Reputation – Who originally constructed the condominium? What’s their reputation and history with similar condominiums? Not all developers are great, and there are plenty of mediocre builders out there, who build cheap condos.
Quality of Construction – Just like there are good and bad developers, there are good and bad condo buildings – buy a good one. The quality of the construction doesn’t only impact appearance – it impacts maintenance, costs, noise and resale values. Work with a REALTOR who’s familiar with the condos and builders in your target area – they’ll have great intel about the buildings that may not be obvious to you.

Unattractive Features – When shopping for a condo, look out for things that might detract from value – small windows and dark spaces with minimal natural light, bad odours coming from neighbouring businesses, bad views and noises from ground-level tenants or nearby garbage facilities.
Owner/Occupiers vs Tenants – If you’re a tenant right now, you’ve probably never considered the impact tenants can have on property values. Generally speaking, the higher the percentage of owners who live in their suites, the better maintained the building (which usually translates to a better appreciation of prices). Owners tend to take good care of the common elements (hallways, pools, the gym, etc.) because they know that if they need to be replaced, it’s their $$$. The percentage of tenanted units is identified in the From B.
Condo Property Management – Property management companies vary in quality, and well-managed buildings hold their value better and are more pleasant to live in. The condo board is responsible for hiring and managing the property management company, which in turn hires the staff (on-site property manager, concierge, cleaning company, etc.). Find out who the property management company is and do some research.
Building History – You can tell a lot about how a condo is run by looking at its history. Is the progression of maintenance fee increases in line with what’s normal? Have there been special assessments? Lawsuits? Are they hiring a new property manager every year?
Building Appearance and Maintenance – Vancouver is home to some of the most beautiful – and the ugliest – condos. Will the building you’re considering buying in be attractive to other buyers? Is it in a good state of repair? When you walk into the lobby after a long day at the office, will it feel like home?

*Day 19: Unit Due Diligence

The View – Don’t ever get attached to a view (unless it’s the ocean and mountains, and even then…). In a city that’s changing as fast as Vancouver, anything can happen. Above all else, never trust a parking lot – there’ll probably be a condo there in a few years. And while you may have paid for a great city view when you bought the condo, that new building with a 20-foot setback will affect the resale value of your home.
Your Neighbours – While your neighbours will come and go, it doesn’t hurt to find out what you can about them. Do they have a lonely pitbull who barks all day? Do they work at a bar and entertain at 2 am?
Use all your senses – What do you hear? What do you smell? What do you see? Follow your instincts

*Day 20: Neighbourhood Due Diligence As with all real estate decisions, location, location, location is key.

Consider the following:

Metro Vancouver Transportation options, demographics in the area and building and the stage of development of the neighborhood,
Proximity to grocery stores, parks, schools, and night-life are not only important for your enjoyment, but they’re critical for resale in the long term for your home.

Prices – You can expect prices to change during your search. If you buy a condo in a market that’s appreciating (going up in price), you’ll pay more for it this month, than you would have paid for the identical unit last month. Make sure you’re keeping an eye on how prices are changing.

When it comes time to make an offer on a Vancouver condo, all of these steps will happen simultaneously. In the meantime, educate yourself about each phase of the offer and closing process.

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How to Buy a Condominium in Vancouver: Days 21-30 – Dealing with the Offer Time & Closing

*Day 21: Price – How much is the condo worth? What should your offer be and what should you know? Your agent will play a critical role in helping you understand the value of the condo. While the price per square foot in the building is an important factor, there are plenty of other things to consider when comparing one condo to another, including:

Upgrades and renovations
Ceiling height
What floor the unit is on
View
Exposure (north/south/east/west)
Layout
Location on the floor (eg across from an elevator or on the corner)
Maintenance fees
Parking/locker/outdoor space
Building amenities
Location
The ratio of owners to renters
The reputation of the building

*Day 22: The Legal Paperwork – There’s a lot of legal paperwork that you’ll need to sign when you start working with a realtor to buy a condo in Vancouver, including:

Working with a REALTOR Form which summarizes the different ways that real estate agents can represent a Buyer

Privacy Notice and Consent BCREA - This form provides you with information about, and obtains your consent to, such information handling practices.
Disclosure of Representation in Trade. The Disclosure of Representation in Trading Services must be given to consumers before real estate professionals begin working with them, explaining the duties and responsibilities owed to clients and unrepresented parties.
FINTRAC – mandatory identification document required by the federal government.
Agreement of Purchase and Sale – the legal document containing the price, terms and conditions of the sale, agreed to by both the Buyer and Seller. And more.

*Day 23: Make Sure Your Deposit is accessible and Ready!
Yes I know we covered this before, but it’s important to have it ready
The deposit is provided to the Seller after a successful condo purchase has been negotiated. The deposit is held in trust (usually by the Buyers brokerage). Deposits must be paid (usually by bank draft or electronic funds transfer) within 24 hours of your offer being accepted. If you don’t fulfill the conditions of your offer (for example, you have a financing condition and are unable to obtain financing during the conditional period), the deposit gets returned to you. If you have a firm sale (meaning there are no conditions to fulfill and you have committed to buying the condo), you may very well lose your deposit.

*Day 24: Conditions – Conditions are part of an offer to purchase and allow the Buyer time to complete their due diligence. These are the most common conditions we see in Vancouver condo purchases:
Financing Condition – a condition that allows a buyer to back out of a sale if they don’t obtain financing, usually 3-8 days long.
Home Inspection Condition – while these aren’t common in condo purchases, a home inspection condition allows a Buyer to bring in a professional inspector to inspect the unit and back out of the sale if it isn’t satisfactory to them usually 1-7 days, depending on market conditions. Note that condo inspectors can only inspect the unit and what is owned and controlled by the individual owner and they cannot see behind walls, that is why reading all building documents is crucial.

*Day 25: The Offer process when buying a Vancouver Condo – Your agent will prepare the offer, including your initial offer price, terms and conditions. It will be valid for a certain amount of time. Once you’ve signed off, your agent will present the offer to the Seller’s agent/the Seller. The Seller can:

1- Accept the offer as-is -They agree to the terms and conditions you’ve offered and sign it.
2- Sign back the offer with different proposed terms (for example, at a higher asking price, with a different closing date, etc.). This now becomes a counter-offer from the Seller back to the Buyer. This is the most common scenario–usually, several back-and-forth negotiations take place with each side making concessions until hopefully a mutually agreeable contract is reached.
3-Decline the offer If your offer is completely unacceptable to the Seller, they have the option of simply declining it–no negotiation, no anything. I have seen Sellers decline low-ball first offers, and we’ve seen offers declined mid-negotiation.

*Day 26: Bidding wars and Multiple offers Vancouver – If there’s more than one offer on the condo at the same time, you’re in a multiple offer situation, more commonly known as a bidding war. Bidding wars are relatively common for condos in Vancouver, and a different approach and strategy is required to buy the condo.

*Day 27: Closing – When we refer to ‘closing’, we mean the date that you take ownership and pay for the condo. A few days before the closing date:
You will sign all the final paperwork with your lawyer or notary
Your condo home insurance policy needs to be ready
You will need to provide a certified cheque for the balance owing on your downpayment
Your lender will advance the mortgage funds.
On closing day, the money will transfer to the Seller and ownership will transfer to you. At last, you’ll be able to pick up the keys to your condo. Congrats!

*Day 28- 30: Celebrate but make sure everything os ok! You bought a condo! Whether buying took you five days, 30 days or six months, it’s time to celebrate. You’ve earned it. During these last 3 days make sure your condo is in the same condition as when you saw it. I usually have a a 2 -3 day follow up with my client making sure things are as expected and help answer any other questions you may have , simple things like , garbage , phone codes ae important.
I’m here to help you, when you are ready to buy a Vancouver Condo or Townhouse get in touch for a no-obligation consultation, with over a decade of Vancouver Real Estate experience helping buyers achieve their goals , we can help. Adan Sprauer 604-340-7778

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