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Get the Docs!

When you are preparing to submit an offer on a property or have an accepted offer, you will receive a package of documents giving you detailed information about the property. One of the most important documents is the Property Condition Disclosure Statement.

What is it?

The Property Condition Disclosure Statement (PCDS) is a disclosure of what a Seller knows about their property. There are several versions of the document (see below) which has a series of questions for Sellers to give a potential Buyer a guideline of what the Seller knows about the condition of the property.

The Strata condo version asks condo specific questions such as parking stall numbers, locker numbers or whether the building has had water leaks, insect infestations, structural issues, etc

The Residential version for single family houses asks many of the same questions, but asks questions more relevant to this type of housing.

Why do Buyers need a copy of the PCDS?

The PCDS was brought into use in BC to allow Sellers to disclose defects they may be aware of with their properties. Buyers need as much information as possible about a property they are interest in buying so they can make an informed decision. A PCDS can be incorporated in and form part of the Contract of Purchase of Sale, which may (confirm this with your lawyer) provide a Buyer legal protections if a Seller does not disclose all known issues.

Is a Seller Required to provide a PCDS in BC?

A Seller is not required to provide a PCDS in British Columbia. If a Seller is not willing to provide a PCDS, they may not be disclosing a major issue with the property. The fact a Seller is not willing to provide a PCDS to a potential Buyer should be cause for concern to the Buyer. Proceed with caution!

Of less concern, very often Sellers of tenanted properties may provide a PCDS, but will scratch out all the questions on the document. Sellers will do this because they have never lived in the property or have not lived in it for a considerable amount of time and therefore do not know enough about the condition of the property to comment.

Don’t Rely On the PCDS

When buying a property, information in the PCDS should not be relied as all the necessary information a Buyer needs about a property. Furthermore it should not be seen as means to avoid the cost of getting a home inspection by a qualified Home Inspector. ALWAYS get a home inspection! Sellers very often have limited knowledge on the condition of their property and cannot be relied upon to give complete or accurate information. The PCDS should be a guide to further investigations on the property and your Realtor, Home Inspector, and lawyer should be able to answer any questions that arise. The PCDS should form part of a package of documents a buyer receives to allow the buyer to make an informed decision on buying the property in question.

I welcome questions and comments on this blog!

British Columbia Property Condition Disclosure Statement Strata Title Properties

British Columbia Property Conditional Disclosure Statement Residential

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This is the first post in a series of videos with tips for First Time Home Buyers in Vancouver’s property market.

So you’re thinking of taking the plunge and buying your first home in beautiful Vancouver!

How much can I spend? Get Pre-Approved!

If you have several hundred thousand dollars in your bank account, great!

If not, you should speak to your bank or a mortgage broker to find out how large of a mortgage you can get. The bank or broker will give you a mortgage pre-approval which is a rough estimation of what you can borrow. This mortgage pre-approval is based on the information you provide the bank or mortgage broker. Remember, the more accurate and detailed the information you provide, the more accurate the pre-approval amount!

Here’s a list of mortgage brokers who can help you with a mortgage pre-approval:

Chad Watts 7787736631 cwatts@mortgagegrp.com

Rino Revel 604) 816-1976 rinorev@telus.net

Karli Shih karlishih@gmail.com 604-992-9891

Jessi Johnson (604) 716-6474 jessi@jessijohnson.com

Want to learn more about mortgages and real estate financing? Check out the videos on Vancouver Real Estate and Mortgages!

Now that you know what you can spend, its time to figure what that money can buy. Be sure to Check out Episode 2 of the Vancouver First Time Home Buyers Guide – Where to Buy!

If you have any questions, feel free to contact me at any time!

Hi All,

I had a meeting this week with the sales team at The Rolston, a new pre-sale in Downtown Vancouver to built by Rize Alliance Developments. The building will be located at 1300 Granville Street and will have 23 levels with 186 suites in total. There will be two rooftop decks, one mid way up the building and one on the very top. Most of the suites will come with parking and a majority of the suites will be investor friendly small 1 bedrooms. There will be a restaurant/lounge on the main floor named “The Cave” after the famous club of the same name that was in the 50′s and 60′s. The upper suites should have some views.

Tentative PRICING  is rumoured to start at $650 per square foot, but this has not been confirmed so please do not rely on this estimate. Completion is scheduled to be for Summer or Fall of 2012.

LOOKING FOR PRESALE CONDOS IN VANCOUVER? Check out my posts on Uptown and Wall Centre False Creek for more information and pricing on these Vancouver Presale Condos.

Drop me a line if you have any questions.

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Its been said that a picture says a Thousand Words…

What do terrible Listing Photographs say about the value of your home?

Poor listing photography undervalues your property and will never convey how beautifully maintained and decorated your home is. Here in Vancouver, terrible (or non-existent) photography for listings is RAMPANT! Have a quick look on Realtor.ca and you can see how many listings have either bad or non-existent photos.

For the worst of the worst check out the blog Its a Lovely Listing for a good laugh.

Getting a professional photography is one of the best ways to get top dollar for your home. I have all my listings shot by John Bentley at the Real Estate Channel and as you can see they do a great job.

So remember – If you want to get top dollar when you sell a property, get professional photography!

Looking for your First Home in Vancouver? Check out these Videos with First Time Home Buyer Tips!

Questions on Selling a Condo? Have a look at these Videos on How to Sell a Condo in Vancouver!

I’d love to hear your thoughts in the form of a comment below!

Working with a Realtor The Agency Relationship in British Columbia by Mike Stewart Vancouver Realtor from Mike Stewart on Vimeo.

Hi All,

The “Working with a Realtor” brochure is one of the most misunderstood documents I work with.

Some people think that by signing this document they are committing to work FOREVER with the Realtor who got them to sign it. THIS IS NOT THE CASE!

The “Working with a Realtor” brochure is simply a signed confirmation the Realtor has explained the Agency Relationship to the client.

By signing this brochure, the client is NOT BOUND TO THE REALTOR. It is simply a signed disclosure that the client has had their rights in the Agency Relationship explained as well as the Realtors obligations and responsibilities to the client in this relationship. Nothing more.

The Agency Relationship is as follows:

1) Undivided loyalty. The Brokerage must protect the principal’s
negotiating position at all times, and disclose all known facts
which may affect or influence the principal’s decision.
2) To obey all lawful instructions of the principal.
3) An obligation to keep the confidences of the principal.
4) To exercise reasonable care and skill in performing all assigned
duties.
5) To account for all money and property placed in an Brokerage’s
hands while acting for the principal.

If you feel your Realtor is not following these rules bring it to their attention. If this doesn’t work, speak to their manager.

Here’s a copy of the Working With a Realtor Brochure:
Working With a Realtor by Mike Stewart Vancouver Real Estate Agent

Please leave a comment, I’d love to hear your thoughts and questions!

Hi All,

American buyers are back in the Vancouver Condo Market! A good exchange rate for US buyers and the fact that some individuals and companies Stateside are weather the storm well means our American freinds and neighbours are back.

Is this a sign that Stimulus is bringing confidence back?

On another note this Video is the first I have shot with my new Flip Mino HD Camera. I’d love to hear your thoughts and feedback on the camera and this video from a technical perspective.

I’d love to hear your thoughts! Please leave a comment below!

Stimulus packages coupled with ultra low interest rates are attempts by national governments and central banks to reflate economies around the world. If these efforts are successful (I think they will) I think inflation will be an issue in 2-3 years in Canada. I think elected politicians and to a lesser extent central bankers will find it very difficult to stop priming the pump once things improve.

I think changes in the Chinese economy will also push up inflation as we move forward. A 2007 Report by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) has said inexpensive Chinese exports have kept inflation around the world in check. As China develops though, the cost of China’s labour becomes more expensive, pushing up costs for the huge amount of simple products it exports around the world.

How does this relate to Vancouver Real Estate?

Inflation will cause prices and rents in Vancouver to increase while fixed rate mortgages locked in before inflation hits will decline in real and nominal value at an accelerated rate. Equity will increase at an accelerated rate for those with fixed rate mortgages.

Variable rate mortgage holders would see their rates and possibly payments rise in line with Bank of Canada rate increases to combat inflation.

If inflation does re-appear it will be very interesting time in the Vancouver Real Estate Market.

I’d love to hear everyone’s thougths!

Hi All,

I recently posted on the stimulus pacakges being enacted around the world and it generated alot of conversation, which is great and I thank all those who participated.

I shot a video justifying my position and I’d like to share with you. I’d also like to hear what people who oppose the stimulus packages think should be done to deal with the financial cirsis we find out ourselves in.

I look forward to your comments!

The Ascent of Money. Wow! What a book! I read this book when I was away in Mexico growing this crazy red beard you see me with in all my recent videos.

Niall Ferguson is an Economic Historian at Oxford and Harvard Universities and the authour of several books. In The Ascent of Money, he accurately predicted the Credit Crisis of September 2008 in early 2008. Very impressive!

In Chapter 4 of his book he discusses Real Estate. If you are interested in why property prices go up and down, this should be required reading…

Have a look at the television version of The Ascent of Money on PBS.

I’ve posted some recent videos of him discussing The Financial Crisis and would love to hear your thoughts.

Lowballing Vancouver Real Estate

It’s a buyer’s market for Vancouver real estate these days and Lowballing is a great way for buyers to get the best deal possible. For sellers a Lowball is an opportunity to get an accepted offer in a time when these are scarce.

Many buyers are afraid to Lowball for fear of insulting the sellers. With a Lowball offer it’s like anything else in life, if you don’t try, you’ll never know!

I put a deal together at 2502-1483 Homer Street. The asking price was $1.1 Million and we got it for $975K in October of 2009. The last sale of a comparable was for $1.096 Million in August. Lowballs work.

What is a Lowball?

A Lowball offer is one that is significantly less than the asking price of a property.

What to Avoid when Lowballing.

Offering what you will pay. Your Lowball offer should intitally be below the amount you actually want to pay. The Lowballing Buyer wants to create the impression in the Sellers mind that the Seller has a good deal because they have got the Buyer to raise their offer price.

Walking away from a sellers counter offer. A Lowball offer allows a Buyer to assess the Sellers motivation. Some Sellers may be desperate, but try to create the impression they are not by responding to a Lowball with a high counter offer. If the Buyer doesn’t respond to the Sellers counter thats teh end of it. You can’t get anywhere in a negotiation if you’re not negotiating. Persistence pays when Lowballing.

How to make a Lowball Offer work in Vancouver.

Give the Seller something. If you are going to come in low on price, make sure to add a sweetener like a quick completion date or a short subject removal date. The seller may look more seriously at your offer if you add these sweeteners.

Make a good case for the low price. If you’ve done your homework and you have some documentation to support your offer you may find the seller comes around. A seller may not have known about a recent transaction that has impacted the market, if you let them know, they may go for your offer.

How to deal with a Lowball Offer if you are a Seller.

Don’t over price your listing! Have a look at this video on overpriced a listings. Check out my post on How to Avoid a Lowball Offers for Sellers of Vancouver Real Estate

Looking for advice on buying a property in Vancouver? Check out my First Time Home Buyer Videos!

If you have any questions feel free to drop me a line!