Moved: House Prices
 

Hi guys. When buying a house in Scotland you offer over the price that is stated. Is this the case in Canada or do you pay the price it is advertised at. Thanks and Regards Garry

Re: House Prices
 

With some exceptions, you offer less than the asking price. It depends on where you're buying property. It goes without saying that Canada is a huge country. The real estate market is hot in some places and in the doldrums in other places.

Although it doesn't get into the issue of house prices, the BE Wiki article on Canadian Housing goes into a lot of other things you need to consider when you're buying a house. I do recommend that you read it.

Re: House Prices
 

Depends on the market and if someone else is interested. No rules over what you offer. When you make an offer the Realtor writes it up and presents it to the seller, unless you decide to make an offer yourself and not use an agent, sometimes conditions attached to the offer. The seller then accepts, declines or counter offers. If the offer is accepted you are contractually bound to proceed, it can be VERY pricey if you back out anywhere beyond the point and offer is accepted. If the seller counter offers, you choose whether to accept, decline or counter back. This game can go on for a while. On occasion it is as simple as first offer accepted and it all goes though. In a hot market offers can come in over asking, sometimes more than one offer comes in at a time and the seller has a choice.

There are so many variables, not least how badly you want the property, how badly the seller wants rid of it and if there is much interest.

Two sites to look at for pricing are www.mls.ca this is the one Realtors want you to go to, another is www.propertyguys.ca this is owners selling direct. If you go direct and agree on a price you can both go to the same Notary or Solicitor and tell them you want the job done, this is what's agreed and thats it. Far simpler than Realtors would have you believe. Way way cheaper too.

Realtors can be much like used car salesmen on steroids. With prices on the rise they can get 7% on the first 100k and 2% on the rest. If the buyer has an agent and the seller has an agent then each agent gets half each. If the agent listing the property also sells it he can end up with the lot. The buyer does not have to pay any commission to the Realtor.

There is more interest in owners selling direct now through web sites for this reason.

You will however have to pay your legal costs. First time buyers will not have to pay the 1% property purchase tax.

Re: Moved: House Prices
 

On the subjects of whether your (buyers') agent has a vested interest in you paying more than you should, for their share of the commission ...... We'd had excellent advice from ours as to how low to start the bidding, and when the offer was rejected (not unexpectedly) he vetoed our next proposed bid, and suggested another lower amount that we'd thought, and then a third, which was accepted. All in all we were very pleased with the way he negotiated on our behalf, being wimps at it, ourselves!! :o:thumbup:

Re: House Prices
 

The provincial property purchase tax or land tranfer tax or whatever it's called, varies from province to province. Alberta does not have it at all.

Re: House Prices
 

That merits a little clarification. In the case of the two houses we have bought, offers have been accepted. In both cases the offers were subject to proof of financing and a home inspection; things that had to be done within 5 working days. During that period the seller couldn't pull out. We could and on one occasion did.

Re: Moved: House Prices
 

Always Write

offer subject to Final Approval of my Lawyer.

Re: House Prices
 

NEVER use the same solicitor/lawyer as the seller, always get your own legal advise.

If you decide to buy privatly just remember that the law is slanted to favor the Seller and not the buyer. The rules of "Buyer Beware" apply in Canada.

Re: House Prices
 

In QC the same notary acts for both sides.

Re: House Prices
 

Re: Moved: House Prices
 

Brought a hours in Ontario about 18 months ago and couldn't believe the realtors rates.

We just posted a note on the mail box where we wanted to live, someone rang and we brought it.

Found that a lot of people don't want to sell due to the fees, but this way, only paid solicitors fees!!:thumbsup:

Re: Moved: House Prices
 

As mentioned, it depends on the area. Six months ago Saskatoon was crazy and we were often getting outbid even though we were offering 10-15% above the asking price ourselves... now we just bought a place for below the asking price, and well below the highest price they'd been asking before they dropped it, plus they did extra work and left behind various appliances that they originally planned to take.

Three years ago I suspect you could have bought pretty much any house here with an offer below the asking price, and the price would have been quite a bit lower in the first place. At least the house we bought isn't much more expensive than original purchase price plus work the owners did plus taxes and fees, and cheaper than the last house that sold in the road, which was also smaller, so I don't feel too ripped off :).

Re: Moved: House Prices
 

Just a quick question.

When looking at houses for sale on MLS.ca is there any other tax to add onto the price.

For example like when you go into the shops you add the tax onto items you have bought when you reach the till's...is this the case with the houses on MLS or is the price shown on the site the price you pay....if this makes sense :huh:

Dave

Re: Moved: House Prices
 

I am sure there are charlatans out there, but the realtors I have worked with have been honest, hardworking, ethical people.

When you are looking for a home you work out what you need, where it should be, and how much you want pay. You will then go to see houses that meet your criteria as well as one or two that are a bit more expensive, and one or two that are a bit cheaper – just to see what the difference in price buys.

When a realtor lists a house they should have a very good idea what a home will sell for. However, they have to choose what price to list it at to generate the most interest and encourage an offer. Higher, so people will visit to see what it’s all about and, hey, you never know? Right at the market? Or lower, so people will visit and think they can get a bargain – hoping to start a bidding battle?

So you generally offer less than the listing price, but not always. An offer slightly above listing price can nip a bidding battle in the bud. Your realtor will, of course, know the best thing to do.

Re: Moved: House Prices
 

Brand new houses are subject to GST. This is 6% but reduced if the home will be your main home. This may or may not be included in the price. Look for phrases such as "net GST included". This means the reduced GST of a home owner is included. If you are buying as an investment you will have to pay the difference.

There is no GST on "second hand" homes.

Most Provinces have a property transfer tax that is paid by the buyer, but this may be waived for a first time buyer. In BC this is $2,000 + 2% of the excess of the purchase price over $200,000. First time buyers paying less than $375,000 ($265,000 in the interior) are exempt.