ENGEL & VÖLKERS BUYERS' GUIDE Prepared by: Katie Burkard
The Engel & Vรถlkers story Our success as a global leader
Engel & Vรถlkers was founded in 1977. We began as a specialty boutique agency providing high end real estate services to wealthy European investors in search of assistance from experts who were highly professional and discreet. We proved our competence and passion early on and quickly earned a reputation for our unparalleled level of service, highly valued network and strong leadership in the market. Our successes lead to greater demand for what we offered. With a brand gaining in recognition and reputation, we established a system that allowed us to expand without sacrificing our higher standards of quality. In 1988, we launched our own lifestyle, design and architecture magazine, GG. Through this publication we define our brand and showcase the premier properties we represent. In the same year, we also established the Engel & Vรถlkers Academy to maintain our standard of quality among the growing numbers of expert real estate advisors choosing to represent our brand. In 1990, we opened our first international shop in Majorca, Spain. It marked the beginning of our worldwide expansion throughout Europe, Africa, Asia, and North America. Today, there are approximately 9,000 real estate advisors in over 30+ countries and with 850 locations spanning through six continents. Though the Engel & Vรถlkers firm has grown beyond a small boutique agency, you can still rely on us for the qualities that remain our keys to success - local market expertise, a highly valued network, and an unparalleled level of service quality.
Katie Burkard, PREC* Real Estate Advisor
Katie is a spirited entrepreneur. In 2003, she dove head-first into the real estate industry. Given her insatiable drive for success, it was no surprise her career took off like lightning. Katie uses her innovative mind to solve the puzzles of real estate sales and her tenacious attitude pushed her, in 2003, to co-found one of Vancouver’s largest specialty loft companies, VanCity Lofts. Just three years later, as the ‘B’ in Blu, Katie co-launched Blu Realty, a modern, boutique brokerage. Clients easily get a sense of Katie’s passion for finding the best. In fact, she thrives on the chase through Vancouver’s unique and vibrant neighbourhoods to capture that distinctive connection between home and home owner. She takes pride in her talent for listening and when you add her unwavering dedication it’s easy to see how she builds lasting friendships with her clients. When it comes to negotiation, Katie has a natural touch ensuring the best possible deal for her clients. Now a seasoned real estate agent, she relies on her expertise and instinct to place herself in the Medallion Club-Vancouver’s top 5% of Realtors® year after year. Katie loves the time she spends consulting with the city’s most influential boutique developers in helping launch and sell products that meet market demands. Katie’s work ethic is evidenced by her drive to wake at the crack of dawn to train for her next sporting event–a triathlon. While her interests are worldly–like sharing a glass of French Bordeaux–she is committed to supporting local businesses and young entrepreneurs that share her passion for business. Katie happily fills any reprieve from work with a leisurely bike ride around the seawall.
Katie Burkard P (604)694-1010 E katie@burkardtang.com
Competence, exclusivity and passion The core values that define us
There is a single vision shared by the thousands of professionals who represent Engel & Vรถlkers worldwide. It is to link together the aspirations of discerning individuals around the world, be it in a private or business context with total passion. To achieve this vision, we have established a set of core values. These values help to maintain our high level of service quality worldwide and reinforce the meaning of our brand for each and every Engel & Vรถlkers advisor. Our training, marketing capabilities and international network ensure that our advisors can competently meet your real estate needs. They will develop a customized strategy and provide the specialized services that will work exclusively for you. And they will do it all with total passion
“Engel & Völkers evokes a real estate experience with the utmost competence, exclusive expertise and passion for all that we do. Handcrafted attention to every detail and meticulous white-glove service is what each and every one of our clients deserves.”
Steps to buying a home Getting approved for financing
Seller Representation Our concierge level of service Before starting to search for your dream home, it’s important to evaluate your financial situation, establish a budget, understand mortgage options and secure pre-approval from your lender. This help you advisor conduct will your tend search with confidence negotiate support ourand advisors have Engel will & VÜlkers your desired home successfully.
Your to every need throughout the home sales process to ensure a worry-free experience for you. You can expect insight and information from a market expert, marketing strategies tailored to your property, proactive communication and ongoing consultation. The marketing professionals at Engel & VĂślkers who
committed themselves to a clearly defined goal: to identify the maximum value of your home and to sell it for the best price possible. Using our broad range of expertise and the specialized training received at our company-owned academy, we dedicate ourselves to this goal and perform with total passion.
Getting approved for financing Closing the transaction
Establishing your budget
Working with an E&V Advisor
Offer negotiations
Submitting an offer
Starting the Home search
Establish Your Budget As a general guideline, total monthly housing costs for your primary home, including mortgage payments, taxes, maintenance fees, insurance, interest charges and utilities, should not exceed 32 per cent of your gross monthly household income. Many financial advisors also suggest that total monthly debt, including mortgage payments, credit card and car payments, should not exceed 40 per cent of your gross monthly income. Those purchasing a real estate investment property should consult their real estate and financial advisor to understand tax and financial implications of their purchase Confirm Downpayment If your downpayment amount is less than 20 per cent of the total purchase price, you will need to purchase mortgage loan insurance that guarantees the debt against default. In most cases this will be added to the mortgage loan. Check Your Credit Rating Your credit report plays an important role in your mortgage approval process and in determining the interest rate and other loan terms that a lender offers you. Before meeting with a potential lender, you may wish to confirm your credit rating so you have time to resolve any issues..
Getting approved for financing Understanding your financials
Getting approved for financing Mortgage Basics Interest Rates Mortgage interest rates are fixed, variable or adjustable. • Fixed: A fixed mortgage interest rate is a locked-in rate that will not change for the term of the mortgage. • Variable: A variable rate fluctuates pending market conditions while the mortgage payment itself remains unchanged. • Adjustable Mortgage Interest Rate: With an adjustable rate, both the interest rate and the mortgage payment change based on market conditions. Open or Closed Mortgage •
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Closed Mortgage: A closed mortgage cannot be paid off, in whole or in part, before the end of its term. A closed mortgage is a good option if you’d prefer a fixed monthly payment and wish to predict your monthly expenses. However, because there are often penalties or restrictive conditions if you pay an additional amount, a closed mortgage may be a poor choice if you decide to move before the end of the term or if a decrease in interest rates is anticipated. Open Mortgage: An open mortgage is flexible. You can typically pay off part of it or the entire amount at any time without penalty. This may be a good option if you plan to sell your home in the near future or if you intend to off a large sum of your mortgage loan. Most lenders allow open mortgages to be converted to closed mortgages at any time, though often for a small fee.
Amortization •
Amortization is the length of time the entire mortgage debt will be repaid. Many mortgages are amortized over 25 years, but longer periods are available. The longer the amortization, the lower your scheduled mortgage payments, but the more interest you pay in the long run.
Conventional Mortgage vs. High Ratio Mortgage •
Conventional Mortgage: A conventional mortgage is a mortgage loan that is equal to, or less than, 80% of the lending value of the property. The lending value is the property’s purchase price or market value — whichever is less. For a conventional mortgage, the down payment is at least 20% of the purchase price or market value.
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High-ratio Mortgage: If your down payment is less than 20% of the home price, you will typically need a high-ratio mortgage. A high-ratio mortgage usually requires mortgage loan insurance. CMHC is a major provider of mortgage loan insurance. Your lender may add the mortgage loan insurance premium to your mortgage or ask you to pay it in full upon closing.
Mortgage Term •
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The term is the length of time that the mortgage contract conditions, including interest rate, are fixed. The term can be from six months up to ten years. There are generally several term options for a mortgage and it’s important to weigh the benefits and costs of each. A longer term (five years, for example) may allow you to plan ahead and protect you from interest rate increases, but may not offer you flexibility, should interest rates fall.
Optimizing Your Mortgage Work with your lender to optimize your mortgage payment schedule for your unique situation. Many primary homeowners aim to pay off their mortgages as quickly as possible, which can be achieved with more frequent installments. Your mortgage may also be structured to allow an increase in payments as cash flow permits, and there may be anniversary lump sum payment opportunities each year to be applied directly to the principal. If you are purchasing real estate solely for investment purposes, other considerations such as tax implications come into play. Consult your real estate and financial advisor for assistance. Get Written Pre-Approval In markets where there is high demand and a low volume of the type of home you wish to purchase, written preapproval is essential and will give you the competitive edge in securing your desired home. For example, in a scenario where a seller receives two similar offers, one accompanied by a letter that confirms financing preapproval, and another other without supporting documents, the former offer is frequently considered first.
Steps to buying a home Establishing your budget
Seller Representation Our concierge level of service When meeting with me it’s important to clarify your budget, personal property preferences, and any anticipated life stage and lifestyle requirements that may impact the purchase of your home.
Your Engel & VĂślkers advisor will tend to every need throughout the home sales process to ensure a worry-free experience for you. You can expect insight and information from a market expert, marketing strategies tailored to your property, proactive communication and ongoing consultation. The marketing professionals at Engel & VĂślkers who
Closing the transaction
Offer negotiations
an offer
support our advisors have committed
identify the maximum value of your home and to sell it for the best price possible. Using our broad range of expertise and the specialized training received at our company-owned academy, we dedicate ourselves to this goal and perform with total passion.
Establishing your budget Wants, needs & financials
Get clear on your goals for your home, your needs in terms of amenities, location and other key factors. Its important that you understand the budget you have to work with. Start by considering what neighbourhood best suits you and what type of home you want. Would you love to live in a condo, a townhouse or house? What’s within your budget in your desired neighbourhood? You’ll also want to consider if you want a new property or re-sale as that will impact the price. This crucial first step sets a course for you, our advisor, our brokerage and our brand to work together to buy home in a stress-free manner.
Steps to buying a home Working with an E&V Advisor
Seller Representation Our concierge level of service Your Engel & Vรถlkers advisor will tend to every need throughout home buying process to ensure a worry-free experience for support our advisors have Your Engel & the Vรถlkers advisor will tend you. You can expect insight and information from a market expert, to every needproactive throughout the home communication and ongoing consultation.
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Concierge service throughout Our Advisors peace of mind The best real estate agents help their clients buy and sell homes. Engel & Völkers advisors do more. They will offer you guidance and insight in ways not every agent can. In fact, we designate our agents as “Advisors”, to better define the higher level of service they provide. Engel & Völkers maintains consistently high levels of service experience throughout the world by managing performance at every level. We are highly selective of the agents who join us. We approach top performers with proven track records and real estate professionals who are well respected within the community. A deep understanding of client service is essential. Our advisors start out great and always strive to be better. First and foremost, they are the experts. They can recommend restaurants, movie theaters, financial institutions, popular tourist attractions and cultural events. Most importantly, they can talk about the real estate market and where your home is in the bigger picture. Being experts, our advisors provide more than facts. They will provide you with valuable insight that is relevant to your personalized needs and see to every detail throughout the process so you won’t have to worry.
Steps to buying a home Starting the home search
Seller Representation Our concierge level of service It’s time to start the search for a new home, but you may be wondering what comes first? Should you be furiously googling looking for Völkers advisor will tend properties? Driving around seeking forsupport sale signs?our advisors have
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To start the home search: Buyer questionnaire
Which areas are you interested in? Do you prefer certain locations? Are you looking for an apartment, a house, a farm, etc.? Do you want to move in yourself? How many people will live in the property? How much living space and how much utility space should the property have? Do you wish to use the property for commercial as well as for living purposes? How many rooms do you need? How many bedrooms and how many bathrooms do you require? What features are most important to you? Which of these features could be considered optional? Can we offer you properties that slightly deviate from your desired location? Have you set yourself a price limit? How long have you been searching for a suitable property? What properties have you already viewed, and in which locations? What are the reasons, why you have not yet been successful in your search? By what date would you like to move in your new property? By what date would you like to have purchased your property? Would you like to purchase on a certain date, for tax reasons? Can we be of assistance in selling your present property? Can we offer you any of our other services?
To start the home search: Steps to ensure a successful search
Automatic Property Updates We have the inside scoop on the newest properties, and we will set up a query on the MLS which outlines your criteria including location, price and characteristics of the home. As matches come up, we will automatically send you emails with the information on that listing. Advance Access to Exclusive Properties In some neighbourhoods, homes are sold within days, or even within hours, of being listed on MLS. Others are marketed and sold within a real estate company’s network without ever being made available to the public. We will arrange for advance access to properties that are represented within their professional and company network. Property Tours Once we have selected properties of interest we will schedule walk-throughs of properties matching your preferences and needs. Depending on availability and your schedule, we may visit one at a time or take an afternoon or evening and visit multiple properties. As you tour each property, you’ll want to carefully assess each property and keep in mind that there are times when you may need to be flexible to get what you want, where you want it and stay within your budget. Evaluation of Options It can be challenging to determine the fair market value of a home and to assess whether it is “good value” for its listed price or for your budget. Variables that impact the value of a home or property include its location, neighbourhood, community plan, proximity to amenities, lot attributes, views, property size, interior and structural condition, construction type, age, unique features, and the state of the local real estate market. Private Client Services Each one of our clients gets access to a special clients-only section of our website which features only the listings you want to see. With the tools in this area, you can create your own personal search on the MLS – the same system that is available to realtors. Your personalized search will be updated in real time. In other words, if there are any new listings or price changes you will be the first to know via e-mail. You may also be able track sales and off-market listings, while organizing your favourite listings, printing them or emailing them.
Steps to buying a home Submitting an offer
Seller Representation Our concierge level of service It’s important that you sit down with your Advisor or lawyer to preyour offer. Real estate laws vary widely from region to region, support our advisors have Your Engel & pare Völkers advisor will tend and it’s essential that you protect your legal interests and account to every needfor throughout the home any specific contractual contingencies that are unique to your area and desired property.
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Legal and Contractual Obligations An offer commits you to legal and contractual obligations as soon as the other party has accepted it. Prior to submitting an offer, ensure you are clear on the legal obligations you are undertaking, should the offer be accepted. Valuation Prior to writing your offer, we can provide you with information on recent area sales, local market information and background on whether there are competitive bids, which will help you determine your initial offer as well as your target price for this specific home. Background Research With some investigation, your associate may also be able to assess your seller’s background and objectives for selling, which may assist you in crafting a competitive offer. Offer Details The details of an offer typically include: your legal name and that of the vendor, the legal civic address of the property, the price you are offering to pay, inclusions, amount of your deposit, dates you take legal and physical possession of the home, legal “subjects” or “conditions” upon which the contract becomes final (such as satisfactory home inspection report or financing approval), and the date the offer expires. Your offer is a legally binding document and should be prepared by a real estate professional or lawyer. Professional Inspection Your RE ALTOR® can advise you as to whether a professional inspection should be conducted prior to or after submitting your offer. This will depend on the property age and type, and whether competitive bids are anticipated. Time Frame Ensure that any time frames indicated in your contract are realistic, particularly if your offer is still subject to securing a mortgage loan, a situation we advise against by ensuring you secure pre-approval in advance. Increases in market activity as well as increased vigilance by lenders may mean that mortgage approval requires more time.
Submitting an offer General information about offers
Steps to buying a home Offer negotiations
Seller Representation Our concierge level of service After submitting an offer, we should be prepared to negotiate, not just on the initial price, but on all key factors impacting the sale of the support our advisors Your Engel & home Vรถlkers advisor willinclusions, tend dates including deposit, for completion and posses-have and deadlines the for subject to every needsion,throughout homeremovals.
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Offer negotiations What to expect when offering
Preparation It is important to include all the key factors in preparation, including: deposit, inclusions, dates for completion and possession, and deadlines for subject removals. We will ensure you know your budget and requirements prior to submitting your offer so you don’t commit to additional costs in the heat of the process. Multiple Offers In high-demand, low-inventory areas, you may find yourself bidding against other buyers. Some sellers in high-demand niche markets may also intentionally list their home at a low price hoping to stimulate multiple offers. This doesn’t necessarily mean that the price will be bid up significantly over the asking price, but it does mean that due diligence is required on your part and our part as your REALTOR® team to ensure the offer you submit is strategic, competitive and reflective of what are ultimately willing to pay for the property. Whether you are anticipating competition or not, you should be pre-approved for your mortgage prior to your home search and well in advance of writing an offer. In a multiple offer situation, this will impact your ability to negotiate successfully, particularly if others making an offer are already pre-approved. It also lets you know the maximum you can afford in what may be a stressful situation. Potential Responses You can expect one of three responses to your offer: • • •
Accepted as is: the deal is complete and once signed by the seller, the offer becomes a binding legal contract. Counter offer: the seller may make changes to your offer, such as adjustments to the price, closing date or conditions.You may accept the counter offer and close the deal by signing the document. Or, you may make another counter offer back to the seller. Rejected offer: the seller may choose to reject the offer and the sale will not go through.
Offer Acceptance Once both parties come to an agreement, negotiations conclude and you move on to the next steps in the buying process.You will have a set period of time in which to satisfy the legal conditions (“subjects”) agreed to in your contract, such as completing a satisfactory home inspection report or securing financing. Only after your subjects/ conditions are removed do you have a legally binding document.
Buyer representation Closing the transaction
Seller Representation Our concierge level of service
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3801-1211 Melville Street, Vancouver, BC Listed & Sold by Jamie MacDougall
Above & beyond Achieving the best possible outcome
Our service focuses on quickly relaying purchase offers and advising on the submission of counteroffers, the negotiating process itself, inspections, contractual issues and closing preparations. While we communicate often throughout this process as your representative, it is our role to stand firm and skillfully negotiate on your behalf and to achieve the best results for you. We will assist when escrow opens, be present at closing and handle the exchange of keys.
Ideal conditions for a successful closing: • • • • •
Agreement between all parties concerning the purchase price and contingencies Proper preparation of all required documents Regular communications between all parties Service at closing Assistance during the handover of the property
Yaletown Shop 130 - 1152 Mainland Street Vancouver, BC V6B 4X2
Kerrisdale Shop 2126 W. 41st Avenue Vancouver, BC V6M 1Z1
West Vancouver Shop 2475 Bellevue Avenue West Vancouver, BC V7V 1E1