Burnaby real estate agent

Burnaby real estate agent

What Is An Assignment Sale, Exactly?

An assignment sale is the sale of a contract for a pre-construction property before the unit is even built. The new buyer takes over the contract and will be responsible for the deposit, taxes, closing costs, etc. when they occupy the property.

Assignment sales are common and completely legal. However, these deals can be more complicated than conventional resales, and it’s vital to have an experienced realtor by your side to protect your interests.

Why Do Assignment Sales Happen?

Various life changes are the most common reasons why the original buyer may want to sell their rights to a unit. For example, some people need to relocate for their careers, while others may have started a family and need a bigger place. Some sellers may also be investors that never intended to close.

The Pros And Cons

Are assignment sales worth it for the buyer or the seller? Here are some pros and cons you should consider before making a decision.

For The Buyer

Pros-

  • There’s a shorter wait for the finished building in comparison to buying from a builder.
  • Assignments are usually cheaper than resale because sellers cannot market them on MLS. This means that there’ll be less competition as fewer buyers know about them.
  • Assignments are usually only allowed when the project is almost done, so you won’t need to worry about the project being suspended or cancelled.
  • Assignments could be a good option when there’s a listing shortage in the market.

Cons-

  • Be prepared to dish out a lot of cash upfront, including deposits, appreciated value, agent commission, closing costs, assignment fee and more.
  • Assignment sales can be much more complicated than conventional resale. To make sure everything gets done smoothly and correctly, you’ll need an experienced real estate lawyer and a realtor with a good understanding of the assignment market.

For The Seller

Pros-

  • You can take advantage of the rising condo market and sell the unit to reinvest in another project.
  • Allows more flexibility. You can walk away without incurring any penalties, and even some profit!
  • Avoid paying more in transfer taxes, occupancy costs and occupancy fees.

Cons-

  • Assignments can be harder to sell because they’re not allowed to be marketed or listed on MLS. They usually take longer to sell and at a lower price than at resale.
  • When you are allowed to sell may depend on factors that you cannot control; for example, some developers require a certain number of units sold before allowing assignments.
  • Not all builders allow assignments, so you should always check for the contract’s assignment clause before signing!
  • You might incur higher legal fees as assignments are more complex.

When looking to buy or sell an assignment, an agent experienced in this type of sales is your most significant resource as they can leverage their network to connect interested buyers and sellers. So if you’re interested in assignment sales in Vancouver, contact Cherry Yeung, your professional real estate consultant, today!

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Appropriate (And Unreasonable) Inspection Repair Requests

A home inspection contingency is included in most offers because it is a very important step that will alert a buyer about serious problems like broken appliances or cracks in the foundation. The results of this report can help you determine your next steps with the seller and will confirm whether or not you want to proceed with the purchase.

If you’ve never been through this process, you may be unfamiliar with the requests that are appropriate, as well as the ones that are unreasonable. Generally, safety issues are considered legitimate negotiable repairs, as are problems with non-functioning systems. Any structural defects or serious hazards are also legitimate reasons to be concerned and such problems need to be considered carefully because they can cause you to back out of the contract.

Issues that have already been disclosed and minor nickel-and-dime requests, on the other hand, can lead to ill will on the seller’s behalf and may affect their decision to close the transaction. If you are determined to close the deal, it is generally recommended that you pass on the following requests:

Normal wear and tear

This includes some scratches on the hardwood flooring and chipped paint, to name a couple of examples. Cosmetic defects are very normal and most homes will have these issues. Sellers will not want to negotiate on these minor flaws, especially if they were visible when you made the offer.

Minor repairs

You will have to compromise in some aspects and focusing on big-picture items is far more important than worrying about small and inexpensive repairs. As a buyer, it would be ideal to get the seller to fix every little repair but this can affect their willingness to sell.

Smoke and carbon monoxide detectors

This should not be an issue because you don’t want to settle for cheap replacements in the first place and can shop and install a system that meets all of your long-term preferences once you close the deal and move in. This way, you will have peace of mind knowing you chose the system that’s in place and that it satisfies your preferences.

Landscaping changes

You may not love the unevenness of the walkway bricks or some of the plants but it is unreasonable to ask or expect the sellers to make these modifications. These are issues that were likely visible when you toured the home and requesting changes will probably irritate the sellers.

Your real estate agent will provide you with more information regarding the inspection process and the realtors at Cherry Yeung Real Estate will guide you through it. We will ensure all of the important issues are taken care of and will tell you which requests to leave out. Whether you want to buy a condo in Vancouver, need a realtor in the Burnaby region or are looking for houses that are for sale in the Richmond area, we can help, so give our office a call now!

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How Do You Pick A Home Inspector?

A home inspector will tell you if there is anything concerning a house you may be interested in purchasing by assessing the property to see if there are any issues related to it. Depending on their findings, the results can affect the purchase because potential buyers do not want to invest in a home that is falling apart.

As it is a very important job that will determine your future and affect the biggest investment of your life, you need to make sure you hire a reputable, knowledgeable and skilled home inspector so that you can receive accurate information regarding the home and any problems it may have.

Choosing a home inspector is not easy because anyone can claim to be in that industry, so don’t let fancy business cards fool you as there are no set rules or regulations as to what exactly a home inspector is required to do. This is problematic because potential home buyers hire this person to inspect the house they are interested in so they can come back and present them with facts in regard to any issues the home may present. As there are no prerequisites or specific education required for this position, it can be difficult to hire a home inspector who is familiar with the plumbing aspects, electrical issues and gas components, just to name a few. These are all individual professions that require extensive training and courses, along with years of apprenticeship to gain the skills and knowledge necessary for each job and a home inspector may not have any of these skills because it is not a requirement. This is why picking a qualified home inspector is tricky as many of them don’t actually have the right training to qualify for the position they are holding.

Asking your realtor is the best place to start because if they have the right experience, they should have trustworthy contacts they refer their clients to. If you’re happy with your real estate agent and trust their opinions, ask them about this topic and see which company or individual they would recommend because they will usually have at least one home inspector they prefer who does the job successfully.

Word of mouth is a powerful tool, so if your family or friends suggest a specific company, you should consider this option too as qualified home inspectors can be hard to find. If people you know and trust were happy with the services they received, their recommendation is definitely something to look into as this will help your selection process tremendously.

If you want a real estate agent you can trust, contact Cherry Yeung Real Estate today. Whether you want to buy a condo or are interested in houses for sale in the Vancouver, Burnaby or Richmond areas, one of their experienced and professional realtors can help, so give them a call now and they’ll take care of every aspect!

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