Your Journey Begins Now
Our role is to guide you, protect you and counsel you through the journey to your homeownership dreams.
Although much of your journey is personal and unique to you, this guide will get you started on the right path, from understanding the costs to taking possession.
When you are ready, contact us so we can get to know your unique situation and build a customized strategy to find the home of your dreams.
Step #1: Understanding the True Costs of Buying a Home
Buying a home is a significant financial commitment, and it's essential to be fully prepared. Beyond the down payment, there are several additional costs you'll need to cover upfront.
Click each tab to explore the estimated expenses for essential services, taxes, and fees, helping you plan for a smooth and informed home-buying experience.
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Purchase price of your home |
Minimum amount of down payment |
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$500,000 or less |
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$500,000 to $1.5 million |
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$1.5 million or more |
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In most cases, buyers do not pay their real estate agent directly, as the seller typically covers the commission. However, it's important to confirm this in advance. There are some situations in which the seller does not cover the fee. In these cases your agent may require you to pay a commission, typically ranging from 1-5% of the home's purchase price.
Before signing a Buyer Agency Agreement, discuss commission expectations with your agent to ensure clarity on any potential costs.
Legal fees are an essential part of the home-buying process, as your lawyer or notary public facilitates fund transfers and ensures the property is legally registered in your name. Costs typically range from $2,000 to $3,000, depending on the property type and required services.
Lenders may require an appraisal before approval. Be sure to include this in your contract. This could cost between $400-$600.
Hiring a professional home inspector is a smart investment, helping uncover potential issues before you finalize your purchase. Inspections typically cost $400 to $1,000, depending on the property size. While an added expense, it provides peace of mind, helps you account for potential costly repairs, and can strengthen your negotiation position.
- You’ll owe various taxes, like Property Transfer Tax (PTT), Goods and Services Tax (GST), municipal taxes, and possibly others such as vacant home tax or speculation tax. Some are due at purchase, others annually or monthly. It is best to seek the advice of tax advisor or professional to understand what types of taxes you might have to pay.
- PTT = The general property transfer tax rate is:
- 1% of the fair market value up to and including $200,000
- 2% of the fair market value greater than $200,000 and up to and including $2,000,000
- 3% of the fair market value greater than $2,000,000
- Further 2% on residential property over $3,000,000
- GST = 5% of the purchase price of the home.
Beyond the upfront costs of purchasing a home, it's essential to budget for ongoing expenses that come with homeownership. These include:
- Property Insurance – Protects your home against unforeseen damages and liabilities, with costs varying based on location, coverage, and home value.
- Property Taxes – A mandatory expense set by local governments, often paid annually or in installments.
- Strata Fees – Cover shared property maintenance, building insurance, and amenities. Fees vary depending on the property and services provided.
- Maintenance & Repairs – Regular upkeep, from minor fixes to major repairs like roof replacements or plumbing issues, is necessary to maintain your home’s value.
Planning for these ongoing costs ensures financial stability and helps you avoid unexpected financial strain as a homeowner.
Step #2 - Go Get Pre-Approved
Now that you understand the costs of buying a home and have saved accordingly, the next step is to consult a Mortgage Broker.
Getting pre-approved will give you a clear understanding of how much a lender may be willing to provide based on factors like your income-to-debt ratio and overall financial health. A skilled Mortgage Broker will assess your situation and tailor financing solutions to meet your needs.
If you’re unsure where to start, your real estate agent can recommend reputable Mortgage Brokers with a strong track record of securing financing for buyers.
Important Reminder: Pre-approvals are not guaranteed and are not guaranteed forever can change if your financial situation shifts or time runs out on the pre-approval. It’s essential to maintain stable finances throughout the home-buying process and consult your mortgage broker throughout the process to be prepared.
Step #3 - Hiring An Agent or Going Solo
Hiring a real estate agent is not a requirement when purchasing a home, however, it’s essential to carefully consider all aspects of the process before making your decision. There are resources available to you through the BCFSA and many guides like this one that can help you through the process.
In British Columbia, the principle of "Buyer Beware" is especially important. If you're not represented by an agent, it will be your responsibility to protect yourself and conduct thorough due diligence. This includes searching for homes, scheduling viewings, drafting an enforceable Contract of Purchase and Sale, negotiating with the seller, and ensuring protection against any unforeseen issues.
Given the complexities involved, you may find it beneficial to hire a real estate agent to guide you through these tasks, offer professional advice, and safeguard your interests. An experienced agent can help identify potential red flags and assist in navigating unexpected challenges.
We recommend interviewing several agents to find the best fit for your needs. Among other things you will want to consider how experienced the agent is, how well they communicate with you, if they work to understand you and if they provide enough evidence of being trustworthy.
Step #4 - Establish Your Needs, Wants and Desires
With your team in place and a clear understanding of your financial capabilities, the next step is to start dreaming of what your ideal home would look like. We find that going through the process by asking yourself the following questions in order can be helpful to discover what is most important and avoids buyers remorse.
There are plenty of more questions and buyer specific considerations to have, but this framework is a good place to start. While it’s unlikely you will find a home that checks every box, creating a list of your needs, wants, and desires helps prioritize what is essential and what can be compromised.
The work you’ve done to prepare yourself for buying a home is critical to successfully finding a suitable property. Failing to complete this preparation could result in missing out on the ideal home due to not being pre-approved, lacking proper protection from not selecting the right real estate agent, or purchasing the wrong property because you haven't clearly defined your priorities.
Step #5 - Go Shopping
Your hard work is about to pay off, and now it’s time to enjoy the process.
Start by meeting with your agent to discuss the type of property you're looking for. This will allow them to present available options and share their insights about the neighborhoods and property types you’re interested in.
Next, have your agent set up an automated email alert to notify you instantly when new listings meet your criteria.
When you spot a new listing that interests you, simply contact your agent to schedule a showing.
start your shopping
Step #6 - Viewing Properties
Viewing properties is an exciting step in the home-buying process, but it’s important to approach it strategically.
While it's easy to attend a showing, walk through the home, ask a few questions, and leave, there are additional steps you can take to gain a deeper understanding of the property you're considering.
Take some time before or after the showing to explore the neighborhood. Walk through the streets, engage with neighbors to learn about their experiences, and inquire about the community. Additionally, drive around to assess the proximity of parks, grocery stores, schools, and other local amenities.
Once inside the home, take a quick walkthrough to get an overall sense of the space. Trust your gut—it can often be the most important factor in your decision. Allow yourself the time to get a sense of the space before discussing the details of each room and space.
Quickly assess the plumbing, electrical, heating, and cooling systems, and look for any signs of cracking, water damage, or other potential issues. While a professional inspector will provide a more thorough evaluation, spotting deficiencies early can save you the cost of hiring the inspector for a home that has obvious issues that you can spot yourself. Not every homeowner is aware of what to check, but an experienced agent can identify red flags and offer valuable insights.
Think about how you plan to use each room and space. Sellers may have utilized the rooms differently than you would—an office may have been converted into a gym or storage area. Evaluate how each space aligns with your needs and whether your furniture or intended use will fit comfortably.
Take thorough notes during your property visit and record any questions or concerns you may have. Pay close attention to potential red flags, what is included or excluded, and review the listing and any supplemental documents for further clarity. It’s easy to forget details after viewing several properties, so keeping these notes will be invaluable when it comes time to make an offer, ensuring you have all the necessary information to reference when drafting the Contract of Purchase and Sale.
Schedule a second showing on a different day. After viewing several properties in one day, it’s easy for details to become blurred or misremembered. A second visit will give you the opportunity to reassess the home with a clearer perspective.
Step #7 - Making An Offer & Negotiation
Once you’ve found the right home, making a strong, well-structured offer is crucial. An effective offer balances conditions, terms, timing, and price to appeal to the seller while protecting your interests. Understanding these factors will help you create an offer that you feel confident in submitting and that will lead to acceptance.
Conditions serve as safeguards, ensuring that certain requirements are met before the purchase is finalized. These are essentially “I will buy this home if...” statements. While conditions protect buyers, fewer conditions often make an offer more attractive to sellers.
Common conditions include:
- Financing Approval – Ensuring you can secure a mortgage.
- Home Inspection – Allowing a professional to assess the property for structural issues.
- Insurance Approval – Confirming the home is insurable and insurance is available.
- Title Review – Checking for outstanding liens or disputes.
- Property Disclosure Review – Examining and approving the seller-provided information about the home's condition.
Additional conditions may be necessary depending on your situation, such as selling your current home first, confirming renovation feasibility, or conducting specialized inspections. However, unnecessary conditions can weaken your offer, so it’s best to focus on essential ones.
Terms outline the expectations and obligations for both the buyer and seller. These can range from basic declarations to rules outlining what happens in certain situations.
Key terms often include:
- Property Condition – Ensuring the home remains in the same state as when the offer was made.
- Inclusions & Exclusions – Specifying which fixtures, appliances, or furniture are part of the sale.
- Vacant Possession – Confirming the property will be empty at closing.
- Risk Allocation – Addressing responsibilities if unexpected events (such as damages or natural disasters) occur before possession.
While many terms are standard, certain terms can be negotiated to protect your interests and reduce risks. Sellers may agree to specific requests, such as making repairs or including appliances, and certain terms may help a deal cross the finish line such as a time clause which reduces the risk for the seller in the case of a long condition removal timing.
Timing is a critical element in negotiations, as both parties have different schedules and priorities. Buyers must consider:
- Possession Date – When you can take ownership and move in.
- Deposit Availability – When your deposit funds will be ready.
- Financing & Condition Deadlines – The time needed to complete necessary approvals.
- Current Housing Situation – Whether you need to sell or vacate another property first.
Additionally, the speed at which you can fulfill conditions matters. Offers with shorter timelines for inspections, financing approval, and condition removal are generally more attractive to sellers. Buyers who can act quickly and offer flexible closing dates may gain an advantage in competitive markets.
Price is often the first thing buyers consider, but it should be determined strategically. A strong offer reflects not only the listing price but also market value, comparable sales, and seller expectations.
Buyers should:
- Conduct Market Research – Review recent sales of similar properties.
- Obtain a Comparative Market Analysis (CMA) – Work with your agent to assess fair market value.
- Factor in Conditions & Terms – Adjust your price based on the risks the seller assumes.
A competitive yet fair price increases the likelihood of a seller's response. An offer that is too low may be ignored, while an offer that is too high could mean overpaying for the property.
Negotiation is a key part of the home-buying process. Sellers may accept, counter, or reject your offer, so it’s important to establish your limits beforehand.
Consider asking yourself:
"If this home sold for just slightly more than my offer, would I regret not increasing it?"
"If I refuse to adjust a certain condition, will I be comfortable walking away?"
By identifying your must-haves and deal-breakers, you can approach negotiations confidently while remaining open to reasonable compromises.
A deposit shows good faith and commitment to the purchase. While the amount varies, it is typically a portion of the down payment and is held in trust by the buyer’s real estate brokerage until closing.
Important deposit considerations:
- Deposit Timing – It may be due with the offer, upon acceptance, or after conditions are removed.
- Refundability – If conditions aren’t met, a formal release must be signed by both parties for the deposit to be returned.
- Impact on Offer Strength – A higher deposit can make an offer more appealing, showing financial readiness.
Step #8 - Fulfilling and/or Waiving Conditions
Once you've reached an agreement with the seller, your purchase is contingent on fulfilling or waiving specific conditions. This period is crucial for conducting due diligence to ensure you’re making an informed decision.
Step 1: Gather Essential Documents
Work with your real estate agent to obtain key documents from the seller, municipality, or strata (if applicable). These may include the Title, Property Disclosure Statement, Tax Records, and for strata properties, bylaws, meeting minutes, and Form B.
Step 2: Consult Professionals
Your agent can refer you to trusted inspectors, mortgage brokers, accountants, lawyers, or notaries to help fulfill your conditions. Thorough due diligence will give you confidence in your purchase.
Step 3: Reviewing Your Options
If due diligence raises concerns, consult your agent or legal professionals. Your options include:
- Walking away due to unsatisfactory conditions.
- Requesting an extension to fulfill conditions.
- Renegotiating terms, conditions, or price to make the purchase viable.
It is important to remember that you must make every reasonable effort to fulfill your conditions. If the Seller believes you used these conditions as an “escape clause” they may take you to court.
Remember, the seller has the right to decline extensions or renegotiations. If conditions cannot be met or waived, the agreement will not proceed.
You want to feel confident in your purchase decision so take a proactive approach to performing due diligence, ask as many questions as possible and don’t proceed until you have the answers you need.
Step #9 - Get Ready to Take Possession and Move-In
Once your conditions have been fulfilled or waived, you will have a legally binding contract and the assurance that the property will be yours upon the completion date. Your lawyer and the seller’s lawyer will prepare the necessary documents for the transfer of ownership. You will meet with them to sign these documents, and on the possession date, you will receive the keys and can begin moving in.
Congratulations! Thank you for exploring our Buyer’s Guide to purchasing a home. We hope you found it helpful and insightful.
While this guide provides a comprehensive overview, it’s important to remember that every home-buying experience is unique. Use this guide as a starting point, and be sure to interview and select an experienced real estate agent who you trust. This step is vital in ensuring you are protected, well-informed, and able to secure the home of your dreams.
CENTURY 21 Assurance Realty Ltd.
INFO & SERVICES
CENTURY 21 Assurance Realty Ltd.
251 Harvey Avenue, Kelowna, BC V1Y6C2
(250) 869-0101
INFO & SERVICES
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