Home Buyers Rescission Period

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Change in the Real Estate Rules and What It Means to You

“Cooling off Period” for Buyers known as the Home Buyers Rescission Period

Coming off an unprecedented real estate market, a change in the real estate market rules was made by the government of BC to protect homebuyers.  In this article, we provide clarification on how this change will affect you as a consumer.   

Effective January 3, 2023, the Home Buyers Rescission Period (HBRP) allows the buyer of a residential property the opportunity to rescind their offer within 3 days of acceptance of the offer.  This comes with a financial penalty and cannot be waived by the buyer or seller.  

Once the contract of purchase and sale is accepted by both the buyer and seller the rescission period begins the next business day.  This allows the buyer 3 business days to rescind the offer.  If the buyer chooses to rescind their offer during this time, a Notice to Rescind shall be delivered to the seller along with the rescission fee. 

If the offer contains subjects (financing, home inspection, etc.), this runs concurrently with the rescission period. This new change in real estate does not begin after subjects are removed.

Rescission Fee

If a rescission notice is served to the seller, the buyer must pay the seller 0.25% of the purchase price of the property.  

Example: 

Purchase price:  $ 1,100,000.00

Rescission fee:  $ 2,750.00

The Home Buyer Rescission Period applies to the following types of real estate transactions:

  • Single-family detached property
  • Semi-detached house
  • Townhouse or duplex
  • Condo or other multi-unit dwelling
  • Residential strata lot
  • Manufactured home

The team at Vrecko Real Estate Group shares some of their top questions:

FAQ: 

Why make this change in the real estate rule?

This rule was implemented as a result of the unprecedented estate market of 2020 and 2021.  Where home buyers were forced to make a quick decision, sometimes sight unseen with no conditions to protect them.  If a homebuyer wanted to secure a property during this time, in many cases the only option when competing with multiple offers was to make their offers as appealing as possible. Often resulting in unconditional offers, thousands (sometimes hundreds of thousands) of dollars over the asking price.  This rescission period will now allow buyers to secure a property but have the option to back out within the 3 days if they get “cold feet”.  This comes with a fee, however, will give the buyer peace of mind.  

How does this affect someone Selling?

As a home seller, this change in the real estate rule won’t dramatically affect their ability to sell to a qualified buyer.  After an accepted offer, while waiting for the rescission period to expire, the homeowner is still able to show the property to potential buyers and also consider any backup offers.  The difference will be when an unconditional offer is accepted, the property is not sold until that period expires.  If the rescission is exercised and the Notice of Rescission is delivered, the seller is entitled to 0.25% of the purchase price and is free to move on to the next offer.  

Why now?  Hasn’t the market cooled off already? 

Some argue this change in the real estate rule comes a little too late.  Yes, the real estate market has seen a dramatic decrease in sales over the last 6 months.  In most markets, this decrease has put an end to the frenzy which led to multiple offer situations.  

Regardless, this change in the real estate rule is here to stay and will be there to protect future home buyers.  

 

For more information on the Home Buyer Rescission Period visit the BCFSA website.

 

Should You Sell Before You Buy?

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This is a question that comes up often as homeowner looks to make their next move.  The real estate market in Kelowna changes from year to year.  While it might make sense to sell before you buy a new home in some market conditions, it could be risky in others. 


Things to consider before deciding to sell before you buy: 

What type of market is it?

Seller’s market: 

When the market is considered a Sellers’ market the risk is lower if you decide to sell before you buy.   A Seller’s market is when the active inventory of listings is lower than the demand of homebuyers.  This market condition often generates multiple offer situations, giving the seller an advantage to choose prices, terms, and dates that work for you.  However, one thing to note is if you are buying and selling in the same market, you will be faced with the same challenges as a buyer when buying a new property.  

Balanced Market: 

A balanced market is when the number of homes for sale in Kelowna meets the demand of buyers looking to purchase a home in Kelowna.  Typically average day on the market is 90 days to sell, which would give you time to find a property to buy.  These market conditions will lower your risk if you decide to sell before you buy.  And you would have more options

  • Placing an offer on a property with the subject of selling your home
  • When securing an offer, ask for longer possession dates to allow time to find a new home

Buyer’s Market: 

While this market condition is great for buying a home, selling a home can become more difficult.  A buyer’s market is when the inventory of homes for sale is far higher than buyer demand.  Days in our market are well over average and sometimes force sellers to reduce the listing price to sell. This would be very risky to sell before you buy a new home as you risk not only owning multiple properties, you risk buying high and selling low.  Your agent should always recommend selling before you buy or at minimum having a condition to selling your home.  

Are you in a position to carry two properties?

Something to consider when trying to decide to sell before you buy is your ability (and comfort level) to own two properties.  

There is always a risk when you decide to sell before you buy a new home.  And, your decision would be based on weighing out the risk and reward.  Perhaps you secure the home or property that you’ve been dreaming of, and holding two properties is worth that risk.

 

Charlene Volk from the Vrecko Real Estate group reviews the following questions when a client is considering taking the risk of buying before selling.  It’s important to know what you are getting into.

  • As it may take some time to sell your home are you willing to wait?  
  • Does the risk outweigh the reward?  
  • Have you considered the cost of holding two properties?

With all things considered, you should talk to a professional real estate agent before you decide to sell before you buy a new home.  They can review what is the best choice for you and your situation. 

 

Every professional real estate agent at Vrecko Real Estate Group has extensive experience in buying and selling real estate.  Based on your specific situation, they can direct you and give you advice to make the best decision for you and your needs.

Choosing a Realtor to Sell

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So you’ve chosen to sell your home. Whether you have a plan for your next move or not, this is a big decision that brings up many questions.  Choosing a Realtor to help you is your first step. 

Need more room?  Too much room and need to downsize?  Whatever the reason, this is a big decision that requires a great deal of support.

When you are looking to sell your home, one of the first things to consider is choosing a Realtor who can get the job done.  And make the process as smooth as possible of course.  Because let’s face it, this is a big decision and it’s hard work!

Getting your home ready for sale can be overwhelming.  The pre-packaging, decluttering, depersonalizing, and finding a spot to tuck away your things when you get notice of a showing.  All while trying to live your day-to-day lives!   

On top of this, you want to make sure your home is priced to sell while not leaving money on the table.  And in a reasonable amount of time with terms and conditions that work for you.  Wow…where do you begin?

You begin with choosing a Realtor who will help you step by step.  Someone who will manage expectations and make this experience positive, productive, and with the least amount of stress on you and your day-to-day life.   

This is why, the tips from the pros came up with the most important things to consider when choosing a Realtor to sell your home in Kelowna.  

  1. Experience and Expertise

When choosing a Realtor you will want to find an agent that has experience in the market in which you are selling.  Marketing a waterfront home is very different from a condo in downtown Kelowna.  While a single agent can do both, you want to ensure the experience is there.  Look at the Realtor’s portfolio of sold listings and ask them about how they plan to market your home to stand out from your competition.  An experienced Realtor will be able to pinpoint a target market based on the features of your property. 

2. Direct Connection with team support

Some great Realtors are backed by a top real estate team.  Working with a Realtor on a team gives you the advantage of the experience and expertise of not just one professional real estate agent, but the whole team. But, when choosing a realtor from a team, ensure you have direct connection and communication with that one agent and are not redirected to an agent on duty.  This direct connection will allow for better communication and feedback.  Not only with you but with potential buyers.   That agent should know your home inside and out so when a prospective buyer calls, that agent can answer all of their questions. 

3. Testimonials and References

The best way to find out if you are on the right track to choosing the right realtor is to find out the experiences of their past clients.  Look at their website and read the testimonials of past clients.  Or you could ask for references.  Find out if the needs of past clients were met and the experience they had with that agent.  

 “One of the best references I ever had was from a Buyer who was represented by another agent.  They bought one of my listings where I represented the Seller.   They said I was so tenacious when it came to negotiating for my seller, that they would only use me to sell their next home. And they did!”    -Quincy Vrecko Quincy Luxury Agent

Selling a home is not just a transaction, it’s a partnership between Seller and Realtor.  While considering all these tips when choosing a Realtor, is important to pick someone you feel comfortable with.  Browse through the bios and testimonials of this top real estate team.  Our diverse team caters to different areas of expertise and a wide range of skills to help your sale a smooth one.  

Real Estate Tips From the Pros

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Real Estate Tips from the Pros

The real estate market in Kelowna has seen a shift like never before.  So whether the market is up or down, there are some fundamentals to real estate that never change.  The team at Vrecko Real Estate Group has seen it all and shares with you professional tips to help navigate any market.  

In this series, the professional real estate agents with Vrecko Real Estate Group cover topics related to buying and selling real estate.  They answer questions and give real estate tips on how to make your next real estate transaction a smooth one.  

Part one of the series covers topics related to buying a home.  Whether you are a first-time home buyer or you are a seasoned home buyer and have bought and sold many homes, these tips will help you with your next purchase.  

Part two dives into selling a home.  There are so many important things to consider when selling a home in Kelowna.  The goal when selling a home is to sell for top dollar in a reasonable amount of time and make the process as streamlined as possible.  And these real estate tips for selling will help you meet those goals.  

Part One – Selling a Home

  • Choosing a Realtor 
  • Do you sell before you buy
  • Preparing your home for sale
  • Disclosures, warranties, and representation
  • Showing your home
  • The offer, counteroffer, and acceptance
  • Preparing for the move

Part Two – Buying a Home

  • Choosing the right real estate agent
  • Steps to starting your search
  • Mortgage Broker vs Bank
  • The offer process from beginning to end
  • Preparing for your new home
  • Moving day
  • Building a home

Each series will have real estate tips and advice from members of the Vrecko Real Estate Group.  This team of Kelowna Realtors has an average of 20 years of experience and are experts in sales, communication, and negotiating.  Tracey Real Estate Agent

“We hope you find this information helpful.  Our team is here to help and guide you through every step of the way.  Our phone is always on!”

Tracey Vrecko, Kelowna Luxury Realtor with 17 years in the industry. 

Stay tuned for the first installment- Buying a home: Choosing the right real estate agent.  

Vrecko Real Estate Group Announces Brand Refresh

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MEDIA RELEASE 

Vrecko Real Estate Group Announces a Brand Refresh

Quincy Vrecko & Associates, a luxury real estate company based in Kelowna announced today that it has completed a brand refresh and will be called as the Vrecko Real Estate Group with effect from today.

With more than two decades of experience in the luxury industry, Quincy Vrecko, the founder of the company is the lead luxury estate agent of the firm. “This is a major milestone for our team” stated Quincy. Being the pioneer of exclusive luxury real estate in Kelowna, I believe that moving forward Vrecko Real Estate Group will be synonymous with “redefining real estate”, he further added.

“Years of success were built on one another, our team became bigger, and our business grew,” said Tracey Vrecko, the female force behind the top real estate team at Vrecko Real Estate Group. “This is a new chapter to continue our journey with a fresh look that reflects the company we’ve grown to be” she further added. Together with her husband Quincy they have created the Vrecko brand and have built a team of top real estate professionals specializing in family homes and luxury estates in the Okanagan region.

The team at Vrecko Real Estate Group specializes in Luxury Real Estate, Waterfront properties, family homes, townhouses, and condominiums along with commercial property and residential development. 

30th March 2022, KELOWNA, BC

 

Navigating Through Bidding Wars

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The current real estate prices in Kelowna are soaring to record highs. With low inventory and high demand bidding wars and above-list-sale prices is a common norm. QVA is here to help you navigate this hot seller’s market to get your home’s worth. Here’s how:

Exposure

When the listing hits the market, typically a seller will want to pick a date to review any offers.  With so many buyers from out of our market area, you want to give enough time from when the property is listed to when you are looking at potential offers.

Presentation

When presenting a home for sale in today’s market, marketing is essential to attract buyers and highlight features that show value.  Our team offers several ideas to prepare the home for sale and offers full marketing packages that include:

  • Clear photos of each room and outdoor area
  • Floor plans with room measurements
  • VR tours with hotspots detailing features
  • Digital feature sheet

Documentation

Understanding the logistics of a deal can help ease any stress that comes with the process. Real estate transactions are very stressful and it’s important to allow ample time for the documentation to take place smoothly. QVA is one of the best in Kelowna in providing you with a stress-free documentation and transaction process.

There are other smart strategies concerning deposit and price that can help you choose the winning bid from a pool of multiple offers.  Each scenario is different, therefore, having a professional realtor with experience in working with multiple offers representing you is paramount to get your home’s worth. 

Multiple offers can be overwhelming for both buyers and sellers and there can only be one winning bid.  The team at Vrecko Real Estate Group has helped sellers navigate through this very active market.  Using a professional realtor is more important than ever to advise on your largest and most important investment. 

Staging A Home In Winter

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Staging A Home In Winter

Although the winter months are a not-so-popular time to sell a home, many benefits will be favorable towards selling one during this season. A huge plus is reduced competition. At a time when demand is high for homes in Kelowna, you are more likely to sell yours within a short period. Here are a few tips for you to stage your home during the winter season and make your property a show-stopping spectacle for potential buyers.

Keep your abode cozy

During a showing, it’s always important to keep the house warm for potential buyers. Raising the temperature to 70 degrees will maintain a comfortable climate inside your home. This can help potential buyers to focus on the property’s features more comfortably. 

The curb appeal still matters

Winter months are hard to rely on flowering plants to have that perfect curb appeal. One option is to have cold-weather plants. You can jazz up your front door by giving it a fresh coat of paint and have some outdoor furniture that looks cozy and inviting on the front porch as the eyes of anyone visiting your home will naturally focus on what’s at your entrance.

Clear walkways and driveways

As a seller, it’s important to keep the walkways and driveways clear especially if it has snowed during the winter. It’s important to put down salt if there is excessive ice on the ground. Ensuring the safety of potential buyers during a viewing is very important when selling your home.

Lots of lighting

The first impression of a home at all times is a home with natural light in abundance. This can be a challenge during a gloomy winter day. It’s essential to have the spaces well-lit where natural light is difficult to reach. 

Get Organised

Winter can be tough on your floors. No one wants to see muddy footprints during a viewing. Have lots of floor mats to wipe the mud off the shoes or choose to provide disposable shoe covers for viewers. It is also essential to store your winter gear in an organized manner. Having your coats hung and shoes laid on racks will go a long way. Through occasional sweeping, vacuuming, and a mop between viewings, you can make your home look the best for every prospective buyer.

 

Winter months are a perfect time to sell your home as real estate agents are less busy and could give you additional attention and help market your property at a time when competition is less. If you are thinking of selling your home Quincy and Vrecko Associates are happy to provide you with an evaluation at no cost! To learn more about the benefits of listing with us, click here.

The Transition From Sleepy Lakeshore to Resort District Luxury

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Every time you drive down the Pandosy/Lakeshore stretch you are reminded that at one time Kelowna was just a sleepy beach town with small markets and beach access as far as the eye could see. Over the past few decades, the city has seen tremendous growth with new urban projects making many consider a permanent relocation to this ever-growing city.

Movala development site

Movala development site

The Pandosy/Lakeshore area has always been regarded as the crown jewel of Kelowna. As we wait for the roadways to catch up, we are seeing new multi-family developments popping up regularly in this area. In the next two to five years the area as we know it will be even more different than remembered. With the onset of the redevelopment of Hiawatha RV Park, as well as the recently started Movala and soon-to-be-constructed Aqua development near Truswell, it is apparent the changes are rapid, whether we are ready for them or not.

From a perspective of growth and vitality, it feels somewhat exciting to watch the once-sleepy beach town grow into a small yet vibrant city. It doesn’t come without a tinge of sadness for what Kelowna was and a hope that we can preserve the character of the agriculture, lifestyle, and beach life that many have come to know and love.

 

In 2008 we saw the addition of Playa Del Sol, a resort-style condo building that featured an outdoor pool and deck in one of the most sought-after locations just across the street from the famous Hotel Eldorado and Manteo Resort. Whether we were fully aware or not, the redevelopment of Lakeshore as we knew it had begun. 2015 brought The Lakeshore at Manteo, an 18-unit townhouse development with a pool on the lake; fast forward to 2017, Kelowna saw the highly anticipated completion of Sopa Square after many delays. The well-captured artsy feel in the Pandosy/Lakeshore area is evolving to feature high-end living, a stone’s throw from the beach.

Hotel Eldarado

Hotel Eldorado

As residents begrudgingly try to make their way to and from Upper Mission the changes are coming fast and furious. Movala’s construction began after residents of the RV park enjoyed their last summer kitty-corner to Gyro Beach. Caban by Cressy will begin construction quickly although it is entirely sold out. Hiawatha RV Park has been removed and the giant open space will become rental-only condos developed by Mission Group. A roundabout is being installed to help with the flow of traffic, disrupting it in the interim. As we near Truswell, the wallscape speaks about the ingenious Aqua Boat Valet facility that is purely holding space for the upcoming multi-building Aqua development featuring three buildings and an indoor boat storage facility. It will also feature a new boardwalk which would bring new life to the existing boardwalk connecting the El Dorado and Manteo and hopefully more waterfront dining that is surprisingly scarce, given the size of the waterbody we are so lucky to reside amongst.

The implementation of the Resort District is unfolding all around us and brings mixed feelings for many and the resounding hope that we will be able to preserve the character of the once small farming and beach community while it transforms into a larger city. What do you feel about the transformation of Pandosy/Lakeshore?

 

Preparing Your Home for Ideal Presentation

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When it comes to selling your home, many things come into play: the current market climate, the location, the price, your realtor, etc. In a hot market like today’s, making your home stand out and attracting those offers is incredibly important. At Vrecko Real Estate Group, we work hard on marketing your home and shining a light on all its best features. From photos and virtual tours to brochures and social media, we have you covered.

Why is marketing so important in today’s market?

Many homes are selling with multiple offers and over-listing prices, which is inspiring a lot of people to enter the market. The first few glances at a listing brochure, website, and photos can make an entire difference. Choosing a knowledgeable, experienced realtor with great marketing can bring in those extra offers getting you the top price for your home. At QVA, we want to make your home stand out and attract attention. Some of the many marketing tools we provide:

  • High-quality photography
  • Virtual reality tours
  • Stunning brochures highlighting your home’s best features
  • Social media posts and advertisements

…and more!

When marketing a home, what kind of information do you need to know?

When it’s time to put your home on the market, I want to know everything about it that makes it special. Whether it be the neighborhood, the layout, the yard, the views, etc. Every feature matters when it comes to marketing, what may seem ordinary to you may be what sells your home. Especially during current COVID-19 times, many people rely on photos and online descriptions when searching for a home. We want readers and potential buyers to imagine themselves living and walking through the home, enjoying all of its features. Keep this in mind when talking with your realtor, and let us know what you think makes your home stand out.

What are the best ways to prepare a home for an ideal presentation?

Preparing your home for photos is very important, and there is a lot you can do to prepare.

  1. Of course, make sure your home is clean! This seems like an obvious point, but deep cleaning your entire home can be very time-consuming, so make sure you prepare in advance.
  2. Staging: Staging doesn’t always have to be expensive. This can simply mean setting up your empty spare room to look like an office or setting up some wall art. When potential buyers look at your home’s photos, allow them to see the greatest potential your home has.
  3. De-clutter: A clean home is one thing, but there is more you can do to ideally present it. Some things that aren’t considered clutter in our day-to-day lives will stand out in photos, such as phone chargers, toothbrushes, slippers, etc. Temporarily putting away personal belongings such as family photos, hanging jackets, and shampoo bottles, can make a huge difference in how your home presents.

 

Selling your home is an exciting time, and we want to take any stress away. Trust us to make your home stand out in this market, and follow our tips to bring out its best potential!

Meeting Deadlines in Unprecedented Times

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Entering the housing market can be such an exciting and overwhelming time, understanding the logistics of a deal can help ease any stress that comes with the process.

housing market deals
How would you describe today’s housing market when it comes to deals?

“Canada’s Housing Market is Red Hot” is something we have continued to hear regarding the current housing market since last year. Although we have seen a marginal slowdown, we are still facing a high volume of deals that are still coming up on closings. Take that and mix it with recently written business deals and we have the tight timeline climate we are currently facing.

How is this affecting the industry?

Funding representatives, realtors lawyers, and inspectors are all facing higher volumes than they have ever seen. It has been said that Kelowna lawyers recently faced some of the highest volumes in history. This is wonderful for realtors and other entities in the industry, as well as home buyers, but it might reduce the amount of time you thought you had to get your affairs for your real estate transaction.

How does the documentation process work within a deal?

Upon the accepted offer of your subject property, you will receive a completed Contract of Purchase and Sale (CPS). Upon receipt, this needs to go to your funding representative and lawyer of your choosing. Some lawyers in the Kelowna area aren’t accepting files that close on or after early August, so getting them your CPS regardless of the closing date allows you to reserve a spot in their schedule.

Ideally, if you have a financing subject, along with the other standard subjects such as inspections and review of strata documents (specific to condo and bare land strata purchases) the ideal threshold for full subject removal is 10 days. During these 10 days, not only will you be arranging partners to try to satisfy each subject, but your funding representative will be submitting for approval and lawyers will be getting your file ready for closing.

Once subjects have been removed, your Subject Removal document, along with the authorized Title and Property Disclosure statement (in most cases) will also need to get to your funding representative and lawyer so they can continue to move the file along. If each partner in the process has enough time to do their due diligence and submissions, deadlines can be met with ease. If there isn’t enough time, subject removal dates have to be adjusted and everyone is left in the lurch and dates have to be moved. If you are facing a purchase where some of the standard subjects aren’t taken into consideration the timeline can be different, but these are things to keep in mind for your average transaction.

 

What are your tips for meeting deadlines and making sure the deal runs smoothly?

Real estate transactions can be stressful for anyone, which is why I am a big believer in allowing the necessary amount of time to make sure everyone can attend to their part of the puzzle. If you are working with us I will be the one taking care of this liaising for you. Coming from a mortgage background, I know firsthand the importance of all parties being up-to-date and properly informed as the transaction proceeds. As long as you have the right team of professionals assisting you along the way,  we can keep each stage completed as seamlessly as possible. Good luck and happy house hunting! I look forward to speaking with you!