Navigating real estate can feel overwhelming with all the industry jargon. Whether you're buying your first condo or your fifth luxury home, understanding key terms helps you make confident decisions. Let's decode the language you'll encounter most often in today's market.
Real Estate Terms Decoded
Pre-Approval vs Pre-Qualification
Pre-qualification is like exploring financing options, a basic estimate based on financial information you provide. Pre-approval is like having an actual mortgage, it involves verification of income, assets, and credit, giving you a firm commitment amount from your lender. In competitive markets, sellers strongly prefer pre-approved buyers as they represent serious, qualified purchasers with secured financing.
Pre-qualification is like exploring financing options, a basic estimate based on financial information you provide. Pre-approval is like having an actual mortgage, it involves verification of income, assets, and credit, giving you a firm commitment amount from your lender. In competitive markets, sellers strongly prefer pre-approved buyers as they represent serious, qualified purchasers with secured financing.
Subject-Free vs Subject Offers
A subject-free offer has no conditions and becomes firm immediately upon acceptance (keeping in mind there is a 3-day rescission period for buyers with subject-free offers). Offers that include subjects typically have 7-10 days to complete due diligence such as property inspections, financing approval, and document review, and can potentially withdraw their offer without penalty. Subject-free offers are stronger but require confidence in the property and your financing.
Asking Price vs Assessment Value
Asking price is what sellers hope to receive, while assessment value is the government's valuation for tax purposes. Assessment values often lag behind market reality by 6-18 months. Focus on recent comparable sales rather than assessment when determining fair market value.
Closing Costs
Beyond your down payment, expect closing costs including legal fees ($1,500-$3,000), property transfer tax (1-3% of purchase price), home inspection ($400-$800), and moving expenses. Budget an additional 1.5-4% of purchase price for these essential costs.
Days on Market (DOM)
Days on Market indicates how long a property has been actively listed for sale. Fresh listings (under 30 days) may command asking price, while properties over 60 days might indicate pricing adjustments needed. DOM helps gauge market interest and negotiation opportunities.
Rescission Period
In British Columbia, the Home Buyer Rescission Period (HBRP) provides buyers with a three business day "cooling-off" period after accepting an offer on a residential property. This allows buyers to reconsider their purchase and potentially withdraw their offer, subject to a cancellation fee. The HBRP aims to protect buyers from hasty decisions and potential regrets. If a buyer decides to rescind, they must provide written notice to the seller within the three-day period. A cancellation fee of 0.25% of the purchase price is payable to the seller when the buyer rescinds.
Questions about any real estate terms or ready to explore the market? Let's discuss how they apply to your real estate goals.
This Lower Lonsdale condo showcases modern living with Victoria Park and Burrard Inlet views. The unit features granite countertops, stainless appliances, hardwood floors, and a 70 sqft balcony. Building amenities include exercise center and concierge services.
1 Bed | 1.5 Baths | 622 Sq. Ft.
Rare 32,000 sq ft oceanfront property with 100 feet of low bank frontage. Endless potential to redevelop or restore the existing Bainbridge House. Private mooring buoy and direct access to Lighthouse Park trails.
3 Beds | 3.5 Baths | 3,000 Sq. Ft.
Extraordinary opportunity featuring 2 legally subdivided lots, each approximately 12,000 sq ft. The current home offers immediate enjoyment while exploring future building potential. Southwest-facing deck and prime Cypress Park Estates location.
4 Beds | 4 Baths | 2,250 Sq. Ft.
Understanding Real Estate Language
These five terms represent the most common questions we receive from clients. Understanding them helps you navigate listings, negotiations, and transactions with confidence. Whether you're exploring condos with strata fees or waterfront estates with unique ownership structures, knowledge empowers better decisions.
Remember: every real estate transaction is unique, and professional guidance ensures you understand all terms specific to your situation.
Questions about any real estate terms or ready to explore the market?
Contact us today for personalized guidance and answers to all your property questions.
July Events on the North Shore
Sunset Cinema in the City - Multiple Dates
Various North Vancouver Parks
Free outdoor movie nights under the stars! Upcoming showings include Jumanji at The Shipyards (July 30). Bring blankets and arrive early for the best spots. Movies start around sundown (8-9 PM).
Live & Local Summer Concerts - Ongoing
Various North Vancouver Locations
NVRC's free summer concert series brings live music to neighborhoods across North Vancouver. Enjoy diverse genres from rock to Latin fusion at parks throughout July and August. Check NVRC's social media for weekly lineups and locations.
Dundarave Hoedown - Friday, August 22nd | 4:00-9:00 PM
Dundarave Village
Save the Date! Mark your calendars for West Vancouver's beloved community celebration! Music, BBQ, pony rides, face painting, and a hay maze await. This fun-filled family day, hosted by ADBIA, celebrates another year of supporting local businesses and brings neighbors together for an unforgettable evening.
Harmony Arts Festival - August 1-10
West Vancouver
West Vancouver's premier summer festival returns with 10 days of art, music, food, and cultural experiences for all ages. Enjoy free daily concerts at two stages in Millennium Park, browse the Art Market on Argyle Avenue featuring ceramics, jewelry, and local crafts, and explore the visual arts hub at John Lawson Park with works from 80 local artists. Don't miss the festival favorite "Best of the West" food and wine event on August 6th at Ambleside Pier, featuring pairings from local restaurants and wineries.
