If you are buying a strata-held property in BC, you’ll likely be given a depreciation report to review. But the thing is, how do you make it make sense? Liz Penner, your top-realtor in Fraser Valley, gives you an insight into the value of understanding Depreciation Reports.
Strata Depreciation Reports: What You Need to Know
Strata depreciation reports are a relatively new requirement in BC, requiring strata councils to provide them in 2011. The need for these reports was introduced to give strata councils a planning tool for extensive capital repairs. At the same time, it provides prospective home buyers with an accurate snapshot of the condition of the property they are purchasing.
Strata councils with 5, or more, units are required to vote on getting a depreciation report every year but can opt-out. This means that not all strata councils will have a depreciation report. This is particularly true for newer developments that are still under a new home warranty and smaller ones with less than 20 units.
What is a Strata depreciation report?
A strata depreciation report is typically an 80-100 document prepared by an engineering firm to assess the physical condition of the structures on the building and the associated components.
The document is extensive, containing images of the components with written details, including each component’s age, condition, estimated useful life, and replacement cost.
What does a strata report look like?
Provincial regulations require that a depreciation include an inventory and evaluation of a building’s common property elements including:
- exterior (such as roofs, roof decks, doors, windows and skylights),
- systems (such as electrical, heating, plumbing, fire protection and security); and
- common amenities (such as fitness room, pool, bike lockers etc) (Baragon, Ellen, Jan 8, 2021).
Why do you need a Strata depreciation report?
A strata depreciation report is an essential tool in helping you assess the condition of the property you are buying. This is particularly important as prospective home buyers are rarely given access to mechanical rooms to determine the condition of the building elements that they will soon be responsible for paying to repair.
Depreciation reports can be tricky to read as they are long, detailed, and technical. What’s more, is that they tend to offer the owners several options to fund capital projects. The reports are often several years old, and it can be hard to tell what recommendations have been adopted by the strata council.
This can be further complicated by a strata council or property managers that are not immediately available to answer questions about the documents presented.
This is where it pays off to have a great realtor. When you purchase a home, realtors can read and interpret the depreciation report, the strata documents, and the financial statements of the strata you are buying into.
A great realtor must explain the reports to you in a way that makes them easy to understand. Concerns about the documents such as an upcoming assessment or significant repairs, can be discussed and addressed professionally.
Hire a Trusted Realtor Today
Thinking of buying or selling a strata-held property in BC? Get in touch with Liz Penner today, your Top-Selling Realtor in Langley, Surrey, & Cloverdale. I’ll help you find the right home for you. Interested in listings around the Fraser Valley area? Feel free to visit our website or dial 604-376-3350 now.
For more information about Depreciation Reports in BC, check out the link below:
Baragon, Ellen. Jan 8, 2021. Strata Depreciation Reports: What REALTORS® and Clients Need to Know. BCREA Practice Tips. Accessed on Feb 28, 2021. Accessed from: https://www.bcrea.bc.ca/uncategorized/strata-depreciation-reports-what-realtors-and-clients-need-to-know/
About Liz Penner | Your Best Langley Real Estate Agent
Liz Penner is a top-selling licensed real estate salesperson with the Fraser Valley Real Estate Board and has been a top-selling realtor specializing in the residential resale of condos, townhomes, and houses for over a decade. Liz assists residents of the Langley and Surrey areas to sell real estate while looking out for the client’s best interests. Liz also helps first-time homebuyers, families, and repeat purchasers with their property search process, ensuring that her clients get access to the very best homes on the market while receiving excellent service ensuring that they find the perfect place to call home.
Liz holds a BBA in leadership and has completed a variety of specific training through the Fraser Valley Real Estate Board in the areas of selling strata properties, foreclosures, estate sales, and new construction properties. Liz is also well versed in POAs, the Strata Property Act, and more.
If you are looking for a knowledgeable and professional real estate agent that is willing to do everything possible to ensure that you get top dollar for the sale of your home or to find the dream home you are looking for in the Surrey and Langley, BC areas then get in contact today.
Why list your home for sale with Liz Penner
- I’ve helped my clients sell over 400 condos, townhomes, and houses throughout the Langley and Cloverdale area, and I’d love the opportunity to do the same for you.
- I’ve experienced straightforward sales and sales that have gone off the rails, back on the rails, off the rails, and then back on again. That’s just the way the real estate train rolls, and it never rattles me.
- I’ve got a solid toolkit to pull from when a problem arises. I take my job seriously each time, and I will make sure you get top dollar for your Fraser Valley, Langley, or Cloverdale home, smooth sailing, or otherwise.
- If you’re looking for a realtor that you can count on in the Langley and Surrey area.
- I’m your Agent!
- If you want top dollar for your home
- I can do that!
- Do you want to save money on your next home purchase?
- I can do that too!
What you can expect when working with Liz Penner
- Fast, Reliable, and Quality service
- Frequent Communication – from somebody who is available to serve you in the key moments that matter.
- Expert Advice – from a well-trained and well trained and experienced agent with almost 2 decades of experience as a top-selling real estate agent.