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🎁 The Greatest Gift!… And It Comes With Tax Benefits… 🎁

The Fortunate Ones

If you’re fortunate enough to be a parent, you’ve already won in life. As challenging as parenting is at times, they truly are our greatest treasure. Of course, two things can be true simultaneously, the flip side of the parenting coin is that good parents are always wondering, “How can I do best by these humans I’ve been entrusted with?”‘  

If you follow our social media, you know we’re as intentional in our parenting as we are in our business. We entered the teen years last year, the questions we face now as parents are different from the ones when they were little. What should a first job look like? How do we navigate technology? Do we invest in an RESP if we suspect they might not want limited post-secondary options? We could go on!

It’s undeniable at this stage that the environment our children face will be wildly different from the one we grew up in; just as the environment I’ve experienced as an adult has been markedly different from the one of my parents’ generation. Economically, many of the opportunities that existed in the 90s and 2000s began drying up in the 2010s, and the 2020s have seen inflation explode and incomes remain relatively flat. The same home that used to require 4x annual income to purchase now needs 15x. There’s no amount of dodging avocado toast that’ll make that gap up. 

As a result, many of the parents of teens and twenty-somethings are recognizing this generational imbalance and trying to help their kids navigate it. Now, on the topic of ‘fortune,’ we recognize not everyone’s in such a position. I wasn’t, Amanda wasn’t, and many of you are not – we have solutions for you too, but for those that are considering this option we wanted to share some details.

There Is (Currently) No Gift Tax Or Limit

You can hardly move in this country without being taxed through the nose, so this is a truly rare opportunity… Canada has no gift tax! In the vast majority of cases, if you give your child money toward a down payment, you don’t pay tax on it, and they don’t declare it as income. There’s also currently no legal cap on the amount. On insured mortgages (now available on homes up to $1.5M federally), 100% of the down payment can come from gifted funds. Finally, the gift also doesn’t impact their mortgage qualification like a loan would.

More good news, it’s actually a fairly simple process. Every lender will require a gift letter, a short signed document confirming the money is a true gift, not a loan, and that the donor has no ownership claim on the property. Ideally, the funds land in the recipient child’s account well before the mortgage application. Some lenders want 15 days of ‘seasoning;’ others want more. The earlier, the better. 

So, How Much Are Families Gifting?

Given the extreme housing inflation in Canada’s major metros many prior generations recognize that what benefited them has created a potential generational imbalance, and they are looking for ways to help mitigate that for their kids. Again, not everyone has this opportunity or perspective, but we’re seeing it increasingly as inflation continues to outpace income. 

Take a deep breath… as of early 2026, national estimates put the average parental gift around $167,000. In British Columbia, that number climbs above $230,000 – which tells you everything about what’s happened to property values here. In our experience though, more commonly we’re seeing gifts starting in the $20,000-50,000 range to help supplement the kids own savings. This is a philosophical decision as well as an economic one, giving your kids more financially may come at the cost of them finding their feet as best they can. ‘The Prodigal Son’ is one of the more famous parables for a reason – *spoiler alert* the kid got his inheritance early and blew it. 

Where Else This Goes Sideways

That’s not the only danger though. As you’d expect, gifting a down payment, or even a partial downpayment, changes the family dynamic. If you have multiple kids, it can create expectations, and frankly, each child may not be equally responsible or prepared for this. You also need to take into account your own ability to follow through financially, you might be able to help your firstborn, will that still likely be the case for your thirdborn in six years?

If the relationship changes, a gift is still a gift – you have no legal claim on the asset and if you try to assert one it can come with relational, legal and accounting consequences. These conversations should start early, ideally over the course of years or months. The nature of the gift needs to be understood by all parties long before you write the cheque. 

How We Help

Increasingly we’re having parents reach out to us for these conversations, especially now that entry level condos and townhomes have seen a 10% pullback in many markets. The conversations begin with the financial picture, the ‘time value of money’ shocks many parents into seeing why this is such a powerful gift, but we do take the time to discuss how their gift will impact the relationship, the potential pitfalls, and how we’ll navigate the transaction together. Do they want to be hands on? Do they plan on coming to the inspection? Are they going to compare it to their first home? Etc. 

If you’re thinking about helping your kids buy in the Fraser Valley/Lower Mainland, or if your kids have floated the idea, we’re happy to sit down and walk through it with our usual openness and candour. There is no ‘right answer’ on this. Not every parent could or should do this; and not every kid needs or wants it either. Whatever’s right for your family, we’ll work it all out together.

Review Of The Month – June

It’s always a privilege to receive an unsolicited review from another Realtor, which happened a couple of weeks ago following an excellent transaction with Joel Ross. Joel’s professionalism and partnership throughout the offer, completion, and possession processes was top-class, so we were blown away when he shared the below:

I had the pleasure of working with David and Kandace on a recent real estate transaction and was thoroughly impressed throughout the entire process. They were exceptionally organized, professional, and considerate from start to finish. Their communication was clear and timely, they stayed on top of every detail, and consistently demonstrated a genuine commitment to ensuring a smooth experience for everyone involved.

David’s professionalism and collaborative approach made the transaction seamless, and his thoughtful, respectful manner was greatly appreciated. I would not hesitate to work with him again and would highly recommend him to anyone looking for a knowledgeable and reliable Realtor.

Joel Ross, Personal Real Estate Corporation
Remax Colonial Pacific Realty

Thank you, Joel! We trust it will be the first of many together. 

💰 $500 Introduction Reward 💰

Over 90% of our business at David Smith Homes Group comes from introductions or ‘referrals,’ in fact it’s what our whole business is built around. 

Instead of us spending tens of thousands of dollars trying to secure new clients, we like to invest in performing well for our current clients and also in thanking the source of those introductions. 

We’re launching a new program in 2025 to say ‘THANK YOU’ in a real tangible way, if you introduce us to a friend, family member, colleague, team mate, whatever… and they purchase and/or sell a home with us in the following year, we’ll pay YOU $500. 

Reach out to david@davidsmithhomes.ca if you have any questions about this program or any introductions to make! 

Review Of The Month – May

As I mentioned in today’s intro, it’s important that you know we’re not just marketing, but that we really do deliver on the client experience. 

Last month we had the pleasure of presenting our friends, Kyle & Jenna, with the keys to their brand new home in Willoughby. We’ve worked together for years and years at this stage, which made their review so meaningful, especially as they’ve experienced working with us in an extreme seller’s market and also in an extreme buyer’s market.

Here’s what they had to say:

If you’re trying to decide on who to trust with one of the larger decisions in your life, then allow me to encourage you to stop searching, and contact David and the Team at the David Smith Homes Group, the Best Realtor in Langley.

They are not only incredible human beings, but are also gifted Realtors who really do stand by their motto: “People over property. Always.” Throughout a year-long process, they remained organized, systematic, patient, gracious, and always professional. In the world of Real Estate transactions, I felt like they worked like a well-oiled machine.

We trusted David with our initial purchase 5 years ago in a market that was incredibly unforgiving. Subject-free offers were common, and we were at a loss as to how we would navigate climbing prices. Fast forward to this year when we decided to make an attempt at upgrading, David’s service was once again put to the test in a completely different market.

Through the entire process of selling our current home, and upgrading to something for our growing family, David was kind, patient, and intentionally honest. Never once did he promise something that he couldn’t deliver, and he certainly didn’t ever push us to lower our asking price beyond what we were comfortable with.

We’d ask David a question, and he or a team member would get back to us with an answer within the hour. They worked for us tirelessly in a market that was flooded with inventory. They helped us understand the benefit to selling first, and then looking for our purchase, and helped us navigate the anxiety brought on with that with great care. Our questions and concerns were welcomed and encouraged, and at every step of the way, any concerns we had were addressed immediately.

David, Kandace, and the rest of the team, Jenna and I are truly so grateful and thankful for your influence, your care, your kindness, and your professionalism, and we’re so grateful for your help in getting us into our wonderful home. We wish you all the best, and are excited for where the future will take us. – Kyle & Jenna

Thank you, Kyle & Jenna! We’re so happy for you! 

😲 The Cruelest Thing In Real Estate 😲

Why ‘Get the Listing to Get the Price Reduction’ Is Costing Sellers More Than They Know

Years ago, I heard a phrase from ‘an industry leader.’ He said it matter-of-factly, like it was just the way things were done:

“Get the listing to get the price reduction.”
I’ve never forgotten it – it shocked me at the time, and every time I’ve run into it since it’s grieved me to see what it does to the people on the receiving end.

How It Works & Why It Persists
The strategy is simple: an agent wins a listing by telling the seller what they want to hear – a high price estimate – rather than giving an honest market assessment. Once the listing is secured, the agent manages a gradual retreat toward reality through a series of conversations about price reductions. Sometimes agents will call it “buying the listing.” Whatever anyway calls it, the mechanics are the same.

It persists because it works – for the agent, in the short term. Win the listing, get the commission when it eventually sells. The seller’s experience along the way is someone else’s problem. And sellers often don’t realize they’ve been played until months into a painful process, when inertia has set in and starting over feels like admitting defeat.

The Real Cost
In any market, overpricing a listing is costly. In a downtrending market, it can be devastating to a seller’s outcome.

When a home is listed above market value, it attracts limited showings. The home sits. Days on market accumulate. Meanwhile, in a falling market, the comps that justified last month’s price are being replaced by lower ones. The seller isn’t just failing to sell – they’re falling behind.

Every week a home sits overpriced in a downtrending market,
the seller is fighting two battles at once: the stigma of sitting and
the erosion of market value beneath them.

A home with 60 or 90 days on market and multiple price reductions sends a signal to buyers – even when nothing is wrong with the property. Buyers start wondering what others saw and passed on. They lowball. Or they scroll right by. The seller who listed at $1,050,000 when the honest number was $940,000 often ends up – four months and two price reductions later – selling for less than a correct day-one price would have achieved, plus the added carrying costs of months of additional mortgage and tax.

Right now, in the Lower Mainland, sellers pricing based on peak comparables or emotional attachment are facing a real reckoning. The buyers are there. But they have inventory and patience, and they’re not going to overpay.

The Part That’s Actually Dishonest
Not every agent who overprices a listing is acting in bad faith. Some are too optimistic. Some can’t hold their ground under seller pressure. But the deliberate version – pricing high to win the listing, fully intending to manage reductions later – is knowingly telling a client something you don’t believe in order to secure their business. I’d say that’s a problem.

And the damage isn’t only financial. Sellers who go through this feel blindsided – and they should. The trust that’s supposed to be the foundation of the relationship was used to win a contract, not to serve the client.

What Honest Representation Looks Like
I’m not arguing that sellers don’t have the right to list wherever they want. They do. But it has to be an informed decision.

Our job is to give sellers my honest professional opinion before they decide – and to hold it even when they push back. If a seller wants to list above our recommended price, we’ll respect that choice. But they’re going to know, clearly and on the record, that we believe we’re priced above market. And before the sign goes in the yard, we’ll have a plan for what happens if the first two weeks confirm it.

The price reduction conversation belongs before the listing goes live – not six weeks in when everyone is frustrated and the market has moved.

The Bottom Line
The cruelest thing an agent can do is tell a seller what they want to hear, collect the listing, and then walk them through a slow and painful education in market reality – while their equity quietly erodes.

There is a version of this process where the seller is treated as a partner, given honest information, and allowed to make fully informed decisions. And there is a version where they’re told a number that wins the listing. Those are not the same thing. When you’re choosing who to trust with the largest financial transaction of your year – maybe your decade – it’s worth knowing which version you’re getting. Reach out to us today for a fair market value assessment based in real market data. 

🎬 Client Testimonial – Tim & Tara 🎬

One of the best things about serving clients in this industry for nearly a decade is the lasting relationships.

Tim & Tara were two of our first clients, and are now repeat clients, having also introduced us to members of their own family.

Thanks for being not just clients, but champions, Tim & Tara!