I was going to call it Real Estate for Dummies...but that wouldn't be nice! By virgins, I mean those who haven't bought and sold for awhile or those brand new to real estate.
The first home I ever bought I called the fellow who had the sign in the lawn of the place we liked. This, in spite of the fact another Realtor had been showing us homes. It was simply a lack of understanding of how the system worked...as was the time we bought a For Sale By Owner not understanding that the Realtor we were then using could negotiate on our behalf on a private sale. So, to clarify a few easy things.
1. The Multiple Listing Service in BC allows for any licenced Realtor to show you any listed property. You can choose a Realtor you trust and that "gets" you and your needs and they can act as your champion. You don't have to call listing companies.
2. Your Realtor can show you private sale homes and homes utilizing other modes of Internet promotion. A Realtor can agree with a seller on their fee and you can have the agency protection and skillful help of your ally and Realtor.
3. The commission payable to Realtors is usually paid by the seller. This is not to penalize sellers, it is to allow for easier financing. Commissions are generally considered part of the purchase price; so really the buyers share the cost in a way that allows them to roll it into their mortgage rather than paying separately.
4. Skill equals dollars. It is tempting to think you are saving money by choosing a company that advertises low commissions. Be careful and interview other companies before making a decision. Some models rely on volume and you don't want to be at risk of having your home undervalued. A fine Realtor will make sure you receive the best price and attract the most buyers. ALWAYS ask for back up information on pricing and any claims made.
5. The multiple listing service is a reciprocal agreement with other Realtors. If I list a home I offer half of the commission amount to the Realtor that brings a buyer. This greatly enhances your chance of selling. Be sure that the Realtor you pick is well respected by their peers and offers a fair and respectful amount to cooperating brokerages.
6. Unless they have additional licensing, a Realtor cannot act as a property manager.
7. A Realtor MUST disclose to all parties all remuneration. There can be no undisclosed "kick backs" or any other incentives not in the best interest of clients.
8. If your Realtor is not a good communicator; run. If they don't stay closely in touch with you, you have to wonder how well they stay in touch with potential buyers and other Realtors on your behalf.
9. You don't have to worry about what you tell your Realtor; we are bound by a fiduciary duty to protect your confidences.
10. You should trust in your gut, that the one you chosen to do business with would NEVER put their pay cheque ahead of your best interests.
The first home I ever bought I called the fellow who had the sign in the lawn of the place we liked. This, in spite of the fact another Realtor had been showing us homes. It was simply a lack of understanding of how the system worked...as was the time we bought a For Sale By Owner not understanding that the Realtor we were then using could negotiate on our behalf on a private sale. So, to clarify a few easy things.
1. The Multiple Listing Service in BC allows for any licenced Realtor to show you any listed property. You can choose a Realtor you trust and that "gets" you and your needs and they can act as your champion. You don't have to call listing companies.
2. Your Realtor can show you private sale homes and homes utilizing other modes of Internet promotion. A Realtor can agree with a seller on their fee and you can have the agency protection and skillful help of your ally and Realtor.
3. The commission payable to Realtors is usually paid by the seller. This is not to penalize sellers, it is to allow for easier financing. Commissions are generally considered part of the purchase price; so really the buyers share the cost in a way that allows them to roll it into their mortgage rather than paying separately.
4. Skill equals dollars. It is tempting to think you are saving money by choosing a company that advertises low commissions. Be careful and interview other companies before making a decision. Some models rely on volume and you don't want to be at risk of having your home undervalued. A fine Realtor will make sure you receive the best price and attract the most buyers. ALWAYS ask for back up information on pricing and any claims made.
5. The multiple listing service is a reciprocal agreement with other Realtors. If I list a home I offer half of the commission amount to the Realtor that brings a buyer. This greatly enhances your chance of selling. Be sure that the Realtor you pick is well respected by their peers and offers a fair and respectful amount to cooperating brokerages.
6. Unless they have additional licensing, a Realtor cannot act as a property manager.
7. A Realtor MUST disclose to all parties all remuneration. There can be no undisclosed "kick backs" or any other incentives not in the best interest of clients.
8. If your Realtor is not a good communicator; run. If they don't stay closely in touch with you, you have to wonder how well they stay in touch with potential buyers and other Realtors on your behalf.
9. You don't have to worry about what you tell your Realtor; we are bound by a fiduciary duty to protect your confidences.
10. You should trust in your gut, that the one you chosen to do business with would NEVER put their pay cheque ahead of your best interests.
No comments:
Post a Comment