Eeekkkk, someone wants the same house you do!

Dang. Double Dang and Darn it all!  Just when you thought you had a clear shot on your offer for the home you've been hoping to buy your Realtor phones you with that awful sentence.  "We're now in competition."  What does this mean, and what can you do?

What this means is that at least one other interested party wants the home that you want.  What you don't know is what their offer will be or what their terms are.  But, whatever your offer contains needs to be reviewed.  Ask yourself these questions:

1.  Am I willing to offer over list price?
2.  Am I willing to go in without "subject to financing?"
3.  Am I willing to fore go an inspection?
4.  Am I willing to drop any other clauses meant to protect my position?
5.  Am I willing to be flexible on dates of possession?

A great Realtor will explain the risks of removing any subjects prior to your offers acceptance.  While you do want to make your offer as big in money and small in subjects as possible, you also don't want to risk any big problems! 

In super heated markets some buyers actually take an inspector with them to look!  Taking an inspector around is not an easy thing to do....you might, however, have time to have one look at the property before the offers are considered.  Otherwise, unless it is a new home with a warranty it is risky to strike an inspection.  If you have the money in the bank and don't need a mortgage you can strike the subject to financing clause; however if you need a mortgage, even if you're pre-approved the bank needs to be satisfied with the exact property you want to spend their money on, so that too, is risky to strike.  If you can obtain the property disclosure statement and title prior to offers being considered and they are not worrisome at all you can strike those clauses.  Another common clause is to find insurance and that you can make a call about in a snap (at least during business hours).  Most home insurance is easy to come by unless the home is out of a fire protection area and/or in an interface area.

If you have flexibility in your timing, you may wish to leave the dates completely open and at the seller's choice....that can often make or break a competing offer.

In competitive offers you REALLY need the help of a great Realtor.  A great Realtor will always attempt to present your offer personally to the sellers and represent you in the best light.  And, even the best Realtor won't win every one.  Sometimes someone with unlimited reserves comes along that really, really wants the property and offers a suitcase full of cash for it.  Please, don't shoot your Realtor if they have to bring you that message....

Some people completely shy away from offers in competition; however, nothing ventured, nothing gained.  Not every offer in competition is a grand one; so you can go in as normal and see what happens....you might be pleasantly surprised that they picked your offer!

There are many other strategies that a Great Realtor will have to help guide you!  Once again, proving that a Great Realtor is worth every cent they make and then some.

So you think you want to be a Realtor?!

It's not uncommon to run into someone who wishes to pick my brain about becoming a Realtor. The lead in conversation is often something like this: "my family (or friends) think I'd be a great Realtor because I like houses and like people."

Of course those two qualities are excellent for a Realtor! Probing further I will ask, "how is your tolerance for stress?" If the answer is that the person does not handle stress well, I recommend a different career choice. My next question is, "how well do you handle rejection?" If the person says they wilt when rejected, once again I recommend a different career choice.

Unlike traditional jobs, in real estate you don't get paid until a successful sale completes! Just because you're working hard does not guarantee a paycheck. What's more, there is more work involved in collapsed sales than in successful ones! When I first started in the business I remember a more veteran Realtor commenting that you never really relax in this work. You can have a cheque in hand for 20,000 yet you have no idea where and when you'll earn your next pay! Meanwhile, expenses are no respecters of successful deals! Advertising, vehicle, computer, phone, office, franchise, board association, insurance, camera, income tax, HST and education costs roll merrily along with marked enthusiasm! You simply cannot "coast" in this business. A seasoned Realtor recently remarked that it costs an individual Realtor in the vicinity of 50,000+ per year to maintain a strong presence in the profession!

Being honest, earnest, keen and enthusiastic will be of great benefit; but you will often be rejected in favour of a budget brokerage or a Realtor with a great spiel! People often say that "its business, its nothing personal." However in a heartfelt endeavour, it sure feels personal! So, you need to learn how to manage your emotions in the roller coaster amusement park which is real estate!

There is a whopping percentage of people who enroll in the University course to become a Realtor that never successfully pass the exams. The number of new Realtors who last more than a few years is also slim.

All this being said, this is a wonderful, wild, fun and delightful line of work! You are guaranteed wonderful highs and significant disappointments! You have the chance to play a meaningful, strategic part in people's lives. It is a career of lifelong learning. And, just when you think you've seen it all...a new twist of human nature takes a swipe at one of your deals.

The best in the business maintain their dignity and poise under pressure. They are true professionals with tremendous responsibility.

The requirements are huge and the rewards can be great. My best advice if you're seriously considering this as a career is to have a good heart to heart with a Realtor you trust and really get an inside look at what your life will be like as your own boss with very robust competitors!

And some think we get paid too much! If they only knew....

Are you loyal?

A recurring nightmare for Realtors goes something like this: for six months they've racked their brains, redone market evaluations to check pricing, advertised relentlessly on line, done open houses, taken tour though, used the local press in efforts to sell your home and still have not had an acceptable offer on your home. It happens, often without good reason. The listing expires and the owners decide to "take a little break." Meanwhile, Realtors combing "expireds" for listings initiate contact and promise the moon. "We take your listing to Alberta (so does every Realtor who uses the internet!), we advertise 24/7 until you're sold (so does every Realtor using mls), we only charge 3% (all commissions are negotiable down and UP at the time of sale -- bet they didn't tell you that), we sell more (they don't tell you they're comparing a team of 6 to one individual.) You catch my drift.

What wakes the Realtor in a screaming sweat from this nightmare is when their client falls for this drivel...not only falls for it, but signs with this competing Realtor, and not only signs with this competing Realtor, gives them the price reduction you've been asking for for the last 60 days!

What drives the final stake through the Realtor's heart is when the home sells (due to the price reduction) and the competing Realtor promptly displays a big fat sold sticker on their sign!

If you have a Realtor that's doing a great job for you, for pity sake, be loyal! They will get the job done and they deserve your loyalty. Don't let someone else prey on your insecurity or frustration. Simply let them know you have a great Realtor and you're taking a break and kindly not to call you again. But, do bring buyers!

Oh, that reminds me that's another hook, "I have a buyer who would like a home like yours." Oh, really....why didn't they bring them buy during the 1/2 year it was listed?! Ha!

Competition is always a good thing, don't get me wrong. If you've had a dud Realtor, by all means do not favour them with further business. There are many fantastic Realtors with high ethical standards you could be using.

But if you have one of those great Realtors already, one who is doing everything possible to bring you a successful outcome...don't break their hearts! Stay true and stay loyal.