ARE YOU USING THE RIGHT PRODUCT?

Last week Ann talked about what our product was at Coldwell Banker Pinnacle Real Estate. Today I want to talk about choosing the right product for you.

 

There are many different business models in the real estate industry today, from Fee for Service to Full Service and everything in between. You need to do your due diligence to ensure you get the level of service you need.

 

For example, there are REALTORS® who are telling investor clients to call the listing sales representative to view the property and if they want to buy the property to call them back to put in the offer. Do you really think that REALTOR® can give the proper advice to their client if they haven’t seen the property themselves?

 

Be careful when dealing with a seller that has hired a Fee for Service Brokerage just to get their listing posted to REALTOR.CA and is handling all the other details themselves. These sellers do not have to follow any Code of Ethics or timelines etc. An example would be, telling you there are competing offers, when they don’t actually exist just to get you to increase your offer.

 

Many critics of the real estate industry say the REALTOR® is going the way of the Dodo bird. In reality, according to the National Association of Realtors® most recent Home Buyers and Sellers Survey, the REALTOR’S® role is even more important. The consumer needs the REALTOR’S® expertise to sift through the mounds of information, and as Ann put it, “interpret the information available to maximize the return on your investment.

 

If you are thinking of buying or selling real estate, do your research and make sure you get the level of service you need. Talk to a real estate professional. Better still, talk to a Coldwell Banker Pinnacle Real Estate Professional. Good luck!

 

Exactly What is Our Company Product?

Product clipart copy
What does a real estate company really sell?

I am sure most people would say we sell houses/businesses
and the like. That may be the way of the past, but I don’t think that is true any more.

The true product of today’s full service real estate company (which we are) is the ability to interpret the information available to maximize the return on your investment. (i.e., the commission you pay a REALTOR® for that ability).

With the availability of information regarding asking and sale prices, along with the advent of fee for service companies, truly anyone can put their home on the market.  I believe the difference a full service company brings to you is the ability to know what the market in your particular area is doing.  Are prices increasing? Are there competing offers happening in the area? Is there a development (good or bad) in the area that may affect price? What are the trends in the market? Is there a current shortage of supply? What is happening with mortgage interest rates? Are there any government policy changes that may affect the saleability of a home, or the ability of a buyer to qualify for financing?

If you add to that the specific knowledge and training that REALTORS® have regarding marketing/promoting properties, I believe REALTORS® supply a very important product in their knowledge, interpretation, and implementation of information.

When you are looking to buy or sell what may be your largest financial asset, would you not hire a professional?  If you were thinking of investing $100,000 would you check the internet and make a decision, or would you check with someone who specializes in investing large sums of money, whether for the potential growth it might provide, or to ensure the security of the investment?  Many real estate sales today involve far more than this amount.

Keep in mind that fees are always negotiable.  Be sure to purchase the right real estate product for you – and I’m not talking about the four walls and a roof.

Be sure to call one of our real estate professionals and discuss the product they offer… you may find it’s more valuable than you anticipated.

BIDDING WARS – ARE YOU A “SMART” BUYER?

I read a couple of real estate articles in the past two days regarding multiple offer situations or “Bidding Wars” as they are commonly known.

 

The first article, published in the Toronto Star on April 28, 2014 about a house in the Yonge and Lawrence area selling for almost double the list price. The house was listed for $699,000 and sold for $1,366,000 or 195% of the list price after receiving a total of 72 offers.

 

This article dovetails with the second article I read about the results of a recent survey by the Real Estate Council of Ontario which stated that slightly more than half of today’s buyers are influenced by emotion when making real estate decisions. The top factors when purchasing a home are as follows, price 96%, functional fit 95%, structural integrity 91%, and neighbourhood quality 91%.

 

However, 51% of home buyers admit to having been influenced by emotion when buying their home. According to the survey, this number jumps to 64% for younger home buyers, who are emotionally and financially vulnerable. This is what I call buying with your heart instead of your brain. I made that mistake myself when I bought my first home.

 

First time home buyers need to be extremely careful when they enter into a “Bidding War”. They need to make sure their REALTOR® provides them with all the information regarding comparable sales of the same type of home in the immediate area to enable them to make a SMART DECISION.

 

Buyers often times refer to their buying experience when there is a “Bidding War” as winning. In my opinion, the only time you win in an auction type situation is when you purchase something for under market value. Paying 30, 40, or even 50 thousand dollars higher than the most recent sale in the neighbourhood is not winning.

 

Some people refer to bidding wars as the “School of Fish Mentality”. Just because everyone else is willing to pay more for a particular house, buyers seem to think it is OK and the house will be worth it.

 

The Real Estate Council of Ontario is launching BE HOME SMART – a public education campaign to remind Ontarians of the tools, resources and protection available to help them make smart home buying and selling decisions.

 

When in doubt, call one of our Coldwell Banker Pinnacle Real Estate professionals to guide you through the buying or selling process.