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!

 

WHY SHOULD I HIRE A REAL ESTATE PROFESSIONAL?

Why should I hire a real estate professional? This is a question REALTORS® get asked all the time. There are numerous reasons to hire a real estate professional but today I am going to highlight some of the more important reasons.

Who looks after all the paperwork?

Over the years I’ve heard horror stories about buyers and sellers doing a transaction on their own and the paperwork goes bad. They don’t use the right forms for the right action, the paperwork is not forwarded to the lawyer on time, or they don’t adhere to the time limitations stated in the contract.

Who do you negotiate with?

Most buyers and sellers believe they are good negotiators. Most often they let their emotions take over and negotiations go sour. They also don’t realize they need to negotiate with upwards to 10 people during the course of the transaction, such as home inspectors, lawyers, contractors, etc.

What is the home really worth?

What is the home you’re buying or selling really worth? Many people rely on “experts” who don’t actually buy and sell houses as a profession to tell them what their house is worth. A buyer or seller needs to analyze what houses are actually selling for in their neighbourhood. They must also uncover other information that may affect the value of the home such as new schools or school closures, public transit, location of amenities, etc.

Do buyers and sellers really know what’s going on in the market?

We are bombarded every day with information on the housing market, interest rates (up or down), actual home sales statistics and so on. The real estate market is different from neighbourhood to neighbourhood. Buyers and sellers need to know what is happening in their backyard, not across town, provincially, or nationally.

These are just a few reasons to hire a real estate professional. After all, why would anyone make one of the most important financial decisions of their life without the help of professionals.

If you work with a Coldwell Banker® Pinnacle Real Estate professional, he or she will take care of all the details to ensure a successful transaction.

 

 

Do It Yourself or Hire A REALTOR® – It’s Your Choice

One question I get asked quite often by homeowners is “Why shouldn’t I sell my house myself?”

Well, the fact of the matter is, a REALTOR® can likely put more money in your pocket, even after paying their commission, than selling it yourself. What many homeowners lose sight of is the amount of money they end up with after their house is sold, because they are concentrating on the amount of commission they are paying.

According to the National Association of REALTORS® 2011 Home Buyers and Sellers Survey, the private sale transactions account for approximately 10% of all sales. The law of supply and demand plays a big part in the value of your home. Everyone knows that the more buyers that are interested in a property the more value it may have. Therefore if your home is only exposed to 10% of the buying market as opposed to 100% of the buying market, there is a greater chance of you not getting top value for your home.

One thing Sellers need to realize is, if buyers pass on all the homes listed on MLS® and all the free services and assistance a Buyer Representative provides, and buy a private for sale home, they do so, because they think they can purchase the house for less money since the seller is not paying a commission. So, as a home seller, you will always be paying a commission. If you sell privately you pay it to the buyer in the form of a reduced price, or to your REALTOR® if you choose to sell it through the MLS®.

What amazes me is that some home owners are willing to risk what is probably their largest investment, and rely on the expertise of someone that has possibly never sold a home before, themselves. Yet they will spend their hard earned dollars to make sure their car is being serviced by an expert auto mechanic.

Statistics show that 7 out of 10 For Sale By Owners end up listing and selling through a REALTOR® or they don’t move forward with their plans. Many home owners add additional expense to their home selling process by attempting to sell on their own first. For example, there are classified advertising costs, printing costs for feature sheets, maybe they buy a do-it-yourself home selling kit from a For Sale By Owner marketing company. These costs can be anywhere from $200 to $2,000.

For all you home owners out there thinking of selling privately, talk to a professional REALTOR® and ask them to show you what your net proceeds will be after all the selling expenses. This is the amount of money you will have available to you to move forward with your plans. When you really think about it, isn’t this one of the first steps you should be doing when selling your home?

Good luck to all the home sellers out there and I hope all your housing dreams come true!