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Anyone who has been in the real estate business for any length of time understands that the words "reputation" and "referral" are inextricably intertwined.
Something that has become apparent to many is that realtors who view real estate as their calling - meaning that it's more than a job, but also an opportunity to serve and to grow personally and professionally - are those realtors who have the deepest appreciation for the Code of Ethics. Questions Every Buyer Should Ask A Realtor
1. Are you a full-time professional Realtor? How long have you worked full time in real estate? What professional designations do you have? Knowing whether or not your Realtor practices real estate on a full-time basis can give you a piece of the puzzle in foreseeing scheduling conflicts and, overall, his or her commitment to your transaction. As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. The same issue can apply to professional designations.
2. Do you have a personal assistant, team, or staff to handle different parts of the purchase transaction? What are their names and how will each of them help me in my transaction? How do I communicate with them? It is not uncommon for high real estate sales producers to hire people to work for them or with them. They typically work on a referral basis, and , as their businesses grow, they must be able to deliver the same or higher quality service to more clients. You may want to be clear about who on the team will take part in your transaction, and what role each person will play. You may even want to meet the other team members before you decide to work with the team overall. If you needed help with a certain part of your home purchase, who should you talk to and how would you communicate? If you have a question about fees on your closing statement, who would handle that? Who will show up to your closing? These are just a few of the many important considerations in working with a team.
3. Do you and/or your company each have a Website that will provide me with useful information for research, services , and how you work with buyers? Can I have those Web addresses now? Many homebuyers prefer to search online for homes and home buying information. There are certain privacy and comfort levels that you might appreciate in starting a preliminary search this way, and often it is just a matter of convenience, having 24-hour access to information. By searching the Realtors' and the company's Website, you will get a clear picture of how much work you would be able to accomplish online, and whether or not that suits your preferences.
4. Will you show me properties from other companies' listings? Some real estate companies do offer their buyers' agents a higher commission if they are able to sell "in-house" listings. In such circumstances, there can be added incentive to show you a more limited range of homes than you might consider. If this is the case with your Realtor, you should be very clear on how this will impact your home search, if at all. You also should determine if this affects how much your buyer agents fee will be.
5. Will you represent me or will you represent the seller? May I have that in writing? How will you represent me, and what is the direct benefit of having you represent me? The goal here is to ascertain to whom the Realtor has legal fiduciary obligation, which may vary from province to province or even locale to locale. In the past Realtors always worked for sellers. Then the listing broker was responsible for paying the agent or sub-agent that brought a suitable buyer for the home. And even though the buyer worked "with" an agent, the agent still presented and owed their fiduciary duty to the seller. An additional situation in some provinces is dual agency. This is where the buyer decides to have the listing agent prepare the offer for him. A knowledgeable buyer may elect this situation which should be fully disclosed to all parties. In some provinces it also affect's the broker's/agents's fiduciary responsibilities to the seller. Although Realtors today almost always have a sense of moral obligation to buyers, this original type of seller agency still exists in certain areas. In other areas, a formal method of representation called Buyer Agency exists to protect buyers. Find out what is available in your area and make yourself comfortable with the extent to which you will be represented.
6. How will you get paid? How are your fees structured? May I have that in writing? This is an issue that can also be related to agency. In many areas, the seller still customarily pays all Realtor commissions through the listing broker. Sometimes, Realtors will have other small fees, such as administrative or special service fees, that are charges to clients, regardless of whether they are buying or selling. Be aware of the big picture before you sign any agreements. Ask for an estimate of buyer costs from any agent you contemplate employing.
7. What distinguishes you from other Realtors? What is your negotiating style and how does it differ from those of other Realtors? What geographic areas do you specialize in? It should be important to know that your Realtor has unique methods of overcoming obstacles and is an effective negotiator on your behalf, but most importantly that your Realtor can advocate for you in the most effective ways.
8. Will you give me names of past clients who will give references for you? Interviewing a Realtor to help you buy a home can be very similar to interviewing someone to work in your office. Contacting a Realtors references can be a reliable way for you to understand how he or she works, and whether or not this style is compatible with your own.
9. Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our Buyer Agency Agreement? Understand that, especially in the heavily regulated world of real estate, it can be increasingly difficult for a Realtor to offer a performance guarantee. Sometimes you may find a Realtor who is willing to guarantee that if you are dissatisfied in any way with their service they will terminate your Buyer Agency Agreement. If your Realtor does not have a performance guarantee available in writing, it is not a indication that he or she is not committed to perform, but rather that he or she is willing to verbally promise some kind of performance standard.
10. How will you keep in contact with me during the buying process, and how often? It's a good idea for you to set your expectations reasonable in accordance with how your Realtor conducts business. You may be looking for an agent to call, fax, or email you every evening to tell you about properties that meet your criteria which are new on the market. On the other hand, your Realtor may have access to systems that will notify clients of new properties as they come on the market (which could happen several times a day or several times a week). Asking this extra question can help with your Realtors systems, which makes for a far more satisfying relationship. 10 Biggest Selling Myths Uncovered Selling a house can be a bit like having a baby - everyone gives you advice that you may or may not have asked for, inspite of the fact that the experience is unique to each individual every time. And just like having a baby, there are many myths and "old wives' tales" to be de-bunked. Among the truths are the following ten:
Myth: You should always price your home high and gradually correct the sales price downward.
Truth: Pricing too high can be as bad as pricing too low.
Your strategy in listing high may be that you will always have the chance to accept a lower offer. But the truth is that if the listing price is too high, you'll miss out on a percentage of buyers looking in the price range where your home should be. Offers may not even come in, because the buyers who would be most interested in your home are scared off by the prices and won't even take the time to look. By the time the listing price is corrected, you may have already lost exposure to a large group of potential buyers. Your real estate agent will be able to offer you a comparable market analysis for your home. This is essentially a document that compares your home to other similar homes in your area, with the goal of helping you to accurately assess your homes's true market value.
Myth: Fix-ups can wait until later. There are more important things to be done.
Truth: Fix-ups make your house more marketable, allowing you to maximize your return (or minimize loss) on the sale.
By and large, buyers are looking for an inviting home in move-in conditions. Buyers who are willing to tackle the repairs after moving in automatically subtract the cost of needed fix-ups from the price they offer. You save nothing by putting off these items, and you may likely slow the sale of your home.
Myth: Once potential buyers see the inside of your home, curb appeal won't matter.
Truth: Buyers probably won't make it to the inside of the home if the outside of your home does not appeal to them.
Many buyers today will drive by a home before deciding whether or not to look inside. Your home's exterior will have less than a minute to make a good first impression. Spruce up the view of the house by keeping the lawn mowed, shrubs and trees trimmed, and gardens weeded and edged. Clear the walkways and driveways of leaves and other debris. Repair gutters and eaves, touch up the exterior paint and repair or resurface cracked driveways and sidewalks. You can also add additional appeal by placing potted flower out front, hanging a wreath on the outside of the door, positioning new street numbers, and putting out a pleasing welcome mat.
Myth: Once potential buyers fall in love with the exterior look of your home, you put interior improvements on the back burner.
Truth: Buyers have no qualms about walking right out the front door within 60 seconds if the house doesn't look like it could be theirs.
Remember that most buyers are looking for an inviting home in move-in condition. You might consider spending a few dollars on painting, if the existing paint is in bad shape or an unusual color; carpeting, if it shows excessive wear or an outdated color or style; refacing kitchen cabinets; scrubbing bathrooms until they are sparkling clean; or several other key repairs or replacements. Although you may be uncomfortable with spending a few thousand dollars on your home right before you sell it, it's not uncommon for the right work to more than pay for itself in a higher selling price and shorter marketing time. Your real estate agent will consult with you about the repairs and replacements that will benefit you most.
Myth: Your home must be every homebuyer's dream home.
Truth: If you get carried away with repairs and replacements to your home, you may end up over-improving the house.
At some point, improvements that you make to your home can rise far above an beyond what is customary for comparable homes in you area. For instance, there may not be another swimming pool in your entire subdivision. After spending $20,000 to install an in-ground swimming pool that you hope will lure buyers, you may find that it raises the market value of your home by $10,000 because there are no other comparible properties to support the market value of the pool. As a rule of thumb, if your improvements push your homes' value higher than 20% above average neighbouring home values, don't expect to recoup the entire amount of improvements. Your real estate agent can advise you as to the scope of projects you might consider in preparing your house for sale.
Myth: Buyers are unswayed by sellers that offer creative financing options.
Truth:By offering flexibility in financing options, you may lure even more prospective buyers.
You might consider offering seller financing, paying some of the buyer's closing costs, including a one-year home warranty, or other buyer incentives. Your real estate agent, who has professional knowledge of local market activity, can help you decide what incentives, if any, to offer.
Myth: You are better off selling your home on your own, thus saving the commission you would have paid to a real estate agent.
Truth: Statistically, many sellers who attempt to sell their homes on their own cannot consummate the sale without the service of a professional real estate agent. And those sellers who are successful in selling without a real estate agent often net less from the sale than sellers who do use a professional real estate agent.
You probably visit a doctor when you are in ill health. You also likely take you car to a mechanic for repair and maintenance. When you require legal advice, chances are that you seek the services of an attorney. Doesn't it make sense that you should contact a real estate professional when you are preparing to sell your biggest asset?
Myth: Good sellers are available to guide prospective buyers through the home, giving the whole process a more personal touch.
Truth: Prospective buyers will feel more that "this house could be" their home if the current owners are not there.
The presence of homeowners and/or their family members in the home while it is being previewed can make buyers feel like they are intruding. They really do need to be able to visualize this house as their home, which can be difficult to do when they are acutely aware that it is still your home. Your real estate agent will be happy to look out for your home during open houses or showings.
Myth: Successful sellers insist that the terms of the sale happen their way or no way.
Truth: If you approach the sale of your home as an adversary of the buyers, you risk losing a perfectly solid buyer for no good reason.
Always remember that both you and the buyer have the same basic end goal: for you to sell your home and for the buyer to buy your home. Your real estate agent will join you in approaching negotiations in a positive frame of mind, which often results in a win-win proposition for both you and the buyers. And if both parties are satisfied with the outcome of negotiations, very few things will come between you and the closing table.
Myth: When you receive an offer, you should make the buyers wait. This give you a better angle at negotiating.
Truth: You should reply immediately to an offer!
When a buyer makes an offer, that buyer, is, at that moment in time, ready to buy your home. Moods can change, and you don't want to lose the sale because you have stalled in replying.
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