Interview Questions To Ask Your Next Realtor

Although there are many other selling options, the majority of Canadians choose to use a real estate agent to sell their home. Most Realtors are qualified, educated, and well versed in contract law. They can also have localized expertise in your neighbourhood or market. It is absolutely critical that the Realtor you choose has the skills to get the job done. Selling a home is not luck. There is a reason why 20% of the Realtor do 80% of the work. There is also a reason why year after year the same Realtors are consistent Top Producers. When interviewing your next Realtor to sell your home here are some questions for you to ask him or her;

* How long have you been selling real estate?

* How many homes did you sell last year?

* Are you a full-time agent?

* Is it the right time to sell?

* Do you work solo or as part of a team?

* How do you price a home?

* For the homes you listed in the past year, what was the average number of days they spent on the market?

* For the just mentioned list of homes, what was the average difference between the listing price and the selling price?

* How do you market the homes you list?

* Do you do any social media marketing?

* How do you use the Internet?

* Do you offer virtual tours of listed homes?

* What websites will you use to advertise the home?

* Do you have a website?

* Do you have a feedback system for potential buyers and their Realtors?

* Before you list a house, do you give clients ideas on how to make their home more marketable?

* When you’ve listed a home, how do you report back to your sellers regarding activity on the property?

* Do you have access to other professionals that clients need during the selling process?

* How do you handle negotiations?

* Do you attend inspections and appraisals after an offer is in place?

* How much do you charge?

* Will I have to pay any hidden costs?

* How accessible are you?

* How does it benefit a client if he uses you to sell?

* Why should someone list with you over other Realtors in the area?

* How much professional training do you get every year?

* If a client is unhappy with your service, can he terminate your contract and the listing?

* Do you have a list of references for potential clients?

* What are your thoughts on the real estate market today?

* What else should a client ask you that he hasn’t already asked?

This is just a start, but hopefully it will help you in interviewing Realtors better. Good luck,

Condition of Property at Possession

One of the most common and frustrating issues for both real estate industry members and lawyers in closing residential real estate transactions is a dispute over the condition of the property on Completion Day. Rarely are buyers entirely happy with the condition and cleanliness of the property when they take possession. While occasionally their concerns are valid, in most cases they are not. In any event, there is not much that lawyers can do to assist buyers in this regard. This column will explain why the Purchase Contract is worded the way it is and what buyers’ representatives can do to protect their clients where specific concerns are identified when writing up the offer.

The condition of the property is addressed in clause 4.2 of the Residential Real Estate Purchase Contract (the “Contract”) as follows;

“When the Buyer obtains possession, the Property will be in substantially the same condition as it was in when this Contract was accepted.”

In addition, clauses 6.1(b) and 6.2 of the Contract require that when possession is granted, all included Attached Goods (fixtures) and Unattached Goods (chattels) be “in normal working order”.

So what does this really mean?

In general, and unless additional terms are inserted in clause 7.6 of the Contract, it means that with the exception of appliances (which have to work), the seller doesn’t have to clean up or repair the property in any way for the buyer. In fact, the words “substantially same condition” imply that some deterioration resulting from normal wear and tear, and the scrapes and blemishes resulting from the moving out process, are acceptable. The seller is certainly not required to paint walls, clean carpets or fix small holes in walls where pictures have been removed.

Even if, contrary to the terms of the Contract, an appliance doesn’t work or more significant damage (such as a broken window) constituting a breach of the “substantially the same condition” obligation is discovered on possession day, the buyer’s lawyer may not be able to refuse to close or otherwise secure compensation for the buyer. In general, the buyer is only entitled to refuse to close if the damage to the property is so major that it would constitute a “material” breach of the agreement. In this case, it is important that the buyer or the buyer’s representative bring these issues to the attention of the buyer’s lawyer quickly. The buyer’s lawyer will communicate the matter to the seller’s lawyer, which will result in one of two possible outcomes:

1. The seller’s lawyer may be able to convince the seller to offer some compensation to the buyer, repair the problem or agree to a monetary holdback until the problem is resolved; or
2. The seller will refuse to take responsibility for the problem, but at least it will be documented that the problem existed at the time of possession which will help the buyers if they choose to prosecute a small claims action for recovery of damages.

Because the problem of not being able to force the issue when the condition of the property is not “substantially the same”, industry members sometimes suggest that a default holdback provision be incorporated in the standard Contract to routinely allow buyers to withhold a predetermined sum (such as $1,000 for example) until the condition of the property is found to be satisfactory. This is not, unfortunately, possible on a practical level. The inevitable result of this provision would be that, rightly or wrongly, buyers would take advantage of the holdback entitlement in almost all cases. Sellers would then have to accept the loss or be forced to sue buyers to receive their full sale proceeds.

Building an early walkthrough or condition inspection provision into the contract is also not a practical solution to the problem. Since damage to the property is only likely to occur when the seller is moving out or only apparent after the furniture is removed from the premises, a walkthrough conducted prior to the seller’s move is virtually useless. It should be mentioned that unless it is specifically written into the Contract, the buyer is not entitled to insist on access to the property in the period between the removal of conditions and possession day.

Although the current Contract could, as a result, appear to be biased in favour of sellers receiving their money from the sale, I always point out to unhappy buyers that the same Contract will protect them for their sale proceeds when it comes time to sell their home in the future.

In cases where a buyer wants the seller to carry out a specific task prior to possession, such as the shampooing of carpets, the removal of car parts from the backyard, or a specific repair to the property, the buyer’s representative has to insert specific additional terms into the Contract in clause 7.6. To be effective, such terms should contain: a firm deadline; a monetary holdback provision if the work is to be completed post closing or an inspection provision if the work is to be done prior to closing; and a term setting out the consequences if the work is not carried out as required.

Courtesy of AREA

Federal leaders not addressing Realtors needs.

By Shane Buckingham
CRE Senior Staff Writer

Realtors’ federal lobbying efforts came to an abrupt stop when the federal election was called on March 26, and according to industry insiders so did the parties’ focus on Realtors’ concerns.

Three key issues Realtors have been fighting for, Manitoba Real Estate Association (MREA) President Lorne Weiss said, are getting a capital-gains-tax rollover for commercial properties, raising the amount first-time homebuyers can borrow from their Registered Retirement Savings Plans (RRSPs) and requiring lenders to provide better disclosure to homeowners about the costs of ending a mortgage early.

But so far all three of those issues haven’t gotten much play among federal politicians.

“We think the federal parties should be addressing our issues because they aren’t just specific to our industry,” Weiss told CRE Online. “Something like giving young people the ability to borrow more from their RRSPs to buy their first home doesn’t just apply to the real estate industry; it really applies to the economy as a whole.”

In 2009, the federal government adopted a policy proposal by the Canadian Real Estate Association (CREA) to increase the limit first-time homebuyers can withdraw from their RRSPs to purchase a property from $20,000 to $25,000. Now, Weiss said the organization wants the federal government to index that amount to inflation.

“Rather than having to go back to the federal government every four or five years, we would like to put a mechanism in place to have the amount indexed to the rate of inflation, just in the same way a pension is. We feel that would make RRSPs a more effective tool for first-time homebuyers,” said Weiss, the former chair of the CREA Federal Affairs Committee.

Give investors a break

Next, Weiss said the federal government should give property investors a year to reinvest their capital gains into another property before it’s taxed.

“We think that allowing a capital gains rollover for commercial properties will give investors more incentive to provide affordable rental units, something this country sorely needs. It will also allow more ma-and-pop-type investors to expand their portfolios,” he said. “And the money will be eventually taxed once investors cash out of their properties.”

Lastly, he said there needs to be better disclosure explaining the penalties homeowners will incur if they end their mortgage early.

Now, since there is no disclosure requirement many homeowners have been blindsided with bills in excess of $10,000 to break their mortgage. And how the banks actually arrive at the amount of the penalty has many Realtors confused, he added.

“When people go to sell their home and buy another one they find out the penalties for early discharge of their mortgage are humongous. So what we’d like to see is greater disclosure on mortgage documents, clearly stating what the penalties will be for early discharge of a mortgage and how those penalties are determined.”

As Realtors prepare to go to Parliament Hill to discuss policy on May 8 to 10, their lobbying efforts have been left in limbo since the fate of the current government is in question.

Pierre Leduc, a spokesperson for CREA, said that the organization was caught off guard like the rest of the Canadians when the election was called. Since the Realtors’ event was already scheduled, he said the organization chose to go ahead with it, but is still determining the nature of the event.



Complete article here.

Top 7 Reasons to Use a Buyer's Agent in a Real Estate Transaction

Purchasing a home is a big step, and a big decision. The average person spends around 1/3 of their income on their home. The home that you choose has a big impact on your life, and can have a big impact on your finances, as well. It always surprises me when Buyers attempt to “go at it alone” because of the possibility of mistakes. A good Buyer’s Agent is invaluable to a Buyer, and can be the difference between a wonderful transaction, and a nightmare.

1. Full access to the MLS

The Multiple Listing Service (MLS) is a powerful tool that only Realtors have access to. When listing agents market a home for sale, they typically allow any Realtor to present the home to potential buyers, and to present contracts for purchase. The MLS is a database of all homes listed by Realtors, and represents roughly 99% of the homes for sale in any given market. As technology advances, so does the MLS. It has evolved into an extremely powerful search engine that allows your buyer’s agent to enter in search criteria, and returns only homes that match those specific parameters. Buyers can find a lot of this information online through IDX feeds available on many websites, but this information is a “watered down” version of the MLS because the IDX search engines aren’t quite as powerful, and don’t return as detailed profiles as the MLS.

2. Maximize your time

While driving neighborhoods is an excellent idea to help you decide which locations you prefer, it’s not a very efficient way to find your new. home. Gas is expensive, and your time is valuable. Your Buyer’s Agent will listen to your needs, make fantastic suggestions based on your likes & dislikes, and provide you with a list of homes that ALL match your wants & needs. Your Buyer’s Agent has helped MANY new homebuyers through MANY purchases, and will help you better organize your search & decision making process – saving you valuable time.

3. Representation

Listing Agents enter into legally binding agreements that require them to ALWAYS act in the best interest of the seller. They are the seller’s “coach” and will make sure that their clients’ best interests are looked after. Luckily, your Buyer’s Agent is there to make sure YOUR best interests are accounted for. With your expert Buyer’s Agent in your corner, you can rest assured that you’re on, at least, even ground with the home seller. A football team would be at a pretty significant disadvantage without a coach – just as you would be without a Buyer’s Agent.

4. Negotiating Power

The MLS maintains a record of, not only all homes listed by Realtors in a given market, but also the sales price of those homes. Your Buyer’s Agent will run a Comparative Market Analysis (CMA) to determine a prospective home’s Fair Market Value (FMV). In simpler terms, your Realtor will look at similar homes in the same neighborhood that have sold recently. This way, you will know whether or not the seller has their home priced fairly. If the home is priced over Fair Market Value, your Buyer’s Agent can present your “under asking price” offer with plenty of firepower – and a greater chance that the offer will be accepted.
Experience

The average person buys 3-5 homes in their lifetime. A good Buyer’s Agent will assist in 3-5 home purchases every month. What might seem complicated and intimidating to you is fairly common and familiar to your Realtor. Your Buyer’s Agent will know what to expect, and will know when to alert you if anything out of the ordinary occurs.

6. Industry contacts

It takes a lot of people to close a real estate transaction – Buyer’s Agent, Listing Agent, Loan Officer, Inspector, Appraiser, Insurance Agent, General Contractors, and sometimes more! A good agent will come with a strong closing team that has performed in the past, and will continue to perform. A transaction is only as strong as its weakest link – with your strong Buyer’s Agent & their closing team, you can rest assured that you will have plenty of support.

7. Peace of mind

If you are like most people, your home is the largest purchase you will ever make. The average person spends around 1/3 of their total monthly income on their home. This is a big decision and you don’t want to go at it alone. When you use a trusted Buyer’s Agent, you know that your best interests are accounted for, and that you can feel confident in your purchase.




Courtesy of Eric Bramlett



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