Sellers Beware of Pocket Listing

This is not the place to find a Realtor!

We always encourage Sellers to do their homework when hiring an agent and many do but there are those who just can’t seem to grasp the idea that the agent’s fiduciary duty is to represent the Seller and not himself. With increasing home prices in the KW region some have used  “Pocket Listing” as a mean to sell homes. This is an american term which Wikipedia explains as a property where a broker holds a signed listing agreement (or contract) with the seller, whether that be an “Exclusive Right to Sell” or “Exclusive Agency” agreement or contract, but where it is never advertised nor entered into a multiple listing system (MLS), or where advertising is limited for an agreed-upon period of time.

A ‘pocket listing’ gives that agent exclusive rights to sell the home and does not expose it to multiple buyers other than his own. This really raises questions about the value and role of the Realtor who cuts off the exposure to the MLS system. The promises by an agent that the sellers home will be sold right away is misleading and unscrupulous in the sense that the home might sell right away but will the sellers interest be looked after.

Even though a seller might be getting full asking price as established by the listing agreement he might not be given fair exposure to other buyers who would be willing to pay more. So on one hand the seller might look at that agent and think that he did well because he listed and sold his property and didn’t have to split the commission with another broker, and he got full price for it. But did he give himself the best exposure to get the best price?

The best way to get the highest price and best value for a property is with market exposure.

In the state it has been proven that pocket listed homes sold for less than those which had MLS exposure – in some cases significantly less.

The pocket listings are introduced to a small group – like members of a team – and kept hush, hush until a buyer is found. This could be a limited time agreement (2 weeks) where the agent has to find a buyer from his list of contacts. The marketing restrictions to such a small group poses the questions of discrimination and anti-trust that can emerge. This could become a price fixing arrangement which is violation of antitrust laws, subjecting all participants to potential liability.

Pocket listings can have undeniable attractions but sellers should beware of agents who offer them for their own gain and not for the sellers best interests.

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Have a Safe Open House

It’s that time of year when many folks decide to sell their homes and having an Open House is most likely part of the agent’s marketing plan to attract buyers and a sale of the home. But not every one attending Open House has the intention of buying a home. Find out how to protect yourself and your belongings during an Open House. This video will show you how.

 

 

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Most Common Buying Mistakes

It’s worth the effort to do your homework when buying a home and it could save you time, stress and money. And who doesn’t want that? Here are some common buying mistakes to help you avoid making them too.

• Mistake #1. Hire the First Salesperson You Meet
  Consider this as the first step to purchasing a home by hiring the right Realtor. Interview more than one and don’t be moved by the flash and fast talk. Get references and make sure that you feel comfortable with that person.
• Mistake #2. Not Making Your Expectation Clear
  When you enter into a partnership with a Real Estate professional you must communicate together and make sure that you are mutually understanding what you are looking for in a home. What services the brokerage will be responsible for? What do you expect out of the services that you want them to provide and get it in writing.
• Mistake #3. Failing to Read and Understand Forms and Contracts
  Don’t speed up the process by signing anything. You need to know what the fine prints are all about and the impact that they can have on you and your future plans. Make sure the forms are all filled out and that you get a copy once you sign.
• Mistake #4. Allow Emotions to over take Common Sense
  Know what you can afford and stick with it. You will be glad you did down the road. Don’t forego a home inspection for the sake of winning a bidding war. Making your offer conditional on a home inspection is the smartest move to avoid possible costly problems that you may not notice. A trained qualified home inspector will know what to look for.
• Mistake #5. Assume Everything is Included
  Don’t assume that the appliances are included in the sale of the home. Check for rented items also like the water softener or the water heater, gas or oil prices and delivery. Be sure to know what is covered in the rental contracts and how long it is for. The best way to protect yourself is to detail all the items or chattels that you expect to be included in your offer. If there is something that you see and that you would like the owners to consider leaving just include it in the chattels. They can then consider the offer and leave it for you if they don’t want to move it. This is especially true to large items like a pool table or a hot tub. They might try to negotiate on the price though so be aware of that.
• Mistake #6. Forgetting About What Lies Within the Walls
  The fancy finishing touches might be nice but the insulation, wiring and plumbing are just as important when you are buying a home. You may want to talk to your Realtor about the age of the home and improvements that have been done. Maybe they upgraded the plumbing and insulation. You will want to know this.
• Mistake #7. Forgetting About What Lies Outside the Walls
  Whether you are buying your first or tenth home you will want to consider the community in which you are planning to move. You may want to visit at different times of the day or the week  to see if it meets your lifestyle and your needs now and future.  Explore the neighbourhood and area to get a feel for it. Walk down rather than drive down the street as you will get a better sense for the neighbourhood.
• Mistake #8. Making Verbal Agreements
  Putting everything in writing will force both parties to be clear about their expectation and provide a record that can prevent misunderstanding later on.
• Mistake #9. Underestimate Closing Costs
  Beside the price of the home you should expect to pay closing costs which could include land transfer tax, home inspection, taxes that have been prepaid by the seller, lawyer’s fee to name a few. Ask your knowledgeable Realtor who will be able to give you more details and to address specific issues. You might also want to do some repainting or new window covering or get new appliances – to make the home feel more like home.

Find Your Dream Home Today ~ Get the List of Homes for Sale as They Come on the Market  www.BestBuyHomeFinder.com

Count the Cost of Buying a Home

What does it cost to buy a home? Beside the cost of the home and lawyers fee you need to be prepared with closing costs and other costs that could mean extra thousands of dollars.

Deposit
The deposit is required when you actually make an offer to purchase the home to show the seller that you are serious about buying his home. This will be part of your down payment. The deposit amount will vary with the cost of the home but could be 5 to 10 percent. If you back out of the deal without having purchasing conditions, like financing, home inspection, insurance and such, you could lose your deposit or even be sued for damages. Your agent can better advise you on this.

Mortgage Loan Insurance Premium
If your deposit is less than 20% then you are considered to have a high-ratio mortgage which means that your lender will need mortgage loan insurance. Mortgage loan insurance protects the lender. You could if you qualify invest in a term life insurance for the length of the mortgage to protect yourself. The difference here is that if you or your spouse passed away the Mortgage loan insurance would go directly to pay the lender but the term insurance would go to you and you could decide what the money goes toward. Depending on your financial situation of course this might be a better option especially if you have enough income to maintain the mortgage payment on a monthly basis rather than see the mortgage paid off. You should check your options and not necessarily take the pressure of the lending institution.

Home Inspection Fee
Home inspection is normally part of the purchasing agreement as a condition of purchase. We highly recommend to all of our clients to get a home inspection done by a qualified inspector. They will not only provide you with the condition of the home but many will also include some kind of manual or reports that will help you maintain your home in the future. Cost will vary depending on the age of the home, its size, its condition.

Prepaid Property Taxes and/or Utility Bills
The seller may have already paid property taxes or other expenses that apply to the time after the sale has closed. You might need to pay back taxes or utilities to the seller.

Legal Fees
The legal fees must be paid on closing day and will include charges to check on the legal status of the property.

Property Insurance
The mortgage lender will require that you have property insurance in the same way you have car insurance which protects you if your home and its content needed to be replaced after a fire for example. Property insurance must be in place on closing day.

Survey or Certificate of Location Cost
If a survey is more than five years old, the mortgage lender may request for an up-to-date survey or certificate of location. You can request this from the seller or if he is unwilling to obtain one you might have to pay for it yourself to get it done. A survey or certificate of location can cost $1,000 to $2,000.

Appraisal Fee
An appraisal is an estimate of the value of the home. This could be requested by your mortgage lender as part of the mortgage loan approval. Your Realtor can help you find an independent appraiser.

Title Insurance
Your lender or lawyer may suggest that you get title insurance which will cover loss caused by defects of title to the property.

Land Registration Fees
Sometimes called Land Transfer Tax, Deed Registration Fee, Tariff or Property Purchases Tax. These may have to be paid to the municipality or province at closing. The cost is a percentage of the property’s purchase price. Your Realtor will be able to let you know if such fees apply to the home you are buying as these can equate few thousand dollars.

Water Tests and Septic Tank
If the home you are purchasing has a well or septic tank you will want to get the water tested for quality and to ensure adequate water supply and that the septic system is in good working order.

Estopel Certificate Fee
If you are buying a condominium you will want to obtain a Status Certificate or Estopel Certificate which is about $100. The certificate outlines a condominium corporation’s financial and legal status.

Other Costs
Beside the above you will want to consider moving costs, renovations or repairs, condominium fees, service connections such as phone, cable, and internet. You might also need to purchase appliances, gardening or snow removal equipment, hand tools, decorating materials such as curtains, paint or wallpaper.
It might all seem like a lot right now but until you investigate whether or not you can become a home owner it’s all in vain. Give me a call to find out what you need to do to become a homeowner and to get your dream of home ownership that much closer to reality.

The Biggest Tippers

Have you ever wondered where the folks who promoted the “best customer service” have gone. Now a day it doesn’t matter where you call you will get an answering machine or some kind of recording. Just try calling a government office for fun. You can travel in the menu by pushing 1, 2, 3 and # key for hours on end. Cheap way to travel I guess. But seriously where has the personal customer service gone?

I’ve read many articles lately but what really captures my attention are the comments at the bottom of the articles. I like to read and see what people think. It amazes me when I read something about real estate how many folks have such misunderstanding of what Realtor really do. All they see is the “big money” we make (chuckle! choke! cough!). I’d like to discuss some of these for you.

First, I’d like to ask you a question. Who would you say gives the biggest tip at a bar?

 If you ask the bartender he’ll most likely say other bartenders. And the same could probably be said of waiters and waitresses at any restaurants. They know what it is like to deal with the public. Not always rosy. With all the technology it’s easy to get lost in the websites and the .com arenas. In some industry technology has erased the human element. Ticket agents are replaced by kiosks, cashiers by self-check out, switchboard operators by recorded messages. Most of us appreciate technology and what it has accomplished but on the other hand it will never replace the people who have put the “real” in Real Estate.

Real Estate Professionals know that Buying or Selling a home is not only an enormous financial decision, but it is one peppered with emotions, good or bad. On any given day a Real Estate agent becomes a consultant, a confidant and a therapist.

As Realtor we have the fiduciary duty to represent the Buyers or Sellers to their best interests.  Notice I said “their” best interest and not our best interest. Contracts are signed to represent the public and to protect them from shyster that unfortunately infiltrate many industries. Whether you sell bicycles, candies, newspapers or homes doesn’t matter. If your goal is to trick others in purchasing you have broken the rules and should be removed from practicing. Realtors uphold strict standards that are monitored by regulatory bodies and if you don’t follow the codes you are subject to losing your license the same way a lawyer or doctor would for malpractice. That’s a heavy load and it carries a lot of weight for agents to do what is right. Unfortunately some still choose not to.

Now about the money part. Do you know that the average yearly gross income of a real estate agent in Ontario is $39,915. However, there are some very successful agents earning much more than the average; naturally, many therefore earn much less.

Realtor also have to upgrade their skills and must be enrolled in continuing education as long as they are licensed. How would you like to be in school for the rest of your working life?

So, I say to those who will still comment about us that if you want to make the big bucks to get your Real Estate license and try it out for a while and see how much you’ll make. Bet after that you’ll become the biggest tipper ever.

As Paul Harvey used to say: “And now you know the rest of the story!”

If you are looking to sell your home, now is a good time to get started for Spring. Find out what your home is worth with Dale Dyer’s easy Property Value request. www.CambridgePropertyValues.com  or www.KWPropertyValues.com

National Home Show and Canada Blooms

Even though we are experiencing the coldest days of the year and record low temperature it’s not too early to think Spring. Don’t miss this fun and exciting event once again the National Home Show and Canada Blooms comes to Toronto, and is being held from March 14-23 at the Direct Energy Centre.

This is sure to be another fun and informative show with a line up of great guests including Ryan Baeumler , host of HGTV’s Leave it to Bryan, House of Bryan, and Disaster DIY and Sarah Richardson host, co-creator and co-producer of four celebrated HGTV series that are watched by fans all around the world, in over 100 countries.

With hundreds of exhibitors filling the exhibition place you can find everything from roofing to kitchen taps. You will also want to enter the Sweepstake contest for a chance to WIN $600 SHOP-DROP!  With $200 to Best Buy, Home Depot, and Marshalls. You can pick up something for the kids, for the house, and most importantly for yourself! Shop until you drop, this 3-pack is exactly what you’ll need after finding inspiration at a Marketplace Events home show.

You can purchased tickets in advance online and save $3.00 on adult admission. Parking is free Monday to Friday after 4pm.

Find out which home repair adds value to your home and which one does not. Ask a Realtor

Thinking of Selling your home? Now is a good time to get started.  FREE Home Evaluation Here.

Ask a Realtor-Cost of Selling a home

Q: I’m thinking of selling my house and don’t want to do this myself as I understand the Value and Experience that a Realtor brings but I was wondering how much should I budget for the commission and taxes.

Answer from Dale: The commission paid on the sale of a property has 2 components. The listing agent that protects the sellers interest and invest a great deal of their money in the marketing of the property will be paid out of the proceeds of the sale. The other component is the co-operating broker who is representing the interest of the Buyer in the deal. The total commission could be as high as 6% although this does not happen as often anymore or as low as 4.5%. 

There are much more to know about selling a home. Check this out: Selling a Home? What You Should Know.

If you are thinking of selling now is a good time to get started: www.CambridgePropertyValues.com or www.KWPropertyValues.com

How Much House Can You Afford

Before stepping out for the biggest purchase of your life – a home – you need to do some preparations. Before buying a house is not the time to buy big items such as a car or get a cash loan. You want your credit to be squeaky clean. Pay down debts before even getting engage in the home purchase. The cleaner your financial record the better especially now a days with new mortgage rules and banks stiffening the cords of lending. When you’re in a stable financial condition and have cleaned up your record then you should first get pre-approved to find out how much home you can actually afford. I can help you with this as a Mortgage Agent with Mortgage Alliance Canada. Read all about it and my Guarantee at http://bestmortgagesonline.com/.
If you’re thinking Hespeler Real Estate you will need a heftier bank roll and the same goes for North Galt Real Estate with many newer constructed homes. Some older neighbourhoods like West Galt Real Estate might be more affordable for first time buyers. Knowing how much home you can afford will make your dream home shopping experience that much more sweeter especially when the “Sold” sign goes up.

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www.BestBuyHomeFinder.com

Know your rights at the door: Tips for homebuyers

NC)—As you move into your new home, you may be welcomed by neighbours, friends and of course, unwanted door-to-door water heater salespeople. The reality is that new homeowners are often targeted by these door-to-door salespeople since many are unfamiliar with their rental agreement or status of their current water heaters.

New homeowners can easily locate the name of their provider on the sticker that is located on the front of their water heater tank. And if you have any questions regarding your water heater, call your current provider.

To determine whether your current water heater requires replacing or service, EnerCare Inc., a leading provider of energy efficient products, including water heater rentals, shares the following advice: if you notice any of the following symptoms with your water heater tank, it is time to call your service provider:

• Rust colored hot water

• Moisture around the base of the tank

• Insufficient hot water

Buyers are looking to buy your home Now! Get a FREE Home Evaluation.

Setting up a home office that fuels productivity

(NC) – One of the biggest mistakes business people make is assuming that working from home will automatically result in a higher level of productivity. Unless you carefully construct your home office environment, you may find that working from home is less productive than you anticipated.

Staples, the world’s largest office products company and a trusted source for office solutions, offer the following tips for setting up your home office to help maximize your productivity.

The ideal working environment

Home office setup is an exercise in knowing yourself. Before you make any decisions, make a list of the things you need to spur productivity. Some people can work at a desk in a common area of the house with the television running in the background. Others want a closed-door environment where distractions are minimized. For some people, a home office is a place to finish up work from a regular day job. For others, a home office is a primary workspace where they spend eight or more hours of the day. Before you start rearranging the furniture, decide what you need as an absolute minimum to encourage you to use the space as intended.

The right office furniture, equipment and supplies

Once you have decided whether you’re going to segregate an area of the living room, convert a spare bedroom or set yourself up in the basement or garage, you should start thinking about home office furniture. The type of office furniture you pick and the way you organize your space will significantly impact your productivity.

Whatever your preferences are, investing money up front in the style of office furniture that makes you comfortable will naturally lead to greater productivity. At the very least, this ensures that you won’t be tempted to relocate to the bedroom instead of working at your desk. Likewise, an upfront investment in office supplies and equipment will help you get your work done faster and avoid distractions.

The cost of outfitting a home office

A basic home office setup can cost you under $500 if you already have a computer that you can relocate to your new space. There are a number functional office furniture options that look expensive but are actually quite affordable, especially if you are willing to put the furniture together yourself. A printer and a phone with voicemail can round out a basic home office setup.

A more advanced home office setup would include a fax machine and a photocopier. Fortunately, there are 3-in-1 office machines that combine a printer, fax and copier in one piece of equipment for under $300 at Staples, saving you money and space. Keep in mind, however, that a machine that does many things often offers fewer features for each specific function. For example, if your work at home requires more than the occasional photocopy, it can be more efficient to buy a dedicated copy machine that has special functionality to handle a heavier workload.

Don’t forget to set aside money in your home office budget for office supplies. From paper to paper clips, you will have to buy all of the little things that you took for granted when you worked for an employer. A home office is sometimes considered the Mecca for people who work. Who wouldn’t want a comfortable home oasis where commuting is a foreign concept and the work just gets done? To achieve home office nirvana, make a plan that is specifically designed to meet your individual needs and choose the right home office furniture, equipment and supplies to make your plan a reality.

Are you thinking of selling your home in the near future? We have buyers looking NOW! Find out how we can help you connect with the Buyers.