Real Estate advice

10 Things you should know about Real Estate

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If you’re planning a relocation, you’re probably also planning to hire a real estate agent. Before you do, there are a few crucial things you need to know.

You don’t need to work with a real estate agent to sell your home.

If you’re willing to research pricing and can take excellent pictures, you can have great success selling your property yourself. (About 8% of the market is FSBO). If the real estate market is hot, you may not even have to do anything besides invest in a “for sale” sign and wait for the offer to arrive.

For a lot of FSBO (For Sale By Owner) listings, you’ll need to get your home onto the Multiple Listing Service (MLS), which is the big database buyers and Realtors use to find homes for sale. Flat-fee services enable you to get your home listed on the MLS without a real estate agent, but you’ll have to offer a commission for the purchaser’s Realtor.

If you’re selling a house yourself, know exactly what it is worth. Underpricing it suggests leaving cash on the table, but a house priced too high may never sell. Even if you lower the price later, you will not reach as many possible buyers, because you’ll miss out on that new-home buzz. You only get one chance to do it right. Do it right the first time.

You can save commission if you find your very own purchaser.

You’re signing your contract with a seller’s agent tomorrow, and your next-door neighbour’s friend or cousin’s boss has actually shown interest. As soon as you sign the contract, if the prospective buyer makes an offer, will you have to go through your agent?

No. Prior to signing with the agent, disclose in writing any real prospective purchasers who’ve already shown interest. If a disclosed purchaser decides to go ahead and purchase, you don’t need to go through the agent — or pay the agent’s commission.

My personal experience is talk is cheap – those prospective buyers who the seller says are interested in buyer, never buy. But, you never know. Nothing is 100%

We don’t always succeed

Not every home sells. A quick look at our local MLS reveals that many homes stay on the market for far too long, have price reductions, expire without selling, get re-listed sometimes by the same agent, sometimes by a different one.

Not every real estate agent makes it in this business. New agents have a very high failure rate. It’s looks very easy but it is not. The majority of new agents are completely out of the business within their first five years, many within their first two years!

Commission is negotiable

Sellers pay commissions to both their own agent and the buyer’s agent. The current market standard in KW is between 4 and 5 percent, split even between the two Realtors. Simply due to the fact that each agent wants 2.5% does not suggest each ought to get it.

But agents are not your adversaries in the sale of your home. They are your friends. Pay them well and they will do their job well. Pay peanuts and you will get moneys.

When employing an agent to sell your house, you might have the ability to negotiate a lower fee simply by asking, especially if you’re willing to use the same agent both to sell your present home and to buy your next one. Negotiating commissions is typically easier on higher-priced homes.

The time to negotiate commission is when you sign the listing agreement, not when the offer arrives.

Open houses. What are they good for?

Open houses don’t often sell houses. Just 9% of buyers in 2014 found the houses they purchased through a lawn sign or open house, and this number is declining as more buyers rely on the internet to discover homes..

So why do agents host open houses? The majority of the time, visitors include noisy neighbours or individuals just getting started. Real estate agents can give out their cards and attract new business for themselves, using your house as the backdrop for their own marketing efforts.

Small brokerages are as good as big ones.

Big real estate firms have brand name recognition and significant marketing budgets, however that doesn’t always mean they’re the very best.

Huge companies are usually less prepared to negotiate on commission than little ones, and Realtors might get a smaller share of commission, giving them less reward to work hard to sell for the highest price. Agents at huge firms might also be under a lot of pressure to fulfill sales goals, which indicates they may be stretched too thin to give your home the attention it should have.

A smaller sized real estate agency often provides better customer care — and the internet has actually levelled the playing field so that many small agents can market your home just as effectively as huge ones. The secret is to not be blinded by brand and to speak with a number of agents to find one you feel excellent about– however likewise to make sure any agent from a little brokerage is a certified full-time real estate agent if you go that path.

Almost 75% of sellers contacted only one agent when deciding to sell. That is a surprising statistic! Interview agents from brokerages big and small, and compare marketing strategies to find the best agent for you.

Home inspectors

A lot of homebuyers rightly insist on a pre-sale examination by a licensed home inspector. Some home inspectors think that if they want to be remain employed, they can’t alarm buyers of every problem. Some Realtors may partner with inspectors who they know will give a home an easy go. If you’re buying a home, research home inspectors independently to find an inspector you trust.

Read the small print

Google “plain language real estate forms” and go over the clauses carefully to know what you are signing.

Getting the best price may not be your realtors #1 goal

Let’s face it, selling your home is the real estate agents goal. Getting the best price is a secondary goal. For every $10,000 more you may get from the buyer, your agent gets less than $200. You can see that your goals are not exactly alined.

Research your Realtor

Although online reviews don’t seem to be very relevant, you can check into the OREA (Ontario Real Estate Association) website to see if your chosen realtor is behaving up to our high standard. If there are any complaints, you will find them there.

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