Ask Vi Brown about Real Estate

Do Open Houses Sell Homes?

2012-02-19T07:49:00.000-08:00

Q - Do Open Houses really sell homes? My real estate agent suggested doing an Open House.

A - For the past 8 years, the Victoria Real Estate Board in BC, Canada, has been surveying how buyers find the homes they have purchased. Throughout all the years, Open Houses have accounted for about 2%. So how do buyers find their homes? The majority find their homes through their real estate agent, next are internet sites - the major one being Realtor.ca, and thirdly, the real estate lawn sign. Open Houses are at the bottom of the list with classified ads.

It is very important to be aware of this since Open Houses pose a risk in terms of the security of the owner's possessions and the safety of the real estate agent. We no longer pick up strangers in our cars but we continue to allow strangers to wander through our homes during an Open House.

There really isn't much of a chance of selling your home through an Open House. When asked, most real estate agents admit this fact. So why do real estate agents do Open Houses? It is an opportunity to meet new buyers, who might be turned into clients, and it ensures the seller that the agent is working on selling the home.

There are some exceptions. When a builder is developing a project and establishes a show suite in which Open Houses take place, these Open Houses provide an opportunity for potential buyers of new construction to be able to preview designs and quality inherent in the project.

Large franchise or local real estate firm?

2012-02-09T20:58:00.000-08:00

Q - Should I list my home with a large real estate franchise or a smaller local real estate firm?

A - This is a frequent question. Large franchises do a great deal of advertising promoting themselves. The consumer often sees this in a positive light and presumes that such a firm will provide a substantial marketing program for their clients. That may or may not be so.

Real estate agents are independent contractors and are considered self-employed. It is the real estate agent, not the real estate firm, who plans and pays for all the advertising and marketing of your property. So discuss the marketing of your property with agents of your choice regardless of the size of the firm.

Franchises often indicate that, because of their size and their many locations, they are more likely to have referrals for new buyers from their offices across the country. This can also be said of smaller companies because they network with other companies across the country.

Speak to 2 or 3 real estate agents from different companies and find out first hand what kind of marketing they will do for you. Make a list of question beforehand to be sure you cover all your questions. This will help you make the right decision.

Best Selection of Properties for Sale

2012-01-28T15:04:00.000-08:00

Q - I want to purchase a home. What is the best real estate website to view residential properties for sale? There are so many. Help!

A - You are so right! There are numerous websites which list residential properties for sale. All real estate companies seem to have their own websites, such as Royal LePage, Remax, Century 21 and many many others. Most real estate agents also have their own websites. You have to remember that a real estate company and their real estate agents only display their own listed properties. On the Royal Lepage website, for instance, you only see properties which the company's real estate agents have listed. Similarly, Remax displays their listings as does Century 21 and others.

If you only go to one company's site, you are limiting your choices. To go to websites of numerous real estate companies is somewhat overwhelming. Your best answer is to go to a Multiple Listing site to search for properties. Realtor.ca will provide you with all properties listed in Canada while Realtor.com will display the US properties.

Not to short change the real estate companies, many of them actually provide a link to Realtor.ca or Realtor.com on their websites -- i.e. the MLS (Multiple Listing System).

The above refers to properties listed by real estate agents. There are sellers who choose to sell their properties themselves as opposed to listing with a real estate company. To view such properties you would have to check out sites such as FSBO.ca and other such sites where sellers can post their properties. However, not all For Sale by Owners list their properties on a website. Many simply have a For Sale Sign on their lawn.

To make the best possible purchasing decision, you should select a property among all those available not just among those listed by a particular franchise.

Appraisal vs Assessment

2012-01-22T13:22:00.000-08:00

Q - Does my property assessment reflect the value of my home?

A - Your property assessment is utilized to calculate your property taxes. It should not be used as an indicator of property values.

Depending on the province, assessments reflect various time periods. In British Columbia, property assessments reflect prices as of July 1st of the previous year. Also, year-to-year adjustments are based on a formula and not by property inspections. In Ontario, for instance, they use the same base year to calculate taxes for four consecutive years.

The market is dynamic and moves at various speeds depending on economic conditions. A property assessment is static and used for different lengths of time and, therefore, is not a good measure of property value.

A property appraisal, on the other hand, is done by actually inspecting the property. The appraiser examines the property in the context of the market and places a value on that specific property. The appraised value is only valid for that point in time. The older the appraisal, the less accurate it becomes because the market is dynamic in nature. A year-old appraisal no longer reflects the true value of a property. In a very fast moving market, a two-month appraisal may also be inaccurate.

For residential properties, real estate agents are able to do a Comparative Market Analysis to arrive at a selling price that would be competitive in the market place. For a more in depth analysis of your property, a professional appraisal can be enlisted.

Agent's Pay Day

2012-01-13T16:57:00.000-08:00

Q - Before we wrote the offer for our home, we had to sign a document about how much money the agent was going to receive. We didn't get a copy of it but could you tell us more about it?

A - What you are referring to is called a "Disclosure of Remuneration". This document was introduced a few years ago so that the buyer would be aware if the brokerage or the agent has any vested interest in the transaction. All money and gifts/rewards which may be received are to be disclosed on this document.

For example, the document spells out in percentage or actual dollars the compensation the brokerage will earn on completion of the transaction. This document also requires the disclosure of any rewards or gifts which the brokerage/agent may receive for referring the buyer to a particular service. Sometimes mortgage companies, inspection companies and other service providers provide rewards for referrals from real estate agents. The buyer is entitled to this information.

Such full disclosure enables the buyer to see all compensation/rewards that the brokerage/agent may receive and from whom. The buyer then has a full picture of the surrounding elements of the transaction.

It is appropriate to provide a client with copies of all documents which have been signed during the buying process. If you have not received them -- ask for them.

Representation by One Lawyer

2011-12-28T18:56:00.000-08:00

Q- The buyer and I have chosen the same lawyer to complete our real estate transaction. Could this be a problem?

A - It is not a recommended practice in most of Canada (except for Quebec) but it does happen from time to time.

If the real estate transaction goes smoothly, there are normally no issues. However, if a problem surfaces with the transaction, the lawyer cannot represent both of you adequately. In that situation, the lawyer will act to represent one of the parties and ask the other to get different representation.

In the meantime, if the lawyer is comfortable representing both buyer and seller, both of you will have to sign a document acknowledging that there are some limitations to such a representation. You may wish to have the lawyer explain more fully what that would mean in your situation.

Selling Price

2011-12-17T15:00:00.000-08:00

Q - I'm placing my home on the market and trying to establish the selling/list price. I interviewed 3 real estate agents and they provided their recommendations - one of them was $10,000 higher than the other two. Who should I believe?

A -The selling price of a home is a function of the real estate market. A real estate agent can't influence the selling price anymore than a stockbroker can dictate the price of a stock. Agents arrive at a list/selling price recommendation by analyzing similar properties that have recently sold under normal market conditions in the same location.

If the agents left you their Comparative Market Analysis for your information, review the information carefully. They should have selected homes that are similar to yours, in the same location and they should be very recent sales. A $10,000 dollar variation seems large. Perhaps the criteria for home selections was not followed diligently.

Remember that the price at which you list your home is YOUR decision. If your price is too high, your home could be overlooked and if you price to low, you could lose money. Pricing at market value should be your goal. Obtain more clarification if necessary. It is important to be on target.

Best Time to Sell

2011-12-12T16:32:00.000-08:00

Q - What is the best time to place my home on the market? Is it worth placing my home on the market during the Christmas/New Year season?

A - If you want to sell -- make certain your property is on the market regardless of time of year. There are buyers all year round.

Traditionally, sellers like to place their property on the market starting in the Spring. The weather is better, the lawns look nicer and flowers are blooming. These are all reasons that help the property look attractive. The fact of the matter is that during this time sellers have the greatest amount of competition and buyers have the greatest choices. It is often a buyer's market.

Generally speaking, there are fewer homes for sale during the Christmas and New Year holidays because sellers perceive that few people are house shopping and so they decide to focus on the holiday season. BUT circumstances don't always allow people the luxury of scheduling the purchase of a home and could find themselves house shopping when everyone else is gift shopping. These buyers are usually serious buyers. Often their complaint is that there is not enough choice! This time of the year is often a seller's market and a serious seller should take advantage of this opportunity.

Builder Incentives

2011-11-29T12:28:00.001-08:00

Q - When a builder offers a cash back of $25,000 on the purchase of a condo, is that really a good opportunity for me as a buyer? It is promoted as "living free" for a year.

A - Let's say the condo costs $350,000 and you get $25,000 cash back, you are paying mortgage interest on the full $350,000 minus your downpayment. That is not 'living free'. It may sound enticing but there is a financial cost to this cash back. A price reduction in the amount of the cash back would be much better.

In order to assess your situation in greater detail, go to your bank or mortgage broker with the pertinent information and they will be able to provide you with the specific calculations regarding interest rates, payments, your affordability and the actual cost to you regarding such a cash back.

Amount of Time for Seller to Review Offer

2011-11-21T14:59:00.001-08:00

Q - How much time should I, the buyer, give the seller to review my offer?

A - If it is a single family residential home, it depends on how quickly the market is moving and how accessible the seller might be.

If the market is moving very quickly and the property has many showings in a very brief time, a short review period is appropriate and desireable so that there is less chance of a second offer coming into play. If the seller is easily accessible, 2-3 hours is ample. Sometimes even less time is given in a highly active market. Such a process works for the benefit of the buyer.

In such a situation, if you were to provide the seller with a day or two, the chances are that another offer or two might be presented. This would certainly benefit the seller but not the buyer with the first offer. A multiple offer situation always favors the seller and can result in an offer above the asking price.

Mortgage Qualification Risks

2011-11-17T14:35:00.001-08:00

Q - Can a mortgage approval be withdrawn before the completion date?

A - It is possible for a lending institution to withdraw mortgage approval.

Let's first determine if you had approval in the first place. You provided your financial institution all your pertinent documentation such as income, assets and debts. This information was processed and it fell within the institution's lending criteria. A credit check was done and it too was satisfactory. Given all this, you would then be approved for a mortgage.

It is at this point that you should be requesting to have this information in writing. Experienced real estate agents will always request to have this approval in writing prior to removing the financing condition. It is a precaution and a means of protecting the buyer. On rare occasions, a mortgage broker may be very busy and assume that approval will be forthcoming without totally processing all the information. In those rare instances, having written proof from the financial institution's representative is important.

You now have mortgage approval in writing and feel secure that the financing for your home is in place. You then decide that you will purchase new appliances for your home and some additional furnishings and charge them to your credit card. These are major purchases and will impact your financial situation. This is particularly true if your approval was somewhat on the cusp of approval/disapproval.

Institutions sometimes do a last check prior to actually releasing the funds. Charging such major purchases and increasing the debt load can significantly alter your finacial position and you could be risking your mortgage qualification.

Keeping Fixtures

2011-10-28T08:22:00.000-07:00

Q- I am selling my home but would like to keep several items that may be considered fixtures and should, therefore, go with the house (chandelier, built-in shelving unit, and shed). Is there some way that I can take these items with me?

A - Yes you can -- and this is how.

Chandlelier - Prior to listing your property, remove the chandelier and replace it with a different one.

Built-in shelving unit - Again, prior to placing your home on the market, remove the shelving unit and repair the wall. It is only considered a fixture because the shelving unit is attached to the wall. You don't need to replace the shelving.

Shed - Before you list your home, remove it from your yard, if possible. If that is not practical, have the real estate agent, indicate in the listing contract, that the sale of the home excludes the shed.

In all the above cases, you could have the real estate agent simply exclude such items from the listing contract. The only item you would have to replace would be the chandelier with one of equal value. You couldn't just leave the electric wires there without a light fixture.

However, if you do not remove such items from the sight of a potential buyer, it is very possible that you could get an offer that requests some or all of these items to be included. The question then becomes -- Are you prepared to risk the offer by insisting on keeping any or all of these items?

If these items are really important to you, remove them from the property and out of sight from any potential buyers.

Bypassing the Agent

2011-10-19T09:16:00.000-07:00

Q - My house is listed for sale with a sign out front. Someone came to the door and asked to see my home but I told them to call my agent. Did I lose an opportunity to sell my home?

A - Absolutely not. You hired a real estate agent to sell your home. The agent is best equipped to handle all inquiries and is in a position to screen people who have shown an interest in seeing the property. The sign on your lawn contains all the information that a potential buyer might need to contact your agent.

The problem with you, as a seller, allowing strangers through your home is that you have absolutely no information about them. You don't know if they can afford your home or if they are prepared to purchase in the near future. They could also have other reasons for wanting to see your home.

You did the correct and safe thing to refer them to your agent. Serious purchasers don't bypass the agent. They tend to go the professional route by contacting the seller's agent or working through their own agent.

Can an Agent Sign for Client?

2011-10-07T14:04:00.000-07:00

Q - I have my home listed for sale but I will be out of town for a couple of weeks. If an offer is made while I'm away, can my agent make changes and sign a contract on my behalf after consulting with me by phone?

A - Yes your agent can sign on your behalf if you have provided written authorization to your agent. Prior to going out of town, prepare a short note indicating that your agent (provide agent's name and name of brokerage) is authorized to sign on your behalf in the sale of your home (provide address) after consultation with you. Also specify the dates during which this authorization will be valid (normally the dates that you will be out of town).

Should an offer take place that is ultimately acceptable, the agent normally provides a copy of the written authorization to the buyer's agent to validate that the seller's agent had the authority to sign the contract. The agent should sign his own name (not yours) but print that he is acting as agent for you.

It is good practice for an agent to have the contract ratified upon return of the client, i.e. have the client also sign the contract.

Mandatory Information Collection

2011-09-28T16:08:00.000-07:00

Q - I'm thinking of placing my home on the market so I interviewed a couple of real estate agents. One of the agents left a package for me to review which contained a number of forms that had to be completed if I wished to proceed with the real estate process. One form was referred to as FINTRAC and would require me to show my identification to the agent. What is that all about?

A - FINTRAC - The Financial Transactions and Report Analysis Centre of Canada deals with anti-laundering and terrorist financing legislation. The concept of anti-laundering and terrorist financing legislation goes back to 2001. Since that time, real estate agents have been required to report any cash transactions of $10,000 or more and any real estate transactions which seemed suspicious. FINTRAC is the new federal money laundering and anti-terrorist financing regulation instituted by the Federal Government of Canada in 2008 and demands more detailed information. It requires that real estate agents, financial institutions and other professionals covered by this legislation identify customers who conduct financial transactions. This includes buying and selling of real estate.

The form requires that you complete it with your full legal name, current address, date of birth and occupation. You are then required to show the real estate agent an original identification document. Most often a driver's license is used as identification but other documents are also acceptable. The type of document together with an identification number and issuing jurisdiction plus the expiry date are recorded. This information is kept for 5 years.

There are slight variations in the process depending on the circumstances but the collection of this information is mandatory from each buyer on the contract of purchase and sale as well as each seller on the listing contract.

Agent Represents both Buyer and Seller

2011-09-19T15:34:00.000-07:00

Q - I just bought a condo that my real estate agent had listed. He said that our agency relationship has now changed to 'limited dual agency'. What does that really mean?

A- Originally, your agent was looking out for your interests as the buyer. He was also looking out for the interests of the seller of the condo. However, when you put the two together, your agent cannot look solely after your interests as well as looking after the seller's interests. There is a conflict of interest when the agent represents both buyer and seller.

In this instance, it was your agent's listing. However, the situation would have been the same had you selected any condo that was listed by your agent's Brokerage. The agency relationship was between you and the Brokerage (not the agent). Where both parties are represented by the same Brokerage, the relationship has to be limited and both parties have to agree to these limitations, in writing, prior to making an offer or receiving an offer. The limitations are as follows:

1. No disclosures can be made by the agent to buyer or seller regarding -

a) Price and terms outside those contained within the offer
b) The motivations to buy and sell
c) Personal information unless it is part of the offer or if permission is received in writing

All known physical deffects of the property must still be disclosed to the buyer.

2. The agent must deal with the buyer and seller impartially. This means that the agent cannot help you negotiate price. The agent becomes a facilitator of the transaction and not a negotiator.

In a 'limited dual agency' situation, your real estate agent cannot tell you anything about the seller or the seller's situation or make any suggestions to you about the price you should offer. Nor will the seller get any information about you or what dollar figure he should accept. Both parties are on their own.

If you as a buyer wanted guidance from an agent, there is the option of hiring an agent from a different Brokerage to represent you. In that instance, the new agent would often give a referral fee to the agent who had been showing you properties to compensate, to some degree, for the time spent.

This is the current situation regarding 'limited dual agency' in Canada. There are discussions that, at some time in the future, changes may take place.

Agent Refuses to Show Property

2011-09-12T16:43:00.000-07:00

Q - I called the listing agent of a house that I wanted to see. The agent wanted me to meet her at her office before showing me the house. All I wanted was to see the house. Can an agent refuse to show a property?

A - The agent was trying to determine if you were seriously interested in purchasing a home in the immediate future and if you were financially qualified to do so. If you were, she then wanted to learn more about what kind of home you wanted so that she was in the best position to assist you in finding the most suitable home. This is what a real estate agent does for you.

I don't know why you would not meet with the agent if, in fact, you were seriously interested in purchasing a home at this point in time. Perhaps you had some other reason you wanted to see the house that wasn't related to purchasing. Was it a friend's home you were curious to see? Were you checking out some floor plans? Were you interested in decorating ideas?

Real estate agents have to assess how they will spend their time so that they can make an adequate living. Not everyone who calls on them wants to buy a home or sell a home. Real estate agents provide a great deal of information to the consumer. As a group, they are very helpful and considerate.

However, more and more, real estate agents have stopped being 'door openers'. They don't just run out and show homes to everyone who calls. If they did, they would be wasting a great deal of time. But they will give generously of their time to anyone who is seriously interested in either buying or selling. That's their expertise.

Yes, a real estate agent can refuse to show a property to someone who is unwilling to provide any information -- as was the case in this instance.

Office Tours

2011-08-30T15:20:00.000-07:00

Q - My real estate agent did a two-hour long office tour at my home. I asked her why 2 hours when usually they are in and out in a flash but she couldn't really answer me because she was quite new.

A - I highly recommend the 2-hour long office tours and don't find the 'in and out in a flash' kind of tours, often referred to as caravan tours, productive.

The long version of the office tour works like this. The real estate companies involved usually have their office meetings on the same morning and are encouraged to attend. After their meetings, they all hed out to the properties listed on tour. This list contains basic information - address - price - square footage and so on plus room for comments. The agents who have properties on tour are already at the homes. The doors are open, the lights are on, more information is available, and special features are pointed out. If any questions come to mind the agent is there to provide answers.

To encourage real estate agent participation, snacks are offerred or there might be a draw for a bottle of wine for all agents who attend. Sometimes, at the last house on the tour, there may even be a light lunch available.

Usually there are no more than a dozen homes on the tour and are routed logically so there is no waste of time. This enables an agent to spend quite a few minutes at each home and often results in a phone call or two to the listing agent after the tour for client showings.

I have just given you the basic outline of this kind of tour and the customs may vary across the country.

The 'caravan' style tour works like this. Everybody follows each other to the house on tour. The listing agent may or may not be there first. The key has to be taken out of the lock box, the door unlocked and the lights put on. You all rush through to see what you can. The listing agent is probably, putting on lights and then turning off lights and busy locking up as you drive off to repeat the process as many as a dozen times! There is no to time to digest anything or take notes. Sometimes you have to skip a house to catch up to the caravan. This is a very unproductive way for real estate agents to view new properties in their communities. It's a process that creates a very blurry picture.

You were very fortunate to have had an office tour where the community of real estate companies cooperate on office tours and have productive results.

Who is the Agent Representing?

2011-08-16T12:51:00.000-07:00

Q - When I worked with a real estate agent recently, he mentioned 'agency relationship' but I didn't fully understand it. What does it mean?

A - 'Agency relationship' is between the principal (you) and the Brokerage (the real estate company). The real estate agent who represents you is licensed under the Brokerage. As such, he has the authority to represent you in a real estate transaction when dealing with others. When you have this kind of 'agency relationship', the agent has fiduciary duties to you such as --
-- Disclosing everything the agent knows about the property or situation that may affect or influence your decision regarding the real estate transaction --
-- Protecting your negotiating position by not disclosing anything that would jepordize it --
-- Giving you undivided loyalty --
-- Obeying all your legal instructions --
-- Keeping your confidences by not disclosing them to anyone --
-- Excercising all assigned duties with reasonable care and skills --
-- Being accountable for all money and property placed with the Brokerage while acting on your behalf --

This it the primary 'agency relationship'. There are others as well as working with an agent without any 'agency relationship'.

It is important for you to know what kind of 'agency relationship' you have and what the agent's responsibility is towards you. The situation is different if you have 'no agency relationship' or if it is a 'dual agency'.

Home Inspectors - What they Do and Don't Do

2011-08-12T23:23:00.000-07:00

Q - I have been advised to hire a home inspector to check out the home I'm about to purchase. Will the home inspector guarantee my roof, plumbing, electrical work etc.?

A - No! You have to remember that he is only doing a visual inspection. He can't see behind the walls or empty closets to get a better view. He can't remove the insulation to check underneath or guarantee that the roof doesn't leak and so on.

However, the inspector does have a list of hundreds of items that he does check. With his experience, he can often point to possible problem areas. For example, he can inspect the roof for visible signs of deterioration. He can examine the electrical system and advise you of possible shortcomings. He can check all accessible plumbing areas and see their condition. He can examine the foundation and see if there are any cracks.

The home inspector is not a specialist in plumbing, electricity, heating, drains, roofing, engineering or other specific trades He is a generalist. He is someone who has had some experience in one or more disciplines pertaining to the building industry. It is with this experienced eye that he carefully examines the condition of the home.

In some areas, home inspectors are required to be licensed and insured. This means that a home inspector must meet certain qualifications in order to be deemed qualified.

Be sure you discuss with your home inspector what his services entail so that you do not have unrealistic expectations. The home inspector does not get involved in property values.

Lock Box

2011-07-28T07:31:00.000-07:00

Q - My house is on the market and the real estate agent wants to put a lock box on the door. I don't want one because I don't want people coming through my home at all times. I want appointments to be set up after work hours. Is that unreasonable? My agent thinks it is.

A - Your real estate agent wants to sell your home for you and is marketing your property. Accessibility to your home is vital. To restrict viewings to 'after work hours' is not reasonable and you would be losing selling opportunities.

Today's lock boxes are high tech - highly sturdy and much safer than anything in previous decades. They can be programmed so that entry can only take place between certain hours. You wouldn't have to worry about midnight showings! Many lock boxes have to be updated by the real estate agent on a daily basis. A code is utilized to gain access and this code is updated daily. So even if someone managed to find the code, it would expire by day's end.

The electronic boxes also keep a record of which real estate agent entered, on which day and at what time.

The custom, in most areas, is for the agent to call the seller to make an appointment for a showing. So you would know when a showing is to take place. With a lock box, your home can be shown while you are at work and this would open up many more selling opportunities.

Ask your agent to explain the features of the lock box that he/she uses. If it has many of the features described here -- go for the lock box!

Do you Know What You Are Buying?

2011-07-25T11:09:00.000-07:00

Q - We recently purchased a house that is situated on a large lot and we have since decided to build a workshop at the back of the lot. We found out that we can't build there because of a Statutory Right of Way. How could we have found this out beforehand?

A - If you didn't plan to build a workshop at the time of the purchase, any restrictions that were attached to the property may not have caught your attention. In Canada, a real estate agent normally obtains the title to the property you are purchasing. This title tells you exactly what you are purchasing. It lists all the charges -- removable and not removable. One of the charges that is not removable is a Statutory Right of Way. Often a SRW is in favor of a local government or a utility company so that they can enter your property and do the necessary work that may be required. A building on that SRW would restrict access. Or, another possibility is a Covenant or Restrictive Covenant which restricts what you can do with your property.

Your lawyer also obtains a copy of the title and reviews the contents with the client.

If you did not have a workshop in mind at that time of the purchase and you did not mention the workshop to either your real estate agent or your lawyer, they may have reviewed the title with you without placing any particular emphasis on any of the charges. Because you were not thinking of building a workshop, these issues may not have seemed important at the time.

The contract of purchase and sale normally has a clause whereby the buyer has the opportunity to review the contents of the title and approve such content before removing this condition. If the buyer does not approve of all the contents of the title and does not remove this condition, the contract of purchase and sale comes to an end.

It is important to listen very carefully to your lawyer's explanations of the items on the title and ask questions to clarify any points that are not clear. The title to the property describes exactly what you are buying and what you can do with it.

The Real Estate Process

2011-07-09T07:04:00.000-07:00

Q - I haven't bought or sold a home for 25 years but this fall I will be selling my home and downsizing to a condo. I would like some information about how the real estate process works these days. Any suggestions on how I can get updated? I live in Canada.

A - A lot has happened in the past 25 years in real estate. The most obvious is the increased amount of paperwork! Very briefly, the relationship between the client and the real estate agency has changed - there is mandatory disclosure - there are privacy issues - the government has paperwork regarding money laundering - home inspections are now common practice - home staging is also a new dimension to the real estate process - tax implications have also changed such as HST/GST. Of course, there are also numerous finance options available from the many lending institutions and through mortgage brokers.

Obviously, I can't cover it all in this amount of space. However, I can recommend a book that will provide you with a good overview of today' real estate process in Canada. I wrote this book for the consumer because it is difficult to find all this information in one place. It's often a scavenger hunt to piece the information together so that you can get a good picture of the process. My book is entitled "The Real Estate Process: Pros Discuss Buying and Selling Your Home". Besides describing the real estate agent's role, I also enlisted a lawyer, home inspector and a home stager to cover those topics pertaining to their expertise.

I believe that my book will give you the insight that you want prior to entering the real estate process. You can order it from amazon.ca or even from my site at http://callvibrown.tripod.com/id14.html

Bridge Financing

2011-06-28T15:57:00.000-07:00

Q- I saw a house that I would like to buy but I have to sell mine first. Can I make an offer on the house I like and have the owners wait till my house sells?

A - Yes you can make an offer subject to the sale of your own home. The contract will stipulate a time frame by which you have to sell your home. For example, you may have 30 to 60 days or more to sell your home. In the meantime, the home owner is still able to market his home.

If he obtains a buyer who makes an offer on his home, you would be notified and would have to remove your conditions or forfeit buying that home. You usually have 24-48 hours to do this depending on what has been written into the contract.

If the owner does not receive an offer during the stipulated time in the contract and you still need more time to sell your home, it may be in everyone's interest to extend the contract for another period of time.

If the home is the home of your 'dreams' and you do not want to lose it, check with your bank at the time you make your offer to see if you can arrange bridge financing. Should you then require bridge financing, you would be in a position to remove the condition if another offer is being considered by the owner. Be sure that your house is saleable in a reasonable period of time before you commit to bridge financing.

Friends Interested in Purchasing My Home

2011-06-17T15:24:00.000-07:00

Q- We want to sell our home quickly so I want to list my home with a real estate agent. However, some friends are interested in buying our home and would like us to wait before listing it so they can buy it for less because we won't be paying a commission. I want to accomodate but don't want to waste time and I'm not sure how that would work out. Any suggestions?

A - Go ahead and list your home with a real estate company. Make a provision in the listing contract to exclude your friends by name for a few days. In other words, have the agent state in the listing contract that should Mr & Mrs X purchase the home by a certain date - no commission will be payable or only a minimum dollar amount (stipulate amount) will be paid to cover the agent 's immediate time and expenses. The amount of time given should be no more than a few days or a week at most. Of course, you need the agent's cooperation and this coud be workable if it is for a short period of time.

This will give your friends the opportunity to act - if they are serious. If not, you haven't wasted any time. The agent will be cautious about his/her advertising expenditures until the time that this clause has been satisfied or it expires. However, in the meantime, the paperwork will have been completed so that your home is on the market.

You and your real estate agent will establish the market value of your home and that is what the listing price should represent. If your friends place a written offer on your home, they are likely to negotiate with you for a lesser price. What you choose to accept is entirely up to you. You may wish to negotiate because it offers you a quick sale or you may wish to wait and get an offer closer to market value.

If your friends make the offer within the time frame stipulated for the exclusion, YOU will have saved most of the real estate fee.