REInfo

I have uploaded onto Windows Live ‘SkyDrive’ a collection of real estate-related files that I find helpful, use regularly. I will now add to, update, and ammend these files on an ongoing basis.

I have included such things as market conditions and forecasts, as well as recommendations to Buyers and Sellers on smart things to do, nasty traps to avoid.

BUYERS and SELLERS: Right up front, your Realtor should have the ‘Agency’ discussion with you. The applicable form is called ‘Working with a Realtor’ (bottom of the alphabetical list on SkyDrive). With the aid of this document, a Realtor SINCERELY PROMISES to be a (knowledgeable, skilled, experienced) EXTENSION of you, to put YOUR INTERESTS FIRST. If you don’t get this talk, or you don’t trust ‘your Realtor’, either work it out with him/her to your satisfaction, or get a Realtor you DO FULLY TRUST. Now, take me; I’m totally HONEST, as well as Educated, Experienced and fanatically DEVOTED to Professionally ASSISTING MY CLIENTS; But please DON’T TAKE ME WORD for how good I am; Rather, ASK ME (or any Realtor you are considering) for REFERENCES — and by sure to CHECK THEM.

BUYERS: The BUYING STRATEGY that has YOU running all over the place on your own looking for something you might like, then calling-in ‘your Realtor’ to write your offer, is a case of ‘your Realtor’ DOING AS LITTLE FOR YOU AS POSSIBLE for you. NOT a good deal for you! Definitely NOT Agency.

SELLERS and BUYERS: DO get very clear on how real estate commissions generally work right now: The Seller and his/her Listing Realtor SET the commissions to be paid — more often than not, totalling 7% on the first $100,000 and 2.5% on the balance of the Selling Price (+12%HST). Then, nothing happens until a Buyer PAYS the commissions, ‘cleverly’ imbedded IN THE PRICE of the property. Historically, this bad and deceptive commission practice is a simple HOLDOVER from the even worse and MORE DECEPTIVE old days (up well into the 1990’s) of Sub-Agency, where BOTH the Listing Realtor and the Realtor with the Buyer actually WORKED FOR THE SELLER, and generally nobody bothered to tell the Buyer about this 3-against-1 situation. (And we wonder why Realtor’s have an image problem.)

SELLERS: Be aware that the standard Multiple Listing Contract LOCKS YOU IN for its duration. It sometimes gets used as a WEAPON, against you. I give my Sellers written assurance that, CONTRACT NOT WITHSTANDING, they will be UNCONDITIONALLY RELEASED at just about ANY TIME, for ANY REASON (the only exeptions are when actively negotiating an offer, or when a deal is in place). Before you sign, KNOW what your Realtor’s position is concerning RELEASE FROM A LISTING.

SELLERS: Watch out if your contracted Listing Realtor suddenly wants to STOP providing you FULL AGENCY Services (as per your legal Listing Contract), and instead proposes a TREACHEROUS little something called ‘LIMITED DUAL AGENCY’. Be aware that he/she is proposing to do much less for you, and a half-assed job for a Buyer, just so she/he can make MORE MONEY! This, again, is Definitely NOT Agency. Over the years, I have consistently argued that we should SHOOT DOUBLE AGENTS, like governments do. YOU DO NOT HAVE TO AGREE to any (highly disloyal) Limited Dual Agency proposal — maybe counter-propose adding MORE Listing Realtors?

BUYERS: Do NOT sign an “Exclusive BUYER’s Agency”, which should have been called “BUYER’s StrangleHold Trap” or words to that effect; It totally locks you in, while leaving your ‘Exclusive’ Realtor TOTALLY FREE TO DO ANYTHING, including working for other Buyers interest in the same property as you, at the same time, in FLAT-OUT COMPETITION to you. Adding INSULT to injury, this nasty piece of ‘EXCLUSIVITY’ even pulls that imfamous old Realtor’s trick of KEEPING YOU TIED UP for another XX days AFTER CONTRACT EXPIRY.

I have included blank versions of commonly used real estate forms. I suggest you familiarize yourself with them, so that when they come into play you’ll know exactly what they are about, and can free yourself to FOCUS on your deal without being overwhelmed by a sea of LAWYER-drafted paperwork. (another profession with public image problems!).

BUYERS AND SELLERS: When you make your deal, make sure that EVERY POINT YOU HAVE AGREED ON IS CLEARLY SET-OUT IN WRITING. Verbal contracts are not enforeable, and verbal agreements can not alter written contracts.

You should be able to get to my Skydrive folder by clicking this UNDERLINED link:
INFORMATION – One of the KEYS to successful real estate transactions.

I welcome your constructive comments, suggestions, criticisms, corrections, etc. Enjoy!