Welcome to the Homes On The Sunshine Coast Blog...
We had a great weekend at our Open Houses this weekend. We had 16 of them, yes 16!! We met some wonderful people some of whom we will now work with in their quest of finding the right home for them.
Attending Open Houses is a great way for you to learn more about what homes are on the market, how prices are affected by present market conditions, and what options you have available to you. If you are in the market to either buy or sell we recommend that you attend some open houses and familiarize yourself with the market. At best, you may well find the home you are looking for, at worst... you will become more informed about what is happening in the Sunshine Coast Real Estate market.
We would love to meet you at our next Open Houses and we are proud to show you some wonderful homes and properties owned by the sellers we represent.
Below is an excerpt from an article from PropertyWire.ca regarding sellers selling their own home FSBO's (For Sale By Owner). It's an interesting read...
..."Weigh all the facts
Seemingly, the motivations of selling privately are largely financial- but the risks of doing the entire transaction on your own are substantial. If all the facts are not considered, then there remains the possibility that you may ending up losing money through carrying costs and through other avenues- which outweighs the savings made on commission.
There is the possibility that a private seller may luck into a sale immediately, and save not only lots of money on commissions, but also save money on carrying costs.
In this environment, luck must be contrived, not hoped for. In order to mitigate risk, a private seller must understand everything right from the get go- even if they end up selling privately; they must understand all scenarios- and that involves understanding all the variables, whether though consultation at the beginning of the process with a Real Estate Lawyer- or with a Realtor.
Cathy Mudge, Sales Representative, Royal LePage 1st London Real Estate Services, Brokerage has had the opportunity to provide service to several clients who have first tried the FSBO route, but had little luck.
She reminds that she does not get paid unless she is successful in completing a sale- and for her, the successful sale comes about in providing end-to-end service.
“As a realtor, working on a contingency basis, I don't get paid until I am able to execute a successful sale. So I'm investing time and money into education, insurance, technology, security systems, marketing tools, relationships, meeting with buyers, pre qualifying buyers, educating buyers, showing properties, building relationships with other buyer realtors, lawyers, moving services, home stagers, mortgage lenders, upgrading contract skills and resources, negotiating, advising, researching market trends and sales, and so much more, so I can provide valuable service and protection to my clients, while seeing them through to the very end so they can realize a successful sale, and purchase of their next home.”
In her experience as well, there are instances that owners could have benefitted from advice, before they even started the process- case in point- her clients. Mudge worries about sellers who are lured in based on commissions savings only, and who don’t weight everything equally. “Unfortunately there is a lot of misinformation out there. These FSBO companies perpetuate the myths, and prey on unsuspecting sellers who think that by paying a FSBO company hundreds (sometimes thousands) of dollars up front, they will still have a successful sale, and save thousands that would otherwise be paid to a realtor after the sale is complete.”
Again, best decisions are made by having all the facts in front of you.
Is handing the reins over losing control?
For consumers, sometimes it just makes sense to take control ultimately by handing off the process to someone else. Lesley Kelly, after consideration of all the possibilities, still elected to use a Realtor- because it fit best with her needs; ”Despite having a positive experience purchasing our new home through a private sale, we felt that it was very important to use the services of a realtor for the sale of our current home. As busy, full time working professionals and parents, we didn’t feel that we had the time to devote to adequately promoting our own home. We also felt that there was a network of resources which are still primarily available only to realtors... We also felt that the type of expertise and experience that a realtor could provide in terms of comparable market values and pricing was invaluable.”
Regardless what route consumers choose, it is essential to do the homework. Leclair suggests that those who don’t make themselves aware of the implications of entering into the sales process alone, do so at possible peril. Things may work out- but they also may not- and without the advice of an expert, you are leaving the outcome largely to chance.
He suggests that those considering a private sale weigh through some sample questions, which he believes that many consumers do not readily know about; “Who prepares the agreement of purchase and sale? Who negotiates the deal? Who will prepare the house for showings? Who will show the house to interested buyers? How to price the house - How to determine its value? Should there be an inspection report available for prospective buyers?”
Not just about peace of mind
Leclair too, suggests that the impetus for expert advice goes way beyond moral support through they sales process; “This is not simply a peace of mind issue but it has fundamental legal, financial and practical implications for the parties to the agreement of purchase and sale. This is a legally binding contract once signed by the parties and before signing, they should understand what is being agreed to (does the written text reflect the intention) and does it address all the necessary issues. Only then will surprises be avoided and the parties successfully accomplish what they set out to do.”
“Whether a real estate agent is involved or not, a purchaser or vendor should consult a real estate lawyer early in the process. Then they will have peace of mind that comes from knowing they understand the greater financial and legal implications involved and have properly protected their interests in what is likely the single most expensive transaction they will undertake. “
Part of charting a successful course, no matter where you are going or what you are doing, is to flatten the potential impact of risk brought on by unanticipated events. In the case of Real Estate, this risk can be neutralized and managed better through education and consultation at the beginning of the process- from an expert that meets the required need.."
As always, Shay and I are available to get together with you to discuss your Real Estate needs. Give us a call or send us an email.
Barbie and Shay
Barbie 604 741.1239
Shay 604 989.9888
Reaching YOUR Goal is OUR Mission