Monthly Archives: March 2014

15 Questions To Ask A Real Estate Agent

Posted on by Jesse

Selling a home is one of the biggest and most important financial transactions that one would make in their life. Doing it alone would be unwise, which is why home sellers seek out the services of a real estate agent.

A good real estate agent can actually make a substantial difference. They know the market inside out, have direct access to MLS, and have the right network of contacts to help home sellers through the real estate transaction. On top of that, they are excellent negotiators, so they can get the best possible deal out there.

The key for any home seller is to not only find the right real estate agent, but a great one. Here, the home seller should be keen on finding a real estate agent who will always have their best interests at heart.

Here are fifteen questions every home seller should ask a real estate agent in order to determine not only how good they are, but also if they are the right fit.
1.     How long have you been selling real estate?
2.    What is the percent of sellers compared to buyers that you serve?
3.    May I see your resume?
4.    What systems do you have in place that will keep you in constant contact with me during the listing and the transaction?
5.    Are you fully automated with your own personal computer, fax machine, copier, mobile phone, etc.?
6.    May I see all the paperwork that you are going to ask me to sign?
7.    What professional designations do you have?
8.    How much time and money do you invest each month in professional training?
9.    Why are you personally motivated to sell my house?
10.    Why should I list with you rather than any other real estate agent?
11.    What kind of experience and training do you have in negotiations?
12.    How many homes do you sell in a year?
13.    Will you personally be there when contracts are presented and handle all the negotiations?
14.    Do you have a web site?
15.    Will you directly market the property online?
Usually, in order to find the right fit, a home seller may have to interview several. The best approach is to actually talk with friends and family and seek a referral.

An interesting note is that in real estate, someone who has sold many homes for sale usually costs roughly the same as someone who is inexperienced.

The sale of a home could well be the most important financial transaction a home seller has ever been involved with. The person selected to overlook that transaction can be the difference between a satisfying and profitable experience, or a terrible one. The bottom line is that it is the home seller’s choice, and they should make that choice, very carefully.

 
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Three Tips To Successful Negotiations

Posted on by Jesse

Success in real estate, whether it is buying or selling a house, comes down to negotiations and getting the best deal possible. Negotiating is an art, one that requires both experience and knowledge, and one mastered by agents at Search Realty. The catch is that when it comes to the sale of a home, both the buyer and seller, want to feel as though the outcome favors them, or at the least, represents a fair balance of interests.

In most cases, neither party gets ‘everything’ they want, but a good balance is key to a successful negotiation. Search Realty knows how to develop a strong bargaining position, which can help get the most from any real estate transaction. Search Realty lists three tips to help develop a successful negotiation strategy.

1. Understand the market.

As with everything else, the real estate market is constantly changing. Sometimes it’s a ‘buyers’ market, and at other times, it’s a ‘sellers’ market. It’s quite obvious that the home seller or home buyer will want to be in the market when it favors their position.

However, there are times when it is possible to go against the market, and still be successful, and this includes when one has ‘leverage’, more than the market would seem to allow.

A good example would be homes for sale in a desirable neighborhood. Here, the home seller may be able to get a better deal than home sellers located elsewhere. On the other side, for a home buyer who is willing (and able) to quickly close a deal, they gain significant leverage in the eyes of many home sellers. Those who are willing to make it a quick deal by closing faster are utilizing a key bargaining chip, especially if the home seller is in need to sell the home as quick as possible.

2. Leverage

Leverage is vital in negotiations. Home values don’t always offer the leverage desired and if the home buyer knows that the home owner is desparate to sell (maybe because they lost their job, or found a job in another city and need a quick sale), regardless of the home value, the home buyer has little leeway in the negotiation process. On the other hand, if the home buyer is one of many vying for the home, the home seller then gains the upper hand. Leverage means everything in negotiations and both the home seller and home buyer should be aware of where they stand before stepping in to the bargaining process.

3. Financing

Real estate transactions involve a trade, a house for money, and the house is obviously there, but what about the money?

Home buyers who are ‘pre-qualified’ have at least some idea of their ability to finance a home and can be assured that they are at least likely to qualify for some loan programs. This means that the ‘pre-qualified’ home buyer represents less of a risk to a home seller. This becomes key in negotiations as well. A home seller is less likely to accept an offer from a home buyer who has unknown financial strength.

More buyers mean more demand, thus more leverage for the home seller and this can easily occur when there is a lower interest rate. Alternatively, high rates or even rising rates may drive buyers from the marketplace—and that’s not good for anyone.

 
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Four Proven Factors That Affect Home Value

Posted on by Jesse

It is important to understand that property price and home value are two separate things. Property price is the price that the home is transacted at between a home buyer and a home seller. Home value (or property value) is concerned with how much the home is worth in the real estate market after an assessment by valuers.

That being said, there are situations whereby both the home value and property price are the same or similar.

When it comes to the home buyer and the home seller, their views on the actual home value will inevitably differ, as the home buyer is looking to purchase for the lowest price possible, and the home seller wants to make as much money as possible off the home for sale.

That is why a valuation can give both the home seller and home buyer an indication of the parameters within which to work with, so that they can agree upon a property price.

eSolds reveals four proven factors that affect home value.

1.    Property location

Location, location, location! A property falls in a certain area, and that very area can simply be worth more than other areas. Selling a condo on the outskirts of the city is different from selling a condo that is right in the middle of the city. That’s why it is important for both home buyers and home sellers to understand that the location of a property plays a vital role in the valuation of that property.

2.    View

More so for condos and apartments than homes, but the view is actually one of the first things that any potential home buyer will check out when visiting the property for sale for the first time. A home with a great unblocked view will obviously have a higher value than a home that has a blocked view. Nobody has the desire to be able to see the neighbor’s kitchen or washroom (especially if they lack drapes) every time they step outside or go on the balcony. View is the very reason why condos at a higher floor level actually value higher than those at a lower floor level. A condo on a higher floor may be in the same area, but it has a better view, thus a higher property value.

3.    Neighborhood

The neighborhood in which a home is situated can have a great impact on home value. Close proximity to schools, malls, highways and such are a vital aspect for potential home buyers and can actually be attractive enough that a buyer is willing to pay a high price for the property. A note here is that planned projects (ie. A new mall, or new place of worship under construction) can also increase home value as well and make a home for sale much more attractive.

4.    Nearby Real Estate Transactions

Recent real estate transactions in the neighborhood actually provide comparable prices to better assess a home’s value. If a similar home which is down the street, sold for $500,000, then the home in question being valued, most likely would fall within that range (so long as the home itself is similar).

There are, in actuality, many factors at work, when it comes to home value, but the value of recent transactions in the same neighbourhood can help provide a rough guideline as to how much a home’s value falls under. And of course, the view, location and neighbourhood can provide an argument that can go both ways as well.

There are certainly other factors that come into play in terms of home value, such as amenities, whether the home has a pool, one or two-car garage, and more. One thing is almost always certain though. That the home owner’s thoughts on their home’s value is almost always more than what it is actually worth.

 
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Three Steps To Certifying Your Home

Posted on by Jesse

In 2011 eSolds Inc. was founded with the purpose of providing 3rd party real estate services to smart home sellers, buyers and realtors. eSolds Inc. has come up with an innovative new product that is going to change the way real estate is bought and sold in Canada.

The product is eCertificates. eCertificates serve one purpose, and that is to simply create confidence for the home buyer and allow leverage to the home seller. Together, buying or selling an eCertified home creates an educated decision-making process.

The goal for eSolds is to make the home purchase transaction a more satisfying experience. By eliminating any buyer’s remorse, an eCertificate provides confidence within the buyer to submit an offer, and at the same time, it markets the home for sale in an innovative way, keeping customers ahead of the competition.

Based on the premise that properties for sale should be certified, just like cars are certified, eCertificatesare meant to be irrefutable proof that buyers will get what they have been promised. This means that the home seller can provide reassurance that the home being sold and put on the market is actually what it claims to be. Sellers benefit from this because it increases the salability of their home. Real estateagents benefit in the fact that they will be able to sell homes faster. Home buyers will benefit in the security of knowing that they are getting exactly what they paid for.

Home Sellers can have a home certified by submitting three documents to eSolds.

1.    The first document is a Comparative Market Analysis, or a Letter of Opinion prepared by a licensed and insured real estate agent. The comparative market analysis needs to be done by a real estate agent and must also be dated within the last 30 days.

2.    The second is a Home Inspection Report or for condominiums, a Status Certificate provided by a Home Inspector. The home inspection report is carried out by a certified home inspector that is fully insured and bonded. In order for the report to be accepted it must be dated within the last 30 days and the inspector needs to be verifiable by appearing on a list at 411.ca, Canpages.ca or at YellowPages.ca.

3.    The last document needed is Seller Property Information (SPIS), which is a current document by the Ontario Real Estate Association (OREA).

The eCertificate is issued only after a thorough review of all the documents above. Once issued, the home seller is assured of having something to show to not only real estate agents, but potential home buyers, that will assure that the home for sale, as listed, is exactly what it says it is.

The benefits of eCertificates are clear for the main parties involved in a real estate transaction. With an eCertificate, the home seller receives more offers for the home, and the home is sold at the best price possible, as well as being sold faster. For the home buyer, eCertificates provide protection against expenses that are unforeseen during negotiation and the listing process.

The difference between a property that has an eCertificate and one that doesn’t have one is it is able to stand out from the rest of the crowd. This is the one crucial thing that leads to more offers and a higher selling price than anything else. When others notice a home and decide they want it, things can heat up very quickly with buyers scrambling to put in an offer. With an eCertified home, not only is the home sold faster, but at the best price possible, and in the end, both the home seller and home buyer, are left satisfied.

 
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