Amalgahome

Realtors are Professionals

Whether buying or selling a home – real property, a real estate agent is your best choice -in most cases.

Realtor License

The prerequisite for becoming a Realtor, realty agent/salesperson or a broker is to be licensed by the state/province in which they work. Minimum standards for education, examinations and experience must be met and then to join the local Association of Realtors and the National Association of Realtors before a person may call themselves a Realtor. Although the governments set the standards and rules by which a realtor must comply, the local realty boards are the policing bodies which ensure realtors and realty companies are conducting themselves professionally.

Let’s face it; you are making the largest, most important purchase of your life. There are just too many ins and outs in purchasing a home and a professional is your best safeguard to ensure the transactions go smoothly and are legal. Yes, there are many Do-It-Yourself real estate packages on the market, but consider who is using them. All too often it is the scammer, someone who is selling property they do not hold title to, or is covering up deficiencies which is often the case of house flips. Do not allow yourself to be caught by a real estate transaction gone awry – use a realtor.

A Realtor also has the access to the greatest number of homes for sale. A Realtor also has the access to all the information of the listing realtor as regarding title, closing dates, disclosures, and of importance – the sellers anxiousness to sell, what his selling point and terms of sale will most likely be. This knowledge is vital in making the best price offer.

Choosing a Realtor.

The first thing to keep in mind is that all licensed realtors have access to MLS, Multiple Listing Service, and are permitted to sell every home regardless of the listing company or agent. The Real Estate fees are divided between the listing agent and listing company and the selling agent and the selling company. By looking at the breakdown of fees it is obvious that a real estate company would rather have their own agents pushing their own listings first. The proportion of fees would be higher. My personal views on choosing a realtor is thus. If I was selling, I would choose an agent from a larger company in order to give my home the most exposure, but we are interested in buying a home. I would choose a hungry agent from a smaller Real Estate company, one with few personal listings but with some experience.

I say hungry because they are the ones who will take the time to show many listings. It is all a matter of salesmanship. Before taking you house hunting, besides the obvious, “How many Bedrooms, How many baths, How large, Basement or no, attached garage etc.”, if I were your agent, I would ask you questions that give me an understanding of who you are and what is your lifestyle and what are your expectations. I then would choose three listings; one that just falls short of what you are looking for, knowing that you won’t buy it, one that slightly exceeds what your looking for, knowing that you probably can’t afford it, and the home that, in my estimation, fits you to the tee – the home of my listing or that of my company that I prefer you to purchase. For the most part this formula works and saves the agent time.

As a buyer, I want an agent who is willing and has the time to show me the listings I want to see. An agent who will ‘bend over backwards’ on my account. An agent who will negotiate hard and tough on my behalf to get me the right price. I want a hungry agent. An agent who is willing to give me the ‘realtor’ permissions to view the MLS online listings. That is where the better info is and I can make up my own list of homes I would like to view.

I want a real estate agent who has all the forms available for preview before I am required to sign. Ask to see all necessary documents upfront, ask for copies of the following upon viewing:

Buyer’s Broker Agreement, is it exclusive or non-exclusive? The buyer broker agreement states precisely who represents the buyer. It may also be called buyer representation or service agreement.
Disclosure of Defects. The seller should disclose any latent defects in the home at signing of a contract to sell with the real estate agent. The seller, or his agent, may not conceal or mislead the buyer about defects that would otherwise be evident upon professional home inspection. Such action could be deemed fraudulent, thereby permitting the buyer to cancel the contract.
Purchase Agreement Your real estate agent will likely suggest that you use a standard purchase agreement form. It is best to hire a real estate lawyer to review the contract before signing.

Every home purchase contract, sometimes called an “earnest money agreement” or “residential offer”, should include:

• Purchase price you are offering.
• Amount of down payment (sometimes called “earnest money” or “deposit”.
• How long the offer will be open. It’s best to limit the seller to not more than 48 hours to respond to your offer, to keep the seller from waiting for better bids from other buyers.
• The date the sale will be finalized or “closed” and the date you prefer to move in.
• Who will hold the deposit money (usually an escrow agent) and who will be the closing agent and/or escrow agent for the closing.
• Items to be included in the sale, such as carpeting, lighting fixtures, appliances, etc.
• Items not included in the sale.
• The legal description of the property.
• A guarantee that the seller will provide clear title to the home, through an abstract of title, certificate of title or a title insurance policy.
• A provision that the seller is responsible for paying all utility bills, property taxes, insurance and other house related expenses through to the closing date.
• A clause that requires the return of your deposit if the sale is not completed due to a contingency of sale.
• An inspection clause that allows you to have the home inspected by a professional inspector, usually within a few days of the date of the contract. This provision should make your purchase offer contingent on a satisfactory inspection report.
• A clause that details when you can do a walk-through inspection before the closing date to make sure everything is in order according to the guarantees made in the contract.
• A mortgage contingency provision that allows you to be released from your offer if you’re unable to obtain finalization or obtain a mortgage in a specific amount at a specific interest rate within a specific amount of time, usually between 30 and 60 days.
• A provision that requires the seller to pay a certain amount of money for every day beyond the date of your occupancy that the house is not available for you to move into, often called a “liquidated damages clause”.
• A clause that makes the offer contingent on selling your current house, if you’ll need to do so before you can move.

For further information about the agent’s, seller’s and buyers legal responsibilities, see:  Canadian Real Estate Law. In the USA, individual states have basic jurisdiction over Real Estate Law. A good place to learn about the legalities of real estate is: Real Estate Lawyers website.

It is time to go House Hunting – Making a List to View
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