FAQs and Tips
What is a Comparative Market Analysis?
A Comparative Market Analysis (CMA) is both a selling and buying tool used by realtors. It is used to determine how your home compares to other current listings as well as to other comparable homes that have sold recently. A properly understood CMA will allow you and your realtor to determine the highest possible asking price. A buyer, and their representative, will use it to insure that they are not paying too much.
Why use a realtor?
Whether you are selling or buying property, a professional realtor can provide you with invaluable services and information.
A realtor has their finger on the pulse of the housing market and is in daily contact with potentially interested buyers.
A realtor is your best source of information for current market listing and conditions.
He or she is a trained professional who is educated about legal issues affecting real estate transactions and will negotiate your best price, and terms in a contract of purchase and sale.
A realtor can provide objectivity in a potentially emotional situation and may also be able to help find a lender that can work with your unique criteria.
Only a realtor who is an active member of the Canadian Real Estate Association (CREA) has access to the Multiple Listings Service (MLS) which is Canada's most powerful real estate marketing system with over 600,000 unique visits each month.
What is a Buyer's Representative?
A buyer's representative is a realtor who acts in the best interests of the buyer. A buyer's representative will provide advice and information to help buyers make an informed decision about the "right" price. A buyer's representative will insure that the many terms of a sales contract are to the buyer's advantage and will assist in negotiating the buyer's best deal.
What is a Seller's Representative?
A seller's representative is a realtor who represents the best interests of the seller. In fact, with the assistance of a seller's representative, property sells faster and for a higher price. A seller's representative will insure the many terms of a sales contract are to the seller's advantage and will assist to negotiate the seller's best deal.
Why is it important to have your home advertised on MLS?
Listing your home on MLS ensures its maximum exposure to potential buyers. Since the creation of the Canadian MLS system in 1951, more than 5.9 million properties have changed hands, representing almost $500 billion. Only a licensed realtor can have your home listed on MLS. In 1991 www.mls.ca was born and has since become the extreme success that it is now.
How many unique visits does the MLS web site have each month?
The MLS web site attracts over 600,000 unique visitors / month. It shows the details of your home to local, regional or national buyers looking for property in your community. Chris Martin places your home on three web sites: www.mls.ca , www.remaxofnanaimo.com and www.chris-martin.ca.
What is an agency relationship?
Realtors work within a legal relationship called agency. The agency relationship exists between you, the principal, and your brokerage, the company under which the individual realtor who is representing you is licensed. The essence of the agency relationship is that the representative has the authority to act for the principal in dealings with others. Brokers and their representatives are legally obligated to protect and promote the interests of their principal.
Who is the principal in regards to an agency relationship?
The principal is the buyer or seller that has engaged a representative to act for and on his or her behalf either to buy or sell a home.
Did you plan for the "other" expenses when buying your new home?
A realtor will be able to apprise the buyer of all the "other" costs.
Some "other" costs may include:
- Land transfer tax
- Mortgage broker's fee
- Surveying costs
- Appraisal fee
- Mortgage insurance premium
- Interest adjustment
- Legal fees
- Tax adjustment
- Compensation for prepaid expenses
- Moving expenses
What is an interest adjustment?
Mortgages are normally calculated from the first of each month: if your closing date is the same as the beginning of your mortgage, there will be no adjustment. However, if your closing date is July and you move in on June 15, those last 15 days are the interest adjustment period. Your lender will expect you to cover the cost of the interest during that time.
What are some prepaid expenses that a buyer may have to compensate for?
Propane or heating oil left in a tank, electrical or gas bills, property tax, etc. A realtor will be able to advise you of any such expenses.
What are some of the selling costs that I can expect?
- Discharge of mortgage
- Real estate commission
- Legal fees
- Perhaps a Survey
- Moving costs
How do I determine the best selling price to ask?
A professional realtor, after preparing a comparative market analysis, will recommend a listing price based on recent sales and current market conditions. Too often sellers are influenced by the price they would like to get versus a more realistic price that the market will actually support. A home that is priced within 5% of its true value is significantly more likely to sell within the first 30 days than the same home overpriced by 10% of its actual market value.
What happens once the seller accepts the buyer's offer?
A buyer may have your home professionally inspected by a house inspector, the buyer's lender may send out an appraiser to ensure your property's true value and the buyer's legal advisors will want to search your home's title. Your realtor will ensure that the entire selling process is carried out as smoothly as possible and that all terms and conditions of the sales contract are meet.
Should I prepare my home for the sales market?
Yes, first impressions count and are lasting. You don't want your home to be quickly forgotten or even worse, ignored. Your home will only ever have one first impression with potential buyers. Keep in mind, every home is at its "hottest" when it is first introduced to the market and is rarely given a second chance.
What you should know about buying or selling a home with an oil tank?
According to the Insurance Bureau of Canada, a home with an exterior oil tank older than 15 years, or an interior tank older than 25 years will not be insured. Prior to closing, contact the fuel oil supplier for the home and determine if the basic or comprehensive inspections of the tank and oil-heating appliance have been completed.
What are Latent Defects?
Problems with a property or building which are not visible to the casual observer but which may surface later. A vendor must disclose to a purchaser any serious latent defects of which he has knowledge.
What are "Terms"?
The specific factors creating a contract; ie. price, items included or excluded, financing arrangements or tenancy.
How often should I expect to hear from my realtor?
You should be kept fully informed on all activities regarding your sale. This includes feedback on all showings, new competitive listings in your area, sales of competitive listings, and any changing market conditions. At the very least, you should hear from your realtor every week and long after your sale has completed.
How do I determine my affordability of a mortgage?
Use the mortgage calculator link on www.chris-martin.ca and simply fill in the fields. It doesn't get any easier than this.
What about my privacy?
A professional realtor is committed to using fair information practices when dealing with your personal information and recognizes the rights of buyers and sellers rights to protect and control their personal information. In B.C., realtors must abide by the Personal Information Protection Act (PIPA) which regulates by law how your information may be collected and used. The Privacy Code of the Canadian Real Estate Association (CREA) sets out the commitment realtors make regarding the privacy of your personal information. Visit www.crea.ca for more information.
Is there a Code of Ethics that a realtor must meet?
Yes, the Canadian Real Estate Association's Code of Ethics and Standard of Business Practice has been the measure of professionalism in organized real estate for over 40 years. The code establishes a standard of conduct, which in many respects exceeds basic legal requirements. This standard ensures that the rights and interests of consumers of real estate services are protected.
How much of a down payment will I need?
The answer to this question is relative to each buyer's individual circumstances. Some lenders may not require a down payment at all.
What is a Home Buyers' Plan (HBP)?
It is a program under which a buyer can, generally, withdraw up to $20,000.00 from their retirement savings plan (RRSP) to buy or build a qualifying home. For more information about an HBP contact your realtor.
Who should we use to represent us when we buy or sell our property?
Chris Martin, Chris Martin, Chris Martin
Is there a buyer for every home?
Yes, any home can be sold regardless of the market, provided there is effective marketing and it is priced realistically. An appropriately priced listing will attract attention and sincere consideration. Be careful, an overpriced listing may eliminate your most motivated or pre-qualified buyers.
Should I accept the first offer on my home?
The answer is relative. Your realtor will be able to offer you guidance and information to make an informed decision. It is important to take most offers seriously because homeowners often turn down a good early offer only to end up selling months later for less money.
Click here to find out what else you should know before buying or selling
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