Friday, October 20, 2017

What Am I Signing here?

July 20, 2010 by  
Filed under Buying Real Estate, Recent Posts

There is something about signing an agreement that people shy away from.

When you’re a first time home buyer it seems strange to sign a contract with your real estate agent! The truth is, a Buyer Representation Agreement protects you the buyer and should be signed at your earliest opportunity.

A  B.R.A. is a written representation agreement between a client and a real estate company.  It states very clearly that the company’s legal duty is to ensure the client’s interests are protected and promoted at every possible opportunity.

In other words, under an Agency Agreement, the company must ALWAYS put YOUR interests first– above everything else except the law.

FACT:  If you do not wish to be represented under a Buyer Agency relationship, the company you choose automatically must work for the Seller during the transaction.  It’s either one or the other.  Almost every home Seller on the market has already has an agent in place. In fact, this is one of the mandatory conditions of being listed on the MLS system.   So if the Buyer does not have an Agency Agreement in place, their Realtor must work for the Seller as a “sub-agent” by law.  In a situation like this, all information gained about your situation, including financial information and what you are willing to spend may be shared with the Seller to enhance his or her negotiating position!

On the other hand, if a company works as your exclusive Buyer’s Agent, it owes you full confidentiality (they will not tell the Seller anything) and its duty is to make sure you are fully protected.  You’ll be advised about the true market value of homes and about the best strategy to purchase your ideal home for the best price possible.

Planning for your “Plan B” before you need it

Its seems now more than ever that people are looking for a “Plan B”, a catch net, a self created security plan. This probably isn’t a bad idea considering that employer’s loyalty to its shareholders far out weights it’s loyalty to staff and now a days, being a corporate executive requires the relationship skills of a leader of a political party.

As you scan your list of aptitudes that you could capitalize on, whether its interior design, handy work, home delivered healthy meals, cake making, photography, or art, you’ll want to create a detailed plan for your business. Your business plan will help guide your efforts towards reaching your target market, generating profits, creating a sales funnel, and a general day-to-day road map.

According to Brian Tracey, “you can’t hit a goal that you can’t see”; having a rock solid business plan, even if it’s a part time business, will give you focus and help you narrow in on the efforts that are most important. But probably more important than a business plan is old fashioned hard work and action. At the end of the day you need to secure some jobs, go through the sales cycle, ask your customers for feedback, and make improvements. By going through this process many times you will have created the illusive “sales cycle”, be able to better predict your profit margins, determine how many sales you need to reach your financial targets, determine which types of jobs are the ‘sweet spot’, and assess your niche in a competitive market.

You may ask yourself – is it worth it? Well, that’s a personal question but in my opinion yes, it’s worth the effort. If having a side business allows you to make a few extra mortgage payments a year, assist with your child’s education, buy an income property, or invest in the stock market. In many ways, we’ve gotten lazy. Our grandparents worked from sun up to sun down, 6 days a week. These days our expectations are high but our effort and focus is low. It doesn’t take much to turn this ratio around and generate more money for investments. Further, a side business will create an income tax shelter and if you’re looking to get out of the rat race in the future, having an established business is the lowest risk way to build an exit strategy.

Yes, planning is essential but good, old fashioned elbow grease will get your results and answers and mould your business plan for the future.

Do I really need a stager?

Things have changed; the majority of buyers out there are looking for a home that is move-in ready. People these days are so busy they don’t want to spend their weekends fixing up a home. Plus, all of the decorating shows on TV are changing the market and Buyers expectations. You may not agree with it but there’s no point fighting it either.

Potential buyers appreciate an uncluttered home that allows them to visualize their possessions in place.

The goal of staging is to neutralize and showcase your home’s best features by adding and arranging key “props”, both furniture and accessories, so it appeals to more people…a larger market demographic ensures you will get the best price. Some things that you “never got around to” can often be fixed at a minimal cost. For example, a damaged base board or a dangling ceiling fan in the bathroom that you always meant to fix.

The second goal of staging is to create the image of a lifestyle that potential buyers wish they were living. You want an emotional connection between the buyer and your home.
Lastly, the beauty of staging is that you can achieve a dramatic result at a reasonable cost…an outlay of $3,000+ can make a significant difference in the sale price. As more homes come to market, buyers have more choice and it becomes increasingly important  to feature your home in the best possible light.
- Adrienne Farquhar