1) Buyer Agency
buyer agent owes all his/her agent fiducary duties to their buyer, which include;
accounting, full disclosure, confidentiality and loyalty. They owe honesty and
fairness to the vendor. Therefore, any agent other than the one agent who listed
your home is a buyer agent (including all other agents that work for the same
real estate company as your listing agent).
Before a buyer puts an offer
in on your home, the buyer agent will inform their buyer of:
a) the price you paid for the house (found on computer registry sales)
what improvements or changes you have made to the property since you moved in,
c) the sale price of all other homes on your street or in your neighborhood that
compare to your home.
Most buyers go through 30-40 homes before they make an offer on a home. Most buyers
today, are very well informed about the real estate market and it's prices.
Home inspections usually take 2-3
hours & are attended by a qualified home inspector, the buyers and the buyer agent.
The costs range from $240.00 - $375.00 including tax.
You will be expected to repair or pay for most minor problems such as leaky taps,
wrong fuses in the panel etc.
b) If there are major repairs, such as a roof,
furnace, whole new electrical system that are required, you can expect the buyer
agent to come back and re-negotiate the already accepted offer price.
A building lot location plan or survey will show the
house foundation on the lot. It may or may not show the additions or alterations
such as a deck, swimming pool, sheds etc. They are signed and dated by a qualified
No Survey! The price of a new survey will run $800 - $1000 including tax (in town).
Title Insurance is an alternative for the buyer to purchase. It costs $250-$400
and will provide assurance to the lending institution that the house is on the
property. Note: If you have no survey or your survey is too old to be acceptable
to the lending institution, you may be asked to pay for a new survey or contribute
to the cost of a new survey.
Example: You are being transferred
to a new city after only 3 years of living in your home. You know the prices are
much higher in the new city, so you have decided to rent for a year to become
familiar with the area and your new job. Your current mortgage has a five-year
term. You will pay a penalty...to the bank!
Total Discharge of a mortgage gives the lending institution 2 options:
3 months interest penalty (Quick calculations will be 3 times your monthly mortgage
payment...less a little bit!)
b) Interest Differential This is the difference
between the current interest rate, which the bank could lend the new money, and
the interest rate on your mortgage documents. Example: If the current rates were
7% and the interest rate on your mortgage was 9 1/2%...there would be a difference
of 2.5%. 2.5% x amount of your mortgage x the remaining months till maturity x
mortgage factor = penalty
Condition of Home vs. Price
* The more features you
have in your home...the higher the price you should expect.
* The better
the lot & location....the higher the price.
* Prepare your home for sale
before any buyers go through it. Don't plan on doing your cleanup and repairs
once it is on the market. Both the agents and the buyers will remember it from
their first visit!
* Price It Right...no more than 2-3% of
Current Market Value
* Strategic Planning! (don't just slap a sign up & pray!)
* Web sites
* Buyer Programs
* Other Realtors
* Database marketing
1) Choose your agent first...then your price!
Choose an agent who is a strong negotiator and a good marketer. (less than 10%
of homes are sold by the listing agent!)