My Mom: “Sweetheart, I don’t really need you!”

God bless our parents – sometimes they come up with the statements nobody else in the whole wide world would dare to make….

79fe671e607a2c8ed82003dc9003c54e1Surprise

My Mom came to visit for a week. Never ever before I had to answer so many questions that seem to have quite obvious answers. On Friday, as I was back and forth with the listing agent on the multiple offer deal, my Mom comes into my home office and drops a bomb:

– Sweetheart, I don't really need you!

– Eh?!?!?! Mom, are you sure this is the best way to get my attention?

My Mom takes this as an invitation to a conversation, happily settles down and starts firing up:

– If I want to by a house, I don't really have to use an agent, right?

– Oh, this is what you mean! No, you don't have to use an agent and no you don't need me for that matter. (Oh, sweet moment of revenge – My Mom's face assumes the expression that I had just moments before – kill-me-now-surprised). Then she finally says:

– Well, aren't you going to start convincing me?

– No

– How about your clients?

– Mom, I don't have to convince anyone. People have their values, beliefs and opinions, a may not agree with them, but I do respect them. The other case is when someone has questions as to how they would benefit by using my services – here I would gladly share some points.

In real estate, just as in other sphere of life there are situations and SITUATIONS. Lets say you get a paper cut. Would you run to see your doctor? Probably not. You will get some band-aid and forget about it. Or, you get a paper cut, apply band aid, but it hurts like son of a banana, bleeds, swells, has a weird smell, area around it gets all numb and so on. Would you now go to see your doctor? You'd better run there as fast as you can.

– So what are the situations when I don't need and agent?

– Sure, if you are an expert in real estate, know the market better then the back of your hand, have lots of experience in buying homes and tons of time to spare, in the extreme buyer's market.

– But if I find a home on my own, why do I have to pay an agent?

– You are not paying your buyer's agent, these services are covered by the seller.

– Yes, but I can go direct to the seller and since I am not using a buyer's agent, ask them to drop the house price by 2-3 %?

– Sure you can do it, but there is a number of points to consider:

1. If seller's agent represents seller and buyer (multiple representation) he/she will have to do a double amount of work. What makes you think he/she will agree to represent you for free?

2. Seller agrees to drop the house price by 2-3%. With listed price of $450 000 you will save $9 000  – 13 500. But can you be sure, $436 500 is a fair market price? It might be closer to $400 000 and the home was just overpriced in the first place. As a matter of fact, I am working with a few sellers now, who bought their current homes without a buyer's agent. Thorough market analysis revealed that they overpaid anything from 30K to 65K. This is exactly the case where a cheap person pays twice – saved $9 000 and blew $ 30 000.

3. Seller's agent acts in the best interest of the seller. As a buyer, you need someone to act in your best interest. Sellers's and buyer's interests contradict. So, how one agent can truly represent both?

4. This is regarding your home search on your own. Best and best priced homes are getting sold within just a few days. If you are searching for a home on Realtor.ca, which has up to 48 hours delay as compared to MLS – today you might be looking at "new" listings that got sold yesterday….

5. Most of the real estate court cases involve at least one unrepresented side – buyer or seller with not real estate agent.

And the above covers only some of the points. In reality there are many more and I will be quite happy to discuss them shall the questions arise.

Compliments of Marina Gavrylyuk
Real Estate Agent with Sutton Group Summit Realty

www.MarinaG.ca
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Home Appraisal – Why is it Important to Know Your Home Market Value

More Tips for Home Buyer

7 Reasons to Buy and Not to Buy a New Home
12 Steps To Buy Your First Home
Types of Homes – Learning Real Estate Terms
First Time Home Buyers – Wonderful Video For You by CMHC
Discount Real Estate Brokers – Illusion and Reality or Free Cheese, Get now – Pay later
Moving Checklist –  based on the list from Martha Stewart
Some More Mortgage Terms and Rates
Mortgage Basics
Your Home and Maslow's Hierarchy of Needs
10 Reasons Why You Need a Realtor to Buy a House

More Tips for the Home Seller:

Home Seller Tips – Take Lots of Photographs of Your Garden
Closing Your Pool for the Winter – Homeowner Tips
National Do-Not-Call-List – Do You Really Know What this is?
Video Tours, Virtual Tours or a Combination of both
Making Your House Buyer Friendly – 10 Seller's Best Friends
Please, Don't Let the Cat Out – you gotta be kidding me!
Handymen Gone Handless or possibly brainfree!
Moving Checklist
Discount Real Estate Brokers – Illusion and Reality or Free Cheese, Get now – Pay later

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