Real Estate Talk:
Why use a broker?
Selling a property without a professional is like performing surgery on yourself
By Joseph Marovitch
Updated April 17, 2019
I met old acquaintances the other day who told me they are going to sell their property on their own. I was told they would save on the commission and what was the big deal? The big deal is that whether you are a licensed broker or Joe Shmoe, the real estate brokerage act and all the requirements, codes and laws still apply.
Selling a property entails many factors. The easy part is marketing the property which includes: ads, Centris listing, website placement, newsletters, emails, flyers, etc. This all works if the house is properly priced and presented as a qualified and experienced broker would do.
Then there is negotiation to get the best price possible. This is a skill that is practiced and mastered. I am asked many times by buyers who visit my properties, “What is the best price my client will sell for?” My answer is always the same, “As much as we can get”, and the negotiation begins.
… whether you are a licensed broker or Joe Shmoe, the real estate brokerage act and all the requirements, codes and laws still apply.
The hard part is navigating from an accepted offer to signing. Many issues must be addressed to insure a sale, such as:
– The Centris listing must be precise in measurement, accuracy and terms. If the measurement of a room is incorrect and only detected to be wrong after signing, the buyer can reverse and cancel the sale or litigate.
– If the Centris listing states the property is sold without legal warranty but is not stated in the promise to purchase, counter promise to purchase or amendments, then the property is sold with warranty.
– Deadlines must be maintained or negotiations can cease.
– Conditions such as inspection and financing must be fulfilled, and once they are, the property is legally sold.
– Certificates of location cannot be more than seven years old, however, if the property has not changed in any way, it is the responsibility of the buyer to acquire the new certificate not the seller. If there have been changes, then the seller must acquire the new certificate.
– Then there are illegal views, acquired rights, proximity of one property to the next. These are all issues that the broker solves.
Brokers are trained in all aspects of real estate law, contracts, marketing and negotiation. Selling a property without a professional is like performing surgery on yourself. Unless you are trained and have experience, you can run into a multitude of complications.
‘Brokers are trained in all aspects of real estate law, contracts, marketing and negotiation.’
When interviewing a broker to represent you in the sale of your property, you should insure the broker will do the following:
- Proper evaluation and pricing with proof, based on current active comparable property for sale, comparable property that sold in the last twelve months and the condition of your property.
- Marketing to sell quickly by targeting buyers for your location and the type of property you are selling.
- Qualify buyers by requesting the buyer’s pre-approval or proof of cash.
- Properly preparing all forms including the brokerage form, amendments, counter proposals, etc.
- Negotiate on your behalf in a fair but stern manner. When the broker is asked by the buyer “What will the property sell for?” the answer should be “As much as possible” or “The price is…” They should not use the word “asking”.
- Finally, a good broker is relentless between accepted offer and signing. They do not stop or slow down until the financing is in place, inspection is complete, the notary has performed all their work and signing has taken place. They get the job done and insure all deadlines are adhered to.
Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.
Have a great week!
Next article: Preparing the house for showing in a spring/summer market
State of the market
The market in Montreal continues to heat up while the rest of Canada slows down. In past articles I discussed the fact that new construction is decreasing due to lack of space on the island of Montreal, however there are still opportunities to purchase commercial and residential property before prices become outrageous but be careful and do not be greedy.
In recent weeks there have been accepted offers on a property where, after the acceptance, the seller is approached with an even better offer. In this case, the seller must abide by the terms and conditions of the first offer and the buyer must be sure not to be in default of any term and condition of the promise to purchase and its amendments.
‘Any condition in an offer that is not abided by is a default in the agreement and allows either the buyer or seller to null and void the offer.’
Conditions in an offer such as inspection, review of documents, financing and their deadlines must be respected. Any condition in an offer that is not abided by is a default in the agreement and allows either the buyer or seller to null and void the offer. A default such as missing a deadline may not cause a nullification of the offer, however, if the intent of either party, buyer or seller, has changed, the default allows a legal out.
In a market where prices are increasing due to decreasing supply of new product, sellers can be tempted to get more money from another buyer. Buyers be sure to dot your I’s and cross your T’s so as not to lose your purchase.
Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible to, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771 or firstname.lastname@example.org