It is sooooo very important to have the right agent working for you. Why? Because in times like these when the real estate market gets tight, lawsuits soar and crazy things happen. An experienced agent will take the time to do their research and homework to ensure you are getting the best property and not just a transaction in their pocket. What type of research you ask? What should my concerns be?
Well, if a property has been on the market a long time, several issues come into play.
Some of the obvious...is it priced right? Do the sellers want or need to sell? Are they just testing the market? Or are they unrealistic? Often sellers believe their home is worth more than today's market. Why? Because they are living in yesterday's markets. In addition, they may have put quite of bit of work and money into it as well a memories and feel an emotional attachment to it. Therefore, letting go is hard to do without the high price. If a seller really wants to sell, it will be reflected in their price. To be competitive in today's market, the property needs to be listed for less than the last closed comparable.
What can an agent do if writing an offer on an over priced property? Pull up comparable in the area and present them to the sellers along with the offer. This way, sellers see first hand what the buyers are looking at and know they cannot deny these numbers when they are right there in black and white. And some listing agents have not kept the sellers abreast of current comparable properties which is why they were left in the dark. However, I think it is also important to say... some of these home owners are still in denial and will always think their house is worth more than the last closed comparable. (This may be why it is still on the market)
Presenting an offer with a pre-qualification letter supports you are a strong serious buyer. If a homeowner is going to argue with you over price after all the above has been presented, it might be best to move forward on another property. There are too many great properties available these days. Figure in bank owned properties such a foreclosures and short sales, as a buyer you should be getting a good deal!
Was there a lot of repair work needed? Was the repair work done? Was the property neglected? If a home needs major fixing up, you have to ask yourself...what else could be wrong with the property? How much will that cost me? If the condition of the property is poor, chances are it is going to need a lot more work than you think. Have a certified specialized inspector come out to inspect the property if you are unsure. Otherwise it could cost you thousands of dollars to repair and replace roofs, pools, mold, asbestos, drainage, leaks, etc.
Is the property on an earthquake fault zone or flood zone? As a first time home buyer, you might not be aware that extra home owners insurance is needed to cover a home under these zones. This is something else you will need to factor into your payment to pay annually, quarterly or monthly.
Have the sellers had any offers on the property? If so how many? This is key. It tells the sellers motivation, and shows the buyer how flexible they are on price. A home is only worth what a buyer is willing to pay and the bank will fund in today's market. And if they have had offers they weren't able to work with, then maybe they are asking too much, something is wrong with the property or it may need work.
Why didn't any of the offers stick? Was it put in escrow? Did it fall out of escrow? If a buyer backed out or could not perform, an agent needs to dig deeper to find out the true cause. When offering on a property that fell out of escrow, ALWAYS ask for ALL REPORTS pertaining to the property. This will include all types of inspections including termite, physical inspection, mold, asbestos, etc. A seller and agent representing the seller are required to release all reports if requested by a buyer. If the seller or selling agent does not hand over all the reports when requested and the buyer discovers the seller tried to cover these up at a later date. The buyer can come after the seller as well as their selling agent and their brokerage and sue them all. It is more important to investigate and disclose everything. Now you see why lawsuits enter into the picture?
Was the property re-listed with another agent after several months on the market? Did the previous listing agent know something negative about the property that the new home owner did not want to share with the new listing agent to keep it under wraps? Usually agents work hard to sell your property, because they only get paid when the property does sell. Digging deeper by making a few phone calls, asking questions to investigate, and requesting all reports should just be the beginning for your agent to look into. Common sense, intuition, experience, and searching for red flags are exactly what a good agent should be utilizing to ensure you get the property presented.
These items are just the tip of the iceberg when considering purchasing a property. I might not know all these answers off the top of my head when it comes to every property. Each property is unique and has its own history. However, I am more than willing to take the time to investigate, answer your questions, and do all the necessary research to solidify you are getting the property presented. Always get a property inspection and read all the paperwork that comes across your hands in a deal.
After all, you don't want any surprises or extra expenses you weren't aware of do you? Home buyers need to be completely aware and understanding of what they were signing. Reading, asking questions and having a great agent guide you along the way ensures a good clean transaction and a healthy home for you to live in.
What other items do you consider when buying a home?
Contact Me:
Peter Bhandari
Sales Representative
Royal LePage Credit Valley Real Estate
106-44 Peel Centre Dr
Brampton, ON, L6T 4B5
Direct: 4168272340
Office: 9057935000 x478
Web: http://www.PeterBhandari.com
Email: PB@Royallepage.ca
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