Most For Sale by Owner or DYI real estate companies charge upfront fees (in most cases thousands). Real estate agents don’t.

When it comes down to it, listing with an agent won’t cost you a penny. Realtors don’t charge upfront, we only charge when we achieve results for the homeowner. Using a Realtor gives you an advantage in more than one way. On the other hand I have heard of individuals paying upwards of $2,000 upfront just for a sign and a spot on a website.

For Sale by Owner or DYI real estate companies are not held to any code of ethics.

Real estate agents across Canada are held to a strict code of ethics by CREA. We take the liability if something goes wrong. We are also held to higher standards in advertising and have duties to you as a client.

Just because you’re a real estate professional does not mean you’re rich or overpaid.

This has been the fuel for many slanderous ad campaigns released by popular for sale by owner websites over the years. The truth of the matter is, if it was that easy and they got paid a “small fortune” to sell a house, everyone would get into the business. Selling homes is hard work. Agents often find themselves working for free and hoping to receive a commission.

Consider this situation: A buyer has his agent show him 30 houses over the course a month. The agent spends hours of his time to assist the buyer. The buyer decides not to buy. The agent has worked for free and lost money on expenses. This is a common situation.

For Sale by Owner or DYI real estate companies can’t put your home on the MLS system, the most widely used website for buyers worldwide.

The MLS system was built by Realtors for Realtors. No one is allowed to list a property on it unless they have a license in good standing to trade in real estate. The FSBO websites will just refer you to an agent, often one from the other side of the country, Toronto in most cases, to put your home on the MLS and nothing else. Usually the listing won’t even be on your local MLS board, making it sometimes very hard to find.

For Sale by Owner or DYI real estate companies actually petition agents to sell their houses.

After years of bashing the profession, certain for sale by owner websites are now calling on agents to come to their rescue, so they can take credit for selling homes. Tell me another business model where you ask your competition to do the work for you. This is really an admission of one thing – serious buyers go to an agent. Why? Because it will cost you nothing to buy through an agent.

FSBO sales reps don’t have a real estate license.

This is something a lot of people do not realize. These so called “private sale” websites are just that. They are not licensed to trade in real estate or to give you real estate advice. They can’t even advise you on how to price your property because it’s illegal, doing so would fall under an agency relationship and would be considered trading in real estate. That requires a license. The rules and licencing parameters are put in place to protect you, the consumer.

Why would you pay them so you can do all the work.

Since these companies are not licensed to trade in real estate they are not permitted to represent you in a real estate transaction. This means they can’t answer buyer inquiries for you, show your home, host open houses, handle paper work, mediate negotiations, advise you on market conditions…and the list goes on and on.

Private sales carry a stigma and uncertainties that make most buyers uncomfortable.

Ever gone to view a private sale as a buyer? Then you know it can be extremely uncomfortable and limiting to view someone’s house with them in it. It can be even more uncomfortable to negotiate with them. On top of all this, private sales beg the question, why didn’t they use an agent? Is there something wrong with the house? If they are trying to cut costs now, did they cut costs/corners with repairs?

Realtors don’t hate for sale by owners, in fact I like them, They usually end up listing with me after they have tried it on their own.

These private sale companies would have you believe that agents think FSBOs are ignorant. This isn’t the case. We get why you would want to go this route. It can be done, but just because you can do something doesn’t mean you should. Like many DIY projects you are putting yourself at risk. In this case you are taking a risk with the biggest investment of your life. It will not be an easy process.

In the end, in today’s buyers’ markets you need an agent who will work tirelessly for you to get your home noticed above the thousands of others on the market. Just remember that limited service will always equal limited results and if it seems too good to be true, it is more times than not.

Let my 24 years of real estate success and construction experience work for you.

Brian White Re/Max Colonial Pacific Realty, direct 604-961-4104; Email info@brianwhite.ca;  website www.brianwhite.ca

Buying a flipped property could lead to problems - Buy informed, buy smart.

Spring is the first home buying season of the new year and buyers need to be careful checking out their next potential home. There are lemons among those peaches.

If you are looking for a new home for your family, be aware of the ones that are flips. Most flips are For Sale By Owner. These homes can especially be a problem because they are done to look good, but aren’t necessarily built or renovated properly. Some flippers take advantage of homebuyers’ lack of knowledge when it comes to picking out cheap materials and shoddy workmanship.

Looks can be deceiving, homes that are being flipped banks on it. All flips are done with one purpose, to make a profit. In most cases the quality isn’t there in materials and craftsmanship. Once the property is sold, any problems become the responsibility of the new homeowner.

How do you know, how can you tell it’s a flip?

There are some warning signs, but again, it comes down to doing your homework. There are questions like: How long have they owned it? How much did they pay for it? Did they occupy the home at all? If a home looks like it has been renovated, if any changes made to the plumbing, electrical or structure ask to see permits.

Cheap materials, such as poorly hung doors, MDF for cabinets, laminate flooring, bad trim, and paint jobs are all red flags for cheap renos. If the seller fumbled on the finishes and joinery they probably cut corners on the stuff you can’t see – the stuff behind the walls and below the flooring.

Get a home history report from your realtor or go to City Hall. A home history report can tell you on a home’s sales history, dates, permit, structure or any previously insurance or claims related to the property. You or your realtor should also check for history of water or fire damage. City hall can also help to determine if the property has been used as a grow-op, meth lab or other illicit purposes.

BUYER BEWARE – the more information you have on a property the better. It puts you in a better position to buy the right home for your family. Buy informed, buy smart.

Let my 24 years of real estate success and construction experience work for you.

The DOs and DON’Ts of Referring Property Inspectors

Increasingly, buyers in today’s marketplace are choosing to have pre-purchase property inspections conducted, in order to better understand the condition of the property they are considering purchasing. Some Buyer reject the notion of doing an inspection, I always recoomend it, it is a nominal cost to protect your investment in your new home.

Buyers frequently turn to their real estate licensees, asking for a recommendation to a property inspector they trust.

When a buyer asks for a referral to a property inspector….

I provide the buyer with a list of at least three professionals I have previously dealt with. I have the buyer call, interview and select them independently.

All the proffessionals I deal with carry insurance, including errors and omissions coverage, liability insurance, and workers’ compensation coverage.

You the buyer pays the property inspector for professional advice about the condition of the property they are considering purchasing. 

It's important to allow for a reasonable length of time to arrange and conduct the inspection, prepare the report, and have the report reviewed by the buyer.

I do not receive any referral fee or other consideration from a property inspector I reccomend. I don't beleive this to be a good business practise as it could be a conflict of interest.

Good luck in your search. If I can help, drop me a line.

On behalf of the Laura Szendrei Memorial Scholarship Foundation I would like to thank all the elementary and secondary students in the community of Delta that entered our poster contest for National Victims of Crime Awareness Week April 6-12, 2014 held at Scottsdale Centre in North Delta. Winners of the poster contest will be announced June 1, 2014 at the 4th Annual Walk,Run & Roll to be held at the track of North Delta Secondary.

Congratulation students! The secondary school winner of the poster contest will receive an iPad and the elementary school winner will recieve and iPod touch.

Thank you,

Brian White

President - Laura Szendrei Memorial Scholarship Foundation

For more about the event go to www.lswalkrunroll.com

Follow this link to hear Minister Peter McKay as he talks briefly about this important national initiative
http://www.victimsweek.gc.ca/abt-apd/min_msg.html

Bank of Canada Interest Rate Announcement - April 16, 2014

The Bank of Canada announced this morning that it is maintaining its target for the overnight rate at 1 per cent. The Bank's target rate has now remain unchanged for 29 consecutive meetings. In its accompanying statement, the Bank noted that inflation in Canada remains low and is expected to remain below the Bank's 2 per cent inflation target this year due to slack in the economy and heightened retail competition. The Bank left is forecast for Canadian economic growth unchanged at 2.5 per cent this year and next, citing a strengthening global economy and ramped up business investment. The Bank also noted that recent developments are in line with the its expectations of a soft landing in the housing market, though elevated household debt remains a risk should economic conditions deteriorate.

While some expected a slightly more dovish note from the Bank given continued muted inflation and a slight rise in the dollar, the Bank remains decidedly neutral. An expected second half rebound in growth and firming inflation means that the next move for interest rates is likely higher, but the timing of that move remains uncertain. Our view remains that the overnight rate will stay at its current level until at least early 2015.

Low Mortgage Rates Key Driver in Spring Housing Market

Vancouver, BC – April 15, 2014.  TheBritish Columbia Real Estate Association (BCREA) reports that a total of 6,661 residential sales were recorded by the Multiple Listing Service® (MLS®) in March, up 16.8 per cent from March 2013. Total sales dollar volume was $3.7 billion, an increase of 21.5 per cent compared to a year ago. The average MLS® residential price in the province rose to $562,316, up 4 per cent from the same period last year.

"While home sales are up from a year ago, consumer demand in the province has largely been treading water over the first quarter,” said Cameron Muir, BCREA Chief Economist. “However, fewer homes for sale means that most BC markets are moving into balanced conditions, which signals no particular advantage to either home buyers or sellers."

"Low mortgage interest rates are a key driver in the market, this spring,” added Muir. “It’s unlikely that mortgage rates will be at their current low level a year from now."

During the first quarter, BC residential sales dollar volume was up 32.4 per cent to $9.5 billion, compared to the same period last year. Residential unit sales were up 21.1 per cent to 16,435 units, while the average MLS® residential price was up 9.3 per cent at $579,775.

SPring market is moving, you should too.