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Unrepresented Buyer Stumbles Upon a House with a Looming Offer Deadline


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#21 MarkoJ

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Posted 27 June 2016 - 10:46 PM

Let me tell you from experience when I sold condos directly for a developer, in the 90's.

 

If a person walked in, had no Realtor, I had permission to do negotiate up to and including 3% down.  Because there would be no Realtor cut.

 

If the person walked in with a realtor, that offer had to go to the developer.  He would not negotiate nearly as much.

 

So yes, the buyer with no Realtor, at least in our two projects in town, got better prices, if they negotiated it.

 

I haven't come across this in years and I don't know why. It would only make sense if the developer negotiated down with no buyer REALTOR®, but they don't.  That is why I've exploited that and I've made this business model work over the years -> http://markojuras.co...ondo-cash-back/

 

Same BS with banks and mortgages.  You go directly to TD and they offer you 2.79%, for example.  You go to mortgage broker and he or she offers you 2.79% through TD.  Wouldn't it make more sense if went directly to TD that they offered 2.59% given there is no mortgage broker commission to pay?


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www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

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#22 MarkoJ

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Posted 27 June 2016 - 10:55 PM

There is some value in having representation in this market in my opinion.  Also, I find in this market (with tons of offers and many unconditional) you don't really increase your chances going through the listing agent.  I am seeing very few double-ends in multiple offer situations.

 

One things is for sure, certainly no value on the selling side in paying the equivalent of a small luxury car to have $85 professional photos of your Oak Bay home thrown up on MLS® Thursday morning and then your agent showing you were to sign Sunday night.


Edited by MarkoJ, 27 June 2016 - 10:56 PM.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#23 dasmo

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Posted 28 June 2016 - 06:50 AM

There is some value in having representation in this market in my opinion.  Also, I find in this market (with tons of offers and many unconditional) you don't really increase your chances going through the listing agent.  I am seeing very few double-ends in multiple offer situations.

 

One things is for sure, certainly no value on the selling side in paying the equivalent of a small luxury car to have $85 professional photos of your Oak Bay home thrown up on MLS® Thursday morning and then your agent showing you were to sign Sunday night.

I agree here too. Overall, there is little value added in the Realtor system besides the data and internet. That said, it's not a bad thing for some regular folks to be making money for nothing, it's good for the economy...  If I were to use a realtor to sell, I would probably use you Marko ;-) 



#24 VicHockeyFan

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Posted 28 June 2016 - 07:04 AM

I think it's worth noting that this "hot market" is also partly a result of too many buyers listing their homes for much too low a price.
<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#25 sebberry

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Posted 28 June 2016 - 07:17 AM

I think it's worth noting that this "hot market" is also partly a result of too many buyers listing their homes for much too low a price.


I know someone who was recently advised to list low in order to create a bidding war.

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#26 dasmo

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Posted 28 June 2016 - 07:18 AM

How can you say "too many buyers listing" when inventories are at such low levels and sales are not THAT much higher. I think it's the opposite. Not enough buyers listing their properties and trying to buy first and sell later causing inventory to be anemic. 

Where have you seen a glut of low priced listings? 10X earnings for a 50's war box 20 minutes out of town doesn't seem low to me....


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#27 VicHockeyFan

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Posted 28 June 2016 - 07:30 AM

How can you say "too many buyers listing" when inventories are at such low levels and sales are not THAT much higher. I think it's the opposite. Not enough buyers listing their properties and trying to buy first and sell later causing inventory to be anemic. 

Where have you seen a glut of low priced listings? 10X earnings for a 50's war box 20 minutes out of town doesn't seem low to me....

 

Let me re-phrase that.

 

Of the buyers that list, the vast majority of them heed poor advice from their agent, and list the home for too low a price.


<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#28 VicHockeyFan

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Posted 28 June 2016 - 07:31 AM

I know someone who was recently advised to list low in order to create a bidding war.

 

It's good for the agent, that's for sure.

 

Why not everyone that is wanting to sell list their home at $1, then every single home will have massive bidding wars?


<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#29 LeoVictoria

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Posted 28 June 2016 - 11:43 AM

Let me re-phrase that.

 

Of the buyers that list, the vast majority of them heed poor advice from their agent, and list the home for too low a price.

 

Except I haven't seen any evidence that listing higher gets a higher price.   Listing low and a bidding war means you might get some emotional overpayment as we've discussed.   Listing high and letting it sit in this market where almost everything has been selling quickly would create some doubt.    

In the end I think both strategies will sell for market value, but the bidding war gets it done quick.



#30 MarkoJ

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Posted 28 June 2016 - 09:37 PM

Dual agency might be on its way out -> http://www.recbc.ca/...rt_June2016.pdf

 

I've been saying this for all 6 years I've been in business!

 

"Recommendation

 

The Real Estate Council amend its Rules to no longer permit licensees engaged in trading services to offer dual agency.

 

When a licensee enters into a real estate agency relationship with a client it gives rise to important duties and responsibilities that the licensee owes to the client exclusively, including the duty to act in the best interests of the client, the duty of confidentiality, and the duty to take reasonable steps to avoid any conflicts of interest. The IAG considers that the ability of licensees in trading services to offer dual agency to parties with differing, potentially divergent or conflicting interests runs contrary to the fundamental concept of agency. The idea that a lesser form of agency can be offered to two clients in a transaction suggests, on its face, that a licensee is not fulfilling their duty to act in the best interests of their client nor taking steps to avoid conflicts of interest. It also gives rise to consumer confusion and opportunities for abuse by unscrupulous licensees. The IAG acknowledges the potential risk that with the elimination of dual agency one party to a real estate transaction may have no representation, as opposed to limited representation. There is also a risk that a licensee will dissuade the other party from seeking representation, to retain a full commission from the seller. To mitigate these risks THE IAG ALSO RECOMMENDS that the Real Estate Council implement requirements for licensees to clearly disclose the nature and limitations of the services being provided to the parties and a positive obligation to inform an unrepresented party of the opportunity and benefits of seeking their own professional services and advice of an independent licensee. The IAG also notes that there will be circumstances where existing conflicts mean that licensees should not be acting for either party. THE IAG RECOMMENDS that the Real Estate Council develop guidance to direct licensees in these situations, in a manner that continues to place the interests of consumers first. We also note that dual agency in the provision of rental and strata management services is more controlled than trading services and therefore our recommendations relate only to trading services."


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www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#31 LeoVictoria

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Posted 29 June 2016 - 06:44 AM

I really think they should have got rid of double ending as well.  If the buyer is not represented then the buyer's agent commission should go back to the seller.  Seems like a no brainer.



#32 tedward

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Posted 29 June 2016 - 01:34 PM

I know someone who was recently advised to list low in order to create a bidding war.

 

I know someone who was told the same thing and then told by their realtor they had to accept the first bid they got that matched their asking price. And yes, they were convinced they had to do it and signed. :whyme:


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#33 LeoVictoria

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Posted 29 June 2016 - 05:27 PM

I know someone who was told the same thing and then told by their realtor they had to accept the first bid they got that matched their asking price. And yes, they were convinced they had to do it and signed. :whyme:


File a complaint with the real estate council. That is definitely unethical behaviour. Also that body is going to be a lot more effective soon now that it's no longer going to be a bunch of industry insiders policing themselves

#34 spanky123

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Posted 29 June 2016 - 07:54 PM

Dual agency might be on its way out -> http://www.recbc.ca/...rt_June2016.pdf

 

I've been saying this for all 6 years I've been in business!

 

"Recommendation

 

The Real Estate Council amend its Rules to no longer permit licensees engaged in trading services to offer dual agency.

 

When a licensee enters into a real estate agency relationship with a client it gives rise to important duties and responsibilities that the licensee owes to the client exclusively, including the duty to act in the best interests of the client, the duty of confidentiality, and the duty to take reasonable steps to avoid any conflicts of interest. The IAG considers that the ability of licensees in trading services to offer dual agency to parties with differing, potentially divergent or conflicting interests runs contrary to the fundamental concept of agency. The idea that a lesser form of agency can be offered to two clients in a transaction suggests, on its face, that a licensee is not fulfilling their duty to act in the best interests of their client nor taking steps to avoid conflicts of interest. It also gives rise to consumer confusion and opportunities for abuse by unscrupulous licensees. The IAG acknowledges the potential risk that with the elimination of dual agency one party to a real estate transaction may have no representation, as opposed to limited representation. There is also a risk that a licensee will dissuade the other party from seeking representation, to retain a full commission from the seller. To mitigate these risks THE IAG ALSO RECOMMENDS that the Real Estate Council implement requirements for licensees to clearly disclose the nature and limitations of the services being provided to the parties and a positive obligation to inform an unrepresented party of the opportunity and benefits of seeking their own professional services and advice of an independent licensee. The IAG also notes that there will be circumstances where existing conflicts mean that licensees should not be acting for either party. THE IAG RECOMMENDS that the Real Estate Council develop guidance to direct licensees in these situations, in a manner that continues to place the interests of consumers first. We also note that dual agency in the provision of rental and strata management services is more controlled than trading services and therefore our recommendations relate only to trading services."

 

Christy Clark just announced this afternoon that the Government was taking over regulation of the real estate industry in BC and that a single agent could not longer represent both buyer and seller effective immediately.



#35 MarkoJ

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Posted 30 June 2016 - 02:05 AM

Finally! I've be anti-dual agency since the day I started 6 years ago.  It just never made any sense whatsoever.

 

Btw, where does it say double-ending is effective immediately? Can't find it in any of the articles.


Edited by MarkoJ, 30 June 2016 - 02:11 AM.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#36 rambaldi

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Posted 30 June 2016 - 05:59 AM

 

Btw, where does it say double-ending is effective immediately? Can't find it in any of the articles.

 

I think double-ending is just on our wishlists for now. Though we should be pressuring for such a change as well.



 



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