| So you have found a Real Estate Agent you like and | | | | the comparable analysis. To me, this is fair because if |
| you ready to look for your perfect. | | | | the agent is going to spend the time on you to help |
| Are there any sneaky tricks and tactics your Agent | | | | you find a home, then it would only be fair that you |
| may pull? | | | | buy through him and let him get the commission. |
| You bet and here they are: | | | | The legal way to show this "level of comfort" is to |
| 1. Showing you bad houses to buy before showing | | | | sign the 90-day commitment contract that indicates |
| you the target house. | | | | you would only work with him and no other agent |
| Your agent will first show you a series of houses in | | | | for 90 days. This legal way is by no means the only |
| terrible condition and is overpriced. Then, after you | | | | way nor is this a bad way, either. It is only a matter |
| see your terrible selection and you believe these | | | | of preference and your relationship with your agent |
| houses are what you after to work with. Once that | | | | that determines the best approach. |
| belief is set in, then your agent will show you a nice | | | | 3. Encouraging you to put a high security deposit |
| house. | | | | when writing up a contract to purchase your desired |
| By the Law of Contrast, a valuable house looks even | | | | home. |
| more valuable when it comes after a worthless | | | | A security deposit informs the seller you are |
| house. | | | | interested in purchasing the property and the amount |
| If you find yourself viewing houses that are just rip | | | | lets the seller know how serious you are. The higher |
| offs, be careful when you see a decent house. It is | | | | the amount, the more serious you are. |
| actually less valuable than you believe. Your agent | | | | The moment the contract is agreed upon by both |
| may even try to compliment those worthless houses | | | | parties and signed, you must provide the security |
| so that when decent house shows up, you believe | | | | deposit within the set time specified in the contract. |
| it's your perfect home! | | | | This security deposit is suppose to be returned to |
| 2. Making you travel to look at the houses you want | | | | you if the contract becomes null and void, if the |
| to buy first. This is a very common practice and it | | | | conditions (usually financing and inspection) specified in |
| would seem to make sense. You would need to look | | | | the contract fails. |
| at the houses before buying it, correct? Well, there is | | | | Now, this procedure seems to be fair. Here is where |
| reason behind the agent wanting you to travel and | | | | the problem lies: |
| spend your valuable time staring at these houses. By | | | | If the contract becomes null and void and you want |
| spending so much time on one house, it becomes | | | | your money back, all parties must sign a form called |
| too much of an effort to find your perfect house. | | | | a Mutual Release. This signature must include the |
| You end up settling for your less than desired house. | | | | buyer, buyer's agent, seller and seller's agent. If any |
| What should be happening is that before looking at | | | | one party does not sign, you will not get your |
| the house, you should request a comparable analysis. | | | | money even if the contract has been null and void. If |
| Your agent has statistical information about the | | | | anyone party refuses to sign, you have to go |
| houses you are looking at and houses similar to what | | | | through court, most likely small claims court, to settle |
| you are looking at. This statistical information reveals | | | | your dispute and if you know anything about the |
| the market value of the home and whether the | | | | court system in Canada, you know your court date |
| home is worth you TIME. By not showing you the | | | | could be as long as two years away! |
| comparable analysis, the time, effort and pain it takes | | | | You should never be serious in buying house. It is |
| for you to search for a home causes you to make a | | | | poor negotiating tactics. If your agent encourages |
| decision faster. If the agent shows you the | | | | you to put a high security deposit, it is because your |
| comparable analysis first, it reduces the pain and you | | | | agent wants you to be serious about purchasing the |
| would wait longer to decide. Also, the agent has to | | | | property even though it is poor negotiating tactics. |
| spend time to create the comparable analysis report | | | | The reality is your security deposit can be very |
| where most likely, they would not want to do. | | | | difficult to get back. Sadly, this is the general process |
| Rule of thumb: Find a Agent that will give you the | | | | in most home buying transactions and it is a very |
| comparable analysis first. | | | | poor process. |
| Now, this isn't to say you should never look for the | | | | And did you know... |
| house first. | | | | IT IS NOT NECESSARY TO PUT A SECURITY |
| There is one exception. | | | | DEPOSIT AT ALL! |
| When you first meet your new agent, there is some | | | | There are no limitations to a contract. It is only a |
| level of concern on the agent's side. The agent is | | | | matter of agreement. You can write anything you |
| spending valuable free time on you, gambling that | | | | want on the contract as long as both party agrees. |
| you would buy a house through him. So if you start | | | | My suggestion is to encourage your agent to only |
| off by requesting comparable analysis, he will not do | | | | provide the deposit after the contract passes the |
| it. Any honest Real Estate Agent would not do it. A | | | | conditions. This is possible, but only if your agent is |
| comparable analysis is valuable information that the | | | | willing. |
| agent gets for being a Real Estate Agent. They need | | | | Once again, I cannot stress this enough, to find a |
| to pay a fee to be a Real Estate Agent. | | | | agent do not search through the Internet and pick |
| What the agent needs to know, is that you need to | | | | the first one you see. Good salesmen do not make |
| provide some "level of comfort" that you will | | | | good Real Estate Agents. |
| certainly buy the house through him in order to get | | | | |