Scott Owens - REALTOR®

As a listing agent, I find that one of the most common ways to "spruce up" a home to prepare it for sale is to paint. While many people take on this task themselves, painting can be more difficult than you may think. For those of us with limited time, patience, or skill, hiring a painting contractor may be the answer; before you hire a painting contractor, there are some things you should take into consideration:

• How long has the contractor been in business? Be sure to hire someone who has been operating for at least 2-3 three years.
• Are employees experienced painters? Make sure the company hires skilled workers. Ask what training or qualifications they have.
• Does the contractor have the necessary insurance? A reputable, licensed painting contractor will have coverage that protects him, his workers, and you.
• What kind of preparation work does the painting contractor do? A cheaper job will normally skip much of the prep work to cut corners; a good contractor will take the time to do everything the way it should be done. The workmanship will show in the end, good or bad.
• Can they provide a list of references? CALL THEM!
• Can the painting contractor make recommendations on what materials will work best for your project? A professional keeps up-to-date on the latest products and techniques, makes suggestions for colors and finishes, and is knowledgeable about the latest trends.
• GET A WRITTEN CONTRACT! A professional provides customers with written contracts and specifications, including price, time frame, etc.

Regardless of the project for which you hire a contractor, painting or otherwise, make sure to hire someone with skill, experience, insurance, awareness of safety issues and good workers; that will not likely be the guy with the lowest bid. It doesn't need to be the highest bid either. Just be sure not to hire on price alone. If the price seems too good to be true, however, it probably is.

While surfing the web today, I found the following blog. It is supposedly a balanced look at the differences between using a REALTOR and selling your home yourself. The article was misleadingly titled "The Risk of Selling Your Own Property", but after the first paragraph, it was apparent that the blog was entirely self-serving (an advertisement). I am posting it in its entirety, and inviting both REALTORS, and the general public, to give your opinions.

Personally, I believe in free speech, but this article is a direct attack against our profession; I have made my response below the article. While I do NOT believe in cencorship, I have deleted the name of the company being recommended by the Writer, and their website - I won't advertise for them:

The article, as it was written (I have BOLDED the parts I found most insulting):

"Perhaps it is best to turn this around to ensure we are getting the right idea across.

Let's first look at the risks of using an agent to sell your house; the first obvious risk is the guaranteed loss of 5 to 7% of your equity, PLUS GST on the full amount. This translates into a loss of equity going into your new home, which means you have to leverage, or borrow the amount from the bank that you just gave to your agent. This will be carrying interest, and is paid with AFTER TAX dollars. This means that on a $300,00 home, you commission alone will be about $18,000 + $1080 GST at 6% = $19,080. This means you will have to borrow an additional $20,000 @ say 5.5% over your new mortgage means an extra $50/month for the life of your mortgage, say 25 years. This equates to a borrowing cost of at least $15,000 of after tax money, which in turn means you will need to earn an extra $25,000 just to cover the interest on the money you needed to borrow to cover the money you gave to the agent.

So, to summarize the guaranteed loss on this (assuming you don't lose on multiple houses by using an agent's services), we will lose:
· $18,000 basic commission charge;
· $1,080 GST on the charge above;
· $25,000 pre-tax dollars to earn to cover $15,000 in interest on money borrowed to cover the amount given to the agent above;
· Total loss: $25,000 + $1080 + $18,000 = $44,080

Now, again the above assumes you only make this losing decision on a single house. If you use an agent more than once in your lifetime, the cost to you and your family quickly skyrockets into the hundreds of thousands.

Back to the risk of selling privately:
· You will need to show the house yourself. Not to worry, you are the ONLY person qualified to do this. Most agents are in your house for the first time the day they show it. You know the house, the neigbourhood, the amenities, etc., better than the agent ever will.
· You will need to talk to buyers directly. This has the risk of creating a fair and equitable, completely transparent house sale process. How complicated is the negotiation? It consists of only -
o Sale price;
o Closing date;
o Items to remain; and
o Any conditions. These are established by your lawyer, and the buyer's lawyer, not an agent.

• Yes, you will need a lawyer. Real estate law requires it. Note that there is no place in real estate law for agents though. Agents cannot advise you on legal matters under any circumstances.
• You will have total control over showings, open houses etc.
• Worst of all, you will need extra room in your bank account for the $44,080 you DON'T lose, as a minimum.

Now, you should use the services of a private sale consultant the first time. There is currently only one company in Canada with certified private Sale professionals, and that is xxxxxxxxxxxxxxx.com. You can reach them at the website. They are required by the company to step you through every facet of the private sale process, and it is incredbly simple.

Before you get duped by an agent, understand the REAL risks. The agent IS the risk.

‘Nuff said."

Let me be the 1st of us to respond:

I have already stated that I feel the article above does not represent a fair comparison between selling yourself vs. using a REALTOR; it is merely an advertisement. References to REALTORS "duping" people, that the services we provide are miniscule and unnecessary, that we do not work fair deals, and that using our services is a "guaranteed loss" is a joke. It was not lost on me that the writer contradicted himself on more than one occasion; the most obvious one was 1) that he said that the homeselling process was "completely transparent", stating that a lawyer was all that you needed to close the deal..AND THEN RECOMMENDED THAT A "CERTIFIED SALES PROFESSIONAL" BE USED!!! He then referenced a certain company, and stated that this company is the "only" one with "certified" sales people. I don't know about you, but I attended a government-approved and regulated LICENSING course, and I pay professional dues to an association which regulates my services and holds me to the highest standards. I take exception to calling telephone marketers "certified". Certified by whom?

Enough about that...let me talk to the sellers: I totally respect a persons right to sell their own home, and even provide a pamphlet to people detailing the selling process (more than 4 items Mr. Writer). I will even do a market analysis for a small fee (smaller than the one charged by the above recommended site, and included in my fee if you are using me to sell your home). I will work with FSBO's to find a new home for them, if needed, and will give helpful hints for their house sale in the process.

Studies show that non-agent assisted sales can be quite a taxing exercise in more ways then one:

1) While some might depict it in an attractive light; in reality selling a home yourself is not fun. Ask anyone who has ever gone through the stressful experience of selling a home alone and they will tell you that it is far from it.

2) Selling your home yourself can be an expensive option:

• Your agent pays for advertising and marketing your property: full colour ads are expensive, as are fliers. Lawyers charge more if writing a contract, facilitate the contract, deal with contingincy-removal, work on mortgages and closing the deal for you. REALTORS use government approved, lawyer-written contracts, and don't charge by the hour if there is a problem.
• The cost of carrying your mortgage. Private sellers stay on the market longer than those sold through REALTORS: in my area, FSBO's take twice as long to sell than when using a brokerage; using the Writers numbers above, if you owe $200k on your $300k house, and you take an additional four months to sell it (even if you have a below current prime interest rate), that totals APPROXIMATELY $4,800 in mortgage payments, not including taxes, heating, insurance, etc. Studies show that almost 9 out of 10 buyers turn to REALTORS after trying to sell on their own, which means that you start from day 1 again if you are not successful. You lose that $4,800, PLUS the money spent on advertising your home yourself.

3) While the Writer above said that "nobody " is more qualified than you to sell your home because of neighbourhood knowledge, etc; I disagree. Not only do REALTORS know your neighbourhood; we know all the surrounding neighbourhoods as well. We already have the schools contact information and the numbers to all relative services. We know upcoming projects in your communities, and we make it our business to stay ahead of them.

4) Insurance - You need insurance so that you are not liable for potential accidents that can happen when interested buyers enter your property on open day. You don't want to have to worry about buyers falling and injuring themselves and making you liable in the process. REALTORS carry this insurance.

Other benefits of using a REALTOR include:

• REALTORS have a vested interest (commission) in selling your home for the highest amount possible - we spend OUR money up front for all advertising; we only get it back when we sell your home.
• REALTORS have far greater resources than you for locating buyers and steering them to your home, such as the Multiple Listing Service (MLS) and "comp books," which list recent sale prices of homes similar to yours in your neighborhood-the key determiner of your home's worth
• REALTORS can advertise your home in classified ads and real estate magazines
• REALTORS make sure in advance that prospective buyers are financially able to buy your home
• REALTORS aren't emotionally invested in your home, so they can keep cool, level heads during the negotiating process
• REALTORS save you valuable time, working many hours behind the scenes for every hour they're in your presence.

Like I said before: I respect peoples decision to sell their own home. It CAN, and HAS been done: historically, 13-16% of real estate sold annually has been sold by the owner, without the help of a real estate agent. I just hope people make INFORMED decisions, based on facts; before deciding to list your home for sale, consider how much time you have to devote to the task yourself. If you are extremely busy already, you may want to hire an agent immediately. There is definitely a time requirement when it comes to selling yourself: you'll need to handle advertising and marketing, take calls, show your home, entertain offers and make sure you comply with all the local laws to complete the sale.

The immediate benefit of hiring an agent is that all these duties become their responsibility, not yours. You can continue on with your life, avoiding many of the headaches that come with the sale of real estate. However, when hiring a REALTOR do some homework; ask questions like:

• How long have you been in the business?
• What services do you offer?
• How many properties did you sell last year? This year?
• What are the statistics for your brokerage (homes sold, advertising poplicy, etc)?
• Can I call some of your past clients for reference?
• Do you do this full-time?
  

Whatever you decide, make sure that is the right choice for you and your family: financially AND for peace of mind that the job will be done right.

Many 1st-time buyers are unaware of the additional costs that are incurred when closing a Real Estate transaction, with the exception of the down payment. There are several costs that you will need to be aware and have funds set aside for, as closing costs can accumilate to the tune of about 3-5% of the purchase price and are in addition to the down payment.

Your agent will normally explain the additional costs to you, but I thought I would publish the list of costs that I give to my buyers within the first two meetings with them. The list below is, by no means, comprehensive; it is merely intended to give 1st-time buyers a general idea of what the average closing costs for a home are.

So, to all of you out there looking for your first home: I hope that you find this list helpful. Like I said before, there may be other costs that are not included in my list; please talk to your agent about location-specific closing costs.

Being a professional REALTOR®, I take pride in my work, and that includes doing a complete job in protecting my clients, whether they be Buyers or Sellers. One part of the job that I find is missed by many REALTORS® is the act of determining the financial qualification of Buyers. While I understand that there is a certain amount of trust that we must have in our clients, it is very beneficial to see a pre-qualifying letter from the Purchasers financial institution before looking at houses and, at the least, before writing an offer. The benefits to this step in the house-buying process is that it:

- Sets Limitations: Both in the amount available to spend, AND what your Buyers will get for their money. Many buyers, especially first-time buyers, do not have a realistic picture of how much they can afford to spend, and many that DO actually know their limit are not aware of "how much house" they will get with their funds. It's our job to bring a certain amount of realism into their search, an act which will benefit everyone involved in the transaction.

- Saves Time: By prequalifying Buyers, we can help buyers eliminate some homes early on, so buyers don't have to spend so much time looking, which also benefits us, the salesperson. By spending time looking for/at homes that are completely out of reach for our clients, we lose precious hours that could be spent with family or other clients, not to mention the cost of a couple of tanks of fuel.

- Avoids Frustration: Prequalification can eliminate the frustration buyers feel when they find the perfect house and get an accepted offer, only to discover that they can't afford it. Also, we must keep in mind that there are normally two parties to a transaction, and you can count on the fact that the Sellers agent will bear the brunt of their own clients' disappointment.

- Develops Trust: While many people do not want to divulge their financial information; if the reasons for asking for this very personal information is explained properly, the client will come to understand that we are only trying to do the best job possible, and that means understanding their limitations. Once the clients understand that we are worthy of their trust, they become more open with us, making our jobs easier.

Even if you don't think you owe it to your clients to know their limitations before starting a search, I truly believe that we owe it to ourselves to determine this buying factor before starting a search. This simple disclosure will guarantee that our efforts to find our clients a home will not be in vain.