Buying or selling a house is probably the biggest financial investment most of us will make in our lifetime.
That’s why you want to enlist the help of a professional REALTOR® early in the process. But not all real estate practitioners are the same. Only members of the Canadian Real Estate Association (CREA) can call themselves REALTORS®.
The Canadian Real Estate Association is one of Canada’s largest single-industry associations. Its membership includes more than 160,000 real estate brokers, agents and salespeople working through 61 real estate Boards and Associations across Canada. They proudly display the REALTOR® logo on business cards and other marketing material. This exclusive designation symbolizes a commitment to high ethical business standards.
In the quest to meet these high standards, all REALTORS® in Canada are bound together by a REALTOR® Code of Ethics. A REALTOR®’s ethical obligations must be based in three core values: Moral integrity, competency and dedication. The REALTOR® Code sets the standards high when it comes to professional conduct, which helps protect Canadians’ rights and interests.
The first Code was approved in 1913 and has been amended many times to reflect changes in the real estate marketplace, the needs of property owners, and society’s perceptions and values.
The REALTOR® Code establishes a standard of conduct which in many respects exceeds basic legal requirements. This standard ensures the protection of the rights and interests of consumers of real estate services. As a condition of membership, all REALTORS® agree to abide by the Code, and violations may lead to serious consequences.
The REALTOR® Code establishes obligations that may be higher than those mandated by law, but in any instance where the code and the law conflict, the obligations of the law will take precedence.
Consumers should expect professional and competent service when they are working with a REALTOR®. Considering the small upside cost relative to the value received and the potential large downside risk, it would be unwise to consider a deal in real estate without the professional assistance of an experienced REALTOR®.
Why are Canadians more than ever before using a REALTOR® to help them buy or sell a home? Here are just a few good reasons:
• Your REALTOR® can help you determine your buying power — that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you.
• Your REALTOR® has many resources and contacts within the industry to assist you in your home search. Sometimes the property you’re looking for is available, but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.
• Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of information resources. REALTORS® can provide local community information on utilities, zoning, schools, etc. Two important questions they can help you answer are: Will the property provide the environment you want for a home or investment, and will the property have resale value when you’re ready to sell?
• Your REALTOR® can help you negotiate. There are a myriad of negotiation factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you which investigations and inspections are recommended or required.
• Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property type, this could include inspections for insects, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few.
Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations, for example, easements (access rights) for utilities. Your REALTOR® or real estate lawyer can help you resolve issues that might cause problems at a later date.
• Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.
• When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms, and condition of competing properties. These are all key factors in getting your property sold at the best price, quickly, and with minimum hassle and stress.
• Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the saleability of your property.
• Through the co-operative network of local and nationwide REALTORS®, there are many qualified buyers ready and willing to buy your property. The exposure of your property on Multiple Listing Service® (MLS®) guarantees they will all see it.
• Your REALTOR® will know when, where and how to advertise your property. Studies have shown that the majority of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts.
• When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally pre-screen and accompany qualified prospects through your property.
• Your REALTOR® can help you objectively evaluate every buyer’s proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing — a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
• Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, when unexpected repairs are required to obtain financing or a clause in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing.
So, if you’re thinking of buying or selling a home, consider working with a professional REALTOR® to help guide you through every step of your real estate journey. Visit www.winnipegregionalrealestatenews.com for help finding your perfect REALTOR® today!