REAL ESTATE IN A NUTSHELL      

PART 4 - NOT A “KITCHEN, KITCHEN, KITCHEN”…

Ok, so you learned about the market (see Parts 1-3 here), got approved (not pre-approved! – see Part 3) and even found the Realtor you like.

What’s next?

Get realistic! Dream houses exist only in your fantasy, not in reality. You will have to sacrifice something – either that workshop, or ocean view or even - God forbid! – a kitchen pantry !

Not to mention that the house you like ALWAYS has a higher sticker price than your price limit and what you believe is the fair price (of course, sellers always feel their house is underpriced!)

So what are you ready to give up on? It’s completely up to you, I can only tell you my opinion (biased of course!) of what NOT to sacrifice.

It’s the area. They don’t say “kitchen, kitchen, kitchen” or “workshop, workshop, workshop”, when we talk about real estate priorities, but “location, location, location”!

You can change the kitchen, add the workshop, but you can’t change the area, right?

I can’t stress enough the importance of the location. Get the best one you can afford. You will be safer, more comfortable there, your children will go to better schools and make good friends (very often – for a lifetime) and maybe even meet your future daughter or son in law!

In the long run, believe me or not, it’s cheaper to live in a good area. Sure, you pay more when you buy (actually, not so much more in Nanaimo, compared to bigger cities, where the difference in the price could be 100-200 %+, while here we have maybe 5%-10%), but it’s certainly worth much more when it’s time to sell.

So my advice – choose a good area and stick with it.

Now it’s time to talk to the Realtor (how to find one, who will be good for YOU – see Part 1 here). What about?

First of all – say it loudly, proudly and clearly: I am a real buyer; I'm approved (not just PRE-approved! – see the difference in Part 2) by a bank, I did my homework, I have chosen an area, and know what I'm looking for, but at the same time am ready to compromise on something, and most importantly – I'm ready to buy within a few months.

After these words your Realtor will hug you, kiss you (at least – mentally) and… might ask you to sign an exclusive buyer agency agreement.

Saying something like: “If you are looking for a commitment from me (and you certainly are!), I would like to have some kind of commitment from you.”

In other words – if you want me to call you, not somebody else, when I find a smoking hot deal, sign the paper saying that within a certain time frame you will be buying a property through me and me only.

Does it make sense? Sure it does… if you are dealing with the right (for you!) person. But on the other hand – you don’t want to be stuck with somebody who, for instance, returns your calls in a few days or can show you that hot new listing “sometime next week”.

So what do you do? It's up to you. I personally would sign that agreement, but not right away, only after dealing with this Realtor for a while and making sure he/she does a good job.

Also don’t forget to ask your Realtor to set up the so-called PCS for you.

It’s a confusing name – private client service (sounds like something from the red light district, right?), for a wonderful tool. What it does, once set up by your Realtor, is automatically and instantly (!) notify you of any changes in your segment of the market – like new listings, price reductions, sales, etc.

A lot of clients are positive that they have all this info already – on the MLS, which they check a few times a day and that’s why they don’t need PCS ...  and the Realtor too.

Big mistake! First of all, the MLS system has a few days’ delay – so what you think just came on the market – hundreds of Realtors and thousands of their clients have known for a long time and … guess what happens with the hot deals? Yes, they have accepted offers! 

Also, very often MLS listings don’t have an addresses of the properties, so you have to call the listing Realtor anyway, so why not get PCS instead (it’s free!)

It’s not the best idea to call the listing Realtors directly instead of working with one Realtor, thinking you can get a better deal in this way.

First of all, you will not save any money doing so, and second, you will not have access to PCS, and third – the listing Realtor might care more about the sellers, (or buyers, committed to him/her), than you.

Plus, it’s much easier to deal with one dedicated Realtor than many… maybe not so dedicated!

Questions? You can ask them either through email victor-k@shaw.ca or by calling 250-751-1223 at any time.