Yeah, I know, that’s a weird title for a blog, but it will all be clear by the end. I promise. Years ago I heard about a buyer who had a very unusual way of purchasing a property. Now, this was back in the days when multiple offers were few and far between but her methods are worth mentioning. She would put conditional offers on over 5 properties then start negotiating with each seller until there was only one left. Strange approach but there was some method to her madness. First she could judge the motivations of the sellers and take advantage of the weakest one. It was a strategy that worked even if it burned out a few agents along the way.
In a round about way, I’m telling this story to illustrate a problem that we will face in our careers. No, I’m not just talking about high maintenance buyers, I’m talking about buyers who will use conditions to get out of deals. As agents we need to remind buyers that when they put the pen to paper they should be prepared to purchase. This is not just an opportunity to waste time.
Case in point, a buyer buys a condo through his agent, conditional on the status certificate. The lawyer reviews the documents. As time is of the essence, the listing agent calls the buyers lawyer to get an update and is told that everything is a-ok. At the same time, the buyers brother is trying to convince him to get out of the condo deal because a sweet income property just came on the market. The buyer calls his agent and tells him to use the status certificate to get out of the deal. Sorry, no can do. The seller’s agent knows everything is good and threatens legal action. As you can imagine, the deal firms up.
So what does any of this have to do with cats? It’s not just a catchy title. there was a story in our office about a deal that fell apart because of a status certificate. Apparently the buyer had 3 cats and the building only allowed two. The Sellers didn’t ask for verification but could you imagine a different time when that could happen? “Yes, sure. I will just need some verification that you do indeed have three cats”.
Someone once said that if you put a little effort into it, you can get out of any real estate deal. There are enough places to make mistakes in a typical agreement if you look close enough. Examples of discrepancies include wrong frontages and depths or mutual driveways and other easements, wrong maintenance fees, taxes and, of course, time limits. It is in our best interests to make sure our offers are bullet proof. Changing your mind is not an excuse and your clients can’t hide behind a condition. Like wise, please don’t tell your clients they can use a condition to get out of a deal. A recent RECO complaint resulted in an $8,000 fine to an agent for leading a buyer to think he could use a home inspection to get out of a deal.
mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.
Happy Wednesday. Well the fall is on us. It is getting darker earlier. There is a distinct snap in the air. Despite all that, things are humming along at our office evidenced by the rather lively Mastermind this morning that revolved around seller’s motivation. A few agents were wondering why people kept their properties for sale over the holidays. Do they need to sell or are the listing agents too lazy to have a discussion about what a bad strategy that is? I asked the group this question; As a percentage, how many sellers out there NEED to sell? That is, they are financially strapped and need to have their property sold quickly. Surprisingly, the answers varied widely so I decided to throw the question out to all the RealtyLab followers and ask you to weigh in. All responses are annonymous and I will post the results on December 18th. You can take the survey once for each listing you have . Take the survey here
Surveys are an excellent way to take the temperature of the market and who better to respond then the people who are in the trenches everyday. My hope is that the results will help us understand what is going on with Sellers right now so that we can adapt the way we are doing business. Thanks in advance for your honest answers.