A blog cannot deal with all aspects of a subject and is not intended to replace professional advice. It's purpose is to highlight information and identify areas of possible interest. Anyone wishing to discuss this blog or to make any comments or suggestions about this blog is invited to do so by either posting comments or emailing me directly.
I was asked recently, just what is a "Clause Sale"?
Wow, that is a term I haven't heard in quite some time, but it makes sense that we, as Realtors, would start seeing it again with the Calgary real estate market being as slow as it is. (i.e. Both the new and resale markets).
So, what is a "clause sale"?
Let's start off with the fact that both terms and conditions in an "Agreement of Purchase and Sale" are collectively called "clauses." Okay, got that? But the term "clause sale" refers specifically to one very specific condition. That condition is that the buyer and the seller agree that the buyer has a type of first-right of refusal on the purchase of a home while they are actively trying to sell their own home.
Generally, we see these types of agreements when the market is slow, and the buyer wants to buy a particular home, but they need to get their own home sold first. So, the buyer and seller come to an agreement in an Agreement of Purchase and Sale with the terms set out in an Addendum...
When a home owner decides to sell their home, they obviously want the best possible price for it with the least amount of hassles along the way. However, for the vast majority of home sellers, the most important result is actually getting their homes actually sold.
In order to accomplish all three goals, a home seller should realize the importance of using a real estate broker. We realize that technology has changed the purchaser’s behaviour during the home buying process. According to the National Association of Realtors’ 2016 Profile of Home Buyers & Sellers, the first step that, “…44% of recent buyers took in the home buying process was to look online at properties for sale.”
However, the report also revealed that 96% of buyers who used the Internet when searching for homes purchased their homes through either a real estate broker or from a builder or through a builder’s saleperson. Only 2% purchased their homes directly from a seller...
Technically, no. But, I have yet to see an opportunity that couldn't have been made better by using a buyer's representative. Terms, conditions and price.
Often, first-time buyers don't know differently and embark on their home hunt by looking at random homes by calling every agent that has a listing on a particular street. And they call all the private sellers too. This would be like them contacting the coach of the opposing football team for advice -- you wouldn't do that would you?
A better use of their time is to find an agent that they get to know and trust and then use them to set up convenient appointments all at one time. That single agent can also compare and contrast the homes (which had they called all the listings agents, they would likely skew all the comments in favour of their own listing or more likely omitted the ones that weren't favourable. Obviously, if they called seller then they couldn't get any factual information on the other homes available).
Congratulations! You've made the decision to sell your home – now what will it cost to get the job done?
Like selling anything of value, there are some costs involved. With the sale of a home, these costs can be significant. In the Calgary area, the costs shouldn't amount to any more than about 5% of the sale price.
There are many costs that could be included in this calculation, but for convenience I'm not including the costs of painting your home, deep-cleaning the carpets, recalking the bathrooms, cleaning the windows, putting excess furniture and belongings into short-term storage, extra garbage pickups, any added insurance premiums, or any repairs necessary to bring the home up to "show home condition." These are amounts that are required for every home but can vary greatly.
The costs that I am going to include are hard transaction costs.
Usually the highest expense of the transaction is paying off the current mortgage loan. Sometimes the loan can be...
Thinking or buying or selling a home in the Calgary area? Whether this is your first time or your tenth, I am here to help. But until we have an actual agreement in writing that defines our relationship, I can't help you with a specific real estate transaction.
I completely understand the relationship between home buyers or home sellers and their real estate agents has to be based on trust, mutual goals and understanding – that's why I always keep my clients' interests first and foremost. The real estate process requires negotiation of sometimes very complex issues: once we mutually commit to working with each other, I am always committed to working in my clients' best interests.
As a licensed real estate professional helping buyer clients, I'm obligated to help you secure the very best price possible, with the most favourable terms for you, in the timing that you define. In helping seller clients, I'm obilgated to market your home to the best of my abilities...
For Sale By Owner: Why It’s Best to Hire A Real Estate Broker
We've all seen the signs around town: “For Sale By Owner” or “No Commissions Seller” or somehow “Commission Free”. You’ve probably even seen them in your own neighbourhood. If you’re thinking about selling your own Calgary home in the near future, you might be tempted into thinking that that’s a great way to save money on your real estate transaction — but, is it really?
Keeping some, or all, of the real estate broker’s commission in your own pocket is quite tempting, but not all home sellers are up to the challenges of selling their own home. There are numerous items to consider: pricing the home for today’s market, understanding legally required disclosures, providing accurate comparable home measurements, constant marketing and advertising, being available for showing the home, and the myriad of legal paperwork that’s involved. Even if...