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Tuesday, April 25, 2006

Buyers and Sellers in Edmonton Beware

The following article illustrates the value of professional experience. The mistakes that rookie agents can be costly. You as a buyer or seller need to be aware of this. Today I met with a young couple who recently purchased a property from a new agent who had title insurance recommended for the purchase of their property and are now facing serious costs to get their property sold now. From their perspective there was now explanation whatsoever about why they didn't receive a Real Property Report with compliance and received title insurance instead. The following article from Money sense magazine goes a bit further in warning buyers and sellers.

The 21st century has been a brave new world for real estate agents. For five sensational years, everyone connected with the business of buying and selling homes has seen their incomes soar faster than the price of a cute, three-bedroom starter in a trendy neighborhood. In big-city markets, particularly good orlucky agents are routinely making $10,000, $15,000, even $20,000 or more a month. Tantalized by visions of similar riches, thousands of would-be real estate agents are jostling to get in on the action. In Ontario alone, the number of students enrolled in the courses required to become an agent has tripled since 2000 to more than 13,000 people. Across Canada, the market is packed with more than 76,000 registered real estate agents, a record crowd large enough to populate a small city.

What do the bulging numbers of real estate agents mean for home buyers and sellers? Among other things, it suggests that you should tread carefully. Most real estate agents are decent, reliable professionals, but your chances of dealing with an inexperienced agent are shooting up with each passing day. You are also more likely to be buying or selling a home in haste.

Provincial real estate regulators say they are fielding hundreds of complaints from disgruntled home buyers and sellers. Some of the more common issues? Agents who didn't tell buyers about flooding in the basement or that the house used to be a marijuana grow-op. Often it's a lot of small stuff but, according to Bob Linney, a spokesperson for the Canadian Real Estate Association, "it can mean several thousand dollars worth of fines for the real estate agent if he's found to have been negligent in any way."

To summarize this article. They suggest that you can save money by doing your self even though this is contrary to stats that show that in hot markets sellers who sell themselves sell for 16% less than market value. You also increase the risk to litigation from remorseful buyers who may feel later that they over paid. With no professional between you and the buyer it becomes your word against yours. Hopefully they are not professionals at law suits.

We have been proudly serving the Edmonton community for the past four decades. We're not in this for the quick buck. If that's what you're looking for look for a brokerage that hires nothing but agents. Any Re/max or Realty executives office will do. If you're looking for a personalized service than our small family owned franchise is the place you want to be.


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