Thinking of Buying Real Estate?

Hire a Great Realtor!  In Canada, buyers don’t pay for realtor services.  Sellers pay both of the agents’ compensation.

Can you buy a home without a realtor?

Yes, but there are a few things to consider:

• Realtors have full access to the MLS® real estate database providing them with thousands of market based sales in your area and price range over a long period of time.

• Realtors help you make strong, competitive offers by basing your offer price on market comparable properties and using your mortgage pre-qualification as leverage to get a better price or contract terms.

• Once your realtor understands your mortgage qualification and what you are looking for in a home, your house tours will be enjoyable, allowing you to compare properties and narrow down the selection to your perfect home, neighbourhood and style.

Communication between agents, mortgage brokers and lawyers will ensure that there are no unexpected title issues, that financing has gone through and that all the professionals involved stay on task and on time.

Hiring a professional realtor helps you find a home that is the right fit and protects you legally throughout the process. By doing research and discussing your desires and needs with your real estate agent, you can find a home that meets your needs while also staying within your budget.

Realtors typically do not cost you anything when you are a buyer.

Example 1 – Hire a realtor

In 2015, I was doing a deal for a client who had sold their property without a realtor.  I needed to see his sales documentation to verify down payment source with the lender on his new purchase.  Upon receiving the documents, I realized that his subject removal dates were slated to come off three days before the completion/possession date for the new purchase.

Not knowing that subject removals typically take place at least two weeks before completion/possession, he had put himself in a legal bind.

Worse, when he went back to the purchaser of his home, the purchaser refused to change the subject removal date stating that the contract was signed and legally binding.  The purchaser, in this case, was very right.  He could legally hold out on removing these conditions until the contracted date.

I reached out to the purchaser myself and explained that not only will my client’s deal not close but his wouldn’t either (it would be very limited timing for the lawyers to do their conveyancing).

We worked out a compromise, had purchaser and client do an addendum to the contract that would work for both parties and, in the end, both deals closed on time.  Crisis averted.

Example 2 – Hire a Good realtor

Two weeks before a client’s closing, I received a call from my client’s law office asking when they could expect mortgage instructions.  I said that they were really working well in advance!  Usually legal instructions aren’t dealt with that far out.

The legal assistant then told me that the deal was to close in 3 days and the law office had not received instructions.  I said that there must have been a mistake as, according to all signed off documentation I and the lender had received, closing date was still two weeks away.

The legal assistant sent me an addendum showing that the completion date had been moved ahead by almost two weeks.  Only problem was that the realtor had neglected to send me this addendum or inform me of this very important detail.  Worse, the lender where the mortgage deal had been negotiated and subjects removed was not able to advance funds under the new time frame.

What to do?  If the funds are not advanced, subsequent deals start to fall apart and people get sued for breach of contract.  I went to work frantically putting together a new deal for my client and, luckily for her and her realtor, I was able to make that happen.

Make sure you have an organized, competent realtor working for you.

Huber Mortgage works with the best real estate agents.

Let us introduce you 🙂

One of my hobbies is blogging about mortgages, debt and government policy.  During the day I’m a MORTGAGE BROKER!

Check out the Huber Mortgage Home Buyers Guide HERE

Sincerely,

Michael