Wednesday, December 1, 2010

Avoid the Dollar Store MLS Pitfalls


Yes! We all want the lowest price. One company has made this their business credo. The Lowest Price is the Law! But for every benefit there is a cost.

With Real Estate Listings I have observed with fascination the brokerages that are racing to offer the lowest prices for just listing a house; [the concept is termed mere listing] We are merely providing a Listing Facility.

Contained within the listing is a Schedule B, The terms and conditions of selling your home.

It usually contains a clause that indicates a) You have the opportunity to seek outside advice [ILA] b) the real estate company is responsible for none of the information or declarations or statements or people involved in this Agreement of Purchase and Sale.

So... The Owner can say anything they like, make any statements or promises and the Real Estate Brokerage will not be liable.

Well here the first problem. You cannot AVOID your legal obligations by adding a clause that says I am not responsible.

Here is the second issue;

You have listed your property; You have posted the Selling Broker Commission as $1 or as $50, some nominal fee. Since I am under a Buyers Agency I am required to present all properties that fit my Buyers requirements. I will arrive on your door step PRIOR to the showing appointment and present you with a Seller Commission Agreement.

Yes, the Buyer has engaged my services to find them a home, yes, they need a mortgage and their downpayment is a large concern. Yes, they will be borrowing against the intended purchase. Banks will not finance commissions, appraisals, surveys or inspections as part of the transaction. They will not finance taxes for Land Transfer Taxes. How much is that you ask?

A very wise person said to me recently "Sometimes, we don't know what we don't know".

Your agent is not present because you are a mere listing and now you want explanations and details. I have a Buyers Agency that requires me to keep their confidences and bargaining position. I do this for a living.

I am not obligated to explain the sign back, counter offer process, timing, inspections, declarations, waivers, obligations or requirements. That is the job of a full service brokerage.

So Lets recap. Usually I would be;
  • doing your photo's
  • uploading your photo's to the listing
  • Loading your 30 - 40 property photo's to a slidesviewer
  • providing you advertising.
  • promotion on a Top 5 Google Site for Living in Toronto.
  • searchable video virtual tours by address
  • blogs and address websites
  • Online advertising on many varied sites for Maximum Impact.
  • Unfiltered access to direct dial my number and seek explanations or guidance.
  • Appointment booking
  • Inspection scheduling and attendance
  • Financing verification and Payouts
  • Refinancing Options
  • Transaction Management
  • Fintrac Record Keeping
  • Completion of all Forms
I do not believe that the general Selling Public will be interested in buying or selling a property with this type of service, once they understand. Even the newspapers posted for months in error that everyone would be able to add their listings to the MLS. There well may be investors or landlords that could deal with issues prudently and use mere listings to their own advantage.

What are your thoughts?

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