First Time Home Buyers Don’t Have A Chance

See video followed by written blog

First time home buyer mistakes often end up where you don’t have a chance. You wonder why you are not successful in purchasing your dream home. Unfortunately, no one is giving you the full insight of what to not do and what to do to be successful. This video may be the most important one that first time home buyers see because this will help you avoid all those things that don’t give you a chance.

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Enjoy!

Rosemary and Gary

“We love people and we love homes!”

Read the Full Written Blog Here

Hi, I am Gary. Rosemary and I have recently been doing a lot of open houses lately which did not happen much during COVID. We work as a team. I greet and bring people into the property we are showing and Rosemary shows them the home and answers questions.

I have been absolutely shocked on what beginning buyers are doing when they show up. My first question is “Are you working with a Realtor”. Answers range from:

1. No, we are just getting started and looking

2. Yes, I think so, (we think do they really have a Realtor?)

3. Yes, but I can’t remember their name,

4. or No, we don’t need a Realtor yet

5. Oh I don’t want to bother my Realtor yet

If they say yes then I tell them it is important to give our (as Seller’s agents) contact information to their Realtor so that he or she can be kept in the loop on the selling activity.

If they say no then I tell them that in most cases in our market the seller agent is given instructions to only take offers from people who are represented by a Realtor. If they don’t know any Realtors then we can recommend a number of excellent Realtors from our brokerage. And if they don’t then they don’t have a chance!

So why is this important?

When we are selling a property. things happen quickly. All Realtors in our marketing area are on a TouchBase system. This is an application that allows us to send messages in real time to all other Realtors that have expressed interest in receiving them. When we get in an offer or a price change or other changes in the listing we will immediately send a message to all other Realtors who have expressed interest in staying in the loop giving them a chance to bring in their own offer. Many times, there is only a few hours before the first offer expires forcing the seller to make a quick decision. So, your realtor need a few hours to prepare your offer and submit it in order to compete for that property you love so much. If you are not working with a Realtor then you don’t hear about the offers, you will not know to submit your offer and you don’t have a chance.

Secondly, due to the complexity and requirements of submitting offers it is highly unlikely that you will be able to correctly prepare and submit an offer yourself to the seller’s realtor. (Do you have the forms? Can you do the FINTRAC requirement, the Rescission form. Do you know how to fill them out? Without a Realtor you don’t have a chance!

Most listings on the MLS (Multiple Listing Service) have supplemental information such as the title, property disclosure statement, easements, floor plans, strata documents and a lot more. You, unfortunately, are not able to see most of it as it is only visible to your Realtor. In order to get this information you need to request a copy of all supplements from your Realtor. Without a Realtor, you don’t have a chance.

By the way, Rosemary and I are a real estate team with DFH Real Estate Ltd. here in Victoria B.C. Canada
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Let’s continue …

Now lets talk about going to open houses by yourselves. Many new buyers think “Oh I don’t want to bother my Realtor or I just don’t want to wait. I want to do it my way”. What they don’t understand is in many selling contracts if your Realtor does not first bring you to view the property the first time then if you put in an offer the Realtor will not get their full commission from the Seller’s Brokerage. They might get $500 instead of thousands. Your Realtor could spend hundreds of hours working for you and then because of your whim, going to that open house where you found your dream home without your Realtor, he or she now gets almost no compensation for all the hard work done on your behalf. That does not seem fair does it? But that is often the way it is so support your Realtor. Your Realtor will be pleased to come with you to all your viewings so give them a chance to do their jobs. You are not wasting their time. That is what we do!

I mentioned at the beginning how most seller Realtors are instructed to only consider offers from people represented by a Realtor. Why is this important? The seller’s Realtor is unable to ask you as a buyer any questions about person information. This is due to the requirements of the BC Financial Services Authority. Seller’s Realtor can provide factual information on properties they are selling. Why is this? The seller’s Realtor has a duty to report to the seller all information they have in regards to the selling of the property. If you tell the seller’s realtor your financial history, where you work, what your plans are for the home, etc. then when your offer is submitted this information will be provided to the seller and may bias your offer so you are not chosen even when you might have the best offer. When you provide personal information to a seller’s Realtor instead of to your own buyer’s Realtor, then you don’t have a chance to compete equally and you don’t have a chance.

Since the seller’s Realtor cannot validate where you work, whether you are actually able to pay for the property then the seller does not want to tie their property up with an offer from you not knowing whether it will actually complete or not.

When we work with Buyers, the first thing we do is confirm their ability to finance their purchase and the maximum amount they can spend on a house. When a buyer’s Realtor brings a buyer to the seller Realtor they have a lot better chance and assurance that an offer from the buyer will actually complete and not waste everyone’s time. Without a Realtor helping you get ready to purchase you don’t have a chance!

Are you starting to see the value in using a Realtor right from the start and working with them on all your viewings. A Realtor is your best friend and they wish to make your dream of home ownership a reality. So give them a chance to fully do their job and work on your behalf.

Finally, for first time buyers here are some things that will give you a big chance in purchasing your first home.

Find a good Realtor. Talk to friends for a referral to a Realtor they have worked with. Checkout sites like RankMyAgent.com for local Realtors. Remember in most cases you will not have to pay your Realtor to help you buy a property. They work for you but are paid by the seller’s commission fees which are split between the buyer and seller realtor’s brokerages. With a Realtor you might have a chance.
Talk to your mortgage broker or bank and get pre-qualified for a mortgage so you know what you can work with. This allows you to act fast when you find that perfect property. And this will give you a better chance.
Don’t buy any big purchase items that will muck up your credit history. We have a lot more tips in a recent video we made on exactly what to do after you have just got your accepted offer. See our video above Name: What To Do After The Seller Accepts Your Offer – 12 Top Tips. https://youtu.be/lqsKPR5ph_g

With this you are getting a lot better chance!

Thank you for reading this blog and I will see you next time!

Gary