Trust In Your Mortgage Agent

I recently read an article about trust in real estate. There were points in it I agreed with and those that I didn't. I can bring a lot of perspective to this as a Private Sale Professional and as a Mortgage Agent.

I have written many posts about agents and their incentive to work for themselves versus you, the client. To date I haven't delved too far into the mortgage agent relationship. Where I feel the article missus the mark in this relationship is in the regulatory body of the mortgage industry. You see in the real estate transaction, real estate agents are self regulated through CREA. The mortgage industry is regulated by FSCO, a government agency that also regulates more than just the mortgage industry. Here is a snipit from their website:

FSCO's legislative mandate is to provide regulatory services that protect the public interest and enhance public confidence in the sectors it regulates.

FSCO regulates the insurance sector; pension plans; loan and trust companies; credit unions and caisses populaires; the mortgage brokering sector; co-operative corporations in Ontario; and service providers who invoice auto insurers for statutory accident benefits claims. FSCO is accountable to the Minister of Finance.

You see, we in the mortgage brokering business have a higher power to answer to. We don't just get to pick a mortgage to sell you based on what we get paid. We have a dual responsibility to both our clients and the lenders. To the clients we have to prove that what we offered them was in fact, the right product for them. If we have not done our due diligence we can be held accountable for it. We are also responsible to the lender to ensure that the person applying for the mortgage is who they say they are and that the information they provide is accurate. We are the first step in stopping mortgage fraud.

Another area that the author missed the mark is where he said "it wasn't revealed until I signed the mortgage papers" in regards to the brokerage being paid by the lender. We are required to have a consent form signed by the client prior to doing any work for them and it clearly advises that we are paid by the lender. So either the author didn't read what he signed or he was working with someone that wasn't following proper protocol.

So yes at the end of the day the mortgage brokerage gets paid by the lender, but we are working for you, the borrower, to ensure you are treated fairly and to find you the best mortgage for you.

The best advice is to do your home work, interview your mortgage broker/agent, don't just look at rates. 

Mike Shanks, PGPro
PropertyGuys.com
Franchise Operator
Cambridge and Guelph

Mortgage Agent Lic# M14001148

PropertyGuys.com Mortgage

Brokerage # 12466

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What Does It Take To Sell A House?

I have been in the real estate game for 7 1/2 years. Which to a veteran real estate agent may seem like nothing. The thing is, we work with hundreds of clients a year instead of 20-30 like the average agent. This means in real estate terms I have 30-40 years of deals under my belt. What I have come to realize is that there is really two different markets of sellers. Similar to the home renovation market there is the Do It Yourself (DIY) market and the Do It For Me (DIFM) market. There are some distinct differences between these two groups which I will break down for you.

DIY Market

The DIY market, often refereed to as the FSBO or For Sale By Owner market is distinct in that sellers tend to feel they have the knowledge they need but do need access to some tools. There are extremes even within this market. The lion's share of this group feel they know their price range, have watched enough HGTV to be comfortable with the staging and just need to reach the buyers. They tend to look for the most inexpensive ways to advertise their home. Kijiji is a staple to this group. It has replaced print ads of days gone by, the classifieds of the 21st century. FSBO signs are common and they sometimes look to private sale marketing companies like PropertyGuys.com to increase their exposure as well as an avenue to get onto Realtor.ca. Typically they do most things on their own with little outside support and occaisionaly we see the true cowboy that has done their own blog dedicated to selling and want NO assistance from anyone, a true DIY person. What is distinct about this group is that they believe the key to selling is finding the right buyer. They feel they have everything they need except a buyer. 

DIFM Market

This market is distinct in the fact that they will pay what it takes for results. That is all they want. They have opinions on what services will provide the result, but if you can provide the result, they are willing to pay for it. The real estate industry have been exploiting this group for decades. They use fear based marketing and take tens of thousands of dollars in the home seller's equity. The industry is run like a cartel and often use the massive amounts of money pulled in to exploit fears in the industry to maintain control over what they deem as "their" market. The seller's big fear is of the unknown. They don't know what they don't know and fear that if they miss something it could be an expensive mistake.

Two Market Solution

So how does one company offer a solution to both of these distinctive markets? It lyes in first recognizing that both markets exist and validating that they are both viable markets. Agents typically scold the DIY seller and tell them they are stupid. The DIY seller tends to scrimp on spending anything and limit their knowledge and exposure. As with anything there are outliers that exist. Some people are true DIY and need very little help, others need someone to do EVERYTHING for them. The majority of people fall somewhere in the middle. The market typically breaks down leaning 10-15% towards DIY and 85-90% towards DIFM market. 

This is where we come in. At PropertyGuys.com in Cambridge we offer the FSBO DIY client what they want. Free exposure (on PropertyGuys.com) and inexpensive tools like open house signs and a listing on Realtor.ca. Everything they would want, from as little as free to as much as $500. The DIFM client is given what they need, results. Results are ONLY delivered when Product, Price and Exposure are in alignment. Our Real Estate Pro package offers all the tools including pricing from a licensed appraiser, exposure on Realtor.ca as well as local print and direct mail, legal advice and offer drafting 7 days a week, a real estate receptionist to answer calls around the clock and book appointments, access to local professionals to answer all their questions, heck even paid ads on places like Kijiji and Facebook! All this is backed up by the best real estate platform in the industry with big, bright photos, walk score mapping, visitor reports, inbox and an online offer maker to work out the deal with your buyers.

At the end of the day, selling without a real estate agent isn't for everyone. But the majority of people, DIY and DIFM, can get what they need from PropertyGuys.com. Set up an appointment to see where you fit. It will be the best 45 minutes you will spend to prepare for selling your home!

M

Can I List My House On The MLS?

First let's be clear; the MLS, or Multiple Listing Service, is not open.  It is wholly owned and operated by the Canadian Real Estate Association in Canada.  The changes to allow Private Sellers "access" to MLS was not what most people think it was.  Yes you can do what is called a "Mere Posting", but it needs to be done by a licensed Realtor, as they are the only ones who can post houses for sale on the MLS.

Where most people are confused is that it is not the MLS they are looking to have their house appear on, it is Realtor.ca, the public facing site where the Multiple Listing Service properties are showcased for you to search.  Go ahead, go to your internet browser and go to MLS.ca and look what happens.  There is no MLS.ca, it ports you over to Realtor.ca.

Each local board has their own listing service and they, inturn, upload those listings onto Realtor.ca.  You will note that if you go onto any of the local Realtor association websites ( KW, Guelph, Cambridge) you can't just look at their listings.  Any searches of listings they point you to Realtor.ca

If a realtor comes a knocking on your door, or calls you on the phone, to tell you you have to be on the local board, tell them to take a hike.  I am sure they will say something like "If you are not on the local board then local agents won't find you."  To which I would respond "Are you a local agent?"

Mere Postings for the Private Home Seller

Does adding a mere posting on REALTOR.ca cover your back?

On the 2 year anniversary of the agreement between CREA and the Competition Bureau I wanted to give my thoughts on how adding in a mere posting on REALTOR.ca affects the Private Home Seller.

When you are selling a house it is key that you have all three sides of the Home Selling Trifecta covered. You can add all the exposure you want but if you neglect the other two sides of the triangle you will be deeply disappointed.  Knowing that you can always add exposure as you go, you are best to ensure both your product and your price are right in the beginning.

So 2 years after the ability for private sellers to do a Mere Posting on REALTOR.ca have we seen it as a magic potion to magically sell houses? Not in the least.  It just proves what we have always known here at PropertyGuys.com. Being on the same website as all the agents doesn't sell houses.  If you don't do your homework, if you don't deal with the smell of cat pee, if you over paid for your house 18 months ago, if you don't price your home without emotion and based on factual data, you might as well save your money. You can post your home on PropertyGuys.com, you can add a mere posting or you can use a high fee real estate agent and it won't make a lick of difference if you have not hit all three sides of the trifecta.

The Power of the Vote

As we head into municipal elections across the province an important vote, one that will impact how people buy and sell homes, took place yesterday in St John's NL.

Nearly 100 of the real estate boards from across Canada voted to ratify the agreement between CREA and the Competition Bureau. Now as many have pointed out this vote hasn't really changed anything as far as rules go. What it has done is given plain language to the boards on what they can and cannot do in regards to "mere listings". Here is a quote from the media release:

The Commissioner and CREA have agreed that its rules as well as those of its members should not deny or discriminate against REALTORS® wishing to offer mere posting services. CREA does not believe that such rules exist today, but if they do, they must be repealed or Boards will lose their license to operate under the MLS® trademarks.

Now just to clarify this does not mean that John Q. Public can just upload their home for sale on www.realtor.ca. The system is still a closed, member to member system, as it should be. What it opens up is the ability for brokers to offer flat fee listings to people that just want to post a home for sale. This maintains that someone be held responsible for the information being entered into their system.

You may be asking yourself "If the realtors are going to make less money on listing homes for sale and private sellers won't offer the "standard" 2.5% commission how will the realtors pay for their Cadillacs?"


"we have ways of going around that" these guys are too much. Their sense of entitlement for your money is overwhelming. "Buyer Beware" takes on a whole new meaning.

M