# How do I find a good realtor?



## Sherlock (Apr 18, 2010)

As a buyer who is not experienced in buying houses, how do I find a realtor who will have my best interests in mind? Someone who will be honest and forthcoming with info such as what the house is actually worth, what a realistic offer is, what the previous owner paid, how long it's been on the market, anything I need to know about that neighborhood, etc, and advise me on making an offer, recommend me a good lawyer, a good house inspector, etc. Obviously it's easy to find a realtor but how do I determine whether or not he's a good one? Should I try to find an older realtor or a yougner one? I realize that an inexperienced buyer like me makes the perfect rube so any other tips you can offer that will help me from being taken advantage of will be appreciated. I already know not to sign a BRA.

I will be looking primarily at detached houses just east of the GTA (Oshawa, Courtice, Whitby, etc) in the low 300s. I am not in a hurry to buy so I can bide my time until a great deal comes along even if that takes a year. Also, as a young single childless guy, do you think I might encounter problems with realtors or sellers not taking me seriously?


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## marina628 (Dec 14, 2010)

Sherlock You are moving into my neighbourhood , we have several rentals in Oshawa/Courtice area.I have used the same lady for 14 years not sure if she is the best but she has done a good job for me including Power of sales from banks. I track the sold homes in the area as I am still looking to add to my rental portfolio and things seem to move fast in that price range. There are still some homes in the $280,000 range that are decent if you are in the $320,000 range there are many options.Jeffery Homes Built a few nice projects in Courtice and that neighbourhood seems very nice, full disclosure I own two rentals there


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## MRT (Apr 8, 2013)

honestly, word of mouth is your best bet...because you can ask questions. You aren't looking for "they are good", you want to know what kind of service they provided.

If you obtain a mortgage pre-approval beforehand, realtors will take you very seriously. It costs nothing, confers no obligation on you, and you receive some guidance on price range and the eventual process for a full mortgage approval.

A good realtor will spend a lot of time with you, determining what is important and not-so-important to you in a home, including location and type of neighbourhood. They (and your mortgage person) should go over ALL the costs of ownership, to help you identify your comfortable "all-in" budget.

IMHO, they should also be strong advocates for having home inspection conditions included with any offer (in addition to the standard financing condition), barring certain exceptions.


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## Sherlock (Apr 18, 2010)

Well I hope I don't have to engage you in a bidding war, Marina! If I could find a house for 280k that would be great. My only requirements are: detached freehold house, must have an attached garage, and must not be too old or need any significant work. I'm thinking 1980s construction or newer. I have no size requirements, even a small 2 bedroom house would be fine (although anything 1980+ with a garage tends to be at least 3 bed/2 bath). Do you think a house like that could be found for 280? I work in the eastern part of Markham so the closer to the GTA the better, unfortunately Pickering and Ajax seem too expensive (and not to even mention Markham) so I am looking at Whitby and Oshawa which should still be reasonable commuting distance to work.

Are your rentals detached houses, and if you don't mind my asking how much does a detached house rent for in Oshawa (you can give me a range if you don't want to reveal the exact amount).


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## Sherlock (Apr 18, 2010)

MRT said:


> honestly, word of mouth is your best bet...because you can ask questions. You aren't looking for "they are good", you want to know what kind of service they provided.
> 
> If you obtain a mortgage pre-approval beforehand, realtors will take you very seriously. It costs nothing, confers no obligation on you, and you receive some guidance on price range and the eventual process for a full mortgage approval.
> 
> ...


I think I can determine my budget and cost of ownership on my own, I'd rather not ask the realtor for help in that. I doubt realtors make good financial planners.

Regarding the home inspection, I heard that rather than having a home inspection condition with an offer, it's smarter to have the home inspector do his inspection before even making the offer, that way you can make a more informed offer, and also the seller is more likely to accept your offer if it has one less condition in it. Anyone have thoughts on this?


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## none (Jan 15, 2013)

http://www.greaterfool.ca/2013/07/12/how-to-pick-a-realtor/


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## Ag Driver (Dec 13, 2012)

I typically will not use any service without a good reference. I did not want to use an agent. However, It seems that in today's world, everyone is hell bent giving away their money in terms of commissions so you are nearly force into requiring one to access the market. The private market is limited at best if you are looking for something very specific. I found that houses were selling before they even hit MLS -- this is where an agent gives you the one up. You should have access to houses nearly 48hrs in advance to it even hitting MLS. I had a few requirements of my agent (in no particular order)

1) Provide access to the market before it hits MLS
2) Experience in the area to have a firm understanding of market value/price point
3) An unmuzzled pitbull approach to negotiating
4) Financially well off (ie. Rich enough that the commission doesn't matter)
5) Comfortable with the phrase "I shouldn't be showing/telling you this but....." (Historical price of the house of interest, houses in the area etc)
6) Available at the drop of a hat and will draft anything up after hours. 

Most other things I could care less about. An agent is not my financial advisor, they are not my interior decorator, they don't know my taste, etc. No one knows you and what you want better than yourself! I had a highly recommended agent, lived and invested in the city for the past 30 years, and was also a multi millionaire. She was an unmuzzled pitbull over the phone to other agents. 

One BIG thing I have learned over the course of my real estate purchase adventure is that if you want information regarding something in particular -- call the specialist and get it right from the horses mouth. For example, any real estate laws you are being told are not law! They are a code of ethics which agents abide by. If you want legal advice, call a lawyer. If you want home inspection advice, call a home inspector. If you want insurance advice, call an insurance broker. So on, and so forth. 

Best of luck with your future purchase! Personally, It's been one hell of a good ride so far!


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## MRT (Apr 8, 2013)

Sherlock said:


> I think I can determine my budget and cost of ownership on my own, I'd rather not ask the realtor for help in that. I doubt realtors make good financial planners.
> 
> Regarding the home inspection, I heard that rather than having a home inspection condition with an offer, it's smarter to have the home inspector do his inspection before even making the offer, that way you can make a more informed offer, and also the seller is more likely to accept your offer if it has one less condition in it. Anyone have thoughts on this?


Realtors don't need to be financial planners...they simply ought to ensure they aren't showing people properties they can't afford and that first-time homebuyers (who are typically not terribly educated about home ownership) know all of the costs involved.

Many buyers don't realize they need to come up with the negotiated deposit themselves. Many others aren't aware of closing costs, including land transfer tax, legal fees, and adjustments for prepaid taxes and utilities. You would also be surprised how many 1st time buyers have no clue about the overall costs of home ownership beyond the mortgage payment. 

If you are aware of all of these things...good for you, you're well ahead of most 1st time buyers!

It is extremely rare to do an inspection before an offer. First, you waste your money if your offer is not accepted. Second, homeowners are not required to let just anyone come in and do an inspection on their property. Personally, if I were selling a property, I'd want a signed offer on the table first. What benefit does it serve them to let you do an inspection first? 

Your 'informed offer' comes from your realtor doing a good job on a market analysis report, by closing looking at recent comparable sales in the area. A home inspection should have no impact on a price or offer, if it reveals no problems. The point of including one in an offer is simply to confirm condition. If all is well, great...the price you agreed upon stands. If not, you then have the opportunity to renegotiate before removing that condition.

In some cases, demand is so high that a seller knows they don't need to accept ANY conditions on an offer. Then you need to decide if you want to take on the risk of going in with a firm offer, despite neither having a full mortgage approval, nor knowing the true condition of the home. Sometimes, vendors have their own inspection done and will let prospective buyers see it, but then you're taking the word of someone who worked for them, not for you.


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## wendi1 (Oct 2, 2013)

You didn't ask for this information, but I will caution you against using a lawyer or a home inspector that has ties to your realtor. Get your own. Sometimes a good home inspector will prevent a sale, and ditto the lawyer.

Quite the adventure!


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## marina628 (Dec 14, 2010)

we rent a detached 1500 sq ft with single car garage built in 2001 with finished basement for $1500 plus utilities ,another we rent is 1350 sq ft built in 2004 with no basement for $1300 + utilities. The one value I get from my real estate agent is she sets up mailing lists and I see homes as soon as they are loaded into system.I have bought homes before they even got on the mls website. Using mls you don't know if they are under contract or even sold.I think you can get what you want for $280,000 -$300,000 in Oshawa /Courtice Area.I agree do not use a lawyer that agent works with ,in Durham region I use pillartopost David Wall for home inspections.He is a bit more expensive but he spends hours and does a very good job .


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## Rusty O'Toole (Feb 1, 2012)

If you ever find a good realtor let me know, we will have him stuffed and put in a museum. I have been looking since 1972 and haven't found one yet.


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## Sustainable PF (Nov 5, 2010)

Sherlock said:


> Also, as a young single childless guy


Have you fully explored the rent vs own debate? Given the quote above I would seriously consider renting instead of owning. Aside from the vast financial difference between the two, you are young and single - would you prefer to find a partner or hang out with friends or perform home maintenance activities?

If you do decide to buy I would say pick a realtor by referral from someone you trust.


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## realist (Apr 8, 2011)

MRT said:


> It is extremely rare to do an inspection before an offer. First, you waste your money if your offer is not accepted. Second, homeowners are not required to let just anyone come in and do an inspection on their property. Personally, if I were selling a property, I'd want a signed offer on the table first. What benefit does it serve them to let you do an inspection first? ...In some cases, demand is so high that a seller knows they don't need to accept ANY conditions on an offer. Then you need to decide if you want to take on the risk of going in with a firm offer, despite neither having a full mortgage approval, nor knowing the true condition of the home. Sometimes, vendors have their own inspection done and will let prospective buyers see it, but then you're taking the word of someone who worked for them, not for you.


It really depends on the market. In Toronto it's probably the norm on houses to get an inspection before in offer, less so in less crazy markets. A pre-offer inspection saved my friends recently - the inspector identified about $50k worth of work that would have needed doing right away on an otherwise great house, and they couldn't afford that so they walked away. The house sold for well over asking price, no word on if the buyers new about that work or not!

Our realtor was pretty good I thought. I think we were fairly easy clients since I had done a ton of research on CMF and other places. She was great at educating my wife who had not done as much research as me (and had more patience for explaining things than I would have!)

Definitely get referrals if you can, ask for references from a prospective agent. Maybe start by meeting with Marina's agent and see if you like your first impression? Friends of ours interviewed five different agents before selling their place recently.


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## Berubeland (Sep 6, 2009)

I'm sorry to break it to you OP but your question is flawed. An agent who had his clients in mind would not stay in business very long. Successful agents sell properties. There is no way around that conflict of interest. As an example, imagine trusting anyone who will only make money when you buy. Maybe they have a mortgage and car payment coming. Forget about it. 

Agents are good for showing property, some for decent deals although the really good deals will never even hit the market. 

You are the one who will be paying for this property for the next 25 years, you are not the one who gets the dough and walks away.Do not under any conditions turn over that responsibility to someone else. You are the one paying be responsible and aware. Sales agents are great at selling. If the deal is no good walk away.


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## Rusty O'Toole (Feb 1, 2012)

On the question of home inspection before or after making an offer. I suggest you make an offer conditional on a home inspection. This is a standard clause any agent should be familiar with.

It simply means, when you have an accepted offer, you have a certain amount of time to have an inspection done. Once the inspection is done you can waive the condition or not, your choice. If the inspection turns up serious problems not disclosed by the seller you can drop the deal entirely or renegotiate. For example if the house needs $5000 worth of plumbing repairs, the seller may agree to give you a $5000 rebate on closing. If it is something that can be fixed before closing the seller may agree to fix it.

Doing it this way allows you to buy with confidence that you will not be stuck with a bad house, and it saves you paying for inspections on houses you are not buying.


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## Hawkdog (Oct 26, 2012)

if you can find one that works for a company like this you could save a 4 or 5% commission

http://3percentrealty.net/


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