The value of a Realtor is about to change!

A year and a half ago, the media’s sensationalism almost brought the Real Estate market in Canada to a halt.  Gloomy headlines had consumers nervous about their largest investments.  Sellers were panicking, and buyers were in a holding pattern.  After a while, consumers realized that the media’s take on the Real Estate landscape was not entirely correct, and the Real Estate market returned to full strength, bringing the Canadian Economy back to stability.  This week, creative journalism has surfaced once again and surely blown the CREA vs. Competition Bureau challenge way out of proportion over the past few days.  Headlines on television, and in newspapers have made it seem as though the Competition Bureau has already won a war they are fighting with themselves.  We are dealing with journalists that do not understand either side’s argument writing articles that are seemingly bashing Realtors everywhere.  Part of a Realtor’s Professional responsibility is to protect the consumer by maintaining the integrity of the CREA owned MLS system.  Changes proposed by the Bureau that would undermine the MLS system are not in the best interest of the Canadian consumer.  Realtors are governed by federal, municipal and provincial bodies and adhere to strict rules and a Code of Ethics to maintain the integrity of the data that is put on the MLS.  As Realtors, we would not be acting in the best interest of the consumer if we allow the Bureau to have its way with our marketing system.  The battle is not about commissions or our longevity.  The battle is about principle.  The MLS is owned by CREA, was developed by CREA, is maintained by CREA, and CREA members pay fees for the upkeep and improvement of the system annually.  CREA members are licensed to use the system as a tool to assist their clients market their properties and realize favourable returns on their largest investments.   How does a third party force an organization to give up its trade secret/tools to non-members?  This is my issue, and also the fact that the media’s misinterpretation of the issue could cause a significant jolt to the Real Estate landscape in Canada.  What we lack is not competition, what we lack is journalistic integrity.

Real Estate is Canada’s economic engine.  It is the driving force that prevented us from a devastating recession last year.  A strong housing market alongside the world’s #1 ranked banking system continues to lead us towards economic growth. 

With this in mind, it is mind boggling as to why the Competition Bureau would fail to acknowledge the concessions CREA has made to come to a resolution on this front.  This week, CREA has made changes to the MLS to satisfy the Competition Bureau and is willing to work with the Bureau to resolve issues raised.   In turn, the Bureau has walked away from the table electing in their sole discretion to take this matter before a Tribunal. 

Change is a constant in any business.  Just over 50 years ago, the MLS system did not exist.  The public site that was created by CREA to allow everyone access to the MLS system is relatively new to Real Estate as well.  Everyday, we are surrounded by change.  It wasn’t long ago that text messaging did not exist, now millions of text messages are sent around the world every hour.  We are not fighting the change, change is inevitable.  Realtors embrace change daily.  Change is not the issue.  The issue here is in regards to Competition.  Is the Real Estate Industry Competitive?  Has CREA created a monopoly with their MLS System (by the way the MLS is a tool that they own, developed, and maintain through membership fees).  The MLS is not the only site available to buy and sell properties.  There are hundreds of sites and strategies consumers can choose from to market their property.  Many of these sites are operated by non-licensed representatives are not accountable for the data they upload, nor are they responsible for any misrepresentation.  To go further, there are currently member brokerages of CREA that offer flat fee arrangements or low cost alternatives with limited or no services.  The only stipulation is that they must offer an amount for commission to other representatives, this amount could be $1.  The business of real estate is arguably the most competitive industry around.  There are approximately 100,000 Realtors in Canada, associated with hundreds or thousands of brokerages in the country.  Each Realtor employs their own marketing strategy, fee structure, and competes with one another for business.  Fees vary from flat rate to a percentage of the home price.  As with anything, you get what you pay for.  Buyers and Sellers have, and always will have, the right to market their property or purchase a home on their own.  There are many “for sale by owner” businesses that also compete with Realtors.  As I’ve stated before, this is not about competition at all.  How can it be?  There is no monopoly, there is no fixed fee structure, there is no set services to purchase.   In my opinion, there is no issue!

Now, if it is decided that the MLS be opened up to everyone, this is not a huge deal, but it will come with consequences.  In today’s day and age of Identity Theft, Fraud and Misrepresentation, consumers will be left to fend for themselves - if they choose to act on their own behalf.  There will be lawsuits, people will lose their homes, and there will be more work for the banks to prevent mortgage frauds.  This is good news for Realtors though.  Allowing the posting of properties by parties that are not obligated to be responsible for the information they upload will enhance the value of a Realtor.  Consumers will rely on a Realtor’s expertise even more so to protect their best interest.  Michael Polzler, Executive Vice President and Regional Director of Re/Max Ontario-Atlantic, states “there is more to what we do as realtors than place properties for sale on the MLS…….MLS is just one of the tools that we use during the course of a transaction”.    When buying and selling their largest investment, consumers will continue to rely on the expertise, education, experience and negotiation abilities of professional Realtors.  The media has created a perceptions that organized real estate starts and ends with the MLS system.  How unlike the media to stray from the truth, isn’t it? Unfortunately, the truth will not sell newspapers.  Let’s look at what an experienced agent will NET for the consumer as opposed to discount brokerages or sales by owners.  The figures speak for themselves.  You get what you pay for.  When selling a home, what is important is the amount the Seller puts in their pocket at the end of the day.  A proven Realtor’s expertise and knowledge will continue to be relied upon and we will continue to deliver and ensure the best return on investment for our clients.  Although I haven’t been known to agree with the media over the past two years, I must agree with them on this next point.  The media is correct in that the value a Realtor brings to Real Estate transactions is about to change.   A Realtor’s value is about to be INCREASED tremendously! J

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

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A Matter of Competition or Blatant Discrimination??

Recently the Competition Bureau announced that it will challenge rules imposed by the Canadian Real Estate Association (CREA) that limit consumer choice and prevent innovation in the market for residential real estate services.

The Commissioner of Competition has determined that CREA’s rules restrict the ability of consumers to choose the real estate services they want, forcing them to pay for services they do not need. The rules also prevent real estate agents from offering more innovative service and pricing options to consumers. The Commissioner’s application to the Competition Tribunal seeks to strike down these anti-competitive rules.

Over the past two weeks, I’ve been asked on a daily basis about the challenge put forth by the Competition Bureau.  Here are my thoughts and opinion on this somewhat controversial subject, without prejudice of course.

Now, the important thing is that the consumer will still rely on Realtors to list their property on the MLS.  However, there are some problems in the accusations that Commissioner Melanie Aitken has made about Realtors and the MLS.  Let’s take a look at a few of them.

Basically, what Aitken is saying is that the tool that CREA has developed is quite remarkable.  Fellow Realtors, we should be proud!  For CREA, this is a tremendous compliment.  The MLS is a power house tool that helps consumers sell their homes fast and gives them the best results possible during the home selling process.  CREA has authorized all its members to use this tool.  After all, membership DOES have its priveledges.  Now, I’m not certain if Melanie Aitken’s parents used to allow her to go into her friends homes and walk out with their toys, or if the kleptomania may have set in later, but it is wrong to want to just take away someone else’s property.  She would like CREA to give the tool that was created for their members to everyone.  Yes, any brokerages or sales persons not affiliated with CREA should be allowed to list on the MLS is what she is saying.  Furthermore, she would like to reduce our service fees to allow us to work for much less than what we are worth, and at the same time open up our profession to others that may be less qualified.  Apparently, we need to work for a “reduced cost”?  “Reduced” in reference to what?? CREA does not set our fees.  That is how we have the discount brokerages like Right At Home, Home At Ease, etc as part of CREA.  Aitken then goes on to say “Selling a home is one of the largest financial transactions that most Canadians make in their lifetime,”.  This is true, so why would you want them to choose inferior options?   Her next statement is “Consumers should be able to choose which services they want to buy in order to facilitate that transaction, including lower-cost options”.  Consumers are, and always have been able to select which services they want and how much they want to pay.  Maybe Ms. Aitken, you need to sit down with a group of Realtors prior to making the accusations that you have.

The Bureau’s challenge is against rules imposed by CREA on agents who list properties on the Multiple Listing Service (MLS) system. The overwhelming majority of real estate transactions in Canada make use of the MLS system, which includes important information available only to CREA members. Before listing a property on MLS, agents must agree to comply with CREA’s restrictions on the service options they provide to Canadian consumers.  Ms. Aitken, if you have a problem with this you are either crazy or have misinterpreted what this means.  The reason CREA “imposes” rules on agents is to protect the consumer!  CREA is self-governing and its members have a strict Code Of Ethics to follow, unlike the government.  When CREA states that we have to present all offers to our clients, it means that should an offer come in, we must disclose this to our clients.  It does not mean that if the client wants to review the same on their own, that we say “no”.  We assist the sellers in negotiating offers for them.  This is NOT a requirement to put an MLS listing on the board, it is a service standard to protect the consumer and ensure they receive value in their investment.  Should a client wish to negotiate offers on their own, it is their right to do so.  As well, the MLS system is created, owned, and operated by CREA.  CREA has put together a system that EVERYONE can use, which is called REALTOR.ca, formerly MLS.ca.  Should you wish to market your listing to others without MLS, there are many options including Craigs List, On-line newspaper classifieds, Kijijii, and more.  You are correct in that the majority of the transactions are the result of properties being marketed on the MLS system.  That is why this system was created by our membership and FOR OUR MEMBERSHIP. Should people want to market their homes without the MLS, they are welcome to do so.  Some of the other options are not available to Realtors, such as For Sale By Owner sites.  After having spent so much time and money on developing a tool for our members, why should we be forced to give it away?  Why should we be forced to allow our intellectual property to be utilized by non-members?  Should Microsoft allow Apple to use Windows, just because MAC users do not have access to it?  Should Honda share it’s trade secrets with General Motors to allow a “fair playing field”? Since my tax dollars go towards snow removal, shouldn’t my town clear my driveway just as they do theirs?  If it is all about protecting the Consumer, shouldn’t “protection” be all-encompassing?  Let’s be honest Ms. Aitken, this is not about protecting anyone, it’s a plain and simple witch hunt. 

Another disturbing statement: “For example, under CREA’s rules, agents are prohibited from offering consumers the option of simply paying a fee for an agent to list a home on the MLS system. Instead, all consumers looking to list a property on MLS must purchase a pre-determined set of additional services from a real estate agent, such as the presentation of offers and negotiation of a final deal.”  Where on Earth did you dig this up from Ms. Aitken?  There is no pre-determined set of additional services that need to be purchased from Real Estate agents. Who would want to list a property and not have offers presented or negotiated?  You referred to photographs of the home a few times in your accusations.  This is not something that is required, it is something Realtors provide – and pay for – as part of our professional services.  The goal is to sell the house right?

Aitken goes on to say “The Bureau is focused on striking down these anti-competitive rules, so that real estate agents wishing to offer innovative services can do so, and consumers can benefit from greater choice,”.  Ms. Aitken, we have 96,000 Realtors in Canada.  I think there is somewhat of a choice available already, and there are as many innovative services as with any other profession - if not more.  Aitken states “the market will ultimately determine prices for residential real estate services”, and this is already the case.  There is no fixed fee, there are many realtors and brokerages that charge what they deem adequate for the service they provide.  The market has been determining prices for real estate services for many years. 

Apparently, The Competition Bureau “is an independent law enforcement agency that contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice”.  Informed consumer choice?  It seems the consumers’ informants are not fully educated on the subject they all of the sudden deem themselves to be experts in.  By trying to put doubt in the unsuspecting consumers mind that Real Estate Professionals are out to get them will not help people realize the best return on their largest investment.  It will jeopardize their livelihood and hurt the Canadian Housing market in a way no recession could ever do.  Aitken says that RealtySellers, a discount brokerage from Toronto, went out of business because of their inability to charge lower fees on the MLS.  Actually, RealtySellers went out of business because their business model was poor and attracted inferior agents.  Which brings us to the main issue Ms. Aitken. The issue is that there are far too many inferior agents out there that should be kicked out of the profession.  Your high-handed actions will just encourage more of these agents to get into the business and deteriorate the quality of the Real Estate Sales Representatives in the field.  You are not fixing a problem, you are creating it.  Garbage in – garbage out, could be a simpler way to put this.    Many Realtors leave the business every year.  During the 2008 “recession”, quite a few left, yet you show no remorse for them.  Ms. Aitken, you seem to take the RealtySellers situation quite personally.  Were you a partner in the company?

The only change that is necessary, is for the government to stop wasting tax payers dollars on useless commissions such as yours.  What is next?  Should we allow everyone access to the Registry office and bring down legal fees, since having Lawyers involved in every transaction is against the competition act – and costly?  Should we allow manufacturers to be able to walk into any retail operations and sell their product?  Is it anti-competitive to have just one superior court?  Where does it end?

This is not about protecting the consumer.  It is more about one person’s ego and power trip.  The high-handed behaviour being demonstrated by Aitken and her Commission is nothing less than discrimination against Realtors.  How else can you explain the forcing of an organization to give up their greatest asset to the general public, an asset that they have developed over the years to help consumers market their greatest asset, and a tool that has been created solely through membership fees?  In Aitken’s own words “we expect that if the Tribunal strikes down the anti-competitive restrictions, there will be downward pressure on real estate fees in Canada.”  In my humble opinion, this is Discrimination!  Enough said.

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

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Markham Home Show - VIP Admission

Download now or preview on posterous

E-TICKET Markham Home Show.pdf (114 KB)

Hello Everyone:

Please visit us at the Spring Markham-Stouffville Home Show THIS weekend.  The show will be held at the Markham Fair Grounds.  As always, we will be in Building One.  Attached is a VIP Admission Ticket for you.  Please visit the show, on us, and drop by to say hello.  We will feature our new Condo Development, and will be selling off the remaining Phase I units on a first-come, first-served basis.

I will be speaking about our new “HOME FREE” Program on the Main Stage in building 4.  Timings for the Seminars are Friday at 3:30 pm and 8:00 pm, Saturday 1:30 pm.  Learn how to take your money back from the bank and be Mortgage Free in less than half the amortization period.  Chris Nichilo of   Interest Free Canada will be our guest speaker.  The seminars are free with admission to the show, however space is limited so please RSVP by calling or emailing me.

The Re/Max Balloon will be in flight above the Fairgrounds on Friday and possibly Saturday (weather permitting).  Check it out, and come say hello!

Asif

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

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Markham Home Show and Toronto Marlies - CBC Game

Hello Everyone:

Just a reminder that we will be at The Markham Stouffville Home Show this weekend (Friday to Sunday).  Please drop by and visit us in our Booth in Building 1.  My team will be on hand to assist you with any questions you may have about the buying or selling process.  My seminars will run on the main stage on Friday afternoon and evening, and Saturday afternoon.  Please book in advance and I can forward complimentary admission if you’d like to attend.  If you would like to find out how to cut your mortgage down to 8 years or so, from 25, or if have though about being debt free, you will not want to miss my seminar.  In conjunction with Interest Free Canada Corp (IFCC), we will show you how you can save money and then set up your Investment Portfolio to get your money working for you.

On Sunday the 21^st, I will be at Ricoh Coliseum for a promotion with the Toronto Marlies.  Anyone buying or selling this year, will receive a pair of Season Tickets for the Toronto Marlies 2010/2011 season.  The game is sold out, so if you have tickets, visit me beside the Guest Services Desk at Ricoh!

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

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IT'S OUR GAME

Only FOUR Years Left, then we’ll need to renew our bragging rights! 

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

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See and download the full gallery on posterous

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Canadian Dollar Continues Climb

CP - A strong jobs report pushed the Canadian dollar to its highest point in nearly two years on Friday.

The Canadian dollar was trading at 98.24 cents US around 4 p.m. ET Friday, up 0.61 of a cent.

That's the highest level for Canada's currency since July 2008.

Earlier in the day, Statistics Canada reported that the Canadian economy added roughly 21,000 jobs in February. Currency traders reacted almost instantly, pushing the loonie up more than half a cent in the minutes following the data.

The loonie gained more than half a cent to trade above 98 cents on Friday. (Canadian Press)

The knee-jerk rise in the loonie was supported by the fact the underlying data was even stronger than the headline — some 60,200 full-time jobs were created during the month, which was only partially offset by a decline in part-time jobs.

"The currency market is very wise," said Douglas Porter, deputy chief economist with BMO Capital Markets. "It decided that the underlying details were even better than the headline number."

"Companies appear to be upgrading some part-time workers into full-timers, which we view as a positive for the Canadian economy as a whole," United Steelworkers economist Erin Weir said.

Asif Khan, Realtor
Re/Max All-Stars Realty Inc.

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An Open Letter to Joe Castaldo

Dear Mr. Castaldo:

Having just read your interesting article, I would like to identify a few faults in your findings. You state that “just over a year ago, existing home sales fell 40% and prices 12% from their peaks in late 2007”.  Sales were down, you are correct, however your numbers are incorrect.  The sales fell 17.1% and not 40% according to actual numbers from the Canadian Real Estate Association.   When comparing apples to apples, the price of a home compared to a similar home did not fall 12%.  The National Average was -0.7% (less than 1%).  The average price in Ontario, according to the Canadian Real Estate Association actually increased by 0.9%. Your numbers are skewed to give credence to the title of your article “Why Buying A House Is A Bad Investment”.  Mr. Castaldo, you, as well as everyone else, knows that a house is as solid an investment one can make in their lifetime. 

To clarify, the steps taken by the government are not to “cool off the market”, it is to prevent the problems that occurred in the United States.  You may not be aware that Canada’s banking system is rated #1 in the world.  The steps the government is taking will further establish our banking system as the leader and one which the world banks are trying to copy.  By having people qualify on a five year level, it ensures affordability in the long run.  Banks such as TD Canada Trust have always been qualifying on a three year level anyway, so this is not as drastic as you make it sound.  It is actually great news to Canadian homeowners and financial institutions. 

You also state “what’s ironic is that real estate price gains can be somewhat of an illusion when inflation is taken into account.  “People get fooled by nominal numbers, long term returns in real terms are less than spectacular.”  You state that returns in more than 300 metropolitan areas in the U.S. between 1970 and 2000 found prices increased on average only 1.7% annually.  I’m not sure if you just do not understand, or if you really believe that by mixing two different economies, nations, and financial systems, that your readers will side with your interpretation.  IF you are speaking about the Canadian market, as the early part of the article made it seem, then let us look at CANADIAN numbers for price appreciation.  In 1980, the average price for a home in Canada was $67,000.  At the end of 2008, that same home was now worth $300,000.  This translates into an increase 300%.  Now, if you take the figure you quoted at the beginning of your article, that the average Canadian home is now worth $328,537, a grade one math student will realize that this is a $28,000 increase.  To put it clearly for you to understand, this is about a 9% increase since last year, and this is quite consistent over the long term. 

If this was not enough for one to stop reading your article and question your state of mind, your reference to high unemployment going hand in hand with home ownership certainly did it.  You stated that “The Netherlands and Switzerland had lower unemployment and a lower rate of unemployment.  While homeowners are often stuck with their property through tough labour markets, renters can more easily relocate to find work which lessens structural unemployment”.  “Everyone needs financial security during those uncertain times but for homeowners, their greatest asset won’t necessarily deliver”.  You also state that “a society of renters is also more mobile”.  Mr. Castaldo, do you really believe that higher percentages of home ownership are directly responsible for high unemployment, and that if renters are more mobile, this contributes to higher employment rates.  I’m disappointed in Canadian Business for even giving you an opportunity to present your verbal diarrhea in print form.  Your comparison to a house not being as diversified as stocks is totally crazy.  You state that “if you can buy a home with a bedroom in Toronto,  the kitchen in Vancouver, and another bedroom in South America, then this would be a diversified house”.  You quoted Milevsky in saying buying a home was not a smart way to allocate money.  I’m looking all through your article for “lol” and can’t seem to find any.  Did your spell check program accidently remove these from your article?

I certainly hope this article was printed a month early by mistake.  The headline “Why Buying A House Is A Bad Investment” is certainly more suited for an April Fool’s article, than an informative read.  I invite you to contact me at your convenience so that I can educate you properly on the state of the Canadian Housing Market.

Regards,

Asif Khan

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

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DAYLIGHT SAVINGS TIME RETURNS THIS WEEKEND!!

Daylight Saving Time 

Daylight Saving Time returns the second Sunday of March (March 14 this year).  Remember to “spring forward” one hour on Saturday evening before you go to bed.

This is also the best time to replace the batteries in your smoke alarms and carbon monoxide detectors.  Many of the newer homes have these detectors directly wired, however there are many that still use batteries.

If your smoke alarm, or carbon monoxide detector is over 10 years old it is recommended that you replace it.  Many stores in and around your area (like Canadian Tire, Home Depot, Lowes, Rona) will feature these items on sale this weekend.   This is also a good time to get into the habit of testing your smoke alarm on a regular basis.  A candle will smolder after it is blown out. This smoke should activate the smoke alarm if placed directly below it.  

PLEASE REMEMBER: Only WORKING smoke alarms save lives!

Test YOUR smoke alarms and carbon monoxide detectors today.

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

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Miracles and Dreams

Hello Everyone:

Every child has a dream, and for some the dream starts to fade due to circumstances beyond their control.  As part of my on-going commitment to help children achieve their dreams, I donate a portion from each sale to The Children's Miracle Network.  Through The Children's Miracle Network, these dreams become reality! 

This year, I would like to ask for your help to make miracles and dreams happen!  My goal is to raise an extra $5,000 per year for SickKids through my family, friends, and clients.   

My dream is to help as many children as possible live healthy and prosperous lives.  Your donation of any amount will help children realize their dreams.  There is no minimum, every little bit helps. 

Please visit my page for the Sick Kids Foundation. Click on the link below:

Asif Khan’s Miracles and Dreams

Thank you for sharing my dream!                                                                                                      

Sincerely,

Asif

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

Google me: Asif Khan ReMax

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Opportunity awaits— two-in-three Canadians think it's a buyer's market

Opportunity awaits— two-in-three Canadians think it's a buyer's market TORONTO, March 4, 2009 — According to the 16th Annual RBC Homeownership Survey, 65 per cent of Canadians think it's a buyers market right now and more than a quarter of Canadians (27 per cent) say they intend to purchase a home over the next two years, up four points from 23 per cent in 2008 - the largest single year increase since 2001. Additionally, almost half (48 per cent) indicate it makes sense to buy a home now versus waiting until next year. The RBC survey found that younger Canadians are most likely to spark an upsurge in home sales. In the under 35 group, 48 per cent said they plan to buy, which is up sharply from 36 per cent last year. Renters also appear to be saying they are tired of paying someone else's mortgage payment, with 38 per cent planning to become homeowners in the next two years. "The current economic environment does not appear to have dampened Canadians' overall confidence in the housing market," said Karen Leggett, head, Home Equity Financing, RBC Royal Bank. "Canadians continue to have an overwhelming belief in the long-term value of a home and we're seeing this in the buying intentions of many first time homebuyers this year." A large majority of Canadians (83 per cent) remain positive that homeownership is a good investment. While the proportion is down slightly from 85 per cent in 2008 and from the all time high of 90 per cent in 2006, it is 10 points stronger than it was a decade ago (72 per cent). Among those who intend to buy, three-in-ten say favourable housing price is a major reason driving their decision. In a marked change from last year, 54 per cent of Canadians believe housing prices will be lower in 2009, up from 31 per cent in 2008. Similarly, the study showed 14 per cent of Canadians believe their home has lost value in the last two years. Of these, most (54 per cent) think it will take three-to-five years for their home to recover its value. "Low mortgage rates and favourable housing prices are influencing home purchase intentions this year and may be the reason why more Canadians are poised to purchase over the next two years," added Leggett. The primary reason stated by homeowners not planning to purchase a home is that they are content with the home they have (60 per cent). Job loss/employment factors (eight per cent) as well as general concerns about the economy (six per cent) also influenced people's decisions not to buy a home. Regional Differences:   Now is a Buyers Market Intentions to Buy BC 78% 26% Alberta 72% 35% Sask/Man 34% 25% Ontario 73% 30% Quebec 52% 22% Atlantic Canada 58% 25% RBC is the largest residential mortgage lender in Canada. As the country's number one source of financial advice on homeownership, RBC conducts consumer surveys as one way to provide insight to Canadians about the marketplace in which they live. These are some of the findings of an RBC poll conducted by Ipsos Reid between January 6 to 9, 2009. The online survey is based on a randomly selected representative sample of 2,026 adult Canadians. With a representative sample of this size, the results are considered accurate to within ±2.2 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were statistically weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 2006 Census data. Asif Khan, Realtor Re/Max All-Stars Realty Inc.   Google me: Asif Khan ReMax Follow me on Twitter  www.twitter.com/remaxallstar Become a Fan of "Asif Khan's RE/MAX Dream Team" www.facebook.com/asifkhanremax

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Journey To Your Front Door - The Real Estate Test Drive

Check out my second episode of JOURNEY TO YOUR FRONT DOOR on Daily Web TV. click on the link below THE REAL ESTATE TEST DRIVE Asif Khan, Realtor Re/Max All-Stars Realty Inc.   Google me: Asif Khan ReMax Follow me on Twitter  www.twitter.com/remaxallstar Become a Fan of "Asif Khan's RE/MAX Dream Team" www.facebook.com/asifkhanremax

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Asif Khan Explains Client vs. Customer Representation

The purchase and sale of a home can be the most important financial and personal decisions that you will ever make.  Selecting the right Realtor to represent you is the key to a successful transaction.  Working with Asif Khan - a professional who acts in your best interest - will save you time, money and aggravation. Once you sign the Authority To Represent, Asif will act as your Agent for your transaction.  While the term "Agent" is not specific to the Real Estate industry, most Real Estate Salespeople, Brokers and REALTORS act as Agents when conducting business. An Agent is commonly defined as any person who represents another person in a business transaction.

Agency Relationships:

There are four agency relationship that can be created:

• Buyer Representation (Client relationship established)
• Seller Representation (Client relationship established)
• Multiple Representation  Buyer and Seller Representation in place. (Client relationship established)
• Customer Service ( No client relationship established)

Prior to starting the search/listing, Asif will schedule a 30 minute consultation at our offices to help you understand the Agency Relationships and complete the appropriate Authority To Represent.  Take the time to understand the differences in services that Asif provides to Clients and Customers.   As a Buyer or Seller, it is important  that you choose the best type of representation available from a Realtor.  Your choice is to become a Client or Customer.  There are many differences between the two. 

Real Estate Relationships Definitions Client: Often referred to as a principal, a client is a person who asks an Agent to act on his or her behalf during the purchase, sale, exchange or rental of a property or business. An Agent owes their clients full fiduciary duties, such as loyalty, confidentiality, accountability, duty of care, obedience to all lawful instructions, and full disclosure of all pertinent facts. This relationship is call Client-Agent Relationship.  In a Client-Agent relationship, you are able to receive market analysis, confidential market information as part of the full disclosure.    Customer: A customer is a person who has not retained an Agent to work on his or her behalf. While a customer does not enjoy the fiduciary duties and benefits of the Client-Agent Relationship, they are nevertheless entitled to be treated fairly, honestly and with due care at all times and cannot purposely be misrepresented.  As a Customer, you are not able to receive market analysis or the Confidential market information due to you under Full Disclosure.

Understanding The Differences Between Client and Customer Service

CLIENTS    CUSTOMERS  Buyer Consultation:  A Buyer Consultation is required to determine want and needs and to get an understanding of Buyer Agency.  Buyer Agreement is required: Flexible term     Buyer Consultation is optional:  The customer may request to learn about the buying process and to understand Buyer agency. A Service Agreement is required Access to MLS Information: The Buyer agent must ensure the client has full access to all homes for sale on the market. The  information must be provided to the client ASAP    Access to MLS Information: The  agent has no legal obligation to provide listings to the customer. The customer may do all the searching on his or her own.  Loyalty: The agent has loyalty to the client.   Loyalty: The agent has loyalty to the Seller. Confidentiality:  Buyer information is never disclosed to the seller. Buyer position is enhanced   Confidentiality:  Buyer information is disclosed to the seller to enhance the Seller position. Obedience: The Agent is under legal obligation to obey the instructions of the client.   Obedience: The agent is under no legal obligation to obey the customer. The agent should however listen to the customer. Accountability: The Buyer Agent has full accountability for all actions taken.    Accountability:  The agent has limited accountability to the customer. Market Analysis:  The Buyer Agent is under obligation to present all sales statistics to ensure the Buyer does not pay more for the home than it is worth.   Market Analysis:  The Agent is required to show statistics to support the seller's asking price.  Even if the asking price is over current market conditions.  Buyer Needs:  The Buyer Agent is under obligation to pay full attention to the buyer needs. Price, mortgage financing, etc,      Buyer Needs: The Agent is under no obligation to satisfy the customer needs, but must treat the customer with fairness. Disclosure: The Buyer Agent must disclose all known facts about the seller and the property(Good or Bad).   Disclosure: The agent has no such obligation to disclose facts about the seller or the property to the customer. Negotiating Strategy The Buyer Agent is under legal obligation to provide strategies that are in the best interest of the Buyer.   Negotiating Strategy: The agent has no such obligation to the Buyer. The agent has to provide strategies to help the seller. Showings to find a home:  Unlimited. The Buyer Agent is under legal obligation to show the client as many homes as possible until the client finds the right home.   Showings to find a  home:  The agent has no legal obligation to show homes to the customer. The agent can show homes as he or she deems necessary. Clauses In Offer:  The Buyer Agent is under legal obligation to insert clauses in the offer that protects and  serve the interests of  the Buyer.    Clauses in Offer:  The agent is under no legal obligation to insert clauses in the offer that protects the Buyer. The Buyer must be treated with due care and fairness

Schedule your 30 minute consultation by calling Asif today. 

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

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Posted via email from Markham Real Estate Today with Asif Khan