Tour Tuesday and the Deposit regarding Belleville Real Estate

This week on Tour Tuesday we dig into pitfalls and trials of multiple offer and waiving conditions.  Things are changing in the Belleville real estate world, multiple offers, increased deposits, less conditions all impact buying a home in the Quinte area.

0:04 Tom tries not to run anyone over.
0:45 Royal LePage ProAlliance is truly amazing, thanks to Mark Rashotte, Jeff Nelles and all the Realtors.
1:28 What’s up with Multiple offers?
1:42 What type of deposit do you need?
2:38 What does a seller think of when looking at offers?
3:07 Home Inspections in competing offers?
5:12 Look for the market reports! –

Transcript of Video:

It’s Tour Tuesday and I am attempting to back up just leaving the tour meeting and you can’t see behind me but there are random Realtors walking all over the place.

Tom is concentrating very hard. In front! In front! We are trying really hard not to run over, it’s like an ant hill. Don’t step on the ants.

So really interesting meeting today it ran very, very long, but there was a lot to cover. Our brokers had been down in the states for a brokerage session and all kinds of really
neat information. Probably the biggest take away from their meeting was, Mark Rashotte, Royal LePage, in the Quinte area, and great
management team that we have here with Jeff Nelles, in the Belleville area, we generally
hold abut 60%, rounding it off, because sometimes it’s a little higher or lower, 60% of the
market here.

There is no body else across the country who does that so it’s pretty exciting
we are a pretty successful company, even though we are all competitors within our company, we have great relationships and a great team here. So that was a really good take away.

The other thing was that we were talking about is that of course multiple offers and what do with those, because we are running into them a lot and while others areas in the country have seen that, we have not here. So one of the biggest things that with competing offers in this area we have often done one thousand dollar deposits, very common and I remember when we even did five hundred and jumping from five hundred to a thousand was whoopee, anyway a thousand dollars they are the way of the past so be prepared, five thousand is actually the recommendation now and I have

That’s a minimum as a minimum.

Good point, and I actually started doing, you know, maybe should be doing twenty five hundred but actually the recommendation is five thousand.

And explain why cause you are competing against people from Toronto and GTA area and out of
town and those larger centres they are doing anywhere from ten fifteen twenty five, fifty thousand dollar deposit, that’s crazy right?

So when you’re competing against that you come with a thousand it’s just kind of silly.
And a lot of people think well it’s a deposit you get it back you know you have conditions,
which quite often you’re not even doing conditions know in a competing situation, it’s just not seen as well so when a seller is sitting there and looking at five offers there’s main points they look at if they are looking at sixteen offers they are only looking at these things, price, deposit, conditions so those three factors really come into play I’m not suggestion you take your conditions out if they are needed. So that’s a whole other conversation, however, price is competitive, the deposit are now competitive and of course conditions.

So the other thing I want to talk about is home inspections and potentially pulling them
out of the offer one of the things you can do is actually do a home inspection ahead
of time and it’s a you know it’s not a bad investment, it’s four hundred and fifty bucks
that gives you peace of mind so that you can go into an offer and take that out when you
are competing and then feel comfortable knowing what you are getting. So we have seen that
as a change and we are certainly willing to put that time in for you as well for the inspection.

Any other thoughts on that?

Well the key is you I mean we get it, that it’s multiple offers you know that other people are going to come in without any form of conditions when they come in with their offer. So they are getting rid of the inspection getting rid of the insurance, both things make us as Realtors very nervous for you because we want to make sure you are protected in this transaction, but we also understand that in the situation you want the home and other people are going to waive it so maybe you feel you need to waive it too.

The important thing here is to understand that if you waive insurance and I mentioned this a little bit, if you waive insurance and then something gets missed on insurance you are not going to get your financing, you’re not going to get your financing, you’re not going to close on the deal, and if you don’t close on the deal then you are in a positon where you might get sued. Understand that.

So that’s important to know. Then the other piece of that is on the inspection is that you have to understand and be really comfortable with that home to waive your inspection. Because two years down the line if that basement leaks there is nothing you can do about it right and you need to understand that you are taking those risks.

Stop, oh yea, we are going to the office. I’m thinking we are going and showing home.

We are showing a home so I’m thinking we need to go there. We have to stop here first, I
am going to run that in, that’s all I have to say about that just be really comfortable
and on insurance understand that it might effect your financing.

That’s it so anything else?

Not really I mean there’s always something else, yeah, we’re going to get some
market reports out so watch for those so you can kind of get an idea of what’s happening
in different areas of town.

So there you go, ok I think that’s it out, Tour Tuesday out.
Sweet Tara Lyons