Don’t get burnt. Don’t get burnt by being loyal to a Realtor® from out of town helping you to purchase a rural recreational property. Now I can appreciate the loyalty, I really can. Good news is you can still be loyal. Have that trusted Realtor® of yours refer you to a well educated, local knowledge person who can guide you through the area, services and systems, like myself! I will pay your Realtor® 25% of my commission for the referral. They do nothing but get paid. Win win.
Top 10 Local knowledge I can tell you the out of town Realtor® cannot:
- What the water looks like in the summer and winter (weeds and ice conditions)
- Developments and area changes planned
- Municipal services offered
- Health Care and Emergency Services
- Area events
- Fishing and local sports
- Town offerings and services
- Fire Routes and costs
- Local Bylaws and Politics
- Boating Experience
How can the out of town agent advise you on current market conditions, property values and a network of other professionals (home inspectors, lawyers, contractors)? Will you over pay? Most likely. When I have a property listed I pray for a Toronto agent to bring me an offer. I automatically know my client is going to do well when that happens. Are you going to be that Toronto Agent Client?
Listen, I am not knocking anyone from Toronto. I would say the exact same thing about me if I was trying to sell in Toronto. I just don’t know the market and someone is going to get burnt because of my inexperience of the Toronto Real Estate Market.
Here is an interesting article I wrote in 2015 on the subject:
When deciding on a subject to write about for this article, I wanted to choose something that would bring you, the reader, much value and advice. The subject of using out-of-town realtors versus local realtors came to me when I had an out-of-town realtor call me up to ask me to help him sell a local property he had listed.
Using a local Realtor® brings many benefits, and the most important type of real estate transaction for which to use a local Realtor® is waterfront properties. Funnily enough, this is where I see most of the out-of-town Realtors® show up. This is most likely the case because of the value of waterfront; it draws them in.
It is for these types of Buyers, who are generally already out-of-town people, that the knowledge the local Realtor® has to offer is most needed. What is the quality of the water? Can my kids swim here, or is it too weedy? Where is the marina or boat launch? Fishing? Regulations? Township services? What is a septic system, and how does it work? If you have not experienced any of these things for yourself as a Realtor® you simply cannot serve your clients effectively, and you will lead them down the wrong path.
For Sellers listing with out-of-town Realtors® many issues can also come up. Pricing the property is a huge part of selling. In the city it is easy to come up with an effective price for a home. When finding comparatives there are many homes that are identical to each other in the city. Rural waterfront properties are one of a kind. No two properties are the same. To price a home you must use experience, market knowledge, and the closest comparable. Most of these factors are missed due to the inexperience of out-of-town Realtors®.
The following is a true story: An out-of-town buyer uses his out-of-town agent as he looks for his perfect cottage. The out-of-town agent finds the perfect property, a well-maintained cottage, nestled in a quiet bay. It is December and the bay is covered with ice and snow. The Buyer buys the cottage! The family is so excited to swim and boat all summer. This all comes to naught when spring arrives because the buyer discovers the bay is so thick with weeds, and has very little water depth that swimming and boating is not even an option. Please do not let this happen to you!
Written for you by:
Your local Realtor®
Brad Sinclair, Sales Representative
Flat Rate Realty
The HOUSESOLD name for buying and selling real estate in Peterborough and local waterfront!