THE BLOG

24
Apr

The Guaranteed Sale Tactic

What is the Proctor Guaranteed Sale Program?

The Real Estate Council of Alberta recently published an article on what the guaranteed sale program is and whether consumers should be wary.

Their position is that ‘wary might not be the best word’.

Here is some history on this sales tactic:

The Guaranteed Sale Program was first developed by Canadian real estate agent and now real estate coach, Craig Proctor. See the video from Proctor about his program.

It was developed, not to help the consumer get away from carrying two mortgages if they buy before they sell, but to pad the pocket of the agent offering his sales tactic.

Not sure what I mean? Here are some details from the video below that we have posted below regarding the program:

  • The purchase price of the home will be 5% below market value
  • Commissions and all other costs associated with the sale will come off of the net value (In Calgary, that is a lot more than just 5%, it’s closer to 9%)
  • You have to buy your next home through the listing agent and it has to be one of their listings
  • According to the program it will only work for a sale price below the area’s average (In Calgary that would be about $500,000 and below)

Towards the end of the video he lists the benefits to the real estate agent, one of which being ‘double ending a ton of your own listings’.

This means the agent would be representing both the buyer and the seller in the same transaction.

After looking at this program, the only person that stands to benefit seems to be the real estate agent. This is a sales tactic designed to get you, the real estate consumer, to pick up the phone and call that sales person to inquire about the program and about selling your home.

Other Advice From RECA

Now RECA does mention to read the details of the program and to make sure that you understand those details before you sign any listing agreement.

They’ve informed you that a real estate brokerage has to be the one to offer the tactic and not the real estate agent.

They’ve also informed you that the brokerage wants to minimize their risks associated with buying your home.

Advice From us at Redline Real Estate

Definitely read the details of this style of agreement and the fine print, do not miss anything as it pertains to the sale of your home.

If you can afford to sell your property for up to 10% less than what you have it listed for, then go ahead and follow through with that style of program.

In a market that sees most homes sell for between 2-3% off of the asking price, as advisors we would not be doing our job if we didn’t tell you how bad of a deal that would be for you financially.

Check out this article to learn more on this tactic.

Here’s the Proctor Guaranteed Sales Tactic Video I Mention Above

*happily edited from the original version so as to be in compliance with our regulator the Real Estate Council of Alberta

11
Apr

Calgary Market Stats for March 2017

What Happened in the Calgary Real Estate Market in March?

Some really positive news in the market for March in Calgary.

Here are some of the highlights but make sure you watch the video below to get in 2 minutes or less!

  • Sales were up 20% from this same time in 2016
  • Sales in March were up 42% month over month and a big improvement from February’s numbers
  • Inventory jumped 13.5% from February
  • Inventory levels were down 16% from March of 2016 keeping in line with a balanced market

Calgary’s Detached Housing Market

If you have a single family detached home, we have some very good news for you:

  • Overall months of supply is 1.97
  • All price points for detached homes are seeing improvements in sales numbers as well as slight improvements in prices
  • The entry to luxury and early luxury markets of $800,000 – $1.25M saw 50% of its total sales in March alone
  • The West side of the city is seeing the highest appreciation so far this year with an increase in prices of 2.5%

The Hottest ‘Hoods in the City

Here are the hottest neighbourhoods in the city, do you live in one of them??

  • Cougar Ridge and West Springs in the $500,000 – $600,000 market
  • Chinatown had a whopping 200% of its new listings sell in March
  • Upper Mount Royal had 167% of its new listings sell, and over half of the its sales for the year in March
  • Eagle Ridge saw 200% of its new listings sell in March, and 100% of the total sales for the year
  • Two communities are seeing extremely low inventory right now, with 0.3 months of supply for Riverbend & Southview.

Want more information on the Calgary real estate market? Watch the video below

 

 

27
Mar

Coming Soon!

Stay tuned.