I had two different scenarios this week one with a long time
client and one with a new client. They
both believe they can do a real estate deal by themselves – but they called me
for advice. The new client was looking
for a space around 1000sqft for a café in the downtown area. They had called before and I explained to
them I was aware of about three spots that would work and if they wanted to
view give me a call. A couple of weeks
passed and they contacted me again asking for suitable space. I reminded them about the location I knew
would work and they started asking questions about zoning, price, location
etc. I explained a location in the heart
of all the action and they responded with interest. Then the first red flag
popped up when I told them I spoke with the agent and they asked me to have him
email them directly. I explained that I
would arrange everything and represent their interests, they agreed and we went
to set up a showing time. I texted the
agent back to set up a time and his response was” do you clients know how it
works?” At first I was confused but I
quickly realized they took my information and contacted the agent directly and
started to go on their own. Most people would think it is no big deal and I
just made a phone call – right?
Absolutely wrong!
In today’s market more and more people think they can go it
alone. They do not realize how a brokers
experience and knowledge can not only save them time but a lot of money. This group has to take into consideration
zoning, new “handicap rules”, location, lease terms, permits etc. They have talked with the city and are under
the understanding they will have to build new washrooms, access etc. - but they
do not have if it can be “grandfathered”.
This alone can save tens of thousands of dollars and months of
time. Dealing with the city can be a
nightmare but if you know the right questions to ask it can be an easy
transaction. My commission would have
been about $1,500 but they will be spending over ten times that without the
proper information.
The long term client calls me out of the blue and asks about
HST? I ask why and he says he is looking at new build in Toronto worth about a
million dollars and was talking to the listing agent who may have not included
it in the possible deal. I explain that
will cost him about $130,000 dollars but if he did a few things in the
negotiation I could get that included in the deal. He is still paying the listing broker the
commission regardless but he did not explain the inclusions or excluded clause
7 about HST. Luckily he called me in the last moments and I can still represent
his interests and show him how to structure the deal where he can save interest
and money in the long run and I will earn my commission while saving him money.
Use a broker!
