Did you know a Realtor has a legal obligation to create competition between buyers for their sellers?
In the Real Estate business we are governed by the Real Estate Services Act. This is the law that tells us a great deal about what we can and cannot do as Realtors. There is something called fiduciary duty in this law. It describes what our obligations are to our clients. One of the aspects of fiduciary duty is that the Realtor is obligated by law to put their client’s needs ahead of their own. When a Realtor is acting for a seller one of those needs is to get the best possible price and terms for the seller. Therefore, even though some buyers don’t approve, the seller’s Realtor has a legal obligation to try and get more than one offer for his or her seller’s property. This usually results in a higher price for the seller. There are a number of things the Realtor can do to accomplish this. One of the main ways is that once a Realtor gets a potential offer coming in on a property they will contact other Realtors or buyers that have expressed an interest in the property to try and get competing offers. This is just one of the many ways that the value of Realtors can actually get people more money for their homes when selling.
Highest absorption rate since October of 2007
Any experienced Realtor worth their salt would not like any form of media using the word “boom” to describe the state of the Real Estate market. Last month an article was written that described the Kelowna market as bordering a boom market. That is dangerous language to use. It is just as dangerous as the word recession. Both of these words tend to drive consumers in radical albeit different directions. The Okanagan Real Estate Stats are showing some serious steady recovery but we are a long way from a boom. The residential absorption rates in all 3 zones are up and the rate for Kelowna topped the 20% mark for the first time since October of 2007. Prices are slowly rising and inventory is falling when we compare year over year. That all spells recovery.