Buying a home should be an exciting adventure. Here are some useful tips to help you navigate through the buying process.
Who Does The Agent Represent?
In a real estate transaction, it is possible for the Agent to represent a seller only, a buyer only, or both parties simultaneously. You and the Agent need to agree on one of these three alternatives:
- The Seller Only
Under a listing agreement or other agreement with the seller, the Agency and its Sales Associates act as the Agent or Sub-agent of the seller. They owe their fiduciary duties to the seller only. Where an Agent who is representing the seller has listed the property with another Agent, that Agent is called a Co-broking Agent.
- The Buyer Only
The Agent and its Sales Associates act as Agent for the buyer, only if the buyer pays all or part of the Agent’s commission. The Agent and Sales Associates owe their fiduciary duties to the buyer only.
- The Seller and the Buyer
The Agent is the Agent of both parties. This arrangement is called dual agency. The Agent should only act as a dual agent if both the seller and buyer consent. The Agent is obligated to treat both parties honestly and impartially and to work so as to not favor one party or disadvantage any party.
When you enter into discussions with a real estate Agent regarding a real estate transaction, you should know whom the Agent will be representing in that transaction. All real estate Agents and their Sales Associates should promptly disclose their agency relationship to each actual or prospective party to a transaction. This disclosure will help you understand the choices that you can make regarding agency relationships.
The Agent’s Duties
A real estate Agent normally will enter into an agreement to represent and act as the “Agent” for its client. Where an agency relationship exists, the Agent and their Sales Associates owe a “fiduciary duty” of loyalty, obedience, confidentiality, advice and reasonable care to the client. No real estate agent has any authority to make or give any warranty in relation to a property. Regardless of which party the Agent is representing, the Agent and Their sales associates are required to treat all parties honestly and to deal in good faith. Agents must promptly present all offers, respond truthfully to questions concerning the property and offer their services without discrimination.
There are two situations where Dual Agency occurs:
1. The Sales Associate is acting as the Listing Agent & the Selling Agent for both buyer and seller.
2. Two Sales Associates from the same company; one acting as the Listing Agent whilst the other is acting as the Selling Agent. Should parties agree to Dual Agency where the Listing Agent is not the same person as the selling agent, the Listing Agent will be deemed to be representing the seller only and the selling agent will be deemed to be representing the buyer only. Each Agent will keep confidential all information obtained from that Agent’s client unless that client consents to disclosure.
Stamp Duty/Conveyance Fees
|BASE LEGAL FEE||STAMP DUTY|
EST. STAMP DUTY
The above is a schedule of the standard fees based upon the scale recommended by the Council of the Bermuda Bar Association to its members. The recommended fee schedule of the Bar Association also allows for additional ‘extras’ which are normally chargeable in each conveyance and mortgage transaction. These would be added to the above fees. On average this varies between $500.00and $1,000.00.
Additionally, there may be disbursements incurred in connection with any transaction including for example, stamp duty on the Sales Agreement ($27.00) and in most cases a Planning Search fee ($525.00).
As of April 1, 2009 a stamp duty exemption has been enacted for First time Bermudian buyers purchasing property of $750,000 or less. Please see your Coldwell Banker Bermuda Realty sales representative for more information.
Maximize Your Sale Proceeds
SET THE RIGHT PRICE
Maximize your Sale Proceeds!
Price, without a doubt, is the most important sales tool in real estate!
The peak activity for a property is in the first 4-6 weeks on the market. Serious, preapproved buyers are constantly searching new listings and are waiting for just the right house to come on the market. If your house is priced right from the beginning, you are in the best position to attract the maximum number of buyers able to pay the price your home is worth within your timetable.
- If your house is underpriced, you may be swamped with lookers and perhaps get many offers. However, you could lose thousands of dollars on one of your most valuable assets.
- If your house is overpriced, lookers are apt to be few and far between, with little chance of any offers to pay your unrealistic price. You may lower your price later, but by that time you will have missed many of the best qualified buyers. History proves that ultimately the property may sell for less than market value.
Why Is Overpricing Risky?
- Buyers may not view your house because they can find better values elsewhere and your property will not come up on their price search.
- Your overpriced listing actually sells the competitions’ property because it makes it seem like a better deal.
- Even if we find a buyer willing to pay an over market price, they will be unable to get financing. Banks will only lend up to the appraised value and not one penny more. In today’s market, buyers will not pay over the appraised value plus the delay from a failed sale can mean missing out other potential purchasers.
- Your unsold property becomes “stale,” as buyers and agents assume there is “something wrong” with the house the longer it sits on the market.
- Sellers start to become desperate to sell and will finally lower the price below competing houses in order to sell it.
How Do You Set The Right Price?
Arriving at an accurate asking price involves detailed research and experienced judgment, which is why all our agents have direct access to our proprietary database – Realty Plus. This database is the same information that our appraisers use for valuations with over 16,200 records/$8.35 billion in sales dating back to 1993. Comparing your property to other similar listings currently on the market and recent sales is crucial. After all, buyers are comparison shoppers. The right price is usually within 5% of market value.
Why Choose Coldwell Banker
WHY CHOOSE COLDWELL BANKER BERMUDA REALTY
- We are involved in 1/3 of all of the property transactions in Bermuda.
- Our agents are ranked in the top 2% of Coldwell Banker Representatives Worldwide.
- We are 100% Bermudian owned/operated and have been a trusted local company since L.P. Gutteridge Ltd. was formed in1953.
- We are a Full Service Real Estate Company including sales, rentals, commercial sales & leasing, appraisals, land surveying, property management and vacation services.
- We are the largest real estate company in Bermuda, with the largest inventory, client base, and marketing exposure.
- Our award winning website, www.bermudarealty.com, is updated daily to give your listing continuous exposure.
- www.bermudarealty.com gets 8.5+ million hits per year with 10,000+ unique visitors monthly.
- Our exclusive Realty Plus sales database (used by our professional valuers and agents to help value property) has over 16,200 islandwide records dating back to 1993.
- We have over 600+ collective years of experience in real estate and over 40 licensed personnel.
- We fully expose your property to the market which includes open houses, electronic media, print advertising, websites and social media.
- Your property is listed on www.bermudarealty.com, in addition to a number of other sites including www.coldwellbanker.com the #1 website for online visits.
- Most importantly, you should hire Coldwell Banker Bermuda Realty because we care about you and selling your home!
Why Use An Agent
WHY USE A REAL ESTATE AGENT?
When you employ the services of a licensed real estate agent, you are hiring an individual who is familiar with the legal and marketing process of selling a home in Bermuda.
In essence, you are “buying” the experience and skill necessary to facilitate the transaction for you. Commission involved in the transaction, covers the cost of the Agent’s time, as well as the cost of the design and implementation of the materials necessary to market your property.
When you employ the services of a Coldwell Banker Sales Representative, you are hiring a Company who is committed to servicing all of your real estate needs.
With over 40 full-time staff, Coldwell Banker offers qualified marketing staff, professional land surveyors, accredited valuers, and the administrative support to make it all work for you!
Generally speaking, all Agents in Bermuda charge the same rate of commission (5%). You want to choose the Agent with the most experience, the best marketing strategy, and skill to achieve your objective in the shortest time possible. Coldwell Banker can offer you over 100 years of real estate experience from a network of approximately 85,000 real estate representatives worldwide. This equates to less time on market and more money in your pocket!