Becoming Fraud Proof… A Monumental Task

Fraud continues to be rampant in the real estate industry. All parties to a transaction have to make their best efforts to avoid fraudulent deals. The Globe and Mail released an article from 2013 that we continue to share because it highlights some of the most common types of fraud you may encounter today. Check it out here: http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/top-6-real-estate-scams-and-how-to-avoid-them/article13108985/?page=all.  

Some of these are more impactful to lenders and brokers while some are more important for you– we look at the ones relevant to you and cover each to explain how you can leverage your tools to mitigate the chance that it could happen to you:

Title fraud: This could be flat out identity theft or simply undisclosed parties on title. You can avoid this by asking for identification when you sign up a new client and also requesting a search to verify home ownership information. The ID could be fake! Another idea is to Google the person’s name with address and you may discover that your client doesn’t look the same as another person with the same name and address.

Title insurance is far more common these days and is an effective way to also protect against real estate fraud - but that will only occur after the lawyer has cleared the property. Many times the lawyer will catch title fraud and in turn the deal won’t close after legal fees have been spent.

Home improvement scams. This is a big one that impacts many real estate sales professionals because your client may expect you to list the house for much more than it is worth. You can run a sales history report or look at sales comparables in the area and if the value isn’t there, sometimes it is better to take a pass than to get caught up with someone who is trying to commit fraud.

Realtor^® Magazine also released an article on the topic of mortgage fraud recently, highlighting some great tips for avoiding real estate fraud: http://realtormag.realtor.org/law-and-ethics/law/article/watching-out-for-fraud. A couple great points that discuss dealing with other real estate sales professionals include:

• When first working with another real estate sales professional that you haven’t worked with before – obtain their complete name, license number and check their license status. If the other agent doesn’t want to meet in person – this is a major red flag!
• Pay attention to names! If the real estate sales professional is a party to the deal this is non arms-length and could be a flag.

Unfortunately, fraud costs us all – not only in money but also time. Take advantage of the available tools that are money well spent – especially when they protect you and your client. GeoWarehouse has those tools – check them out at www.geowarehouse.ca. 

4 Pics, Same Significance

It’s that time again!!! Can you guess what common words that these pictures represent?

Get the information your clients want about specific neighbourhoods. GeoWarehouse has you covered. Check out www.geowarehouse.ca today.

ViMO Offers Subscription Billing

Attn: GeoWarehouse customers!!! ViMO is now available for 1 low annual subscription. Don’t know what ViMO is? It’s Teranet’s new mobile app for real estate sales professionals. Visit the ViMO site - www.myvimo.ca, click ViMO and input your preliminary information and someone will get back to you from sales. It is as easy as that!

ViMO gives you the ability to do so much, on-the-go – are you taking advantage? You should be!

Sealing the Deal – Tips for Preparing Your Client to Close

Your client needs to be happy! The real estate business thrives off of repeat and referral business. The more challenges a client runs into when you represent them in a closing, the less likely they will be to return to you and they may even tell their friends/family about their unsatisfying experience.

What do you think is the best way to seal the deal and offer your client the smoothest closing? It seems, when representing a buyer, that there are 3 distinct stages to the buying process to which you are tasked with:

●      Helping the buyer find the house 

●      Getting the offer negotiated

●      Closing the deal

Those are the 3 distinct segments involved in sealing the deal and each stage represents different challenges. Here are our top tips for preparing your client for a smooth closing.

1.   Helping the buyer find the house.

●      Listen to your client and what is important to them – this seems obvious but we mean really listen. Learn about their family and what they look for in a neighbourhood, not just a home.

●      Research – come up with some really great options for them to see but check each before presenting them to ensure that there isn’t already an offer or that the property is still on the market. There is nothing more disappointing for a consumer than to fall in love with a listing only to find out it is not available.

2.  Getting this offer negotiated

●      Leverage technology and electronic capabilities to reduce the “paper” back and forth and unnecessary meetings that often occur when negotiating paper-based offers by fax and even email.

3.  Closing the deal

●      Once the offer is all signed off – you know the deal is not closed. You are going to have to align your client with the right professionals to ensure the deal closes. Crucial relationships include: mortgage broker, home inspector, real estate lawyer, home insurance broker, etc…

When it comes to a closing, it will only be as smooth as how aligned your resources are. Strong relationships with other competent parties to a real estate transaction will enable you to be in the loop in case challenges come up, such as an issue on inspection, with the mortgage financing, etc…

If you want to seal the deal, then it is important to have contingencies, tools and resources in place to not only help your client find the home of their dreams, but also to uncover the information relevant to your client and address any hiccups that could occur.

GeoWarehouse has you covered. For more please visit www.geowarehouse.ca

If a Dr. Can X-Ray a Patient, Why Can’t You X-Ray Your Client?

If you are sick and it is something that is not visible to the eye, like a broken bone for example, the doctor may give you an x-ray, CAT scan or even an MRI to identify the problem and fix it.

As a real estate sales professional you too can figuratively x-ray your client. While x-rays administered by doctors are usually taken after a medical issue, you can x-ray your client at any time. In fact the sooner you x-ray your client, the better.

If you haven’t yet connected the dots, when we reference x-ray we mean conducting due diligence. Performing due diligence helps you to identify if your customer or the house that they are buying has an issue – almost an illness that may or may not be visible right away.

• House related example – a house that has a previously undischarged mortgage on title is an illness that can be cured with proof that the mortgage was discharged. An example of a terminal illness on a property may be a lien that is unresolved that consumes all equity in the home leaving no money to cover your closing.
• Borrower related example – a customer who approaches you to list a home where it is later discovered that someone else is on title who refuses to sign – this, too, would be a major issue!

Performing a virtual x-ray to complete due diligence on file is one of the best ways to eliminate the chance of any surprises popping up on your deal later. You want to make sure you perform searches to learn:

• Who the legal homeowners are.
• How many mortgages are registered against the property.
• What the sales history on the property is.
• What comparable sales are in the neighbourhood, and more…

When is the right time to perform due diligence – we think right at the point where you engage your client. Time is money and performing due diligence at the point of engagement ensures you identify the issues from day one – and hey, it may be that something turns up on your searches that the client can resolve. Now you can bring it to their attention and they have enough time to resolve it. Also, if the deal is not going to close because of the information you discover, then at least you find that out before you have started financially investing in a listing or helping a buyer find a home.

Don’t let a deal go astray – stop problems before they become issues. Use GeoWarehouse to conduct due diligence. Check out www.geowarehouse.ca. 

Sealing the Deal – Tips for Preparing Your Client to Close

Your client needs to be happy! The real estate business thrives off of repeat and referral business. The more challenges a client runs into when you represent them in a closing, the less likely they will be to return to you and they may even tell their friends/family about their unsatisfying experience.

What do you think is the best way to seal the deal and offer your client the smoothest closing? It seems, when representing a buyer, that there are 3 distinct stages to the buying process to which you are tasked with:

• Helping the buyer find the house 
• Getting the offer negotiated
• Closing the deal

Those are the 3 distinct segments involved in sealing the deal and each stage represents different challenges. Here are our top tips for preparing your client for a smooth closing.

Helping the buyer find the house

• Listen to your client and what is important to them – this seems obvious but we mean really listen. Learn about their family and what they look for in a neighbourhood, not just a home.
• Research – come up with some really great options for them to see but check each before presenting them to ensure that there isn’t already an offer or that the property is still on the market. There is nothing more disappointing for a consumer than to fall in love with a listing only to find out it is not available.

Getting this offer negotiated

• Leverage technology and electronic capabilities to reduce the “paper” back and forth and unnecessary meetings that often occur when negotiating paper-based offers by fax and even email.

Closing the deal

• Once the offer is all signed off – you know the deal is not closed. You are going to have to align your client with the right professionals to ensure the deal closes. Crucial relationships include: mortgage broker, home inspector, real estate lawyer, home insurance broker, etc…

When it comes to a closing, it will only be as smooth as how aligned your resources are. Strong relationships with other competent parties to a real estate transaction will enable you to be in the loop in case challenges come up, such as an issue on inspection, with the mortgage financing, etc…

If you want to seal the deal, then it is important to have contingencies, tools and resources in place to not only help your client find the home of their dreams, but also to uncover the information relevant to your client and address any hiccups that could occur.

GeoWarehouse has you covered. For more please visit www.geowarehouse.ca.

Tools = Brand? Yes, it is True!

It is natural when thinking of branding to immediately think of your logo, or how one might visually recognize you. When it comes to branding, a lot of companies put a great deal of focus into consistent brand guidelines, colours, fonts, styling, imagery, etc… to create recognition of the brand. Some of the big real estate brokerages are great examples of a significant investment in branding. That aspect of branding though deals with visual branding – but what about perception of your brand as a professional?

What do you want to be known for?

•             Education and experiences?

•             Professionalism?

•             Knowledge of a particular area?

Aren’t these all common sense? The real estate industry is extremely competitive and to rise above the pack one must have an edge and something about them that creates a draw.

Millennials represent a large window of time (2nd largest to Baby Boomers) with birthdates spanning from 1980-2000. That makes our youngest millennials around 15 years old and our oldest around 35 years old. In the next 15 years, millennials will not only dominate the workforce but will also represent your buyers and your competition (whether you are a millennial or not).

The Globe and Mail recently released an article about Gen Y characteristics in the workplace, which actually ties in nicely with why your tools impact the perception of you. Gen Y is the most educated and diverse generation in history. Millennials represent 1/3 of Canada’s population, or 12 million people, and by 2028 will represent roughly 75% of the workforce: http://www.theglobeandmail.com/report-on-business/careers/the-future-of-work/the-six-ways-generation-y-will-transform-the-workplace/article9615027/.

This is a large market that should be considered when planning how you want your brand to be perceived. Millennials are impressed by technology, have no problem learning new technology and incorporating it into their daily lives. Fast multitaskers, they are attuned to their mobile devices, using their tablets and computers to perform most daily tasks, and many expect the same from the people/companies they do business with.

What do you think a millennial thinks when their real estate sales professional says that they need to drive back to the office to fax out offers? Or when their real estate sales professional shows up with a handful of paper? It is a new world and no matter the generation you are in, it is important to embrace technology and tools, especially apps and mobile technology, to do more for your clients and to be more relatable to a client who may be more technically savvy than you.

The more you can do to be more digitally accessible, the more you will become known for and increase the perception that your brand is one that is connected and up to date on current technology!!

GeoWarehouse provides the tools to make you the expert. For more about doing more, please visit www.geowarehouse.ca or call 1-866-237-5937.