Three Big Mortgage Complaints

When it comes to complaints about banking products, mortgages are second only to credit cards.

That’s according to the banking Ombudsman’s (OBSI’s) recently-released annual report, which lists three of the most common grievances from mortgage customers.

“We are seeing a lot of complaints related to mortgages…” Brigitte Boutin, Deputy Ombudsman, Banking Services said in the report. Those complaints revolve mainly around mortgages prepayment penalties and pre-approvals, but it seems that mortgage portability has also “become a bigger issue.”

The Big One: Penalties

The Ombudsman sees a constant stream of borrowers protesting their bank’s prepayment charges. Those complaints are usually dismissed after an appropriate investigation, with a finding that the bank did nothing wrong.

OBSI says:

“When investigating mortgage prepayment penalty cases, we examine the signed agreements between the client and the bank and review the accuracy of the penalty calculation.

We also look at the manner in which the client was informed of the penalty before they proceeded with the mortgage transfer.”

A common claim by customers is that they were not told how the bank calculates its mortgage prepayment charges. Frequently the problem stems from the comparison rate changing before the borrower can pay off the mortgage.

The comparison rate is the rate the bank compares to your rate, to judge the interest rate differential, or IRD (i.e., determine the difference between your rate and the rate the bank can supposedly lend at today, for your remaining term).

Timing is key. If you’re 2.5 years from maturity, for example, the comparison rate might be the three-year fixed rate (say 3.04%). If you’re 2.49 years from maturity—one day closer—the comparison rate might be the two-year fixed rate (say 2.59%). The actual comparison rate used can increase the IRD and lead to unexpectedly high penalties.

In any case, with all the prepayment regulations nowadays, lack of disclosure is getting harder to argue. In one case on its website, OBSI found that: “The fact that the client was not told all the specifics of the calculation did not change the fact that he had the necessary information to make an informed decision.” OBSI ruled in favour of the bank in that instance.

Portability Caveats

“People sometimes take for granted that their mortgage is portable before selling their home,” Boutin said in the report. “It’s interesting – we’ve seen cases where the bank refused portability because the borrower’s financial situation no longer met the bank’s lending criteria. However, the client was able to get approved somewhere else right away.”

She raises a key point that all borrowers should be aware of. Given that the property is the lender’s security, you can’t move your mortgage to a different home without the lender’s consent.

Porting requires a whole new application process, documentation and approval. Failing that approval, people with closed mortgages have little choice. They can either not move or they can pay the lender’s penalty (potentially thousands of dollars) to discharge the mortgage and find other financing.

Boutin adds: “A bank can refuse to transfer a mortgage from one property to another because the client’s situation has changed and we can’t force a bank to lend money when its lending criteria is not met.”

She advises: “…Read the terms in your mortgage agreement carefully. Check if there are certain criteria related to portability and check if you meet your lender’s criteria before deciding what to do.”

Common portability considerations include:

• the amount of time the lender gives you to port
• the rate the lender gives you if you “port and increase” (add more money to the mortgage)
• the lender’s policy on bridge loans (commonly needed when your new purchase closes before your sale)
• the type and location of property the lender will lend on, and
• the types of income the lender allows (e.g., key, for example, if you become self-employed and can’t prove income in the traditional manner).

Pre-Approvals

“…We’ve seen an increased number of files relating to mortgage pre-approval,” Boutin notes. “Banks may not verify everything in detail when they pre-approve a mortgage. Then, when people go to finalize a mortgage, the bank will ask for more information and for supporting evidence of what was previously disclosed.”

“Sometimes that new information will lead the bank to change financing terms or refuse financing altogether. People can then get caught, especially if they removed the condition for financing on their offer to purchase a home.”

I’ve written about pre-approvals many times and continually hear cases where people thought they were unconditionally approved, but hadn’t even provided income and down payment documentation. Often it’s a matter of the mortgage adviser not clearly explaining that pre-approvals are rarely fully underwritten (including by the default insurer, when the down payment is less than 20%).

“A pre-approval document indicates certain conditions that need to be met,” adds Boutin. “Be careful that you’ve given the right information to your bank and that your documents match (emphasis ours) what you provided at the beginning of the mortgage process.”
 -Robert McLister

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To rent or to buy? 8 questions Canadians should ask before taking the plunge

Conventional wisdom suggests it’s a no-brainer – buying real estate as a worthwhile investment with a high return.

Despite record low interest rates, sky high prices and carrying costs are causing many to rethink the allure of home ownership. When you factor in the costs of repair, maintenance and other expenses associated with owning a home, Toronto-based financial planner Shannon Simmons argues that renting and putting saved money into another investment may earn more in the long run.

If you've ever filled in a questionnaire asking where you see yourself in 10 years, many would answer “buying/owning a house. 

Do you really care if you buy a house, but think you should? Lets look at both sides of the argument and give a balanced view of the Rent-vs-Own debate.

Based on advice from financial planners—both independent and those employed by banks—Global News has compiled a list of questions (and some context) to help you decide whether buying or renting is the right move for you:

• Do you have 10-20 per cent of the home’s purchase price saved for the down payment?   

Do you have a down payment? While it’s possible to purchase a home with as little as five per cent down in Canada, big banks prefer first-time home buyers to have an average of 10 per cent.“If this is the property of your dreams and it’s a really good buy, and you don’t have the full 20 per cent down,” says Royal Bank of Canada’s Rachel Wihby, it may make sense to pay the mortgage loan insurance charged to anyone who doesn’t put 20 per cent or more down on the home. 

But “the less you put down, the higher the amount that you’re actually being charged,” Simmons said. That could mean you end up paying an additional $10,000 or more. 

• Do you have another 1.5-5 per cent saved for closing costs?

First-time home buyers don’t have to pay realtor fees, but there’s a number of other closing costs that need to be taken into account.

What are my closing costs? Depending where you live, land transfer taxes can carry a “significant” price tag, said Farhaneh Haque, director of mortgage advice for TD Canada Trust. BC's current transfer tax is 1% on the first $200,000 and 2% on the balance, if you are a first time home buyer that is waived on your first purchase on a home up to a maximum of $450,000

“Lawyer fees, seller/buyer property tax adjustment, appraisal fees, home inspection fees, even just your moving costs,” Haque said.

David Stafford, Scotiabank’s managing director of real estate secured lending, added fire and loss insurance to the list, suggesting $50-$100 per month as a ballpark figure.
Stafford also stressed the value of a building inspection, particularly for first-time home buyers, who may be easily impressed by granite countertops and hardwood floors but miss such other details as an old furnace, a leaky roof, or electrical wiring that’s in need of repair.

“Given you’re contemplating a multi-hundred thousand dollar purchase, a building inspection for a couple hundred dollars isn’t a bad idea.”

• Can you keep debt servicing below 40 per cent of your income?

Your total debt service ratio measures the percentage of your gross annual income needed to cover housing payments (principal, interest, property taxes and heat, known as “PITH”) plus registered debts like car loans, personal loans and credit cards if applicable. Simmons says this 40 per cent rule is “specifically to please the bank” and is the general eligibility criteria when applying for your mortgage at most financial institutions.

So if you add it all up, housing payments and other debts should be between 35 and 40 per cent of your gross annual income.

• Are your monthly fixed costs at 50-60 per cent of your after-tax income?

Debt servicing ratio in Canada. These “fixed costs” include housing and transportation, groceries, toiletries, and “everything you have to pay every month whether you like it or not,” Simmons said. “When the money hits your bank account, if more than 60 per cent is tied up in things that you can’t get out of every single month, then you have no room after that for spending money which is not a fixed cost – things like going out for dinner, going out with friends, weddings, anything else that’s not just a bill.”

Keeping this ratio under control ensures you have enough money left over to keep saving, and avoid becoming “house poor.”

“Once you buy a house, it’s not like retirement’s done; you still have to save for other things,” Simmons added. “You also want to make sure that you have enough cash flow every single month that you don’t have to go into credit card debt – and that’s what I see: house broke, all the time.”

• Can you save 1-2 per cent of your income in a “housing maintenance fee” each year?

The top mistake Canadian homebuyers make? Underestimating “significant renovations needed to the property,” according to a recent RBC poll.

Saving for a rainy day? Stafford suggests asking your realtor, and getting a home inspection. “Even if it’s in pretty good shape, most homes of any age, there’s something you’ve got to do every year… and you need to factor that into your cash flows,” he said.
Simmons advises setting aside 1-2 per cent of your after-tax income each year to what she calls a “house maintenance fund” to avoid going into debt. “When there’s not that extra cash sitting in an emergency fund, if there’s a $10,000 renovation or if you get cockroaches … It has to go on debt, because you’re not going to live in a place with cockroaches,” she said. “That can take a long time to pay off if you don’t have flexibility with your cash flow.”

• Do you plan to stay in your home for at least three years?

Haque said TD advises clients to think about their life in three to five-year chunks when considering purchasing a home. A young couple buying a condo, for example, should consider how soon they’ll need a bigger space if they want children in the near future.
Wihby suggests regarding a home as a long-term investment – it might not be worth it if you buy a home and sell it a year later.

• Is your job stable?

Are you planning to stay in your field? What would happen if your income decreased?
These are some of the questions mortgage planners ask clients to determine how monthly payments and lifestyle would change as a result of job fluctuations.
“So you need to think of things like, will you be on a single income household instead of two?” Wihby said. “Maybe that means you won’t be taking those trips you thought you’d be taking or maybe you won’t be going to the gym as often.”

• Are you emotionally ready to own a home?

Rent or buy in Kamloops? It may sound hokey. But this is a big lifestyle leap to take.
“A lot of people heard that it was almost a no-brainer to go into property, especially when we saw property prices rising like we did in the past,” Wihby said. “But I think a lot of people got into purchasing a home before they were ready emotionally.” The impact of what Stafford calls the “single biggest financial commitment for most people” includes the mental shock of going from a tenant to a homeowner. “When you’re a tenant, the month that cheque goes out, it clears your account, and then you don’t think about it for the next 30 days,” Haque explained. “But when you’re a homeowner, you have those multiple payments like home insurance, maintenance fee, utilities, property taxes, that you have to account for on an ongoing basis. And sometimes it’s very much a shock to your system.” “I know a lot of professionals who just don’t want to be bothered cutting the grass on Saturday, and doing the gardening. … They would much prefer to rent and save a bunch of money, so they can travel every weekend,” she said. “If you’re not actually going to enjoy the house, what’s the point in buying it?”

RENTAL INSECURITY
But, as anyone who has struggled to find a place to rent knows, renting isn’t a walk in the park either. Vacancy rates in the region hover at less than one per cent and have been on a downward trajectory since 2012, affected in part by the skyrocketing popularity of short-term rental platform Airbnb. Renting remains cheap relative to property values, but that doesn’t mean rentals are affordable. Rents are only expected to rise over time and there is already scarcity among certain types of rentals, such as three-bedroom units for families.

Final Word and other facts.
With Toronto's overheated real-estate market showing no signs of abating, many people are foregoing home ownership — at least for now — because the numbers simply don’t add up.

RENT-VS.-OWN CALCULATOR
A valuable number in real estate investing is the price to rent ratio, which is simply the purchase price divided by the rent received. For example, a condo purchased for $126,000 and rent for $1,300 / month would have a Price-Rent Ratio of 96.9 (monthly) or 8.08 (annualized).

One measure to determine whether it’s better to rent or to buy is a metric called the price-to-rent ratio, which takes the price of the property and divides it by its annual rent. Ratios in the 10-13 range indicate it’s better to buy than to rent, while a ratio in the 18-20 range is a sign in favour of renting over buying. Anything in between is a judgment call based on personal situation and local market conditions, according to Toronto-based BMO senior economist Robert Kavcic. This calculation doesn’t take into account other costs of home ownership, such as property taxes or maintenance and repairs.

Throughout most of the 20th century, renters have run the gamut of people in all socio-economic classes, said Andy Yan, an urban planner and acting director of Simon Fraser University’s City Program. Renting didn’t used to be just for those who couldn’t afford to buy. But since the Great Depression and the World Wars, governments in North America have promoted policies to support home ownership, said Yan. The American or Canadian dream of owning a home was used to stabilize the economy and ensure people have assets in their later years through the “forced” savings plan of a mortgage. “There’s a notion in Canada and the U.S. that rental is a temporary state only. But for an increasing population in places such as Vancouver and Toronto, it’s a housing reality,” Yan said, calling on government to recognize renting as a much-needed form of housing.

At the risk of over-simplifying, the rent-or-buy debate comes down to your values, what you prioritize in life, and what you can afford.


Financial decisions related to Renting verses Buying a home require the advice of seasoned professionals. Steven Porter is a former Realtor with 30 years experience in residential real estate and is now a Mortgage Planner/Agent with one of Canadas's top Mortgage Brokerages. Call him at 905-875-2582 or email him at steven.porter@mtgarc.ca for a confidential dioscussionon whether renting or buying fits your personal and financial lifestyle.
  - Re-posted from the Global News by Steven Porter, Mortgage Agent - Mortgage Architects
Steven can be reached through his website at www.1800Mortgages.ca

Title Insurance and Surveys

Title insurance, while it has its advantages, does not eliminate the need for a survey.

A title insurance policy is simply a form of insurance that insures against title defects that may be revealed by a survey. It is a "quick fix" which allows a real estate transaction to close in a timely fashion without any hassles; however, without a survey all you have done is delayed the discovery of any potential problems to a later date. The moral of the story: get title insurance and a survey, and avoid surprises.
By G. Gord Mohan | Barrister & Solicitor

- Posted by Steven Porter, Mortgage Agent - Mortgage Architects
Steven can be reached through his website at www.1800Mortgages.ca

Do You Need a Cohabitation Agreement?

People in a common-law relationship don't have the same built-in protections as married couples when it comes to asset-division if the relationship ends.
 
For example, it is not true that the property they live in will be split equally if the relationship ends--the rule of 50/50 asset division applies only to married couples. If you are in a common law relationship with all of the assets, including the home, in the other spouse's name, the only way you might succeed in claiming an interest in these assets is through a very expensive court case.
 
So, if you are planning to move in with a partner-or are already living together-be sure to have a cohabitation agreement in place laying out the terms for division of your assets and spousal support in case your common-law relationship comes to an end.
By G. Gord Mohan | Barrister & Solicitor

- Posted by Steven Porter, Mortgage Agent - Mortgage Architects
Steven can be reached through his website at www.1800Mortgages.ca

When the only ring is on your keys: What common-law couples should know before buying a house together

Charmaine Ferguson and Colin Andrews have been together for three years, since they were 28.

Their lives are tied together in almost every significant grown-up way. They love each other, they support each other — Colin even moved from Edmonton to Calgary so Charmaine could accept a teaching job — and they own property together.

But they’re not married. They’re not even engaged.

“We decided to move, and then we were in a position deciding whether to rent or to buy and so, Colin sold his townhouse and then we bought a house in Calgary together,” Ferguson says. “Marriage was never part of the conversation.”

They’re part of a growing number of Canadians who are choosing to buy property without tying the knot.

The number of common-law couples in Canada rose 13.9 per cent between 2006 and 2011, according to the latest data from Statistics Canada. While there’s no Canadian data on how many of those couples choose to purchase instead of rent, a 2013 study in the U.S by Coldwell Banker Real Estate found that 17 per cent of couples bought a home before they were married, with that number rising to 24 per cent among millennials.

“I think for a lot of young couples buying a home is an economic decision and it’s a better idea than renting. I say this not as a sociologist who studied it, but also as someone who did this personally,” he says. “For me, buying a home with someone felt like less of a commitment than getting married. It’s relatively easy to sell a home if you decide you want to do that, but getting divorced is a much more complicated thing.”

But is it really so much easier to offset assets if a couple falls apart, especially if it’s acrimonious? How does the court divide these assets? What are the risks to entering such an arrangement?

Canada does not have true common-law marriage. Although provinces and various government agencies, like the CRA, may recognize marriage-like relationships in specific contexts, automatic rights to property are not included. But, couples who act like they’re married and buy property together can be entitled to most of the same protections that the law affords legally married couples.

“The Supreme Court of Canada case that was in the last couple of years says if you live as husband and wife, legally you should be treated the same way when it comes to property,” says Donald S. Baker, a family law specialist at the Toronto firm Baker and Baker. “However, as is their wont, they didn’t give any guidelines at all.”

The main difference, he says, is that a married couple, from the date of ceremony, is considered a partnership, regardless of who actually deposits and withdraws from the piggy bank. Upon the breakdown of the marriage, the piggy bank is divided equally, usually to the benefit of the lower-earning spouse.

An unmarried couple, on the other hand, is afforded this protection only insofar as their habits indicate: Do they have a joint bank account? How long have they been together? The courts treat the separation of assets as an “accounting exercise,” Baker says, with the house divided according to who put in what.

“The longer you live together, the deeper the roots and the more you will resemble a legally married couple,” Baker says.

Take Ferguson and Andrews as an example. He provided the entire sum for the down payment, but Ferguson contributes to the mortgage and maintenance, proportional to her income. If they were to break up now, the courts would likely give the entire house to Andrews, and Ferguson’s contributions would be considered rent — she would have no claim to the property.

However, if they were married, the courts would likely award half to Ferguson.

However, if they were married, the courts would likely award half to Ferguson.

Ferguson thinks the law, as it stands, is fair.

“I don’t feel entitled to something that I didn’t earn,” she says. “And it’s not that I don’t feel like this is half my house, it is.… When I have more solid work and as time goes by, it will end up being a more equitable purchase.”

The longer you live together, the deeper the roots and the more you will resemble a legally married couple

Since there is no federal legislation surrounding common-law couples and couples who buy property together may not even want to be considered common-law, Baker strongly recommends sitting down with each other and a lawyer to draft a cohabitation agreement, similar to a marriage agreement — or what’s known in the U.S as a pre-nuptial agreement — which lays out the rights and responsibilities of each person.

It forces the couple to discuss their finances honestly, as well as lay out a plan for who pays the mortgage, who pays the maintenance, who pays for the furniture and how it will be divided in the event of a break up. It has the added bonus of saving a bundle on lawyers in the future.

“Not to have a road map as to what you’re going to do in the event of a breakdown, whether it be common law or marital, in my mind is crazy,” Baker says. “You’re really taking a big chance that you know what the odds.

Danielle Kubes, Special to Financial Post, partial reprint.

Black Belt Negotiating for Homebuyers

How would you like to save $10,000 or more off your next house? It's really quite easy if your real estate agent has a black belt in negotiating. The challenge is that most people in general and real estate agents in specific rarely take advantage of the power of bargaining, except on rare occasions when making large purchases like cars and houses. In other countries, like Asia, people there negotiate everything everyday and save thousands.

Negotiating is like a martial arts contest where power, leverage and timing can mean the difference between winning and losing. For instance, a martial artist would never go into a contest without first spying on his opponent to find weaknesses. In the same way, you can gain bargaining power by doing your homework. When buying a house find out how long it's been on the market, why the owner is selling, if there have been previous offers and if you will be the only one making an offer at this time. Obviously, finding the answers to questions like these could save you a lot of money.

First, make sure that your agent presents your offer in-person, if possible. It's very difficult to negotiate a good deal by fax.

Before engaging in contest, a martial artist warms up by stretching. Likewise, a savvy negotiator warms up by building rapport and finding common ground with the other party, because people like to do business with people they like. In real estate, a smart agent will try to get the seller emotionally involved with you before he brings out your offer. He should have you compose a hand-written letter about why you want the home and perhaps even show a few photos of you and your family. When faced with several competing offers I know of instances when a client's contract has been accepted even when it didn't present the highest price because the seller took a likeness to the buyers.

Next, fighters will cautiously probe each other looking for weaknesses. In bargaining this is done by throwing offers onto the table to see how the other party reacts. Experienced fighters often use guile to lure their opponents into range by pretending a blow has hurt them more than it really did. Similarly, your agent could pretend to be shocked by a seller's counter to your offer to get him to come down in price. Visibly showing surprise or hurt is called flinching and it used by master bargainers to gain concessions without giving up anything.

Martial artists are taught to read the body language of their opponents so they can see a blow before it is unleashed. Experienced negotiators can literally read the other party's mind by watching body language and listening carefully. If a seller says, "Make us an offer" you know their price is flexible before you even start. Also, without saying a word their body language can also tell you if they like or dislike any offer you make so be sure your agent watches very carefully as they show the seller your purchase contract. If the pupils of the owner's eyes get larger as they read the price you are well on your way to a deal but if his pupils get smaller your agent will have to do a lot of selling.

Martial artists do not believe in win-win and neither should you. Even when sparring with their best friend they want to give their best effort. Expect and demand your agent fight for the best deal possible assuming that the seller and his agent will take care of themselves because they will.

Fighters are supremely aware of time and try to use it to their advantage by saving as much energy as possible for the last few seconds of a round when they can score points against a tired opponent. Black belt negotiators put their opponents under time pressure by setting deadlines. Be sure that your agent mentions to the seller that you are considering several other similar properties in the area and that the seller must give a prompt response to your offer.

In martial arts, as in life, there are unfair fighters who will do anything to win, so you must protect yourself at all times. Negotiators must be aware of unfair tactics such as nibbling, which is asking for concessions after an agreement has been reached. If this happens to you just remember this blocking technique, "Before you give a concession - get a concession." For example, if a seller suggests that to hold the deal together that you'll have to pay for the transfer tax or other fee, simply respond with, "If we did, what can you do for us?" When a nibbler realizes that every time they ask for something you will respond in kind they will stop nibbling.

Finally, when a contest ends, fighters will bow to each other in mutual respect.  You should congratulate the seller for having done good deal  otherwise he might change his mind and try to find a way to wiggle out of the agreement.

So, how do you find a real estate agent who is a black bet in negotiating? Just ask these hypothetical questions and see how he or she answers them:

   1. What information do we need before making an offer and how would you get it?
   2. What's your experience with negotiating?
   3. What's your philosophy of negotiating? (If the answer is "win-win" find another agent!)
   4. Do you prefer to present offers in-person or send them in?
   5. How can we make sure the seller responds to our offer right away?
   6. When you sit down with the seller what's the first thing you do? (If the answer is "I pull out the contract" keep interview agents. You want someone who knows that closing a deal begins with building a relationship.)
   7. How can you tell if the seller immediately likes or dislikes our offer?
   8. How would you react if the seller gives us a full price counter-offer?
   9. What would you do if the seller asks for something additional after the contract has been signed?
  10. If the we were five hundred dollars apart from having a ratified contract what would you do? (If the answer is, "I'd give it to you from my commission" find another agent. Anyone who cannot negotiate their own fee will have difficulty protecting your interests.)

Steven Porter ABR CNE SRES
is a Real Estate Broker of 27 years with
RE/MAX Aboutowne Realty Corp. Brokerage.
Steven is an Accredited Buyer Representative,
Certified Negotiation Expert and has been student of
Japanese Martial Arts for 46 years
Steven can be reached at 905-875-2582, email: steven@stevenporter.ca
Or www.PorterRealEstateSystem.com

Literary credit to Michael Soon Lee

As a buyer, how much detail can I get on a property before making an offer?

It’s up to the property owner as to what specifics they disclose prior to an offer. This holds especially true for information that includes private data, such finances, other offers, etc. Certain questions, both the listing broker and owner have a duty in answering honestly and to the best of their knowledge. For example questions whether a building meets code requirements, past illegal use, in a flight path, etc. should be disclosed without hesitation.

A buyer can uncover some facts by accessing publicly-available information. A visit to the local municipal office could unearth some general information related to property taxes, registered liens and potential work orders. Keep in mind this information will vary from city to city. A simple Internet search may also reveal some information about the property.

Once these avenues for information have been investigated a buyer may consider putting in a conditional offer to the seller. Conditions could include property inspections, review of any documentation and due diligence a buyer may see fit. Moving forward with a deal would only be contingent on these conditions being met to the satisfaction of the buyer.

This approach allows a buyer to move forward with complete confidence and minimal risk. The deal can also be structured that if conditions aren’t met to the satisfaction of the buyer, any deposit money would be returned in full and the agreement of purchase cancelled.

An experienced buyer representative is a trained professional, sensitive to the needs and requirements of the buyer and a definite asset to a buyer in any real estate transaction.

Before you make your next home purchase consider hiring an ABR (Accredited Buyer Representative).

Steven Porter ABR CNE SRES
Broker
RE/ MAX Aboutowne Realty Corp.,
www.PorterRealEstateSystem.com

Home Buyer Beware

It amazes me how greedy and unprofessional the residential real estate industry has become. In spite of efforts by our governing bodies and associations to enhance and better educate real estate practitioner's, there are growing numbers of sales people who just don't appear to give a damn. Many putting the almighty buck ahead of the interests of their supposed, clients.

Here's a perfect example that's happening in my own backyard. Milton has been growing exponentially the last few years and with growth in housing there always comes a boom in Realtors coming to collect their share of the resale business. The unfortunate part is we're seeing Realtors coming from as far out as Whitby, New Market, Barrie and Niagara Falls for that one sole deal. The big question here is: "How the hell do these Realtors propose to know anything about Milton and Milton real estate?" Important things like housing, market prices, areas, schools, recreation, etc., etc, etc. How about potential pitfalls like: decommissioned garbage dumps, future development, rezonings, HCA and NEC restrictions, farming practices, etc., etc. You catch my drift. Let me ask you this: Would you spend your budget, say $300,000. on a home because it was in your price range, it was what you were looking for and possibly because your Realtor told you it was a fair or good buy?? . . . Now what if you bought this home and found out later that there were two other homes two streets over just like the one you bought and for $30,000. less? What, you didn't know about them because your Realtor didn't know about them? How does that make you feel?

To this day (25 years in the real estate business) I have been building a network of trusted professional Realtors in other areas that I do not know enough about and will not service. To these trusted professionals I refer my clients because I know they will be properly taken care of. And for that I receive a referral fee from my colleges. This is taking care of the client and is good business practice.

My advice is: "BEWARE". The real estate industry is currently ballooning with sales people and with boat loads down the pipe waiting to complete there schooling. Starving sales people I might add. And many of these with an average income just shy of a MacDonald's hamburger flipper and monthly expenses in some cases double most people's mortgage payments, Do you know, I read an article from the National Association of Realtors which stated that the average Realtor only sold 4 houses in 2009. I challenge them not to put their interests before their clients'.