More on Trading - Part II
2009/02/23 Originally published in the Vernon Morning Star.
Before I get into this weeks topic, I want to draw your attention to a website and an article on last weeks topic, Timeshare Resales. Go to www.tug2.net/advice/howtosellyourtimeshare.htm I thought it delivered some helpful advice on trying to avoid the pitfalls and scams often involved in Timeshare resales.
There are a lot of questions being asked about how trades work. One person asked "What kind of junk would I be offered?" I was surprised by the question, actually. Most real estate trades are an exchange of properties. However, in some cases, automobiles, recreational vehicles, boats or other tangibles are offered. The property owner has no obligation to consider trading such chattels unless they can see merit in owning such an item.
In this economy, all kinds of valuable commodities are more difficult to sell and so people do consider trading them into real estate transactions. This is an effort to obtain something with more enduring value. Property owners who take such items as a trade or part payment would normally have them professionally appraised and inspected for defects prior to firming up the sale of their property. The Realtors® would write the offer to purchase in such a way that the sale is contingent upon the appraisals and the inspections being satisfactory. So, nobody needs to accept "junk" unless they want to.
The other question I'm hearing is "How does the real estate commission work?" In almost all cases, each Seller pays a full commission on the sale of their property. The fact that owners are swapping properties doesn't change the fact that a lot of work goes into finding a Buyer that will buy a certain Seller's property. Because it's no easy task to locate the right Seller and the right Buyer to make the trade, there is surely no reduced amount of work for the Realtor®. Also, there are two separate contracts that need to be prepared, each with its' own set of details and conditions that need to be handled.
When we get into three or four way trades there is a tremendous amount of detail and many, many extra communications plus extra contracts to make it all work. It's not complicated for the Sellers or Buyers as the task of keeping all critical details and deadlines is what the Realtors'® function is.
If you are trying to sell and buy on this difficult market, do discuss the possibilities of exploring the trade prospects with a Realtor®. It may just be the way to find you a Buyer when conventional methods are not working.
Jane Field works with RE/MAX Vernon. Jane has over 30 years experience in the Real Estate business. To suggest topics for future articles or to ask Jane questions, email her or call 503-3755.
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