By David Dunkelman
I find it incredulous that in this day and age there is still a segment of the population that feel Realtors are overpaid and at best a necessary evil in a real estate transaction. This way of thinking is really flawed and is born out of ignorance and a lack of understanding. A good Realtor will not only earn their commission, they will quite likely net you much more than you would be able to achieve on your own. How will they be able to do this ? Through a myriad of ways including strong negotiation skills that are learned both in real estate courses and most importantly out in the field where negotiations are part of a Realtors daily life.
What are some other ways a Realtor can bring value to a real estate transaction?
Lets start with pricing: A good agent will price your home to maximize its value on the market while at the same time providing a realistic list price that can result in an expedient sale. Studies have shown that for the most part listings that are sold quickly get better prices than those that languish on the market and get stale, thereby inviting low ball bids. Realtors visit hundreds if not thousands of houses each year and can tell you first hand what your home is worth rather than you having to decipher a bunch of old MLS listings and trying to compare your house to another house based on a photograph and an advertising description.
Now consider the marketing of your home: Sure in the good old days when the market was booming you could make a real estate sign, put it on your front lawn and maybe find a buyer – but times have changed. This is once again a more balanced market and a real estate sign by itself is simply not good enough. A top Realtor will utilize a variety of marketing tools embracing both old and new media in an effort to sell your home. Some of these practices may include: MLS listing, newspaper ads, internet advertising, blogging, social network sites, virtual tours, colour photos for professional feature sheets, floor plans, open houses and just listed flyers. All these efforts on the part of your Realtor save you time and money. Do you really think that after spending all this time and money on the aforementioned tasks that you are not getting good value for your money ? If so please read on.
Let’s talk about safety; your own and that of your money: All Realtors are insured and strict controls and guidelines are put in place in order to keep track of who is viewing your house. Realtors can offer you advice on how to protect your valuables during public open houses and Realtors only show your home to qualified prospects thereby saving you time and money running around trying to keep the house clean and worrying about the motivation of the people who are coming to view your house. You cannot put a price tag on safety. While Realtors will take steps to make sure that your personal safety is protected they will also make sure the safety of your money is protected. All real estate deposits are handled within strict government guidelines to make sure your deposit is protected. Your Realtor is trained to provide a paper trail for FINTRAC ensuring that the deposit from the buyer of your home is legal and from a reputable source. Realtors are trained to spot red flags in an offer and during a negotiation that may come back to bite you after the sale.
By now hopefully you have developed a new appreciation for your Realtor and the how they earn their commission selling your home, but what about buying a home. Do you really need a Realtor to help you find you a home with all the information available on the internet. The answer is yes, absolutely. Not only can a good buyers agent save you money through a skilled negotiation but they can also save you a ton of money and heartache by steering you away from a “money pit” or a home that has a “stigma”. Realtors are trained to find out the facts about a home’s history and to disclose these facts to you. Was the house ever used as a “grow house” or did it ever contain uffi insulation. Is there a seller property information sheet available, is there evidence of knob and tube wiring. What about the oil tank ? Does it meet TSSA standards. These are just a few of the land mines that your buyers agent is trained to look for on your behalf that can save you thousands of dollars after the closing. The best part about Buyer Agency is that the commission is normally paid by the Seller. You do have to commit to being loyal to one Realtor but that loyalty is a two way street and should be worth its wait in gold. Provisions can be arranged in advance to deal with private sales and new home construction.
So there you have it. Yes, a Realtor does bring value to a real estate transaction and yes they more than earn their commission. Choose wisely and your Realtor will be someone you will want to stay in contact with for life and who can be an important resource for you now and in the future.
David Dunkelman is a Broker and ABR* with Royal Lepage R.E.S.Ltd/Johnston and Daniel Division. David is also the Author of “Your Guide to Toronto Neighbourhoods”. *ABR* The Accredited Buyer Representative (ABR®) designation is the benchmark of excellence in buyer representation. This coveted designation is awarded to real estate practitioners by the Real Estate BUYER’S AGENT Council (REBAC) of the National Association of REALTORS® who meet the specified educational and practical experience criteria.
