CREA Ratifies, Reshaping Home Selling in Ontario

Disclamer:

The purpose of this blog is to express my personal opinion and in no way should be taken as advice without the consent or consultation of a license professional. The subject herein is intended for the purpose of knowledge base only. Please use on your own discretion!

 

Monday October 25, 2010. A lot of people coming up to me and asking me question about the future of real estate agent in Ontario. Asking a question; is there a need for real estate agent when selling a house now that MLS are open for public? http://www.cbc.ca/fp/story/2010/10/25/3719191.html

 

  • Question: What is the future of real estate agent in Ontario? Are you worried?
  • Answer: Bussiness as usual!  No Im not worried!

 

  • Question: Are there still a need for real estate agent when selling a house?
  • Answer: Yes and No

Let me elaborate this more. Yes, it is true that there will be more competition and it always has been in real estate profession. Being a homeowner myself, I understand the importance of saving money from commission and believe in paying for the services you get.

There are some however; who still believes that a real estate agent should not be needed anymore nor deserve the commission that they earned. To answer this question I would like to clarify this statement. Real estate profession in Ontario is very highly regulated industry. Before you can trade and become fully license in real estate agent in Ontario, you must pass the rigorous training required by the real estate board in Ontario. A maximum of 18 months training for Residential and a 24 months articling segment for Commercial real estate along with the expensive fees required to keep our licenses active. So this surely doesn’t come as an easy task.

But before you decide to use or not use a real estate agent to market and sell your property here are some questions you should consider. I will break it up in qualitative and quantitative analysis point forms.

Should you decide not to use a real estate agent, what is the costs? Quantitative Analysis: (Roughly)

  • Hosting a domain to gain maximum exposure: $15 - $25 per year.
  • Cost of making a basic website with pictures and virtual tours: $200 - $500
  • Preparation time: 48 hrs minimum
  • How much your time worth per hour? I would say minimum $25 per hour.  $25 x 48 hrs  = $1,200 roughly.
  • It is in your best interest to hire a lawyer to represent you in negotiation. Do not get confuse with a closing lawyer that you will hire to transfer the ownership title. Their job is to legally transfer ownership title from one party to another and making sure that there are no liens in the property.
  • I highly recommend hiring a real estate lawyer to help you understand the paper works and represent your best interest such as advising your rights and what recourse you will have in the case of litigation and breach of contract. This can cost thousands of dollars depending on who you hire. Toronto, Bay street elite lawyers can cost even more.

 

Qualitative Analysis:

The key question to ask and consider is how fast you are looking to sell your house. Also, how convenient it is to sell your house on your own.  Do you have a lot of spare time on your hand to spend on marketing your property? Are you technology savy?

In recent survey conducted by a third party source in 2008 http://money.usnews.com/money/personal-finance/real-estate/articles/2009/01/07/5-top-blunders-of-internet-home-buying.html  87 percent of home buyer nowadays have access to internet and use the internet to search for a house first before going out and speaking to a real estate agent.  With that being said, as a person selling your own house you must tap root and grab that 87% share of the market in order for you sell your property in a timely and efficient manner.  You must also cater your services to the buyer needs. For example, a buyer calls you during the day while you are at work asking for a showing of your property. Do you have enough time to accommodate that motivated buyer on their convenience?

Another thing to consider when showing your property is that what type of hours would you be hosting your open house? Motivated buyers don’t usually have a lot of time because they usually have a full time job and usually book an appointment after hours when they finished work. Are you comfortable enough to open up your doors to anybody from the street in any given time? You have to also consider your vulnerability to crime such as possibility of getting rape, killed, or your property vandalize or stolen. As much as we don’t want to think negative about ourselves we all know and also have to consider that we live in an imperfect world.  

 

What I can offer:

As a license real estate professional with Century21 here is what I can offer. When selling your house I will represent your best interest and part of my duty is to protect your best interest. I work for you and just like hiring a lawyer to work with you I will make sure to safeguard you and protect you from getting sued by the third party. I will advice you of your right when it comes to real estate. I will do all the administrative work for you including negotiating on your behalf to create a win win situation for both parties. I will do all the background check of all the potential buyer in my consent that will enter in your property and will make sure that your property is in a good hands even if you are not around.

I will advertise your property in a hybrid fashion. A combination of a traditional approach such as cold calling and networking  and most importantly I will maximize the exposure of your property with the use of state of the art technology such as social media network and websites. I will create a website just for your house with your own address as a domain in other words, if a potential buyer typed in your address in the URL search engine they will be able to search for your property that is listed on your dedicated website. I will post 21 professionally done photo on your website to give your property the maximum exposure and appeal. Remember 87% of motivated buyer search on the internet first before going out and speaking to any real estate agent.

 

Conclusion:

Buying and selling a property can be emotional and can also be nerve racking. I know the feeling! I have been there gone through the same process! I totally understand your frustration. If you think you have the time and all the necessary requirements to conveniently sell your property, I give you my 100% support you well deserve it! However; if you need an advice regarding real estate matters I am also here to help you with no obligation. You are free to ask me any inquiry or question regarding real estate matters. My knowledge in real estate goes far beyond just selling you a house.  I also work with a team of professionals in other industry such as Mortgage and Life Insurance to conveniently cater my services to your needs. I can be contacted at any time www.alexmacale.ca or Mobile: 416-803-5021. 

Alex Macale

Alex Macale

Sales Representative
CENTURY 21 Leading Edge Realty Inc., Brokerage*
Contact Me

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