Is full service real estate is here to stay?
Since the ratification of the agreement between CREA and the Competition Tribunal on October 24, 2010, there has been a tremendous amount of “buzz” from the public, the press and the real estate industry in general, speculating on the impact this agreement will have on organized real estate as we know it. Here are my thoughts.
First, it is interesting to note that what some people perceive as a threat, others perceive as an opportunity. Generally speaking when change occurs and change will occur, there will be some people who view change as a threat because the status quo is being challenged; while others will view change as an opportunity because the status quo is being challenged. I perceive change as a tremendous opportunity.
I read an article recently in Canadian Business Magazine, and the leading question in the article said this, “Travel agents and stockbrokers are nearly obsolete thanks to the Internet. Are real estate agents next?” The article is daunting and might have some believe that real estate agents are going by way of the dodo bird. But here is what I know. The media loves change, they love something juicy to talk about and they love to create drama and instill fear. However, DO NOT believe for a moment that they are right, "Full Service" Real Estate is here to stay and here is why.
The buying and selling of a home is nothing like buying or selling stocks or booking a holiday. Our home, 99% of the time, is our most valuable asset. It is where we are going to live, raise a family, become friends with neighbours, build a community, go for walks in the evening, sleep peacefully at night and create some of our most cherished memories.
The Value of a Selling Agent
If you are going to sell you most valuable asset, it only makes logical sense to hire a highly qualified real estate professional who can:
1) Provide expert advice to maximize your equity through proper pricing models, home staging concepts and marketing strategies that create demand, increase showings and expose your home to the most amount of qualified buyers.
2) Negotiate every detail on your behalf, and in your best interest, to net more money from a sale.
3) Create peace of mind and the least amount of inconvenience by qualifying all potential buyers before they come through your home as well as ensure all buyers are escorted by a licensed real estate professional. I'm sure you have no interest in taking calls from deal-seeking buyers calling on private for sale by owners and then allowing complete strangers into your house anymore than you want a root canal!
4) Handle all details and provide professional advice until closing.
Having worked with several thousand clients in the course of my 25 years as a licensed "Full Service" Realtor®, I can express the sentiments of most who were un-successful in their endeavors to sell privately and those that were successful. Both groups discovered and now firmly believe using a co-operating real estate marketing system is by far to the sellers advantage. Experience has shown, that more often than not, private sellers lose more money then sellers who use a full service Realtor®. The private buyer knows the "For Sale By Owner" is not paying a real estate commission and also has a limited market, so views this as an opportunity to purchase at a lower price. Without the services of a skilled negotiator, the Multiple Listing Service and a professional marketing program, I have seen private sellers not only lose the equivalent of the real estate commission in the sales price, but sometimes even more!
A full service Realtor® has many responsibilities when it comes to marketing property and getting the best possible price.
Once interest is found for the listed property, the Realtor® becomes the mediator between all parties involved; the buyers and sellers, municipalities, lawyers, mortgage lenders, inspectors and more. The Realtor® is responsible for accuracy in contracts to avoid legal pitfalls. The implications of an oversite or unintentional misrepresentation can be costly and is more likely to occur without using a person skilled in real estate contract law. If problems do occur, even experienced lawyers in real estate law can only act on their clients' instructions within the scope of the written contract as contained within the Purchase & Sale agreement. The Realtor® is also responsible for holding deposits in trust, verifying individual identification, Buyers Contingency clauses such as Mortgage Loan Contingency, Inspection Contingency, Sales Contingency, Environmental issues, Zoning Requirements, Escape Clauses, Appraisal Contingency, Permit Contingency, Property Conditions Disclosures, an more.
When you decide to use me and Century 21 Seller's Choice Inc., for your next sale, not only do you have the services of the (MLS) Multiple Listing Service but you have the backing of the largest real estate company in the world, with the largest real estate website in the world.
Over 800,000 visits to Century21.ca! In February, Century21.ca reached a new milestone with 847,000+ visits in a rolling 31 day period! We’ve now set our sights on reaching the 1 million visits milestone. What does that mean for you? Greater Internet exposure for your property when you list with us!
Please feel free to call me at anytime when you have a real estate need or know of someone that does.
Earning the right to be your Realtor® Consultant for life,