There are several common misunderstandings regarding real estate brokers in Canada out there. Usually along the lines of agents being untrustworthy and out to steal your money.
However, before you start believing whatever you hear, have a look at some of the facts.
In reality, most agents are seen by sellers as hardworking professionals who frequently go above and beyond to make the selling process less stressful and to get the highest possible price.
It is thus our pleasure to debunk some of the popular illusions regarding real estate brokers and provide vendors with a more accurate image.
Every agent makes a lot of money.
Most individuals believe that their agent keeps the whole commission. That would be wonderful, but it's just not correct.
Real estate agents only get a tiny commission on house sales. The seller pays the realtor costs for both the seller and the buyer, which are typically around 6% of the transaction price. After the brokers deduct their fees, the commission is shared between the two agents. A $300,000 property results in a 6% fee split of $18,000, leaving each agency with $9,000.
Most agents pay for marketing out of their own wallets, so once those expenses are deducted, along with taxes and other expenses such as petrol, car maintenance, health insurance, and so on, the amount they bring in is much smaller.
To generate a considerable profit, real estate salespeople either sell a large number of properties or a few highly costly ones. Real estate brokers have limitless earning potential, but it all relies on how much labour is put in, how many hours are spent per week, and how many houses are sold. The national average annual income for real estate agents is $82,898.
You're trapped with an agency once you start working with them.
If you are a seller, you will enter into a contract with your real estate agent and their agency. This contract has a duration, which is usually six months to a year. Once you sign the agreement, you may be trapped with their representative for the duration. However, this is not always the case.
If things aren't going well, you can ask the agent or the brokerage director to get you out of the contract early.
Buyers are almost never bound by a contract. Buyer's agents, in reality, work for free until their customers locate a property. It might take as little as a month or as long as a year or more. And occasionally a buyer does not purchase a home, and the agent is not paid.
Consider a sit-down consultation or a phone chat with an agent before asking them to play tour guide, and check their web reviews to determine whether they're the appropriate fit.
Otherwise, start slowly and let them know if you're not comfortable. If you wait too long, it will be more difficult to end your relationship with your agent.
Agents may take you to any property you want to see.
You must be under contract with an agent as a buyer for them to show you the property.
A seller's listed agent is not required to show a buyer a listing if the buyer is represented by another agency, unless the other agent requests that the listing agent show the house.
You don't have to waste your time and efforts on something that won't result in a sale if someone isn't planning on submitting an offer and just wants to look at houses for fun.
When the consumers are ready to buy a home, you can inform them nicely.
You'd be delighted to work with them and show them properties that fulfil their requirements while remaining within their budget.
Agents will say anything to close the deal.
Any agent worth his or her salt will be truthful with a client.
As an agent, you must follow a strong code of ethics as well as several laws and regulations. Many people believe this myth since agents aren't paid until a house sells, therefore they feel the agent would say anything to expedite the sale so they may get paid sooner.
Real Estate Agents want to do what is best for their clients while also avoiding being sued or losing their licence.
Before writing an offer, agents must disclose significant facts, and a competent agent wants their client to have as much information as possible to make an educated decision. While some agents may stretch the truth to make something appear better than it is, it is unreasonable to put them all together.
A respected realtor is extremely concerned that their client gets a home that fulfils their wants because a satisfied client implies recommendations, which is how agents grow their businesses.
One agent is equally as effective as the next.
Many individuals believe that all agents are equal.
A good local real estate agent in Canada is all that it takes to make all the difference. So never settle for anything less than the best. The right agent may save you time and money while also keeping you out of trouble.
If you want to save time, money, and energy consider the experienced agents like Jay & Jaya Deewan, who has spent the last 15 years living and working in the same place. They know the neighbourhood like the back of their hand. They have strong working ties with the other local agents. They have firsthand knowledge of prospective transactions and prior transactions that cannot be explained by looking at data online.
Compare the same agents to a first-time visitor to the region. Some agents are not forthcoming and may be more concerned with making a transaction. Many others are more concerned with developing long-term relationships with you since their business is built on referrals.
Selling as "For Sale By Owner" allows you to save money.
Sellers assume that selling their house "for sale by owner" (FSBO) will save them money on transaction and agency costs. Selling a property is difficult, especially if you try to do it alone.
The house can be listed with an agency, which is where most purchasers search for properties since they can be notified instantly if anything new on the market that meets their requirements. They're counting on word of mouth or a yard sign with an FSBO. And there will still be expenses - they will be responsible for closing costs, maybe a seller's fee to pay the buyer's agent, and they may be liable for appraisal fees as well as any repairs required following a home inspection.
There is also a lot of legal language in real estate transactions, therefore it is better to hire a real estate agent unless you know how to interpret the contracts. A house can be sold FSBO, but it takes significantly more time, and you, as a seller, is likely to lose money since you are unable to negotiate a reasonable price.
Hopefully, this information will help you in dispelling any real estate myths you might be wondering about. It is critical to approach the purchase or sale of a house with as much precise information as possible in order to prevent costly blunders.
And if you’re looking for a real estate agent in Ontario, let us know! Our team is ready to help get you started on your journey. Feel free to contact us at firstname.lastname@example.org or 123-456-7890 with any questions.