Why Do Real Estate People Charge So Much? PDF Print E-mail

Not all licensed or registered brokers, Broker/Broker/Managers or Broker representatives are REALTORS. The term REALTOR is a trademark identifying real estate licensees in Canada who are members of the Canadian Real Estate Association (CREA). Realtors adhere to a strict Code of Ethics and Standards of Business Practice. The Code of Ethics is a firm set of rules; quite similar to the ten commandments- these codes describe what kind of performance you have a right to expect from a Realtor. It's your guarantee of professional conduct and the best in service.

That's why most Buyers and Sellers turn to a Realtor. As a member of the organization of Real Estate, through their Boards, Realtors have their finger on the pulse of the housing market and are in daily contact with people potentially interested in your property.

You can trust a Realtor to protect your interest and to look after details- and a Realtor's commitment to high standards of professional conduct works to the advantage of Buyers and Sellers alike. A Realtor is knowledgeable about developments and trends in Real Estate. A Realtor knows the facts; comparable prices, neighbourhood trends, housing market conditions and more.

A Realtor is committed to ongoing education to increase competence and effective training. Every Realtor has been trained and tested.

A Realtor's pledge is to be honest in disclosing property information and forthright in the facts needed to help you make one of the most important decisions of your life.

And remember, only a REALTOR ® - a member of the Canadian Real Estate Association- has access to the Multiple Listing Service ( MLS ®) which is Canada's most powerful real estate marketing system- envied globally.

Statistically, Realtors are involved in the majority of real estate sales and property sold by professionals achieve an average of 27% higher selling prices than those sold by owners- and that is AFTER commission.

Realtors save you valuable time, they attract buyers, show your property, provide proper disclosures and making a sale takes hours of work. A Realtor is familiar with contract law and legal issues. They know how to complete the required forms.

Realtors have access to market data that isn't available to the general public.

Sellers have emotional attachments to their property and may only emphasize features that they consider most desirable, however, a Realtor is trained how to be attuned to the Buyers' needs and will highlight the most appealing features to the specific Buyer. A Realtor protects you from potential Buyers who try to under cut your price.

Realtors have developed relationships with lenders who will help them in obtaining financing for buyers; this helps you avoid wasting time in negotiations with Buyers who cannot afford your property.

Realtors are experienced negotiators who will help you obtain the highest price possible for your property, review all the terms and conditions of a contract and assist with inspection reports and coordinating closing details.

All of these factors influence the amount a Realtor must charge for their services. There are expenses involved in obtaining education and maintaining the ongoing educational requirements for being a real estate professional. Membership to the Canadian Real Estate Association (for MLS ®), the Ontario Real Estate Association (for current regulatory advice, forms, etc), the local Real Estate Board- etc... etc... all require annual fees. If your listing is placed on other boards (inter-board listing services) there are costs involved, if your listing is placed in more than one category of property type, there are costs incurred. Renewals of Real Estate licenses have bi-annual costs. There are professional Insurance policies that are maintained as a requirement of registration.

Office space is rented, utility costs are paid. Secretarial staff and other employee costs are incurred. We hire cleaners to keep our premises inviting, clean and professional.

Automobiles are required for the job and those used by Realtors have commercial policies and vehicles require constant maintenance, especially with the mileage put on by rural realtors... not to mention the fuel costs!

Sometimes, there are a variety of vehicles required... like a boat, snowmobile, four-wheeler, 4X4, etc. The vehicles used by your Realtor need to be in good repair- not just for safety- but as part of the Realtor's image, which is another important aspect. You expect your Realtor to be well groomed and to be approachable by potential Buyers.

A Realtor has wardrobe concerns: comfortable, attractive footwear for all seasons and terrain- that can easily be slipped off for showings. They spend time and money on personal grooming, health care and fitness regimes. They will also have special tools such as measuring devices, photographic equipment etc. A good Realtor spends money on books in order to broaden their knowledge of the history and development of the area. Various types of maps are purchased for use in sales. A wise Realtor subscribes to magazines and trade publications, as well.

There are costs for Internet, which is now a major component in Real Estate sales. Today, 2/3 of the Buyers are shopping for property on the Web and 41% of Buyers search for an agent online. 95% of our current buyers tell us that they intend to use the Internet in future purchases. Statistics tell us that the Buyers who start looking on the Internet are typically spending more money on their purchase. The Internet ranks as the 3rd most effective tool for a Realtor, yet only 53% of salespeople have websites. We maintain several, at annual costs in the thousands of dollars.

Fax machines and telephones, these days, are expected- but the long distance charges accumulate very quickly when people are calling the office to inquire about your property they often use the toll-free line and that has higher costs than your home phone. Faxes are often long-distance, as well. And then, there are our cell phones, we need them, so we don't miss any important opportunity to discuss your property! Our home phone bills are high, too. We use courier services and lots of postage.

Even the signs we put on your lawn have costs associated. A typical Real Estate sign costs about $15 and the stands used to secure them are very expensive. It's important to have nice looking signage and while signs may be re-used, that means maintenance. Business cards, standard forms, photo processing, pamphlets... and all the every day things like staples, fax paper, file folders, paperclips... the list goes on.

Advertising is probably one of the most significant expenses incurred by your Realtor and especially the ones that most target your property. The local newspapers are surprisingly expensive. Specialty magazines are also expensive and they often have long waiting lists for advertisers. Your Realtor is constantly searching for innovative ways to advertise your property and to draw people into their office to see your listing.

A good Realtor spends a great deal of time fostering relationships with various professionals related to the industry. These include lawyers, accountants, other realtors, clubs and other organizations. Seminars and conferences have registration fees, however, they are a wonderful networking opportunity to meet with other Realtors who may have a buyer for your property. By attending, your Realtor will learn improved service techniques and up-to-date legislative requirements.

Good salespeople will provide you with advice to help you present your property at its best and often, will lend a hand or some paint for the project. We make time and give money to local charities. We do what we can to make the process as comfortable as possible and we are aware that our services seem expensive to some of our customers and clients... However, remember, your commission payment is often divided between two Brokerage Offices and then two or more salespeople (some with large office desk fees to deduct) and then the governments wants their piece, too.

Ask your representative about ways of minimizing your expenses, but ensure you have the best market representation possible. At Coldwell Banker Sarazen Realty, Brokerage, in Bancroft, we are committed to our mission statement: "To focus on offering our talents, energy and knowledge to serve others. To operate with authentic intention, honesty and integrity. To empower others to lead extraordinary, inspired lives". This is what drives us. We have all had experience in other businesses and the skills we have acquired make us a powerful group. We have chosen this field and we share the same vision.

With this strength of conviction, we are devoted to keeping our Buyers and Sellers central to the marketing process and the entire office is committed to the team philosophy.



The comments contained on this site are for information purposes only and do not constitute legal advice.

 
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Local Phone: 613-332-2110

Fax: 613-332-1211


Jody Didier- Broker - residence phone (613) 332-5761
bancroftrealestate@yahoo.ca

Fabian Yantha - Broker - cellular (613) 639-1288
barrysbayrealestate@yahoo.ca

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