The Real Estate Agent Advantage

By Kara Kuryllowicz
Vancouver Resale Home & Condo Guide
January 20-February 03, 2012

Spending money to make money makes good sense, so let experienced, expert real estate agents earn their commissions by helping you prepare, market, show and sell your home, then close the deal.

“Realtors do a lot more then market your home and they’ve demonstrated time and again that they’re worth every penny,” says Dale Ripplinger, a Regina-based Realtor and past president of the Canadian Real Estate Association.

Homeowners who have less-than-rewarding experiences with Realtors may wonder exactly what they’re getting in return for the commission they pay. They ask themselves, “How hard can it be to sell my home?” without seriously considering the answer.

“A good Realtor has the relevant skills as well as real estate and business expertise and experience,” says Frank Leo, a broker with Re/Max West Realty Inc. “Rather than learn how to safely and effectively sell your home yourself, find and hire a true professional.”

Consumers all to often take their Realtor’s expertise for granted until their do-it-yourself efforts result in costly, inconvenient and stressful mistakes that can’t be undone. Before taking the sell-it-yourself route, consider these facts and realities to see what you can actually get in return for the commission you pay.

FACTS & REALITIES

1. It’s a numbers game. Yes, you will pay a commission, but remember what the commission is typically split between the seller’s and buyer’s agents. Whether or not you have a selling agent who requires compensation, the buyer’s agent must be paid by the seller, the buyer or both, which is almost sure to affect the net amount that ends up in the seller’s pocket.

“Furthermore, if the buyer is represented by a Realtor but the seller is not, the seller may be at a disadvantage as the price and contract details are negotiated,” Ripplinger says.

In addition, the commission structure is common knowledge, so informed buyers will immediately lop a few per cent off your asking price.

The commission helps cover the agent’s hard costs, which may include office space, staff, marketing (such as online, print, outdoor and radio ads, photographs, graphic designers, printing and delivery), license and other fees. If you don’t have an agent, you’re paying those costs yourself and forgoing certain products/services or doing them yourself.

Your skilled agent provides a valuable service and deserves to be compensated for his or her time, just like you expect to be fairly paid for the job you do. Ask yourself how much time you realistically devote to taking phone calls, responding to email queries, showing your home and more. As importantly, will you be comfortable doing all that?

2. Homes don’t sell themselves – people do! Consumers may find an agent willing to post their homes to the Multiple Listing Service (MLS) and on Realtor.ca for a reduced or flat fee. After congratulating themselves on the thousands of dollars they’ve potentially saved, sellers then find themselves wondering why their homes haven’t sold yet. They’re astonished at how much time it takes to show their homes and how awkward it can feel for the homeowner. Many sell-it yourselfers end up turning to Realtors when their home takes too long to sell, the offers are too low and they find the process too time-consuming, frustrating and stressful.

SAVINGS & RETURNS:

1. Selling prices tend to be higher when an agent is involved.

a. Accurately and strategically pricing a home can have a dramatic impact on just how much money ends up in the seller’s pocket. A good Realtor has the skill, experience, resources and objectivity required to price the home correctly. Your agent knows that ultimately, the market and the buyers decide what your home is really worth.

b. Exposure and the correct presentation can increase demand which in turn puts upward pressure on the price. Realtors’ marketing efforts put your home before more people. While their input can help you show your home at its best. The website, Realtor.ca, puts your property before consumers, while the MLS gives agents more detail and apprises Realtors of new, local listings via daily email blasts. “The Realtor-to-Realtor exposure is crucial,” Ripplinger says.

2. Qualifying buyers. Via seemingly casual conversations, selling agents can distinguish the merely curious from the serious buyers. While homeowners may be too shy or feel awkward asking subtly probing questions, particularly when it comes to financing, agents have honed this skill.

3. Referrals and discounts. Agents can refer homeowners to credible evaluators, home inspectors, painters, stagers and more. “My painter is so good he’s rarely available, but he moves my clients to the top of the list and gives them a discount because I give him so much business,” Ripplinger says.

4. Feedback. Agents can better solicit and accept feedback to sellers, such as too high a price ot a pink bedroom that’s deterring agents and their buyers. Of course, the seller can then decide whether to act on that information.

5. Negotiating, closing and contract expertise. A savvy real estate agent will be able to help negotiate everything from conditions to pricing and closing dates to ensure the sale is completed. “Homeowners don’t realize there is more to it than sitting down and signing the papers,” Ripplinger says. An agent can tell you if the deposit is inadequate, the closing date is unrealistic or the conditions are problematic.