ADDRESSING THE MYTH - YOU DON'T NEED A REALTOR TO SELL YOUR HOUSE

It's no secret that there is a minority who think that one does not require a REALTOR® to sell their property. They make their views known via fsbo and news forums ultimately supporting their claim on the basis of having sold their property in due time on their own. These individuals become particularly vocal, quite often resorting to obnoxious behaviour without any real debate with any and all who would present a pro-REALTOR® point of view, preferring instead to dismiss any who would argue otherwise as being a shill REALTOR®. This is particularly evident when the real estate industry is being targeted as in the case of the Competition Bureau versus The Canadian Real Estate Association (CREA) and most recently, the Toronto Real Estate Board (TREB).



I make it my business to peruse some of these fsbo forums and news commentary sites because I care to hear what I may do better to enhance my services. I can honestly say that some of the advice dished out by these supposed gurus of the do it yourself sale is both frighteningly wrong and delicious fodder for litigation lawyers and so, I have yet to find one improvement I should make as a result of their commentary.

Lest any such persons may think that I do not care to consistently improve my services I have this to say to you: we've never met for if we had you would have taken note that contained within my presentation package, be you a buyer or seller, is a comprehensive satisfaction survey that I ask you to complete regardless of whether or not you become my client. Clients who have engaged my services more than once or say they will, know that I listen and act respective of their comments.

The proponents of the fsbo only way would have you believe that REALTORS® are a greedy bunch interested only in their commissions. From the way I conduct my business, I would tell you otherwise. I have clients and prospective clients to whom I have recommended they: sell privately; wait to buy/sell ; do not buy/sell; walk away from negotiations. None of these recommendations will put money in my pocket and they run counter to all the myths put forward by those who have an axe to grind against REALTORS®.  

So, I contend they proffer myths but first a fact or two.

Last week I searched the listings of two price ranges within central Toronto - $1.5 - $2.0 million and $2.5 million plus. There were more than 175 listings. A grand total of 4 offered less than 2.5% commission to the buyer's representative and only one was listed by a private seller.

I presume that the majority of these sellers didn't happen to inherit or win their wealth and so are people who have successfully negotiated their way in business allowing them to acquire these high priced properties. I'll go further and presume that 174 out of 175 decided they lacked either the time, inclination or ability to sell privately. Even further by stating they can afford the commission fees and find value with a REALTOR'S® involvement.

On the other hand, within the noticable lack of properties in excess of $1million in central Toronto either for sale or sold on propertyguys.com, the highest priced was $1.2 million. There is obviously a disconnect between how those who own high priced properties choose to list and the fsbo proponents. Unfortunately for the fsbo world, the majority of owners of averaged priced properties still choose the MLS® system.

The fsbo myths:

Myth statement 1 speaks to people, and it is most usually always sellers who claim it was easy and all they needed was a lawyer's services. The rest are those who ask if they even need to have a lawyer involved in the process.


Myth statement 1 Refuted: This last statement alone tells me that since they are unaware of the requirement to have a lawyer close a deal (Ontario at least,) they have no idea what obligations common law inposes upon them as sellers and none concerning the law of agency much less contractual law. In the absence of all of these, it is arguable that one also has little to no knowledge of what is required to negotiate and sell a property.


Myth statement 2: The REALTOR® set the listing price too high.


Myth statement 2 refuted: The REALTOR® is an employee of the seller and must do as the employer demands. Accordingly, the seller is the only person who can decide what the listing price will be. If one does not know this, one has not done their own due diligence regarding Agency, has opted to list with a REALTOR® whose list price he would prefer to hear and has no credibility in presuming they are better equipped to sell privately when they did not have the good sense to ask the right questions.


Myth statement 3: A REALTOR's® only interest is in collecting commission by getting one to sell their property for whatever price is offered so they can collect their commission and the sooner the sale the better. 


Myth statement 3 refuted: The seller alone decides what offer price he is willing to accept. Refer understanding agency as above. If it is true that sellers don't need a REALTOR® it is also true that the seller is quite capable of negotiating/selling their own property in consort with the REALTOR®. All they need do is instruct the REALTOR® to do as they say.  Further, if as is often stated the commission is 2.5%, the presumption is that a REALTOR® is willing to accept a mere $25 less for every thousand the seller loses and thereby they show their own naivety.


Myth statement  4:  A REALTOR's® only interest is in collecting commission by getting one to buy a property by offering too high a price so they can collect a higher commission and the sooner the sale the better.


Myth statement 4 refuted: As above except that here the REALTOR® causes the buyer to spend more so that they can collect a mere $25 for every additional thousand on purchase price. Incidentally, there is also no haste in securing a sale. If it is just a matter of collecting more commissions, no REALTOR® on earth would suggest offering less than list price. Then again I've read charges that is is exactly what happens.

The concensus then among those who are opposed to using REALTORS® is that there is no consensus and that no matter what we REALTORS® do, to them it is the wrong approach.