Toronto Real Estate Broker
Do I need a Toronto real estate broker, or agent, to sell or buy a house, usually ask those who have just arrived in Toronto.
I will describe what a real estate broker does so you can draw your own conclusions. In this article we will discuss the role of and advantages of working with a Listing real estate agent, or broker, and a Buyer's agent.
A Listing Toronto real estate brojer is engaged into looking for potential buyers. Each agent usually has a few techniques on how to convey information about your property to potential buyers, as well as how to present your house in the best light.
The agent also works on drawing up the sales contract and concluding the transaction up until the transfer of property rights from the seller to the buyer, and receiving the payment by the seller. Here is a description of what an Toronto real estate broker does during all stages selling a residential property.
1. Preparing a sales strategy
When you are selling a house or apartment in a condominium in Toronto, its very important that the property offered for sale meets the demands of potential buyers. Real estate, like any commodity, is aimed at different groups of consumers.
For example, a small apartment in a condominium is not suitable for a large family, but is ideal for single young professionals or retired seniors. A big house in a fashionable area would be interesting for wealthy people.
It's important to determine what groups of potential buyers to look for, what they need and how to present the property to them in a favorable light.
Toronto real estate broker will prepare your home for sale so that it's attractive to certain categories of customers. Advertising should be aimed at specific groups, both in the form and the method of conveying information. He also develops a certain style of searching and negotiations with potential buyers.
For example, if a house or apartment must be sold quickly, it requires a certain style of working with buyers, such as offering discounts, holding a massive advertising campaign, etc. If the seller is not in a hurry and wants to get the most from the sale of property, it requires a different style.
2. Preparing a house for sale
A house needs to be prepared for sale. The task it to convince people looking a the house to WANT to live in it. Majority of potential buyers want a ready-to-use house or apartment, where they can enter and live without having to do repairs. The first impression that your house or apartment will make on a buyer is the most important.
Therefore, before selling the house you should eliminate all the defects and decorate it as it's done in model homes. In most cases, a buyer will carry out a technical inspection that will identify all the defects. If you knew about these defects, and concealed them from the buyer, he can turn to court to get compensation.
One way to make your home look great is to invite a designer. This type of service is called staging. They do not just give you advice, they can provide decorating items from their collection. Typically, Toronto real estate brokers work with experts and could recommend you a staging specialist.
But remember - do not overspend. Your efforts and costs involved into preparing your house or apartment for sale must be reasonable. The Toronto real estate broker will recommend you how to get maximum results with a minimum of effort and resources.
3. Evaluation of the market price of your home
It's very important to determine the right selling price for your home. The right price will help attract the maximum number of customers, create competition, and will allow you to get the maximum profit possible.
If the price is set too low, you will lose money. If it's set too high - it may scare off potential buyers, and your property will stand in the market so long that people might think something is wrong with it. As a result, you will need to lower the cost considerably to sell your home.
The price of any commodity is created by demand. Determining the market value of a house or apartment is based on a comparative analysis of real estate sold in your area. Other factors should be taken into account, for example, demand for this type of housing among certain categories of customers.
It's also important to consider what improvements and additions have been made in the house or apartment, how they raise the property value, what are the prospects for price grotwth in the area for similar housing, etc.
There is, however, a difference between two market value and listing price. First, the agent determines the market value, that is, the value of your property in the current market conditions.
On the basis of this analysis, he will tell you what price would be tactically correct to ask for your property - listing price, so eventually you sell your house for at least what it's currently worth at the market. Don't forget that your property will not be sold for this price. When determining the listing price, the agent will take into account how much you can reduce the price during negotiations with a buyer.
4. Prepare presentation materials
You need to prepare presentation materials that will attract the attention of potential buyers. With the abundance of real estate property that is currently for sale, you need to get potential buyers to notice your home and want to see it. Selling a house or apartment starts with advertising in newspapers or on the Internet.
Do not forget about the fact that buyers visit more than one house, and maybe dozens of them, and they might like a few houses, which causes them to feel disoriented. Help them make a choice in favor of your house, providing well-prepared promotional materials that they can look at at leisure.
The agent will also determine what kind of a buyer your house should attract, and will prepare advertising materials accordingly.
5. Advertising campaign
It's important to ensure that many potential buyers learn that your property is for sale and want to see it.
The most effective way to advertise your property is entering it into the MLS (Multilple Listing Service) - a database owned by the Canadian Real Estate Association. Almost everyone who is looking for real estate to buy, regularly search in this database. If your property is not there, the chances of it being noticed are extremely small.
The advertising should not be limited to the MLS. You should also think about attracting customers among those who do not use MLS, or even those who do not think about buying yet. There is a large pool of potential buyers, who are not yet thinking about buying a new home or apartment, but who may do so if you show them that your house is exactly what they need.
A good Toronto real estate broker can reach this kind of audience, and find those who would be interested in this purchase. Each agent has their own tried and tested path. Some have a wide network of potential buyers, others have access to certain interest groups, yet others have the opportunity to advertise in newspapers, television and the Internet, etc. The agent need to be creative in advertising real estate that they are selling.
6. Negotiating with a buyer
This is a very important moment, as an agent should be able to not lower the price of the property during negotiations, and the same time not to scare off the buyers. In addition to the price, the agent negotiates conditions.
Toronto real estate broker has to protect your interests and guard against future problems. Therefore, he includes a variety of conditions into a sales contract. However, too many conditions and may scare off potential buyers. The agent's task is to reduce this possibility to a minimum.
Keep in mind that buyers, or rather their agents, will meticulously examine what you offer, and will not miss even the slightest clues to reduce the price. It's better to assign the task to a professional agent who can negotiate.
A skilled Toronto real estate broker will show your house to potential buyers in the most favorable light and will provide clear answers to difficult questions, focusing on the attractive side.
7. Preparing a sales contract
If someone is interested in buying your house and gives you an Offer, the agent will carefully study it and advise you on what terms to change in it. Once you have accepted the offer, you cannot change anything in it.
Toronto real estate broker will check the contract to make sure the terms are beneficial for you. Professional Toronto real estate brokers have all the necessary legal knowledge.
8. Closing the deal
It may take from 60 to 90 days from the moment the buyer makes a downpayment to the official transfer of rights. This period is determined by mutual agreement between the seller and the buyer.
The buyer can add to the contract certain conditions, for example, conducting a home inspection, getting a mortgage, etc. This period is critical for the seller, because the buyer has the opportunity to terminate the agreement and the transaction may not take place.
The task of the Toronto real estate broker during this period is to control the situation, make sure that the buyer fulfills all the conditions on time, and solve problems. Moreover, if the contract contains terms that give the buyer the opportunity to withdraw from the contract, your agent should find new buyers in case the deal is off.
A Buyer's agent, as it's name suggests, helps a buyer find a house. You do not really NEED to hire an agent, but their services are invaluable and, most importantly, FREE for buyers.
What Toronto real estate broker, or a Buyer's agent, does.
1. Determining what kind of property and where the buyer wants to buy
This may sound strange, but often buyers are not sure what they want. Either they do not know what the market offers, or do not consider those homes that fit them best.
Therefore, the primary task of a Toronto real estate broker working with buyers is to determine their needs and possibilities, and offer what best suits them.
Toronto real estate broker discusses the individual situation of the buyer, determines priorities and creates a list. On the basis of this analysis the agent can decide which Toronto neighborhood suits the buyer, for what amount, whether it should be a detached house, an apartment in a high-rise condominium or a townhouse.
2. Finding a house or apartment
While there is always a wide choice of different houses at the Toronto real estate market, it is difficult to choose something specific. The problem is that buyers always try to find something that suits them perfectly. Comparison of different houses reveals that something is better in one, something is better in another, but it is rare that one house comprises all the good stuff.
Some of the selection criteria when choosing a property are the condition of the house or apartment, the environment and the prospects of development of the region, prospects for growth in property prices in the area, etc.
Sometimes all these factors are at odds with each other, and require a compromise. Therefore, a Toronto real estate broker should choose the best options based on his knowledge and experience and taking into account many other factors that the buyer does not.
Usually, buyer's agents conduct search in the MLS database with an access to agents only. The public also has access to the MLS, but to its truncated form, with a time delay for new offers. This gives agents the opportunity to choose among new options that have not yet appeared in the public database.
Toronto real estate brokers also get a more detailed information about each selected house, and may notify clients if there are possible problems. It also gives the agent reasons for negotiations with the seller about the price, terms, etc.
Toronto real estate broker can evaluate if the asking price corresponds to the current market conditions in the area, and select only options with real prices, or to bargain if the price too high. Working with an agent can save you time, help quickly find the option that meets your requests, protect you from unprofitable purchases, and from purchases that may have some problems. The process of finding the right property is a time consuming and difficult process, requiring considerable experience and expertise.
3. Negotiating with the seller
Negotiations are important because they allow you to reduce the price, and to negotiate the terms of the transaction. The agent is able to trace the entire history of purchases and sales of the selected house, as well as that of other houses in the neighborhood. He can also assess the condition of the house for hidden or apparent defects, which gives the agent a good tool for negotiations. All of this gives the agent the possibility to reduce the price and negotiate favorable terms.
Toronto real estate broker does everything to protect your interests. The process of selecting and buying real estate in Toronto is a complex process, it contains a lot of hidden potential problems. Many factors that are not known to the buyer may greatly affect the profitability of the purchase.4. Helping after the transaction
After the transaction, the agent can help the buyer with a mortgage, technical inspection and selection of a lawyer. While the buyer can do everything by himself, but usually experienced agents help their clients in these matters, recommending professionals with a good reputation.
Back to the question of whether you need to hire a Toronto real estate broker when buying a house. By law, a broker is not required for real estate translations. You are free to decide to use the services of an agent or not.
An important argument in favor of involving an agent when buying a property is the fact that you do not pay the agent. But the main advantage for the buyer is in getting real help, practical advice and professional services that will help you invest in real estate with the highest profits for yourself.
So do not be afraid to contact a Toronto real estate broker, you will only win. However, you should approach the selection of an agent very carefully.
On the page Toronto Real Estate Broker I used materials written by Helen Riabinin, Sales Representative, Century 21 St.Andrew's Realty Inc. for Russian Toronto.
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