Truth or Lies?
The Truth About Real Estate
I have been selling real estate for over a decade and have helped hundreds of people buy and sell homes. I’m often surprised, however, by how many incorrect ideas exist about how real estate works. I am also disappointed when I notice the media giving the public incorrect real estate information. I would like to bring clarity to some of the most frequent real estate misconceptions. Here is the truth about real estate in British Columbia:
1. You do not have to contact the listing agent to get information on a property. The majority of listings are taken with an MLS service. The listing agent will gather a lot of property details and share that data with the rest of the real estate representatives in the community. A respectable agent can answer your questions about any house and give you a tour.
2. A professional agent can represent a buyer as well as a seller in a transaction without any conflict of interest. A buyer wants to buy – a seller wants it sold; they have the same goal. A good salesperson can facilitate an agreement that is pleasing to both parties and can often problem solve more effectively when issues arise with a full knowledge of both parties.
3. Most REALTORS do not make as much money as you think. Commissions are charged when a sale occurs. This means a seller does not risk having to pay any money if their home does not sell. Also, there are significant expenses that are usually deducted from the commission an agent charges; commission to the Buyer’s agent, office fees, MLS dues, continuing education costs and advertising expenses often take as much as one half of what a seller has paid to their REALTOR. According to Monster.ca the average REALTOR yearly income was roughly $50,000 in 2015.*
4. A professional agent will not say whatever it takes to make a sale. Honesty and integrity are an integral part of how I build my business and most real estate professionals hold those same values.
5. REALTORS help the public by providing extensive experience in buying and selling. We use tried and tested marketing techniques that reach a huge audience and we have a wealth of knowledge about how to achieve success with your real estate investment. We participate in ongoing training via professional education courses, legal updates, seminars and weekly meetings. We also cooperate closely together in a friendly manner so the expertise of an entire office is shared. All of this brings great financial and emotional benefits to our clients.
The truth is that the real estate industry plays a vital role in our provincial economy. “Real estate and construction together represent roughly 25 per cent of B.C.’s GDP, about the same dependence Alberta has on the oil and gas industry. The strength of this sector gave the province the highest GDP growth rate in Canada in 2015. The property transfer tax delivered $1.15 billion in revenue in the latest fiscal year.”# BC real estate is not a problem, do not quickly assume it should be drastically changed.
6. For most of the province our home is our largest asset. When it comes time to buy or sell, take care to place value on the seriousness of the transaction – find a quality real estate professional to work with. Don’t choose a REALTOR simply because they are your acquaintance, enlist a trusted professional who will place your interests first and do an outstanding job for you. This industry is not perfect and examples of bad real estate transactions do exist. However, knowing the truth about real estate will prepare you to make informed choices and maximize your real estate profits!