Real Estate Talk:
Broker-Free Sale Perils

Listings showcase brokers’ commitment to professional representation

By Joseph Marovitch

February 13, 2025

Every so often, sellers call and ask if I have clients for their property. I ask if the property is listed and in most of these types of calls, they are not. I ask if they want to list the property for sale and I am often told no but if I bring a buyer, they will pay the commission. I would then usually explain the advantages of listing the property.

The fact is that a listing broker’s priority is their listed clients, and money, resources and time are dedicated to our clients. The brokers will market their clients’ property via newsletters to their base and the public, online websites and ads, and targeted paper ads to the right audience. Also, all the information the brokers publish is verified regarding the condition, size, expenses, renovations, certificate of location, insurance, taxes, and utility expenses.

The fact is that a listing broker’s priority is their listed clients, and money, resources and time are dedicated to our clients.

If an unrepresented seller requests the broker bring buyers, there is no verification of anything and there is liability in bringing clients to properties that present no verifiable information. However, targeted marketing brings the right buyers and saves time and money.

Brokers can sell anywhere as long as they examine the ownership documents, and verify the size, condition, expenses and any other issues related to the property. The property, based on its price, size, location and condition, is then target marketed to the right audience based on the buyers’ age (meaning if they are single, married, with children, or downsizing), financials, requirements (number of bedrooms, bathrooms, parking and other requirement) and required location.

Buyers do not come out of thin air. They come from hard work such as accurately confirming information about the seller’s property and other preparation, calling potential buyers, placing the information in ads, centris, and multiple websites, mailing flyers to the right locations, as well as arranging and attending visits which provide the broker the opportunity to sell the property.

‘If an unrepresented seller requests the broker bring buyers, there is no verification of anything and there is liability in bringing clients to properties that present no verifiable information.’

All these tools cost money, time, and resources. However, they permit the property to be viewed by a wide and targeted audience of qualified buyers. The more interested buyers there are, the more the property can be sold for.

These tools also motivate the broker to work quickly and sell quickly, as the longer a property takes to sell, the more time and money the file costs.

Therefore, experienced brokers will not bring clients to unvetted and unverified properties due to the liabilities that can be incurred. Also, buyers do not want to visit properties where the seller is not required to sell even if the buyers’ offer is at the asking price and with no conditions. In a brokerage contract, a seller cannot back out of an unconditional offer at the asking price and is not a multiple-offer situation.

‘Experienced brokers will not bring clients to unvetted and unverified properties due to the liabilities that can be incurred.’

Furthermore, the unrepresented seller can run the risk of having the sale cancelled, even after the signing at the notary, if the seller did not accurately disclose information such as room sizes, expenses, conditions and more. If the seller states the master bedroom is 15 feet by 17 feet and the buyer, after possession, verifies the master bedroom to be 12 feet by 11 feet, the seller is liable.

The seller may have to give money back to the buyer or even reverse the sale. The buyer purchases a property based on the information provided. If the information is inaccurate, withheld or false, sellers will have legal issues. These are issues that professional brokers avoid by doing their job.

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Next article: Hints a buyer will make an offer during a house visit

State of the market

Canadians were told US tariffs would be postponed until March 1^st. Then the US immediately applied 25% tariffs on steel and aluminum. This is not good news for the real estate market, especially in new construction startups because materials will be more costly. If further tariffs are applied, this can cause increased inflation and interest rates. Buyers and sellers are in the same position as last week, in a holding pattern, waiting to see where interest rates go.

‘If tariffs are applied, home buyers and income property investors could pick up properties at discounted rates, as long as they can afford the carrying costs.’

Property can be purchased now at low rates. However, carrying costs for homes, such as electricity, oil, household products, insurance and more, may all rise if further tariffs are applied. If tariffs are applied, home buyers and income property investors could pick up properties at discounted rates, as long as they can afford the carrying costs.

The future holds both opportunity and peril. If investors invest and the tariff threat blows over, the gains can be significant. However, there is a risk in this scenario. The risk is tariffs are applied, and they do not blow over. Then more than just real estate will be at risk.

Hope for the best, plan for the worst and stay informed.

Have a great week!

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Feature image: Scott Graham – Unsplash

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