Real Estate Talk: The broker’s quest

A broker’s task is to manage the buyer or seller’s largest and most far-reaching acquisition in a lifetime

By Joseph Marovitch

Real estate brokerage is a very personal profession. In the process of buying or selling a person’s home, aside from aspects of the profession such as marketing, negotiation and documentation, there is the personal human side. Whether it is for a first-time home buyer, a couple starting a family or an older couple downsizing, the broker’s task is to manage the buyer or seller’s largest and most far-reaching acquisition in life.

A first property signifies the beginning of investment for the future, as well as a home for loved ones. As we grow our families or move on for other reasons, the property we own represents a part of our accumulated life savings. Our property represents education for our children, investment in a business, retirement for ourselves and our parents.

A buyer or seller hopes the real estate broker is educated, knowledgeable, has common sense, is trustworthy and an expert in their field. A real state licence should be a University degree, considering the responsibility a broker must have to do their job. A broker handles the life savings and therefore the future of a buyer or seller.

A buyer or seller hopes the real estate broker is educated, knowledgeable, has common sense, is trustworthy and an expert in their field.

In the past, when choosing a broker to buy or sell a property, people would look online, walk into a real estate office, request a referral and then meet face to face. One can learn much about another’s character, experience and expertise by both listening and seeing. Words tell a story but so do facial expressions, eye movements and posture. These are all traits that tell the buyer or seller if the broker is competent, confident and trustworthy, or if the broker is just saying what the client wants to hear.

Remember, a broker does not need any more than a high school leaving certificate to enrol in a one-year real estate course, which is why there are so many. A broker requires tremendous drive, entrepreneurial spirit, integrity and a passion to work with and help make other lives better.

Unfortunately, we are not all of the same mind. A brain surgeon requires years of medical school, thousands of investment dollars, years of stages under other accomplished doctors, to achieve the discipline and ethics required to practice medicine. A doctorate in medicine requires three years of undergraduate study followed by four more years of graduate study before a life can be placed in the doctor’s hands. Brokers require one year of study to manage your life savings.

Real estate brokers can be experts, with common sense, discipline and honesty, but it either comes from innate ability and experience, or successful life experience before entering the real estate field.

‘A real state licence should be a University degree, considering the responsibility a broker must have to do their job. A broker handles the life savings and therefore the future of a buyer or seller.’

There was a quote that stated, “power without experience and discipline can be dangerous.” Therefore, if a person graduates from high school and becomes a broker, they either need a mentor or a minimum age to be a broker.

When choosing a broker to represent a buyer or seller, face to face meetings are limited due to the pandemic. We now must meet online with Zoom or Teams, or on the phone. Brokers cannot knock on doors or attend network and social events without placing others at risk and/or breaking the law during a lockdown. Therefore, if a potential buyer or seller receives an email or letter from a broker, examine it carefully. The broker is being smart and careful in the new normal. This would be the first clue that you may be in good hands.

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Next article: Purchasing property in a corporation and its effect on taxes for the buyer

State of the market

According to the Canadian Mortgage and Housing Corporation (CMHC) which insures residential mortgages for Tier 1 banks, there has been an increase in downtown condos for sale, as well as an increase in property price sales in the suburbs. The CMHC and others consider this market beating the odds that were previously forecast due to a possible faltering economy.

This means people want to get out of the city and away from populated and stressful areas to more peaceful surroundings. Prices are rising in the suburbs because there are many buyers and not many properties for sale. Further, yes, there are more condos for sale downtown, but they are not the reason that prices are rising in the suburbs. The condo owners are the sellers who want to buy outside the city.

‘When we either find a way to live with the pandemic or discover a vaccine, market prices on the island will increase, more single homes will enter the market and the most affordable residences will be condos.’

It is the developers who know why they are building more condos. When we either find a way to live with the pandemic or discover a vaccine, market prices on the island will increase, more single homes will enter the market and the most affordable residences will be condos.

Interest rates remain low. It is possible to acquire a five-year mortgage amortized over 25 years at 1.79% or less. New listings are in short supply. Despite what may be stated in the press and elsewhere, it is a seller’s market for the foreseeable future, but the present is the best time to sell. Once the U.S. political situation stabilizes, U.S.-Canadian relations normalize, and we find a way to overcome or adjust to the pandemic, the economic damage endured over this time will kick in causing reduced income and savings, which will affect the real estate market for years to come.

Have a great week, stay safe!

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Feature image: Anna Shvets – Pexels

Other articles by Joseph Marovitch