Real Estate Talk:
Why use a broker to sell?

A few major advantages to using a broker to sell property

By Joseph Marovitch

Updated July 17, 2024

With so much information made available online, many ask why use a real estate broker to sell a property. This is a good question. Today, we have the University of Google offering degrees in real estate, medicine, car repair, dentistry, psychology and almost everything else.

However, Google information, though sometimes extremely useful, without experience and training can be a risky and expensive way to go when it comes to finance, law, medicine and real estate, to name a few areas of required expertise.

Brokers do all the work from marketing, selling, visits, negotiation and more. Sellers do not necessarily have to do anything other than maintain the property and make decisions when offers are presented.

The basic reasons for using a broker

1. Brokers provide vast and targeted exposure through ads and their network of brokers and potential buyers. The more exposure the property has to the right audience depending on the price, condition and location, the more interest, visits and offers are generated and the higher a price is derived.
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2. Brokers provide tested strategies to sell depending on each situation i.e. selling an inherited property, selling your own property, selling a resort or business, etc.
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3. Brokers are trained to price property.
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4. Brokers vet the buyer to ascertain the buyer’s ability to purchase the property.
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5. Brokers are trained and experienced in negotiation to acquire the best price and terms.
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6. Brokers provide protection in the form of insurance from the OACIQ in the event of fraud or negligence.
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7. Brokers manage the marketing campaign and attend all visits, documents, and negotiations.
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8. Brokers provide trusted resources such as mortgage brokers, inspectors, surveyors, notaries, real estate lawyers, contractors, interior designers and more.
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9. Brokers navigate the Real Estate Brokerage Act, which states the rules and laws of selling real estate, thereby avoiding costly legal fees. The rules of the Brokerage Act, which is part of the Civil Code of Quebec, apply to everyone, not just brokers. Many sellers who sell on their own do not realize this and this is where problems arise.
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10. Believe it or not, brokers save sellers money by pricing properly and acquiring the best price for a property.
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11. Brokers do all the work from marketing, selling, visits, negotiation and more. Sellers do not necessarily have to do anything other than maintain the property and make decisions when offers are presented.

Here are a few major advantages to using a broker to sell property:

Responsibility of the broker

• Verify measurements and have professional photos and video of the property prepared
• Accurately describe the property in all ads, websites and brochures
• Analyze the market and compare past sales to accurately price the property
• Prepare and implement all documents for offers, counteroffers, and conditions
• Negotiate on behalf of the seller to acquire the best price and conditions in an offer
• Facilitate the work and ensure the deadlines of the inspection, mortgage broker, surveyor, notary and any other professional required to achieve the goal of finalizing the sale
• Both maximize exposure and target the right audience for the property being sold via ads, newsletters, websites, Centris, flyers and social media

‘Real estate brokers are subject to the Real Estate Brokerage Act, which stipulates stringent bylaws and ethics brokers must adhere to for the protection of the public. A licensed broker is pledged to a code of conduct respecting the rights and obligations of buyers and sellers.’

Training

Brokers are obligated to undergo and pass a series of courses to maintain and update their knowledge of every aspect of real estate, from inspection to lakefront bylaws.

Guidance

A broker will guide the seller through every step of the transaction, from explaining, preparing and implementing documents such as a promise to purchase, counteroffers and amendments, to navigating issues from inspection, the mortgage broker and notary. The broker’s obligation is to overcome all obstacles right up to the signing at the notary and handing over the keys.

Protection

A broker’s knowledge and experience will protect a seller when completing the seller’s declaration, stating the condition of the property to the best knowledge of the seller to selling without warranty, if required, when the property is inherited or the seller is moving away or does not want to deal with issues at a later date. In many cases, brokers at their own expense will offer insurance protection to the seller in the event the buyer, for some reason, cannot sign at the notary due to sickness or death.

Brokers ethics

Real estate brokers are subject to the Real Estate Brokerage Act, which stipulates stringent bylaws and ethics brokers must adhere to for the protection of the public. A licensed broker is pledged to a code of conduct respecting the rights and obligations of buyers and sellers. In the event a broker should knowingly or not cause damage by deterring from the code of ethics, there are heavy fines and other punitive actions that can occur.

Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.

Next article: Reasons to purchase with a broker

State of the market

According to the Quebec Professional Association of Real Estate Brokers, home sales in Montreal rose by 6.4% in the month of June compared to June 2023. This is good news and likely an effect of the last interest rate cut. However, waiting for interest rates to decrease further, which would cause property values to rise, may be risky. Whether you want to believe it or not, politics and geopolitical events affect world supply chains for goods and services. In turn, a slower supply chain affects inflation and interest rates negatively.

In four months, there will be a presidential election. Currently, President Biden is not favoured by the U.S. population or his own party after a poor debate with Donald Trump. However, there are no Democrats stepping up to the plate to be president. Donald Trump has clearly stated he will implement certain policies that would derail the supply chain and cause disruption. Trump has stated he will cut funding to Ukraine and possibly remove the U.S. from NATO.

‘As far as the current real estate market is concerned, now is a good time to buy or sell because we are in a transition and rates are favourable. After September, no one knows… World indicators are not favourable. Now is a sure thing, later is a gamble.’

Should these policies be implemented, Ukraine would lose to Russia. Should Russia become further emboldened to invade a NATO-protected country such as Poland, all NATO members would be required to come to defend NATO member countries like Poland and thereby start a new and possibly larger war. Trump has even stated that any country that does not pay its fair share, Russia can have. These are dangerous policies and dangerous words.

As far as Canada is concerned, inflation and interest rates would rise, and property values would fall.

As far as the current real estate market is concerned, now is a good time to buy or sell because we are in a transition and rates are favourable. After September, no one knows. The Fed has announced they may not decrease rates, hold rates, or increase rates. World indicators are not favourable. Now is a sure thing, later is a gamble.

Have a great week.

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Other articles by Joseph Marovitch