Tuesday, 17 May 2011

Just List Services (One Realtor's Opinion)

From www.century21.ca/andrew.thompson

Just listing services have made the news lately. This is where you pay a third party or discount brokerage $750-$1000 upfront to list the property on MLS.
Some background on the service
Years ago a lawyer wishing to make easy money on the side wanted to offer this service through a website in an attempt to make money with little to no effort or time. The Real Estate board of Canada prevented this from happening because in their view selling Real Estate should involve Agency. Where a Realtor is legally responsible and insured to represent the best interests of the Seller.
The Realtor advertise the property to potential buyers, works with potential buyers, makes it easy for other Realtors to view the property, takes on going classes every year to better represent their clients, and helps insure buyers that they are making the right decision to buy a particular house out of the 100’s of properties that are for sale.
Using these services the Seller on average gets a much better price for their house and the house is sold much faster than if the Seller tried to sell the property themselves.
When a Seller uses a ‘just list service’ Buyer agents who work for just the best interests of the Buyer approach the Seller and try to arrange a time for viewing that is best for the Seller and the Buyer. The Seller must be there for every viewing, which makes viewing a property more difficult and potentially awkward. If the Sellers and the Buyer agree to a price the sellers Brokerage doesn’t have to report that sale price to the Real Estate Board so the sale price won’t be known by the general public for up to a year. Sellers rely on Realtors to give them weekly updates on the market sales so that they can price their homes to make the most amount of money.

I think what sellers will find is ‘just list’ services has no value. If it becomes more popular Realtors will no longer offer “free home evaluations” and Sellers will have to pay even larger upfront fees to properly price their house for the market.
If you still think ‘just listing’ services are a good idea then here is another idea to ponder. With elections just past why don’t we just get rid of Politicians all together? We have the Internet and civil servants so any big decision could be posted online for everyone to vote on. Think of all the money we would save! Federal politicians make $150,000 plus per year plus expenses and pension!

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