Home buyers and sellers in a recent survey done last October by Real Estate Council of Ontario, said how they would have done things differently.
41% of homeowners in Ontario and 45% of first-time home buyers actually said they would have done something differently.
What home buyers and sellers in Ontario would have done differently?
- 26% of home buyers and 12% of sellers would have wanted a better grasp of the process;
- 21% of home buyers would have seen more houses;
- 15% of home buyers would have had home inspections;
- 9% of sellers would have spent more time researching and interviewing sales reps;
- 14% of home buyers and 9% of sellers would have wanted a better understanding the agreements used.
- 32% of first-time home buyers said that they did not feel prepared and knowledgeable about the process.
If it’s the job of the sales rep. to educate and ensure that their clients make the right decisions, it makes you wonder what’s missing in the education process of the agents.
- 52% of those surveyed incorrectly think buyer and seller representation agreements are standardized. When in fact many terms and conditions in real estate contracts are to be decided between the client and the brokerage. For example – the length of the agreements.
- 43% of home buyers and sellers said that there were sections of the real estate contract they didn’t fully understand.
- More than one-third of Ontario homeowners (36%) mistakenly think that after a real estate contract is signed, a buyer or seller has a trial period during which they can cancel it, and an additional 33% said they do not know.
- 26% incorrectly believe that signing a representation agreement to buy or sell a home with one brokerage does not limit a buyer or seller from working with representatives from another brokerage (21% did not know).
- 58% of respondents didn’t understand the conditions in which a real estate professional could represent both a home buyer and a seller in the same transaction.
- 42% knew how a sales rep. could actually represent both the home buyer and seller in the same transaction, if they agreed to “multiple representation” in which they had to sign off on.
- 55% thought that you automatically got your deposit back when you placed a conditional offer on a property that did not firm up. Although, the deposit is placed in the brokerages trust account, it can only be released if both the buyer and seller agree or by court order.
As full-time professional real estate sales representative, I feel it’s my job to inform and educate my clients so that they do have a proper understanding of the processes, the agreements, and the conditions. I advise home buyers and sellers for their best interest so that they make a proper informed decision.
Is it any wonder why so many people would do things differently? I think that it comes back to a couple of basic and simple things that cause the problem:
“My cousin the butcher, my brother teacher and my next door neighbour who happens to be a dental hygienist sells real estate.” So many home buyers and sellers feel obligated to use someone they know. Did you ever wonder what would happen to your relationship if you aren’t happy with the outcome? Are you willing to sacrifice your relationship?
Since there are about 40,000 agents in the GTA, tons of which are part-time, it makes you wonder why so many people look at agents as a dime a dozen.
No wonder why the courts are full of cases – clients suing their agent, agents suing agents, brokerages suing clients, the list goes on.
We all get the same education, we all are supposed to adhere the same Code of Ethics and follow the rules of the Real Estate and Business Brokers Act, 2002, administered by RECO. So what’s the problem?
Would you go to a part-time doctor that performs heart surgery once a year for your surgery?
Wouldn’t you want an agent that is a true professional looking after your most valuable possessions?
How about the ethics of the sales rep? Do they want to spend as little time as possible to make as much as possible? Why is it that 21% of home buyers would have wanted to see more houses?
Why did 15% of the home buyers surveyed say that they would have done a home inspection if to do over again? I wonder if they found surprises? Did their sales rep. really explain the potential problems associated with not getting a home inspection?
How about the consumers, why are they signing documents they don’t understand?
A sales representative that is truly professional will take the time to explain to their clients everything, including their (the agents) legal responsibilities.