Fortunately, real estate is a topic that many people find interesting. But because of the media coverage and variety in experiences, there is a lot of misinformation out there. This week I got to share with a wonderful group of female entrepreneurs the top 5 things I wish people knew about my industry. I thought I’d share:
1. Not all realtors are equal – There are 60,000 of us in the GTA and a huge variance in quality, motive, experience, and what they offer as part of their commission structure. Agents worth their salt are able to explain exactly how they can provide value and why they might be a good fit. Be careful of hard sales tactics and getting pushed or rushed into decisions. Real estate transactions involve a huge portion of people’s assets and it’s an emotional process. It should be handled with expertise and care.
2. It’s okay to interview – Many people work with the first person they meet or whomever they know in the business. It’s okay to interview several realtors to see who is the best candidate to help you. Referrals are a great way to find high quality professionals and you can still ask questions to ensure that they are the right fit to meet your needs. Examples of questions that you can ask include –
Does this Agent:
– Take the time to listen and understand what’s important to you in your experience and final result?
– Seem genuinely interested in helping you achieve your goals?
– Have experience with tricky or difficult deals?
– Seem knowledgeable and have sufficient experience?
– Have the time and capacity to give your listing enough focus?
If you’d like the full roster of questions for buying and selling interviews feel free to reach out.
3. Home estimates – While I’m able to give ballpark estimates for homes, if I’m giving an appraisal of value (what I think a seller’s property should list for or how much I think a buyer should offer), this is not a quick process. I usually like to sit down with comparisons, an Excel sheet, and take some time to evaluate properties several ways. Appraising is not an exact science and usually ranges are given to account for a certain degree of unpredictability (this week a buyer is willing to overpay because this is the 10th house they’ve made an offer on, and they have a new baby on the way – next week it would have sold for a different price).
Be careful of working with the realtor only because they gave you the highest value on your home. They should be able to substantiate any value they give you with comparables and rationale. Pricing decisions are most effective when they are reached collaboratively. Ultimately the home is worth what the market will pay at a particular time.
4. Staging and property prep – These things matter on both the buying and selling side. This is particularly true in communities that appreciate and that value style, quality, and finish.
As a buyer, try not to get caught up in it. Look past the staging and decor and try to vision rooms empty. Focus on the meat and potatoes of a home. Subtle details can unconsciously influence your decision and most buyers are making these decisions within seconds of viewing a property. If a property is staged and designed well, you must consider that this will impact the price on offer night if you are in competition.
As a seller, don’t underestimate the value of investing in it. While it may seem like a hassle or unnecessary extra charge, the right fixes, upgrades, staging, and painting can make a big difference to your sale price. A savvy realtor can help you target the fixes, upgrades, and property prep that will yield the most return on investment. The name of the game is eliciting an emotional reaction from buyers and allowing them to connect to the home and envision themselves there.
5. Online resources can be a good or bad thing – Just like social media and web searches in general, take online real estate articles, websites, and resources with a grain of salt.
– Try not to look at too many homes outside your budget as it will taint your impression of what you can afford.
– Take the price estimates as a rough estimate not an exact value. While the websites like Housesigma are great, they also aren’t always accurate. It’s particularly tricky to predict 1.1M+ condos and 2M+ houses.
– Try not to spend too much time dwelling after you buy. Make confident decisions with the best information and market conditions you have at the time. Hindsight is only productive if it informs future changes in approach.
Hopefully this gives you a little insight into an industry that is both familiar and shrouded in misconception. For more blogs breaking down industry concepts and decoding real estate check out the Vault section of my webpage and Real Estate 101 header.
Photo by Austin Distel on Unsplash
