PURCHASED UNDER ASKING!! A story of how a home was bought for less than asking in Toronto’s crazy market.
What makes you choose one agent over another? What skill sets are you looking for? Do you ask for a commissions cut? Do you bother asking what duties and services the agent provides prior to asking for a commissions cut?
There are approximately 40,000 realtors licensed through TREB. Roughly 80,000 properties sold last year in Toronto. That is two deals per agent.
Does your agent drive a cab, work in the service industry or public sector part time? I’m asking because each question is worth money. You should be asking.
A realtor needs a variety of different skills to be effective, to do their job properly. A realtor’s true job is to act as your spear and shield on the battle field of negotiations. You could teach a monkey to send you listings or point to the pantry in the kitchen while visiting open houses. Monkeys are cute and can be bought with bananas but you don’t want one handling the biggest financial transaction of our life.
A realtor essentially fights to get as much money as possible for your home while trying to reduce the purchase price of the property you’re buying. In this hot, crazy, multiple offer riddled market I’m mostly determining value based on intimate knowledge of comparable sold listings while managing the expectations and emotions of my clients so they don’t do something they regret like miss the perfect house over a few thousand dollars or agregiously overpay.
The home above was listed for multiple offers but on the offer date my clients and I where the only game in town. I presented our below asking offer and was quickly told that the sellers where looking for over asking. The house was worth it. Recently sold, comparable homes suggested a price point at least 15K over asking.
It took some negotiating but we got the house 10K under asking, 10K less than a house that just sold on a less desirable section of the same street without a garage. We were all looking at the same information and statistics but I was able to present our position in a way that swayed the minds of the seller and listing agent.
If I was worried about paying my realtor desk fees, or being late for my “real” job if negotiations took too long I wouldn’t have been capable of bending the will of the sellers. If I was doing this part time I would not have had the confidence, intel and skill necessary to demonstrate I’m an authority in the industry, that my research is valid, that my position on value is correct.
My clients were willing to pay more but they trusted me to shave the price just enough to get the best deal possible while not blowing the negotiation.
When choosing a realtor look at the big picture, focus on the big number, the number with 6 to 7 zero’s behind it. A competent realtor will more than makeup the full commissions simply through negotiations, research, and design alterations to make prior to listing your home will dramatically improve value.
Money is just dirty paper until you wield it in a way that changes your life. Don’t march into battle with a cheap spear or shield. When your ready to make a move call me I’ve got you covered.