Recently a letter was published in the Toronto Star that was misleading about many things Realtors do. It also alluded to the fact that the writer did not believe Realtors earned their commissions. The reality is that what a sales representative does is very detail-oriented work that often begins well before your home is listed.
Before most agents walk out the door to go to an initial listing appointment they have already done between 10 to 15 hours of preparation for the appointment. The home’s sales history is brought up. Neighbouring properties are researched to see if comparable homes have been sold, expired or are currently listed. This doesn’t even include the daily tracking of local statistics to stay on top of the ever- evolving real estate marketplace.
Once this preliminary work is completed, the agent meets with the potential client. This takes anywhere from 4 to 15 hours depending on the home and the client. This consultation usually involves measuring the home and itemizing the type of service the client can expect. The service is essentially the blueprint the agent uses to help sell your home. Before leaving, the agent will likely schedule a time to follow up for second appointment, because agents are in competition for listings in most cases.
This means more work back at the office. Expect your agent to take your information and compare it to other comparable properties in your area. This takes between 4 and 8 hours to compile what is known as a Current Market Analysis. Through this process your agent will have determined an appropriate price range in which to list your home.
Following this fact-finding mission, the realtor heads out to meet with the client for a second time. This time the agent will discuss the conclusions of the Current Market Analysis of your home. At this point the agent had worked for between 18 to 38 hours without any compensation whatsoever. The average agent lists approximately 1 in 5 listings. A good agent will list 3 in 5 listings, meaning that almost half of the time a realtor does all of this work and never receives any payment.
Once a property has been listed with the agent, a listing file needs to be prepared. This is the information that concerns surveys, current property taxes, statements concerning the condition of the property and compiling listing documentation. In addition to this the property is photographed for the MLS and for any advertising. All this takes between 10 to 15 hours.
Next the agent needs to promote and market the property. The agent will invest a couple hundred dollars to several thousand dollars to promote and market a specific property. The average showing takes 1 hour. An open house takes 2 hours, with 3 to 5 hours of preparation. With all this the agent has put in somewhere around 30 to 35 hours without ever receiving a penny from the vendor, and has likely spent around $500 to $1000 dollars to market the property.
Having said all this it is clear that the agent has made a substantial investment of time as well as money on a property that may or may not sell.
Now, hopefully an offer will come in that will turn into a sale. Your agent will invest the time and energy to explain the offer and help with the negotiation process to get you the most money possible for your home. This process can take only 2 hours or it can stretch out to days in some of the more difficult negotiating scenarios.
When it is all said and done, the vendor and the agent have both taken a risk that has hopefully paid off. Agents depend on listings to generate buyer leads and additional business. Vendors need their home to sell for a variety of reasons and the guidance they receive from their sales agent is invaluable in most cases. The agent has put their own time and money on the line in order to support the vendor and to assist them throughout the sales process.