There has been a lot of talk about ‘mere postings’, a la carte, do it yourself, full service, and more, but what are these choices really?
The publicity surrounding the Competition Bureau challenge to the real estate industry has brought to the forefront of our real estate profession, the variety of choices available to the consumer. These choices have always been there, but not everyone was aware of it. I would like to outline how each works.
This is a term that has been used to describe a situation where a home owner has decided to sell their home themselves, but wish to use the http://www.realtor.ca website to advertise their property. To do this, they must list their home with a REALTOR®, but decline any service offering the REALTOR® might normally provide. REALTORS® are not required to provide this service, and many do not. REALTORS® who do provide this service do so at various prices. One thing to be aware of is that the property listing will show on the real estate board where the REALTOR® is a member, not necessarily where the property is located. For example, if you use the services of a Toronto REALTOR® to list the property and the property is in Hamilton, it will appear on the Toronto Real Estate Board, not Hamilton. The fees charged are generally paid up front and are non-refundable.
A La Carte
This model describes a system whereby a homeowner can select from a menu the services they wish to use a REALTOR® for. A fee is generally assigned to each service. For example, a homeowner could select placing their property on the MLS®, having a market evaluation done, negotiation of offers or any other combination of services outlined. Depending on the number of services requested, the price can vary greatly. The fees are generally paid up front, and no refund is provided if a sale is not completed. Also the homeowner is responsible for any marketing or advertising costs they might incur.
Do it Yourself
Much as the name indicates, the homeowner takes 100% responsibility for the sale of their property. This method does not involve the help of a REALTOR® and does not provide for advertising through the http://www.realtor.ca website. The cost of sale is paid 100% by the homeowner.
This describes the situation where the homeowner enters into a contract with a REALTOR® to sell their home. The fee for this service is set by the particular REALTOR® who is hired. The services provided should be outlined for the homeowner at the outset, and the homeowner should be fully aware of what to expect from their REALTOR®. Studies in the United States have shown that using the services of a REALTOR® to sell a home will result in a higher dollar received by the homeowner. By this I mean that after all the fees are paid, the homeowner has more money in hand to buy another property or whatever else they intend to use the proceeds for.
The fees charged for this model are paid only upon negotiating an acceptable sale, and are paid once the homeowner has received their money from the buyer.
I hope these brief descriptions have shown the difference in these service models. If you are considering selling your home, perhaps they will have helped you better decide which is the right way for you. If you wish more information about what services a Coldwell Banker Pinnacle REALTOR® provides, please give one of our representatives a call. They will be glad to meet with you to discuss this fully, and you are under to obligation to use their services, unless it is the right choice for you.