REASON # 1
The numbers are In.
Statistics from the National Association of Realtors® prove that homes listed with a licensed full-time agent sell for approximately 26% more than those sold “For Sale By Owner”, even after the commission.
Why?
Mainly because active agents know the market and what a home will bring – and though homeowners know what they want to receive when their home sells, those numbers are rarely the same. A case in point would be Zillow Zestimates, which are not an accurate representation of home values (in fact, they are statistically off by 10-15% in most situations), but most home buyers and sellers are not aware of this fact. An agent will be able to assess your situation properly and position your home to sell for maximum value.
REASON # 2
You can’t beat a person at their own game.
Consider this – you could pull your own bad tooth with a pair of pliers, but the dentist has all the right tools. The dentist went to school to learn and practice the skills. The dentist knows the next step. The dentist pulls teeth every day, but rarely their own! Interview at least three real estate agents before you make a decision, but put your well-being in trusted hands.
You can’t beat the agent at the real estate game because they do it every day, all day!
Additionally, they not only have your data, they have everyone else’s data, and it’s the volume of this data that is invaluable in order to make a fully informed decision.
REASON # 3
You can’t beat the experience.
Full time agents use their skills every day.
They meet with buyers & sellers every day who are looking for the right property or opportunity. That means they form acquaintances and relationships that also prove to be invaluable over time.
Many times, well-seasoned agents have a buyer in mind before they even attain the listing.
REASON # 4
Known objections are not obstacles.
Your agents hear objections every day.
They meet what buyers and sellers often perceive are absolutes and negatives of a situation. What an agent sees is flexible and fixable.
Great agents know the difference and can confidently navigate those treacherous waters because they have overcome different obstacles, many of which their clients don’t even know exist.
REASON # 5
Time is of the essence.
This point is so important, it is literally pre-printed in every purchase contract!
Most people are not aware of all the excuses and obstacles that can unnecessarily prolong a closing. But the best agents can see through 99% of those and will know how to circumvent them or bypass them completely, saving you precious time, and often saving the deal altogether.
REASON # 6
Full time agents are connected.
Agents are actively involved in their community.
They know politics, politicians, municipal plans and even provincial and municipal plans that can affect your pricing. They know developments and improvements in the community.
They know which incentives exist for all types of customers, from first time home buyers to commercial development funding.
They attend PTA meetings, town hall meetings, networking events, churches, synagogues, temples, tennis clubs, Rotary clubs and more. These connections are invaluable to you as a buyer or seller.
REASON # 7
They belong to marketing co-ops.
Realtors ® belong to co-operative listing and marketing systems that exponentially improve your exposure to the market.
It broadens all of your possibilities because we are all working together to standardize the industry, weed out unethical participants and build positive reputations.
These are all direct positives to you.
REASON # 8
Knowing is half the battle.
We grew up hearing this statement, but the truth of it is timeless.
That’s why so many professionals hire career coaches, to teach them what they don’t know – or help them achieve their goals faster.
To give them the skills to avoid making common mistakes, Trust someone who has already been where you are and can help you get where you want to be. It’s the best money you will ever spend. And if you’re a buyer, it doesn’t cost you anything!
REASON # 9
Direct access to the answers.
Henry Ford once said, “Let me remind you that I have a row of electric buttons in my office. All I have to do is press one of them to call the person who can answer any question on any subject I wish to know, relative to the business at hand.”
Real estate agents are surrounded with direct access to brokers, mentors and others who have expertise about any part of the transaction. If they don’t have the answers, it is likely that someone else in their inner circle does.
REASON # 10
Many hands make for a light load.
If you already know that the stats say an agent will most likely net you 26% more on the bottom line, then let someone else do the work!
Focus on all the details that need to happen both professionally and personally when you make a move.
Relax, and let a trusted professional do the heavy lifting. It takes dozens of moving parts just to bring several adults to a closing table.
REASON # 11
They know what is broken about our system.
This is probably one of the strongest reasons to utilize an agent.
Full time agents know what the industry pitfalls are and where the traps lie, such as pitfalls that can be created by government.
Appraisals are one of the biggest traps we have faced in the last decade. Regulators have put all sellers at a disadvantage. But great agents use their knowledge and skills. Countless deals have been saved by those agents because they go the extra mile and bring the correct comps to the appraiser, helping to shape their opinion on pricing and maintain an upward trajectory of home value.
REASON # 12
Sometimes it’s not what you know, but who you know.
We’ve heard it a thousand times. In fact, we say it every time a bad actor gets a $20 million lead role, right?
Full time agents know which professionals to bring into the fold, from contractors to attorneys to lenders.
They use them every day, sometimes for years or decades. You will likely use them only once. You need the pro that knows the pro.
REASON # 13
Agents are like living Groupons.
Your agent can save you more than time. They can save you thousands. They know moving companies, inspectors, landscapers, roofers, painters, pest control pros, and dozens of others that are in the business of making money off you. That means they also know which ones to say away from.
Simply avoiding the rotten apples will definitely make that 2.5% commission seem more affordable.
Your agent can lead you in the right direction to not only save money, but avoid unscrupulous service businesses.
REASON # 14
They’re professional deal makers.
Common sense might make you think that a professional salesperson’s talents apply across any industry, but nothing can be farther from the truth.
We would never think for a second that we could sell a car as well as a person that does it every day. True, a natural salesperson might be able to win the confidence of the potential buyer, but what is the next step? Do they know it?
The next step might be the one that destroys the deal if handled incorrectly.
REASON # 15
They’re professional negotiators.
Negotiating is different than making deals. This is generally done on the back end, when the details come to the surface.
Sometimes, to get a deal to stay together, an agent might have to play hard ball, such as when the other side plays coy or drags their heels, potentially harming you, the client.
Negotiating takes a lot of practice. Most people are just not prepared for the game.
REASON # 16
They plan their work and work their plan.
Strategy is the ultimate master in real estate sales.
Experience provides it’s that extra 5% difference that leads to your 26% better return on your home investment. Full time agents take continuing education courses every year to lean the latest “edge” in the market. Through our associations, we know every new gadget or tool that gives your property the competitive edge. Utilizing your professional agent means you are utilizing the latest and best information on the market.
REASON # 17
You can’t learn what your agent knows from Google.
The profession of real estate is a closed, esoteric system.
Just searching the answers to any provincial or national real estate test cannot teach you everything your pro knows. You might be able to Google how to fill out a contract, but what then? Even if you could find every question and answer that could potentially come up from showing to closing, how long will that take you? Sure, you could paint your own house to save the $6,000 the pro quoted, but after you buy $2,000 worth of supplies, take time off from your profession, spend a week prepping and painting, then two days of clean-up…have you saved anything? And is the outcome as professional as it would have been with the painter who has painted thousands of homes?
REASON # 18
Over thinking anything is more taxing than physical labor.
The brain is a muscle. Over-used muscles hurt, get sore and need recuperation.
Your peace of mind is more valuable than any commission you will ever pay.
Additionally, except in certain select parts of the industry, you do not cut a cheque directly to the broker. The proceeds come out of the closing, and if you are a buyer, you do not pay anything at all! Focus on your bottom line and let your professional fight the others that are after a piece of it. The right agent will never stop fighting for your best interests. We can all use more people like that in our lives.
REASON # 19
Loyalty is priceless.
Everybody needs a Tenzing Norgay. When Sir Edmund Hillary became the first person on record to reach the top of Mt. Everest, Tenzing Norgay was the Sherpa that was pushing him while carrying his backpack! Few have heard of Tenzing Norgay; however, Edmund Hillary received a knighthood for his accomplishment, Here’s a quote from National Geographic’s excerpt on the first ever successful summit. “Now, the British were determined to bring every possible advantage to their spring 1953 offensive – including hiring Tenzing, age 38, as their lead Sherpa.” That is what your professional agent does for you. Namelessly fighting for you to reach the summit. Once you contract with a licensed agent, they are not only required by law to look after your best interests, they willingly offer their loyalty.
REASON # 20
The juice is worth the squeeze.
Over the years agents have heard people say things like, “You made how much on my closing? Nobody is worth that kind of money!” Funny thing is, that kind of comment usually comes from the client they probably just saved from buying a home with a cracked foundation! Keep in mind that a single number on a single line of a multiple – lined accounting statement does not represent your agent’s entire business. Yes, they may make $25,000 on a closing of a million-dollar home, but that isn’t their bottom line. No different than the sales price isn’t the seller’s bottom line.
There are always expenses to doing business. Some of those expenses for a professional agent are quite hefty.To reach buyers and sellers, agents spend thousands of dollars monthly to advertise their services and build the network to sell your house or find your dream home. They spend loads on rewards to loyal clients, lunches, gas, insurance, broker dues, MLS fees, Google Ads, pictures, signs, open houses, events, print material, mail outs, radio ads, websites, flyers, meetings and countless other mediums to display your home or to find you the perfect home. Cut your agent a break!
REASON # 21
They have access to valuable resources.
The modern agent is well – equipped. They utilize the latest gadgetry and technology to perform all kinds of tasks simultaneously. Your agent could be showing you a home while your home is being shown at the same time. In real time, they can communicate with the other agent and gain valuable feedback on your home, while seamlessly pointing out the features of the home they are showing you.
They can also use their exclusive resources to learn exactly how to price your home right the first time, which is one of the biggest mistakes made by many sellers.
REASON # 22
Their teamwork is essential.
“No man is an island.” “We are better together.” “A three strand cord is not easily broker.” All of these are true and timeless points. All agents have a team. Even if they are one agent dealing with one client at a time, that agent has a capable team of contractors, attorneys, mortgage brokers, processors, ad designers, sign makers, inspectors, auditors, engineers and countless other key personnel necessary to facilitate everything from searching and assessing to sale prep and closing.
REASON # 23
They broker.
Let’s define broker so we are all on the same page. Broker is a noun that describes a person in a lot of industries – stock broker, franchise broker, mortgage broker, etc. – but ‘brokering’ (as it pertains to doing deals in real estate) is not a noun; it is a verb and by definition, describes why all Realtors ® are worth a commission.
Broker is a verb; arrange or negotiate (a settlement, deal, or plan)
Synonyms; arrange, organize, orchestrate, work out, settle, clinch, bring about
Notice the synonyms, especially the word ‘clinch’. If your agent can do that, they are worth bragging about. Ask any investor whose agent was able to navigate a multiple offer deal by negotiating terms rather than price. If the meaning here isn’t clear – hire a real estate professional ASAP!
REASON # 24
They’re properly trained.
We have heard many people say. “I can do just a good a job as an agent”. That is just not true, nor is it possible without the proper training it takes to understand all the nuances of the industry.
Not only are agents properly educated and licensed to conduct business, they are required to take continuing education credits throughout their lifetime in the profession. Not all agents are created equal, but if an agent is worth their salt, working to better their craft and excited about being successful, they will be the best investment you’ll ever make in real estate.
REASON # 25
They have the eye.
Staging is key. Great agents know how to make a property stand out and shine. They know a picture is worth thousands of dollars! We’ve seen professional photographers who pale in comparison to an agent with a great eye for real estate photos. Agents know how to portray a story with the photos. They know how to highlight the positives and properly address the negatives.
Choose an agent that displays their listings correctly. One good indicator is how well they present their own marketing.
REASON # 26
They are 24/7.
Seven days a week, 52 weeks a year. If your experience was different, find the right one next time. The best agents have their family trained to expect a little interruption.
Obviously, everyone needs down time and the proper priorities, but great agents are worth the money because they are there when you need them. They often answer the phone on vacation or at a minimum, have systems in place to keep you (and their other clients) on track in their absence.
REASON # 27
The wisdom of the age of the industry.
Real estate for a fee has been around for over 100 years in Canada.
“Under all is the land”, is part of the NAR’s (National Association of Realtors ®) motto and code of ethics.
“We have been honing the industry for all of those years. Setting systems in place to help sellers, creating mandatory ethics classes for all agents, disciplining ourselves for the betterment of every customer and transaction. Our industry leaders lobby for better training and laws that protect the client from fraud and the agent from non-payment for services. In the end, all are better for it.
REASON # 28
They care.
Great agents care about people.
At their core, are simply great people. You want them in your neighbourhood and in your communities. The real estate business is not for the faint of heart. It can be complex, exhausting and often frustrating. Those who tirelessly focus on their profession and craft are the ones who truly care about the outcome and those they serve.
REASON # 29
They belong to professional networks.
Great agents have tentacles that reach in many directions. Associations such as the Real Estate Council of Ontario, the Canadian Real Estate Association, MLS ® Multiple Listing Service, private memberships, political organizations, etc. A great agent knows almost everyone.
This can be especially valuable in situations where you may be moving to another city or province and need the services of another reputable agent. If your agent can lead you to the right person when you need it, that will reflect on your bottom line in more ways than just financial.
REASON # 30
They’re the first to know.
Real estate agents are the first to know of any properties that are coming available or even off – market. They also know buyers who are interested in purchasing.
Many times, agents have sold a property before it ever hits the MLS because of this knowledge and their relationships.
REASON # 31
How could so many people be wrong?
The facts are clear. The online source National Association of Realtors® releases stats about real estate agents.
Here are a few highlights from their May 2021 report:
- 91% of all buyers say they would use their agent again or recommend them to a friend – Again, this only solidifies that technology isn’t out to squash all personal engagement between Realtors ® and clients. Home buyers are still looking for a personal touch.
- 88% of first time buyers are buying homes through an agent. Just because these first time buyers are looking online for their homes, they’ll still turn to an agent when it comes to making the big decision. Keep in mind these first time buyers are most likely millennials or long term renters and will need as much guidance in the home buying process as possible.
- 88% of buyers purchased their home through a real estate agent. But among those who used the internet to search homes, that share goes up to 90 percent.
IN CONCLUSION:
When you figure there are over 135,000 active real estate agents and over 551,390 units that get sold last year in Canada alone, that represents a huge number of people that utilize and pay for an agent to help them navigate the highly competitive and complicated process.
Now contrast this fact – The Canadian department of labour reports the average pay for a real estate agent is about $58,292 per year, (or $28.00 per hour worked). That’s based on a 40-hour work week; however, most full time agents work an average of 60+ hours per week. And take into consideration that many make themselves available 24/7. It makes the next statement abundantly clear.
Agents are valuable. They can make you money and definitely save you money. That makes them worth the compensation. When you factor all the value of these reasons and compare it to the compensation level for the profession, it starts to look like agents need a raise! I am sure ALL of them would agree on this point. As it pertains to future clients – if you have chosen the right agent, then you have found a friend for life – a competent business associate, a loyal confidant, a counsellor, a rock, a protector and maybe even a new family member! Yes, we’ve heard of great agents being adopted into families before! The point is made. Real estate agents love their profession and YOU are the real reason why. So with that, let us say “Pay your agents, tip your waitresses, don’t lie to each other and may God always bless!”
