Are Realtors soon to be obsolete?

Are Realtors soon to be obsolete?

Are Realtors soon to be obsolete?

The need for an agent in the selling process is dead. Or so believes many investors that are getting their lawyers to do the hard work.

An increasing number of buyers and sellers are ditching their real estate agents in favour of lawyers to save cash.

Seasoned landlords say they get their lawyers to handle all of the paperwork and negotiation with the whole transaction costing, on average, around $1,000 including HST.

Private selling has become more commonplace as buyers become more informed and in-tune with the entire process.

But the issue ignited a huge debate amongst investors and service providers.  Agents argue that sellers “usually end up getting a lower price than an agent would have gotten for them. This is likely due to the fact that in a private deal, both parties recognize there’s money left out of the equation; the commission.”

Larry Frondall, a Calgary-based underwriter, said lenders get “nervous” when handling private deals as there is a greater potential for fraud. He says that buyers would have to undertake the role of the Realtor in such cases and do all of the “leg work” including the checking of all comparable properties in the neighbourhood and pulling a copy of the property’s title for review.

The issue of security, says investors, need to be also considered. “When you open the door of your home to a potential buyer, what do you as the seller know about that person?  Are they simply casing the joint for a robbery the minute you leave the place?” said one landlord.

59 Comments
  • Mark Balcar 2014-06-25 1:34:03 PM
    I think it depends on the client. Some need that extra hand and help while others are seasoned or own commercial property and may not require a Realtor. When in doubt use one.
    Post a reply
  • Mark Balcar 2014-06-25 1:34:14 PM
    I think it depends on the client. Some need that extra hand and help while others are seasoned or own commercial property and may not require a Realtor. When in doubt use one.
    Post a reply
  • A Broker 2014-06-25 1:42:41 PM
    Good idea to keep the realtors out of it. Have an appraiser evaluate your home, contact a "real estate" lawyer (not just a lawyer friend of the family who does not handle real estate), have a professional sign printed up and advertise on Kijiji or similar site and always ask for ID and proof of financing approval. Keep in mind when a realtor shows your home either solely or on an open house they do not keep an eye on who is wandering through your house. If a professional thief is going to case a house they are going to see a lot more houses through a realtor's open house. Keep in mind also that realtors list your home, put it on MLS and hope that someone will have a buyer for it. How many tens of thousands of dollars does that cost you.
    Post a reply