What to Expect From Your Realtor

By Kyla Milette | 6 minute read

For first-time home sellers, navigating the world of real estate can feel daunting in the beginning. Not only is finding a potential buyer a complicated task, but all the legalities surrounding the process can be overwhelming to break down as well.  

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Fortunately, having a real estate agent by your side to represent you will make the process go a whole lot smoother. Your agent is there to help you avoid potential pitfalls, guide you through the process, write and negotiate a legally binding contract, and ultimately help facilitate the completion of buying your new home.

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Here we’ll get into some details on what to expect from a realtor when selling a home and discuss the role of the seller’s agent. We’ll also highlight some of the risks of selling without a listing agent and how to choose the right realtor to help you sell your new home.

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Is Working With a Realtor the Only Way?

Not necessarily. Much like a buyer can represent themselves, so can a seller.

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In Ontario, realtors usually work with sellers in one of two ways:

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By having the seller sign a Customer Service Agreement, making them a customer. When you’re a customer, the agent does not work solely in your best interests and provides restricted services.

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By having the seller sign a Seller’s Representation Agreement, making them a client. In such an instance, the agent has a fiduciary duty to promote and protect the seller’s best interests at all times. If a seller wants to represent themselves, they can choose to be a customer, or they can choose to refuse to sign the Customer Service and Buyer Representation Agreements. Sellers can also hire DIY companies to sell the home themselves, but with some assistance. 

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As you can probably already tell, having a realtor represent you will likely save you potential headaches throughout your home-selling journey. A realtor will also take on all of the initial costs of marketing the property. 

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Are All Realtors the Same?

As you carry forward on your journey to sell your home, you’ll likely come across many different words, titles, and jargon that can be a little confusing.

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When people talk about real estate professionals, they may use different titles interchangeably. And while they’re all very similar and closely related, they each have their own distinction that buyers and sellers might want to understand before choosing one over the other.

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The common titles you’ll learn here are real estate agents, realtors, and brokers.

Realtors

Also commonly referred to as a real estate agent or “salesperson,” an agent needs to be working under a real estate brokerage in order to practice their profession. All deals must go through the brokerage that the agent works for.

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Realtors represent buyers and sellers in real estate transactions and have a fiduciary duty to work in the best interests of their clients while still treating all other parties in the transaction fairly and honestly.

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When it comes to putting your home on the market, just remember the listing agent, also known as the seller’s agent, represents the seller. The selling agent represents the buyer, also known as a buyer’s agent.

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Realtors can be thought of as agents who are also members of the Canadian Real Estate Association (CREA). To maintain their status, realtors must pay an annual membership fee and complete ethics training on a continuing basis.

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They must also promise to uphold the entity’s Code of Ethics, a program that ensures all members maintain a certain standard when practising real estate.

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Broker

A real estate broker is a professional who manages or owns a brokerage and is responsible for overseeing all deals that come through. Brokers can work independently without being tied to another brokerage as they themselves are brokers. They may also have the freedom to choose to be a part of a real estate agency if they wish.

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Education is a key factor in distinguishing a real estate agent or realtor from a broker. A salesperson can achieve the broker designation by completing additional courses and exams after having been registered as a salesperson for at least two years.

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While a broker may possess more training than an agent, there’s no guarantee that they will find you a better deal on your home any more than a realtor can.

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RECO Code of Ethics/Governing Body

To become a real estate agent or salesperson in Ontario, an individual must take specific courses and pass the associated exams to obtain a licence to practice real estate in Ontario. The  Real Estate Council of Ontario (RECO) is the entity that oversees the training and licensure of agents in Ontario.

Benefits of Using a Realtor

When you attempt to list a home unrepresented, there are some challenges you’ll face, especially if you’re a first-time seller. Unless you have experience in real estate, having an agent gives you access to knowledge, insights, and networks within the real estate market you otherwise would be unlikely to find on your own.

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A realtor’s role is to work within your best interest, provide and gather information on neighbourhoods and homes, help you avoid potential pitfalls, write and negotiate an offer on your behalf, and ultimately guide you through the whole selling process until you can finally put up that “Sold” sign!

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Other key benefits to having an agent represent you include:

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• helping with financing and closing costs preparation;
• providing you with a comparative market analysis;
• educating you on your options as well as any potential barriers;
• sharing their network of professionals you’ll need for the process (mortgage broker, inspector, lawyer/notary, etc.); 
• drawing up legally binding contracts in your best interest.

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It’s also important to note that licensed realtors must carry errors and omissions insurance, which financially protects their clients should a negligent mistake occur during the transaction.

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Types of Listing Agreements

As a home seller, you will need a realtor and brokerage to list your property.

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Listing agreements between sellers and real estate brokers create a fiduciary relationship between the two. Once you sign a listing agreement, the broker will do all that is necessary to market and sell the property using suitable advertising materials and channels.

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It’s important to understand the terms and conditions of a listing agreement, particularly the commission clause and cancellation clause when you sign with an agency to represent you. There are two main types of listing agreements commonly used here in Canada.

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Exclusive Listings

This type of listing gives the broker and agents exclusive rights under the agency to represent the seller. The broker is paid a commission even if the seller can eventually find a buyer on their own.

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Exclusive listing agreements vary in length, depending on the market. The hotter the market, the shorter the agreement. In slower markets, an agreement can be as long as six months to a year.

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Non-Exclusive Listings

In a non-exclusive listing, the property is posted and other agents can bring buyers to the property. This type of agreement gives more exposure to a property and is the more common type of listing in Canada.

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If your property is listed with a broker, it is more difficult to cancel this listing to hire another broker. You will need to wait for the listing to expire unless you change your mind about selling the property.

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Final Thoughts

When putting your house on the market, it’s important to familiarize yourself with the market and real estate industry regardless of your decision to hire a realtor or not. Investigate all of your options and interview at least three realtors to compare fees and services offered.

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Selling a home can be a long and arduous process depending on the market you’re in. Real estate agents are here to help you and make your life easier when it comes to listing your property and providing you with the best value.