Over the years, our team has fielded a lot of questions about real estate commissions. As agents, we’re frequently asked questions like: How big is our cut? What services do our fees pay for? And what’s to stop our clients from getting rid of the middleman and going it alone?

The truth is, some people decide to navigate real estate transactions without professional guidance, and some are successful. But before you decide which approach you want to take, you should understand what a real estate agent can (and can’t) do for you — and how much you can expect to pay if you work with one.

If you’re wondering whether hiring a real estate professional is worth the money, read on to learn how agent fees break down…

The Basics

No doubt about it: there are a lot of misconceptions about how we agents earn our fees. Many professional service providers charge by the hour — like lawyers or movers, for example — and some clients assume that we use the same model. In reality, we only get paid if a deal is successful. Put simply, if a home doesn’t sell, the agents involved generally don’t receive a penny.

From a consumer’s perspective, this arrangement removes a lot of the financial risk that would otherwise accompany working with a different professional, even within our same industry. Let’s look at it this way — it can take anywhere from three days to three months to simply locate a listing that might suit a particular clients’ lifestyle. If we charged that client by the hour (or even the day) for the time we spent helping them, our costs could end up even more expensive than the home itself!

The second major misconception has to do with who pays us. There are two agents in a typical real estate transaction — one who works on the seller’s behalf, and one who represents the buyer. You might expect that each side gets paid by the client who hired them. Not so. When a deal is completed and the seller receives their money, they then automatically pay a percentage of their earnings from the sale in commission to the agents on both sides of the deal.

Real estate agent commission fees aren’t the only costs you should be aware of ahead of time if you’re planning on buying a home. To learn more about which fees you can expect to incur (and when), read our blog post on the Hidden Costs of Buying a Home You Need to Know Now.

How Much Do Sellers Pay?

The commission that comes out of a transaction is typically between four and six percent of the final sale price of a home. In most cases, the commission is usually divided in half, meaning that each agent gets 50 percent of the overall amount.

Since sellers are responsible for paying this amount, it might sound like buyers receive professional services for free, but that’s certainly not the case. The fees are built into the transaction, so in actual fact, it’s the buyers who are providing compensation for the agents when they purchase their new home.

Sellers should know that while four to six percent is quite standard across the real estate industry, you may be able to negotiate this down to a lower amount with your agent. Just be aware that it’s not just about getting your own agent to agree to the lower commission rates, however.

The commission you’re willing to provide to the buyer’s agent will also be visible on your MLS listing. Although we as agents are bound by RECO, our governing body, to show all properties regardless of commission, there are some buyer agents who are less likely to show homes when the commission rate offered to them is lower than that of a comparable property. It’s a frowned-upon practice, but it does happen.

With that in mind, offering a percentage that’s on par with what’s being offered in your neighbourhood will be a better approach to helping you attract the attention of buyer’s agents (and, by extension, home hunters). The last thing you want here is to sacrifice what could be a very lucrative sale for you just because you want to save a few dollars in real estate agent commissions fees.

Remember; the more competition you can create in the form of eager bidders fighting it out for your home, the more chance you have at fostering a bidding war and driving up the final sales price of your home. While that means more money goes to the agents, it also means more money in your pocket at the end of the closing day too.

Want to learn more about the advantages as a seller of creating competition between buyers for your home (and how to handle them)? Read our related blog posts all about bidding wars and how to navigate through intense negotiations successfully here:

• ​​How Sellers Can Make the Most of a Hot Market
• How to Survive a Bidding War
• What Is a Bully Offer—and Should You Make One?

Which Services Are Included?

Now you have a fair idea of what you can expect to pay in agent fees if you work with a professional. But what exactly will you be paying for? The answer is, it depends.

Pricing, marketing, qualifying buyers, negotiation expertise — it all falls under the umbrella of what a good seller’s agent should provide. That said, the specifics will vary from one professional to the next.

For example, some agents include staging and photography as part of their services, which sounds enticing, but can drastically vary from one agent to the next. The quality of a staging job or the standard of a home improvement project or even the quality of the images captured of your home may differ significantly depending on which agent you go with.

That’s why it’s important to research your listing agent’s previous work, look through their Sold Listings page online (should they have one), read their Google Reviews, and if possible, personally speak with some of their previous clients to see if they were pleased with the service. Learn as much as you can about a listing agent and what they’ll actually provide you with beforehand and the process of choosing one to assist you with your sale becomes markedly easier.

If you’re a buyer, an agent that earns their commission will be able to provide you with a long list of value-added services too. A great buyer agent will help you find homes that meet your unique criteria of needs and wants. They’ll also be able to help you submit compelling offers for those homes, as well as negotiate optimal deals for you on your behalf.

Most importantly, a talented buying agent will help you feel calm and composed through the entire process by guiding and informing you through each stage of their approach. As is the case with sellers, buyers should have an in-depth discussion with any professional they’re considering working with about the services that will be included, as well as any qualified references they may have (or you might find on your own).

At Woolcott Real Estate, we believe that going to extra mile for our clients should be the bare minimum we offer to them. Whether you’re a home buyer or seller, you can learn more about the value-added services we offer to all of our clients through our informative pillar pages below.

• Our Buying Advantage
• Our Selling Advantage

The Bottom Line

The decision of whether to work with a real estate agent or opt not to, whether you’re a buyer or a seller using the FSBO (For Sale By Owner) method, is a completely personal decision. The being said, if you do decide to hire a professional real estate agent, one thing is for certain — you deserve to know how your money will be spent.

Before agreeing to work with an agent, be sure to have a direct conversation with them about their commission rates and what (exactly) you’re going to receive in exchange for paying them. If they become uncomfortable with the conversation or dismiss your question under the guise that their rates are an ‘industry norm’ without detailing what their process looks like and includes, then they’re probably not going to provide you with any sort of premium real estate services.

Find out the latest news about the real estate in some of our recent posts:

• What’s Your House Really Worth?
• Housing Market Predictions for 2023
• How To Negotiate A Real Estate Contract

Every Realtor® should be comfortable articulating what their services include, no matter if they’re acting as a buyer or seller’s agent. The more you request clarification and transparency from an agent, the more you’ll feel comfortable with their rates of service, and that’s a luxury every client can afford.

Interested in learning more about real estate agent fees and services? Or, anything else related to buying, selling, or investing in real estate? We’re always available to schedule a chat. Contact us here to start a no-pressure conversation — we’re happy to answer any questions you might have about real estate!

If you’re preparing to buy a home, you may be unsure whether to choose pre-construction or a property that already exists. There can be significant benefits to purchasing a place that hasn’t been built yet, though it isn’t for every buyer. Fortunately, a little knowledge can go a long way.

If you’re deciding whether to buy a resale or pre-construction home, here’s what you should know…

What to Know About Buying Resale

If you’re considering a resale home, there are a few basic facts to know about the buying process. Below are some of the important to be mindful of.

At the beginning of your search, mortgage pre-approval is crucial. This step occurs when a lender goes through your financial situation and tells you how much mortgage financing you’ll likely receive. Having pre-approval matters to sellers—and helps you budget.

Next up, your deposit. This sum, which you’ll typically owe to the seller’s brokerage within 24 hours of signing your purchase agreement, forms part of your down payment. While there’s no minimum amount, 5 per cent is fairly typical.

It’s also important to know about conditions. When you’re putting together an offer, including them will protect you by reducing the risks associated with your purchase. For example, a financing condition makes your purchase contingent upon your ability to secure your mortgage.

When it comes to closing, there are an assortment of costs you must pay. The total usually falls within the range of 1.5 and 4 per cent of your purchase price. Closing costs include things like your legal fees and land transfer taxes.

There are some similarities between buying a pre-construction and resale home (such as how conditions work), but there are a fair number of differences, too. More on that in a moment.

Why Resale May be Right For You

For some buyers, it’s one of the biggest advantages of buying a resale home. You can walk around an existing house or condo and really get a feel for what living there is like. While detailed floor plans can tell you a lot, some purchasers just won’t feel comfortable unless they can see a place in person.

Another major advantage (at least if you want to move right away) is the ability to take possession of your resale home immediately. Depending on your circumstances, a speedy timeline may be a must.

When you’re buying an existing property, the process of getting a mortgage—and knowing what your payments will be like—may also be simpler. That’s due in part to the fact that interest rates won’t change, and neither will your income.

These are a few of the advantages of choosing a resale home, but there are also many associated with pre-construction. Let’s take a look at a few of them.

Are you preparing to buy property? Whether it’s your first time or you could use a refresher, here are a few handy posts on the purchase process:

• Hidden Costs of Buying a Home You Need to Know
• What Not to Compromise on When Buying a Home
• Decoding Changes to the Mortgage Stress Test

The Lowdown on Pre-Construction

Purchasing pre-con is unique. If you’re considering a brand new property, you should understand the process—and how it differs from buying an existing home.

One of the biggest differences is the timeline. You should be aware that the average time between buying a pre-construction place and taking possession of it can be years (often as many as 3 or 4). Construction delays of a few months are common.

Once your property has been built, there will be an interim occupancy period. During this time (which typically lasts a few months or more), you can move in or rent out your space, but you won’t officially own it. You’ll owe occupancy fees to the developer, which are approximately equal to interest on the unpaid balance of your purchase price, along with municipal taxes.

Let’s move back a few steps. When you find the right pre-con home, you’ll need to put down a portion of what is typically a 15 to 20 per cent deposit. This is usually a $5,000 or $10,000 initial deposit, with the rest paid in installments in the months and years ahead.

Another key difference is the opportunity to back out of your purchase for 10 days after you sign the contract. This is what’s known as the cooling-off period, and it doesn’t exist when you’re buying resale.

In most cases, buyers of brand-new homes are also given customization options. Developers frequently offer you a choice of finishes, fixtures, and appliances—and the preferences you go with can help you feel more at home.

Lastly, when you’re buying a brand new property,  HST, totaling 13 per cent of your purchase price, needs to be considered. We advise connecting with an accountant, but a rule of thumb is you typically don’t owe it if you are buying as a personal property, and you can get most or all of this amount back through a federal rebate if you are purchasing as an investment property with a one year lease signed.

These are just a few things to know about securing a pre-construction living space, but what are the advantages?

Reasons to Consider Pre-Construction

First off, if you buy a pre-construction home you’ll enjoy the stability (and reduced stress) that comes with paying a fixed price. Forget about bidding wars—they don’t apply. If it’s a condo you’re buying, your maintenance fees will (usually) also be lower than they would for an existing unit. That said, be aware that they tend to rise fairly quickly.

Another big benefit to this property type is the potential for price growth. Your new home will very likely begin to appreciate in value during its construction. And once you make your purchase, it’s going to be a low-maintenance investment until you take possession.

When it comes to your down payment, the flexible deposit structure (which allows you to pay in installments) gives you time to save up. In other words, you don’t need to have all of your funds together at once.

Your 10-day cooling-off period will give you the chance to have your lawyer review your paperwork in close detail, while the chance to customize your space is a benefit in its own right!

You’ll also get a Tarion warranty, which will cover a wide variety of defects. At the 1, 2, and 7-year marks, you’ll receive different levels of coverage.

Have questions about buying a brand new home? Learn more by checking out our Pre-Construction FAQs!

Making Your Decision

When you’re trying to decide between pre-construction and resale, understanding each process—from the timelines to the costs involved—is key. From there, it’s a matter of finding a real estate professional who has a proven track record of helping buyers!

Interested in learning more about buying? Whether you’re purchasing a resale or pre-construction home, we can help! Get started by reaching out right here!

Have you been thinking about putting your home on the market? If you’re like many sellers, you may be wondering whether to sell now, or wait until the timing is perfect. The good news is, if you live in Hamilton, the right time might be now. 

If you’ve been thinking about selling your Hamilton home, here’s why you should consider doing so sooner rather than later…

It’s a seller’s market

The numbers are in for September, and they’ve highlighted what real estate agents already knew: the Hamilton market is hot. The average sale price for the month was $881,656, up 5 per cent from the previous month and 22 per cent from September of last year. That’s good news if you’re thinking of selling—it means buyers are willing to pay a pretty penny for the right property.

While it’s true that home sales were down, active and new listings plunged even lower. That means there are more buyers than sellers in the market right now. In other words: there’s plenty of demand, and you may find that multiple buyers are vying for your property.

Of course, the state of the market is just one piece of the puzzle. There are a few other factors that make it a good time to sell in Hamilton. Let’s take a closer look.

Gearing up to sell your home? Whether this is your first time or you’ve been through it before, get prepared with some of our selling resources!

• How Sellers Can Make the Most of a Hot Market
• 5 Seller’s Mistakes to Avoid
• Why You Should Work With a Local Agent

There’s a buzz about the city

As a local resident, you probably know that Hamilton has moved past its former steel-town reputation to become one of the country’s trendiest locales. Well, there’s a lot more where that came from! 

The city’s “it” status is about to be further solidified. From new revitalization efforts to transit upgrades, Hamilton just keeps getting better and better. As a result, we can expect more buyers from the GTA (and beyond) to come calling. 

To start with, there’s the upcoming construction of light rail transit (LRT). LRT is a quick and cost-effective mode of transportation, and it’s going to make getting around the city much easier. Not only that, but Hamilton’s GO Train lines are expanding. Future plans include more service to West Harbour Station and the upcoming construction of Confederation Station. 

Speaking of West Harbour, it’s going to be one of the city’s most exciting communities. An impressive $140 million is going into redeveloping this mixed-use, waterfront area. It will feature beautiful homes, parks, recreation…even food trucks and concessions.

Another exciting step forward will be the opening of AEON Bayfront Studios, a large hub for film and television productions. Once this happens, we can expect to see an influx of industry professionals in the city. It’s just one more way that future development is likely to boost housing demand.

Trying to decide on the next place to call home? Check out Hamilton’s Top 5 Up-and-Coming Neighbourhoods to get some ideas.

Young buyers are moving up

A May report from Teranet states that nearly 70,000 Ontarians moved to the suburbs during the pandemic—and that number is likely even higher now. It’s no surprise. For months we’ve been hearing about Torontonians who have opted for more square footage and a yard during lockdown.

While Hamilton is a lively city in its own right (and home prices here have risen in recent years), it’s still more affordable than Toronto. That’s something that many young Torontonians are keeping in mind as they continue to reconsider their current lifestyles.

So if you’re planning to sell your home in Hamilton, you might just find that the buyer pool is a little larger than you expected.

The best time is your time

It’s true that timing can make a difference in real estate. That said, the ideal time to put your home on the market is when you’re ready to do so. Being fully committed to (and even excited about) selling can lead to a better experience and result.

At the end of the day, a real estate agent with a proven track record can help you get a great price no matter when you sell. 

If you’re getting ready to take your next step, why not start by learning your property value—and what we can do for you?

• What’s My Home Worth
• The Woolcott Selling Advantage

Interested in talking to us about your sale? Get in touch by setting up a consultation with our team here!

Please note, many locations who would normally accept clothing and household donations are currently only accepting food and monetary donations due to covid-19. We will keep you updated when these locations open up to all donations again.

If you’re selling your home, you’ve probably accumulated a lot of stuff over the years. Things like clothing, books, kitchen gadgets, DVDs and electronic devices (heck, I still have my old video cassette recorder from way back when Bob Saget was the host of America’s Funniest Home Videos).

It’s tough to get rid of certain possessions, as you remember paying good money for them.  In theory, you could try to sell it on Kijiji, Ebay, or have a garage sale, but with your busy lifestyle, sometimes this is much more effort than what it’s worth. Instead, why not give it to charity, while you won’t get a tax benefit, someone in need will benefit from your goodwill.  In this blog post, we look at all the great places where you can donate items in Hamilton.  Some items you just can’t donate, and for that reason, we touch upon other businesses who may buy your item, or perhaps they may recycle it.

Places to Donate Clothing in Hamilton

Clothing is difficult to get rid of sometimes, as you may have spent good money on it, only to never have worn it, or you think.  However, there’s no point in having that item sit in your closet for years when someone else could actually benefit from it. The Diabetes foundation of Ontario regularly collects clothing.  From their clothing drives they get much needed clothing for those in need, as well they raise money for Diabetes research. If you live in Hamilton, Dundas, Flamborough, Waterdown or Burlington, there are plenty of diabetes drop off boxes near you.  Or you can call them, and leave clothing in a clear marked bag on your porch or front stoop on a designated day.  Use some common sense when donating clothing.  Jeans with a hole in the crotch, or a shirt covered in grease stains and armpit holes are not ideal donations.  Think more on donating gently used items, like, suits or dresses your kids have grown out of (and only wore to their grade 9 graduation), Christmas presents you were too polite to return, and winter clothing like coats, mittens and barely worn boots. The Goodwill/Amity of Hamilton also accepts donations.  Their drop off center is located at 1050 Upper Gage Avenue, Hamilton.

Where to donate books  in Hamilton

If you are an avid reader, houses can fill up with books rather fast.  If you are moving, we recommend donating all of those books.  It is rather tough, as we attach feelings and a sense of time to a book.  We even have bookshelves to display our collections.  However, chances are you’ll never read that copy of Stephen King’s ‘The Shining’, ever again.  As beautiful as they are, most places don’t accept National Geographic, that’s a magazine that’s probably best left for the recycling bin.  Most magazines over the age of six months are probably best left to be recycled.  Similarly, Readers Digests are best suited for the recycling bin, or given to someone else to read.

Here are a few organizations in Hamilton who accept books:

Agencies

Ontario Federation for Cerebral Palsy, 905-522-2928 Books and A/V. Limit 10 boxes. Canadian Diabetes Association, 905-528-1112 Hardcover and Paperback books. No encyclopedias, no National Geographic. 1 box limit. Neighbour To Neighbour Centre, 905-574-1334 Books and still timely magazines. No encyclopedias, no National Geographic, and no text books. St. Vincent De Paul Society (King E.), 905-522-7045

Hamilton Hospital Donations

Hospitals and Senior Homes are other organizations you can donate to.  It’s best to call them first.  Hospitals with sick children may be on the look out for children’s books, or comic books.  Senior Residents like books with BIG text.
Hamilton Health Sciences – 905-521-2100
St. Joseph’s – 905-522-1155 Ext. 3464 – ask for the Volunteer Resources Office to determine what is currently being accepted at a given location.

Get Rid of Kitchen Clutter

Clutter in the kitchen can get out of hand fast.  Everyone wants to spice up their diet at some point, and thus it’s easy collect juicers, blenders, magic bullets, mandolins, panini presses, electric woks and ice cream makers.  Mountains of plastic storage containers, glassware, forgotten mugs and un-matching plates are other items that can get out of hand.  If you haven’t used these items in 6 months, get rid of them and be ruthless.  You could try to sell that dehydrator on Kijiji, but you’re probably not going to get many offers.  Our advice, drop it off at a thrift store.  Thrift Stores are wonderful for bargain hunters, or tinkerers.  Many inventors love to shop at Thrift Stores as they salvage gadgets for their prototypes and creations. Value Village – Value Village is located on the corner Fennel and Upper Wentworth at  530 Fennell Ave E, Hamilton.  There’s a location at 50 Horseshoe Crescent in Hamilton as well, and in Burlington, there is a location at 2340 Fairview Street. Talize – Talize is located at 1428 Upper James in Hamilton.  They are a thrift store that accepts clothing, small appliances and toys among many other items. Salvation Army – The Salvation Army has been accepting used items for years in order to service the poor. They are located at 1600 Main St W and 835 Stone Church Rd E in Stoney Creek.

Other Items to get rid of to De-clutter your Home

When de-cluttering your home, there are hundreds of other items you can probably get rid of.  Old posters, paperwork, busted down computers and printers, television sets, radios, outgrown sporting equipment, and well, the list goes on.  If the item you have doesn’t fit into what a thrift store or donation center will take, Hamilton has exceptional recycling centers.  They accept most things that are recyclable, accept your collection of way outdated VHS tapes, and speakers encased in wood.  For DVDs and CDs, you can donate them to charity, or try your luck at a business like The Beat Goes On which is on Upper James.

It’s pretty easy to see that Hamilton and the surrounding area are in a pre-construction boom. With so many new condos and townhouse developments, it’s an exciting time to be a buyer. 

One aspect of pre-construction home sales often overlooked or misunderstood is the concept of an assignment sale. What is an assignment sale? How does it work? Why would you need one? These are all questions you might ask yourself as an interested pre-construction buyer or investor. 

Here’s a quick guide to everything you need to know about assignment sales…

How is Pre-Construction Different than Buying Resale?

Before we get into what an assignment sale is, you need to know one of the key differences between buying pre-construction and a re-sale home. For pre-construction, you are essentially buying the idea of a property. Since, in most cases, it hasn’t actually been built yet. 

Most pre-construction condo projects go through a sales phase before even breaking ground on construction. For the purposes of financing, most pre-con projects won’t even start until they are about 80% sold. 

For buyers, this means they need to put down a big investment before seeing their new property. And then on top of that, they often need to wait, sometimes months, before taking possession. 

We’re your local pre-construction experts. Take a look at this case study on how we sold 13 pre-construction condos in 48 hours. 

So, What is an Assignment Sale?

An assignment sale happens when the original purchaser of the pre-construction property sells it before ever taking possession. In this case, the original purchaser is known as the assignor, and the new purchaser is the assignee, and the sale happens before the project actually closes. 

Assignment sales can happen between private sellers or between property management firms and private buyers. Either way, if someone purchases a pre-construction building, and then sells it before title closes and changes hands from the builder to another party, it constitutes an assignment sale. 

Hamilton and the surrounding area are continuing to expand! Check out some of our neighbourhood blogs here to find out what you can expect from the local communities;

• What to Expect When Buying a Home in Waterdown
• Our Complete Guide to Central Hamilton
• 5 Things You Need to Know About Hamilton Real Estate

Why Are Assignment Sales Beneficial? 

You might ask yourself, “why would someone buy a pre-con condo if they never intended to see the transaction through to the end?” And that would be a valid question. On the surface, it seems kind of backward. But when you really consider the benefits for both assignors and assignees, it starts to make more sense. 

For the Assignor

In many cases, developers offer exclusive deals and offers to entice buyers to act early on a pre-con project. This could come in the form of special financing or free upgrades. From there, the value of the property only continues to go up as it’s built. So for assignors, if they have the capital, they can often get in early on a pre-construction project and then sell it for a profit. 

Assignment sales are also helpful in case the assignor’s life situation changes between the time they register and invest in a pre-con condo and the time they are supposed to take possession. For example, perhaps they get a new job or have a life change that requires them to move somewhere different. Or maybe they are a real estate investor who has changed their mind and would prefer to sell rather than rent. 

There are often months in between investing in a pre-construction project and moving in. Life can change, so it’s nice to know you have the assignment sale option in your back pocket. 

However, there can be HST implications with an assignment sale, and it is always best to discuss with an accountant prior to making the decision to assign a property/

On the fence about whether condo life is right for you? Check out our blog about Upsizing 101: 5 Tips for Moving From a Condo to a House here.

For the Assignee

Assignors aren’t the only ones who can profit. Assignees can also maximize the benefit in these situations. Investing in a pre-construction condo or townhouse has certain risks involved. What if the project doesn’t receive full financing? What if there are unexpected setbacks and it takes even longer to build? The original purchaser of the condo is the one assuming all the risk here. 

As an assignee, you would get more peace of mind purchasing a condo closer to the closing date since the project will probably be on more solid ground by that point. Although you will probably pay a little more than the original purchaser, your transaction comes with fewer risks. 

The Best Way to Navigate an Assignment Sale

When it comes to successfully navigating an assignment sale transaction, your best course of action is to work with a real estate professional who is experienced and familiar with pre-construction projects and assignment sales. 

As an assignor and an assignee, you want to ensure your best interests are protected and your investment is sound. An experienced professional can advise you on whether or not an assignment sale is an advantageous investment or if you’re better off looking elsewhere. 

Ready to make a move in real estate? Here are some resources to help get you started:

• What are Buyer Representation Agreements and Listing Agreements?
• Why You Should Work with a Local Agent
• How Seller’s Can Make the Most Out of a Hot Market
• 7 Real Estate Terms Seller’s Often Misunderstand

Interested in learning more about buying and selling pre-construction? Contact us today here to learn more. 

There are numerous brands that are synonymous with selling real estate. You can probably name at least five of them right off the top of your head. When you drive around town, you see the signs, and you immediately associate those brands with the real estate industry. 

But when it comes to selling your home or finding a new house to buy, does the brand really mean anything? Sure, many real estate brands come with years of pedigree, experience and a certain amount of prestige, but when it comes to working with individuals, does the brand actually hold any weight at all? 

Let’s take a closer look…

The Benefit of Working with a Big Brand

Essentially, it all comes down to trust. The big brands got where they are based on years of experience and hard work. The business model works and as a result, they have established themselves as a trustworthy name in the industry. People like working with names they recognize because they know what to expect. 

At a more granular level though, what exactly do the big brands offer that smaller brands do not? 

Real Estate is Actually All About People

The big brands would not be where they are today without the hard work and dedication of their agents. Real estate is a people-driven industry. At its heart, it’s a service industry, and the fact is that “brands” are not the ones creating lasting relationships and going above and beyond to make sure you can achieve your real estate goals. That’s up to the individual agents. 

When you choose to work with a real estate agent, you are hiring a person with experience, ideas and feelings. You get a connection with someone who has the ability to advocate for you during one of the most important financial decisions of your life. It’s about the individual, not the brand. 

Big Brands are Essentially Franchises

Bigger brands only make money when they have a lot of agents under their banner. In most cases, agents pay a fee for the use of the brand as well as resources like office space, advertising, marketing and more. 

As a homeowner, there isn’t a huge difference between working with a big brand and an individual agent or a smaller team. On the surface, the only difference is really the logo that appears on your lawn sign. 

Brands Don’t Do the Work–People Do

Even if an agent is associated with a big, well-known brand, this is not a magic tool that will somehow make your real estate transaction more successful. The real benefit comes from the agent’s personal knowledge, marketing ability, negotiation skills, organization and more. It’s less about what the brand does, and more about what the individual agent is doing. To be perfectly frank, there are good and not-so-good agents everywhere–even within the big brands. 

For small and big real estate companies alike, the business model remains pretty similar. Real estate is a highly regulated industry, so the real difference comes from the individuals you choose to work with, not the brands. 

If you’re planning to buy or sell in Hamilton or Waterdown, it’s important to choose a local agent to represent your best interests. Check out our blog on why you should work with a local agent here.

The Internet Changed Things

Today, most buyers start their search online, which has opened up an entirely new world for agents to promote their listings. Gone are the days when only highly established, big brands could afford to advertise their listings and get exposure. Today, smaller brands are doing more with fewer resources, and have the ability to promote and sell real estate at the same level as the big guys.

Reasons to Work with a Smaller Brand

As a homeowner, working with a small brand has definite benefits. Remember how we said that real estate was all about making lasting relationships? When you work with a smaller brand, you can really get to know the team, and vice versa. With a smaller team, you’re more likely to receive VIP service since the team is working together with fewer clients. Unlike the big brands that might have hundreds or even thousands of agents on their roster, you won’t just be a number. 

For agents, the benefits of joining a smaller team rather than a big brand are also pretty significant. As previously mentioned, big brands often charge big fees for the ability to associate with the name. Instead of investing a ton of money into costs toward the franchise, smaller teams can spend wisely on more important resources and reinvest money into things that will provide value like more administrative support and marketing. They can also provide more hands-on mentoring and services to help the agents excel. 

Interested in a career in real estate? Here are a few resources to get started:

• Blog: Joining a Real Estate Team: What to Know
• Join the Team!

At the end of the day, a real estate brand has two groups of clients: homeowners and agents. It’s the job of the real estate brand to service both these groups and ensure each group is supported and provided with the tools to succeed. 

Ready to make a move? Reach out to us today here for any of your real estate questions. We’re always happy to connect!