Foolproof tips for Hiring a Real Estate Broker in Ontario

 Buying or selling property is an exciting prospect and can also be very nerve-racking. You need to find the right real estate broker to guide you through the process. But how do you find the perfect broker for you and identify the red flags? 

Read on to find some helpful and foolproof tips for hiring a realtor in Ontario!

 

Do your research before hiring a broker.

When you get a real estate agent, you also hire a business. Just like any other business, you need to do some research to learn more about the company, the people running it, and the products and services they offer. 

To become a better client and get the most out of all services, you need to understand what your broker is talking about every time they mention a certain term. Hence, learning real estate terminology is important. 

Know the distinction between a real estate agent/broker vs. a consultant. 

While hiring a real estate agent is a common practice in Canada, some real estate consultants also offer somewhat similar services. Despite this, there is a difference between the two. You should know which one you are hiring and for which purpose.

A real estate agent is an agent who specializes in helping clients buy and sell real estate. They are licensed to represent buyers and sellers and are paid a percentage of the sales price. A real estate consultant is one who offers advice on real estate transactions but does not have any such license. But they are not paid a percentage of the property sale amount, unlike a real estate broker or agent.

 

Keep an estimate of how much you should pay your realtor.

The amount you are willing to pay for a real estate broker will depend on many factors like the size of the market in your city, the competition among brokers, the quality of their services, and the time they spend with you. 

A good rule of thumb is to pay no less than 5% of the property sale amount in brokerage fees. If your city has a strong real estate market, you might want to consider paying up to 10%, even though this is not the norm in most parts of the country. 

Know your options.

You have a few options for hiring a realtor in Ontario. You can hire a full-service broker or a discount brokerage. A full-service broker is the one who will help you find a home, negotiate the purchase price, look for repairs and upgrades, and manage the closing process. In most cases, these brokers also offer mortgage and insurance services. 

On the other hand, a discount broker will only help you find a home, provide you with mortgage and insurance quotes, and manage the closing process for you. This model is most common in Canada.

 

Conduct due diligence on your candidates.

If you are hiring a real estate broker/agent, you can do basic due diligence by looking them up online. For example, you can check the business address of the broker, see if they are certified, see if they’ve been sued, and see if they have ever been arrested. 

Before signing a contract, you should also ensure the realtor has adequate experience and education. Meet the broker and ask them what they can do for you. Interviewing your candidate is a significant part of the hiring process. 

If you are serious about selling or purchasing property in Ontario, hiring a real estate broker can be one of your smartest decisions. In the end, it is always best to hire someone trustworthy, has extensive experience, and knows the local area. That way, you will be able to put one less thing on your plate and have more time to focus on other important aspects of this huge undertaking.