Go ahead, and call me biased for this next video.
I work for a traditional, full-service brokerage, and I believe in the brand value of a Realtor’s name and brokerage, as well as the value of a top Realtor’s knowledge, experience, and skills.
So with that in mind, I’d like to take a look today at the “discount agent” in our industry, and whether or not it makes sense to trade the experience and skill of a top Realtor for a discount on the fee for service.
This long-titled web series all started when my frustration with the public’s ever-present desire to roll the dice with pre-construction condos reached a boiling point, and I wondered, “How the hell can I get through to people who still don’t understand?”
Then I realized, I needed to dumb it down. Like, to the very lowest level.
And hence I thought, “What if something in the real world worked the same way as the Toronto real estate industry?”
You all saw the video that compared buying jeans to buying a pre-construction condo, and ultimately if you couldn’t try on jeans to feel the fit and style, see the jeans, make sure they aren’t too long, or too short, or too thin, or too wide, or are actually made of jean, then perhaps you wouldn’t buy the jeans.
So if people wouldn’t spend $90 on jeans and take that “chance,” then why would people spend $500,000 on a pre-construction condo?
The same goes for hiring a discount agent, and I thus my comparison to laser eye surgery.
I’m not going to make this into an advertisement on why to hire me, or any other full-service agent, but rather I want to make people aware of the risks of hiring a part-time agent, or fly-by-nighter.
You would never use a Groupon or go to a back-alley for laser-eye surgery, so why do people look to cut corners with a $1 Million asset, give or take?
Look, I know that many of you have your minds made up, and that’s fine. You can comment below, and tell me what an awful person I am, how useless I am, or whatever else comes to mind.
But you do have to concur, after reading my blog for a week, a month, or a year, that I tell it like it is. Even if it results in nasty comments, both those informed and uninformed.
So I will tell you, without a doubt in my mind, that the discount agents in Toronto are getting out of control.
I have more stories than I can possibly share, but here’s just from last week alone.
I did a deal with a part-time agent, who never answered his phone before 5pm since he clearly worked a day-job. I submitted an offer that was intentionally low, hoping to “find the middle ground,” but to my absolute astonishment, he emailed me back to say, “We have a deal!” My offer was a dummy offer – it was junk. It was a means to an end; an attempt to negotiate towards something else, and all he did was push it on his client, without any effort on his part to get his client more money.
After it was signed and emailed to me, I joked, “I guess you didn’t think there was any more money on the table huh?”
He replied, “It doesn’t make us any more money either way, does it?”
I did another deal last week with one of those “virtual brokerages,” that doesn’t really exist. I had to drop off the deposit cheque, and the listing agent told me to leave it with concierge in his condo.
It didn’t sit right with me. It’s a $25,000 cheque, made payable to a brokerage that’s only existed for five months, who has one agent on record, and who wants me to leave it with a concierge in a condo.
So I said “no.”
I told the agent that we would amend the Agreement to say that my brokerage – Bosley Real Estate, will hold the deposit in trust, otherwise, we wouldn’t move forward.
He agreed, without a fight. He said, “What the hell do I care anyways? Costs me $28 less as I won’t have to issue a cheque on closing.”
Folks, I could tell these stories all day and night. But I fear that you’ll grow sour on the whole industry, and not just the jokers that I’m pointing the finger at.
There are 42,825 Realtors licensed with TREB.
41% did zero or one transaction in the past 12 months.
All I’m saying is that you have a choice in who you hire, and you should make that choice VERY carefully.
Agree or disagree, and I won’t fault you for it. But hey – how about Jarrod’s acting in that video, eh? 🙂
I think I “discovered” this guy. He’s going to make it big one day. I just know it…