Costs Of Doing Business



It's only money.


Let's look at the value of a home. Their are many things that go into the makeup of a value. The area that you live, square footage, storeys, flooring, numbers of bedrooms, bathrooms and "living spaces", lot size, exterior add-ons, finished basements, types of door handles, colour of the appliances, etc, etc, etc.


When an appraiser comes in to look at your home and decides on a value they look at all of these things as a whole. They compare it to other like properties that have sold recently and also "forecast" based upon current and expected market conditions. This is why you get a range in value from one appraiser to the next that can differ by as much as 5%. The key thing we need to understand is that an appraiser gives us a "market value". This is what the home should sell for on the "open market".


There are costs for you to sell your home on the "open market". Costs are dependent on a a few things. There is a decision to make as to what service you want to pay for and what value you associate with that service. The service of an agent does not add value to a home. So when you are looking at selling your home, evaluate the value proposition that you are offered from an agent.



I didn't find "Hire an agent" on this list. If you still want to use one, by all means sign their contract. It's only money.


M

2 comments:

Anonymous said...

Your realtor numbers in this article are way off... one by more than 50%. Blogs are a place for opinions, and every is entitled to their own opinion. But, please get your facts right. Do some research and get it right or don't quote numbers at all. You are losing credibility when you do that.

Unknown said...

Thanks for the comment. I believe you meant it for my "Culling The Herd" post.

The 97,000 agents in Canada came from the CREA website and the other numbers I can not seem to locate anything official. This is where the "estimation" comes from.

The local real estate boards seem to hoard their information and do not publish the statistics for their markets. When I go onto realtor.ca and try to get all the agents for a given city it continually crashes.

If you have better information, which I assume you do, I would be happy to update the info.

Mike