Moving is expensive. And so is selling your home. However, when you are moving in Canada, you have some options when it comes to saving money on real estate services. These savings can come in many forms, and during different steps in the process. In this article, we’ll explore some of these options.
Sell your home using the FSBO method
FSBO stands for “For Sale By Owner” and it refers to the private sale of a home. Websites like this one are out there to help people do this. The world of real estate may seem like a mystery. Or you may think there is a big, and good reason why real estate agents pay a few thousand dollars to take a real estate course, and then more to join a broker firm.
However, there are home sellers who do all the work that real estate agent does, saving themselves the commission fee they would normally pay a sales agent.
But according to this article, don’t be fooled into thinking there are no fees with this method. It just means you take on the costs of selling the home, including the real estate lawyer fees. It also means you do all the work, and will have to learn the ropes when it comes to negotiations on your home price. This isn’t exactly like listing your patio furniture for sale on Craigslist. There is more that goes into selling a house when you are moving in Canada.
Some are calling the real estate agent service a rip off, for the amount of work they do. Selling your home by doing the listing and marketing of it yourself may be a piece of cake for you. Other times, you may find it’s harder to sell house than it looks (even if you pay to list in the MLS without a broker). If you are already stressed by moving in Canada, and need help to buy a home too, a real estate agent may be worth the investment, given how much more efficiently they can work.
Use a FinTech Real Estate Company
FinTech companies are companies using technology to cut out middle-men in financial services. FinTech real estate companies are entering this field. In some ways, they can save on the lending and borrowing of a home buying plan, like a mortgage. Or they can get you a quick credit rating for home buying. Other times, they can help you find buyers outside the MLS that you can speak to directly. Or, they might just be able to help you list your home without a real estate agent or broker service when moving in Canada.
FinTech companies are online-based, however. That means a lot of DIY for you, and a familiarity with web-based services. Most of the work will be done by you, on your computer. If technology intimidates you, this may be something you’d want to avoid. Then again, if you like robo investor sites and the like, then these services may be your cup of tea when trying to save money on the sale of your home.
Look for lower-cost real estate agents and brokers
Canada has a booming real estate agent marketplace. The number of people helping others buy or sell homes is increasing, along with the growth in profits to be earned thanks to current housing prices. This can mean there are fewer houses for more real estate agents to sell, resulting in (hopefully) more competitive prices on their services, or the cuts they’re willing to take to get your listing.
But how can real estate agents compete on price? Good question. It’s actually one that has brought up controversy lately.
To understand how ‘cheaper’ real estate sale services work, you first need to know how real estate commissions are earned and calculated in the traditional sense. This article does a great job of that for Canadian home buyers and sellers (mainly for the Vancouver, B.C. market though): https://youngandthrifty.ca/real-estate-agent-commissions-decoded/
The other thing is to understand what motivates real estate agents, and how they are not all created equal when it comes to servicing your needs as a home seller. See this article for a good breakdown on this topic: https://www.theglobeandmail.com/real-estate/mortgages-and-rates/how-to-find-the-right-real-estate-agent-to-sell-your-house/article533671/
Now that you know all that, it will help put the following article in context, which asks the question of whether real estate agents are ripping you off: https://www.macleans.ca/economy/business/the-realtor-racket/
As you read the article above, you’ll see that there are two sides to the story. And depending on your case, you may or may not find the value in real estate services to be worthwhile when planning a move in Canada.
That could put you in the FSBO boat, or simply one who looks for a lower-fee realtor or brokerage. That’s where this article explanation comes in handy, expounding the opinion of ‘you get what you pay for’ when it relates to these undercutting agencies: https://www.theglobeandmail.com/real-estate/whats-the-deal-with-discount-or-flat-fee-real-estate-companies/article13565520/
But if you do think that the cheaper real estate services make a lot of sense, and you want to try them, you can use comparison sites to find them. We found two to start you off: https://www.quotefinder.ca/legal/attorney-services/real-estate-agent-services/
To conclude: moving in Canada doesn’t have to be as expensive as always
If you’ve moved a couple times, or have bought and sold houses more than once, you may feel more comfortable taking the non-traditional routes noted above for your relocation. Either way, it helps to be educated about how the real estate sales industry works.
Even if you do get a full-service, full-commission real estate agent to help you when moving in Canada, you should know if you picked a good choice, and are earning the wage you pay them. The resources above can be an aid in ensuring you are getting the best service for the best price too.
After your home is sold or bought, feel free to call us and we’ll help you with the moving truck and movers!