One of the most common ways to find a real estate agent in Canada is a referral from friends, family, and acquaintances.
This is no surprise, as despite there being a plethora of real estate agents advertising their services, there is no quick and easy way to compare experience, services and pricing, until recently that is.
"I used so and so to sell my house" or "My friend used X to buy their first home” and similar phrases we've all heard many times. Personal referrals are common and the go to way to find an agent because they are from someone you know, and so come with a natural element of trust.
Referrals are a great place to start, but may not be the best approach to finding the right real estate agent for your specific personal and property needs. As the saying goes, trust but verify! if you don't you are effectively playing referral roullette.
AgentMarket.ca enables you to compare agents by having them provide proposals that are specific to your personal and property specifics. Information includes details about the agent, what they think your home will list for, how long it will take to sell, relevant experience and services the agent provides, and the commission and fees that they will charge you for their services.
Once you have this information from 4 or 5 agents, the comparisons between your referral and other top agents will become clear and will increase the confidence you have in the decision you make.
Why is this so important?
The Referral Rabbit Hole:
Perhaps the biggest pitfall of the traditional referral method is what we might call the "referral rabbit hole" – a circular system of recommendations that quickly loses any semblance of genuine, first-hand experience. Here's how it typically unfolds:
Your friend recommends an agent
When you ask, they reveal they were referred by their brother,
That brother was recommended the agent by their coworker
And so on.
If you were to ever trace back the recommendations, you will likely find that none of these individuals compared the referred agent to other agents in a meaningful way or have direct, comprehensive experience with multiple real estate professionals to compare.
Relying solely on this method of agent selection comes with several critical pitfalls:
1. Misaligned Expertise:
The agent who worked perfectly for a friend, family member or acquaintance might not be the best fit for your specific situation. Real estate transactions vary widely – from location to location, first-time home sellers and buyers to luxury property sales, from urban condos to rural farmhouses. An agent who excels in one market or property type might not have the network or experience in another.
2. Limited Performance Insights:
A recommendation passed through multiple hands typically comes with no substantive performance data. How does the agent truly perform across multiple transactions? How does their commission compare to other agents? What's their actual track record of success, sale prices, or time on market?
3. Lack of Comparative Analysis:
By accepting a recommendation that's been recycled through multiple social circles, you're potentially leaving money on the table. Different agents have varying levels of negotiation skills, market knowledge, and professional networks that can significantly impact your buying or selling experience.
4. Overlooking Specialization:
Real estate is diverse. Some agents specialize in first-time homebuyers, others in investment properties, luxury markets, or specific neighborhoods. A passed-along referral rarely takes into account these critical specializations.
Making the Right Choice: Ensure your referral is in line with the market
One of the most significant advantages of receiving multiple agent proposals is the ability to identify the agents who know your specific market, and avoiding inaccurate listing price estimates or sales timeframe expectations. Some agents may provide optimistic estimates to win your business, a practice known as "buying the listing." With multiple proposals to compare, it is easier to identify the outliers and contact the agent as to why. It could also be that an agent already has multiple buyers looking for the exact type of property in your area!
With AgentMarket.ca, you will get a better idea of potential listing prices by receiving proposals from multiple experienced agents, gain a more accurate understanding of your property's market potential.
Compare experience and services with commission being charged.
Understand how your referral compares to other real estate agents in terms of years of experience, how many homes have they sold in your location, and what services are included against the commissions being charged.
Remember, price is what you pay, value is what you get. Commission and fees should be considered in line with the total service package and experience an agent is providing.
In summary.
Referrals are a great place to start your journey to finding the perfect Realtor. Now there is an easy way to compare your referral to other agents in your market. AgentMarket.ca breaks you free from the referral rabbit hole, and enables you to trust, but verify, and give you confidence you are making the right decision.