There is a push by Tracy MacCharles, Ontario’s consumer services minister, to help both home sellers and real estate agents. New legislation would allow sellers to pick and choose which services they need from an agent, rather than granting them the full 5-6% of the sale price for all of their services. While this may seem like it would only benefit homeowners, it also helps new real estate agents who only offer limited services.
With fees now determined on the level of services offered rather than a fixed price, a seller can take advantage of the specific services they actually need to sell their home. If they want to take full advantage of everything an agent has to offer, they can still pay the standard fee. The end goal of this is to change the way the real estate industry works. In the past, a realtor could either charge a set fee or a commission. Now, consumers have the option of both. The flexibility will allow consumers to feel more at ease, which should translate into more sales. Naturally, this provides a nice boost to the economy.
Some of the new legislation also involves added protections for real estate agents. Although some agents say these protections already exist, the goal of these new protections is to protect against “phantom bids.” This term refers to someone giving a verbal offer on a property, while not really committing to it in any other way. Phantom bids drive up home prices, oftentimes making it difficult to finalize any purchases. Some see this as unethical, while others see it as a legitimate business tactic. Phantom bids have been a problem for the region’s real estate market, especially in Toronto, for a number of years. Whenever there’s uncertainty or questions regarding the legitimacy of a real estate transaction, more people are hesitant to get involved. This is not the spark that any economy needs. It seems that the atmosphere is finally beginning to change though, as the real estate market is going through a facelift.
With these new protections and changes, there has never been a better time to sell your house in the Ontario area. If you are planning on selling and need help with your move, the team at Rawlinson Moving & Storage is always here to help.