Real Estate Talk:
The broker’s influence

The larger a broker’s network of potential and qualified buyers the quicker the property will sell

By Joseph Marovitch

Updated October 17, 2024

A recognizable and reputable banner such as Remax, Royal Lepage or Sutton always helps in selling a property but when it comes down to the basic premise, it is the individual broker that makes or breaks the difference. Expertise in pricing, marketing, real estate law, contracts and negotiation is the foundation of being a successful broker.

The second part is a broker’s reach, influence and quality of network. If a broker comes from the banking industry, high-end retail, or similar background with high-net-worth clients, that broker will have many qualified potential buyers. Each broker has a network of buyers, sellers and resources such as inspectors, notaries, mortgage brokers and more. The more qualified and extensive a broker’s network, the quicker a property will sell and for the proper market value. However, every new broker has the potential to create a wide, vast and varied network of qualified potential buyers, the longer they succeed in the real estate industry.

The longer a broker has been in the business, the larger their network. This means that, at the start of a broker’s career, his or her network is generally made up of family members, friends and associates. As they gain experience, the brokers’ network expands through connections, successful transactions and referrals. The larger a broker’s network of potential and qualified buyers is, the faster the property will sell, and the greater the added value.

A recognizable and reputable banner… always helps in selling a property but when it comes down to the basic premise, it is the individual broker that makes or breaks the difference.

Young brokers or brokers who arrived in the industry from other fields that entail office work or hourly wages must create a network by starting with family, friends, and associates, constant networking and follow-up to keep in touch with whom they have met. Excellent service is required as well if referrals are to follow.

Then some brokers enter the industry from fields where they already have a network of potential buyers and sellers who trust them. These people come from fields such as teaching, managerial positions, banking, entertainment, summer camps, politics – any field where one person works with or serves the many. The person had and continues to have an audience over a long period.

Some brokers, depending on their age and experience, have a field of influence and network of potential buyers as follows:

• New or young broker:
  Family, friends, associates – 2000 plus or minus
  .
• Broker with one year’s experience:
  Family, friends, associates (2000), newspaper ads, social media, networking (65,000+) = 67,000 plus (The Montreal Gazette is delivered to over 65,000 households)
  .
• Broker with five years experience:
  Family, friends, associates (2000), newspaper ads, social media, networking (65,000+), referrals = 100,000 plus
  .
• Broker with prior business experience working with many and 15 years of real estate experience plus:
  Family, friends, associates (2000), newspaper ads, social media, networking (65,000+), referrals = 100,000 plus

The other day a reader stated that brokers are not required since anyone can buy or sell a property with a notary and an inspector. This may be true if no issues arise, such as a negative inspection, issues with title, infringements on another property and more.

‘No one should lose or diminish their life savings due to a bad broker or by trying to be a part-time realtor.’

A home is the largest investment most people acquire. The property, in most cases, represents life savings, retirement, future business endeavours, the children’s education and more. Any broker that does not take this seriously is in the wrong profession. A broker is a protector, event planner, confidant, the calm voice in a sea of possible issues. Brokers are obligated to represent, defend and protect their clients. A good broker finds solutions and opportunities in every issue. Brokers, through training and experience, are experts in conflict resolution. Those who think a broker is not required should sell or buy on their own while living their life and managing their own profession. There is nothing like experiential education to make one wise and knowledgeable.

The following are some of the broker’s duties but not all:

• Research comparative property for price, condition and location to ensure the price is fair
  .
• Arrange and coordinate visits
  .
• Follow up with calls to buyers, mortgage brokers, inspectors, notaries, etc.
  .
• Ensure deadlines are not missed which can cause very expensive problems or the loss of a purchase or sale
  .
• Follow the rules of the real estate brokerage act which applies to everyone
  .
• Verify all information regarding the property, the buyer, the seller, finances, etc.
  .
• Arrange and provide all paperwork such as brokerage contracts, amendments, offers, counteroffers, etc.
  .
• Use experience and training to negotiate the best price and terms
  .
• A broker can quickly find a property that meets the client’s criteria
  .
• A broker provides industry insurance from buyers or sellers that default on terms, do not show up to signing after all conditions are satisfied, brokers with intentional or unintentional mistakes that cost
  .
• Brokers can save buyers and sellers money and acquire top-dollar for property based on condition and price.

No one should lose or diminish their life savings due to a bad broker or by trying to be a part-time realtor.

Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.

Next article: Obtaining warranty when the property is sold without one

State Of The Market

Inflation has dropped to 1.6%. This is incredible and will lead to further interest rate cuts. The rate is expected to drop one full percentage point before the end of the year. It is now possible to acquire a mortgage rate below 4%. According to an RBC Economics report, buyer purchases have increased by 1.9% since August. Sellers have listed more property than in the past two months. The number of listed properties is now where it was before the pandemic. The real estate market is now stabilizing. With further rate cuts, we should see even more listed property and more demand.

‘Our real estate market is in a good place at the moment. Now is a good time to acquire a good rate and terms.’

However, caution is good to maintain for the next few months. Canada and the world are in a tenuous situation. There is still an escalation of the war in the Middle East and Europe. The U.S. election, which is coming up quickly, will affect the inflation rate depending on who wins, as well. Our real estate market is in a good place at the moment. Now is a good time to acquire a good rate and terms.

Have a great week!

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