It is always recommended not to mix business with personal matters.
But what if you want to sell your house and your friend is a real estate agent?
Do we give him the mandate or not?
Let’s see how we can resolve this dilemma without attaching any sentimental value to it.
First of all
“In the event that there is a connection between the seller and the agent, trusts Benoit Rivest, real estate agent at Sutton Group, a disclosure statement must first be signed, regardless of the type of connection.” So everything is clear for everyone. We get them signed regularly and that’s never a problem.”
What is a Disclosure Notice?
This is a form that the agent receives from the OACIQ (Quebec Real Estate Agency) and is used to describe the relationship between two parties wishing to complete a transaction.
In this case, the real estate agent will mention that the client he is representing in selling his home is his friend. Other examples: His client is his spouse, a member of his family, a business partner, an acquaintance, etc. If, on the other hand, there is a relationship between the buyer and his broker, a so-called cooperation broker, the latter must disclose this by submitting a disclosure notice. And these documents must accompany the purchase offers.
Other things to consider
It’s reassuring to trust a friend to represent you. For good reason. Nevertheless, check that he has a driver’s license because it is important that he knows the legislation. You can get this information from the OACIQ website.
Also evaluate his professionalism, his personality, his speaking, his listening, his availability… Remember that he will represent you towards potential buyers. Do you feel confident? What is your intuition?
Check out the selling tools too. Is his website trendy or prehistoric? Are virtual tours offered? And were the photos taken secretly with a cell phone or by a professional photographer? Are detailed descriptions attached to them?
In general, for a simple mandate, the agent’s commission is between 3% and 5% of the sale amount. Since these costs are entirely borne by the seller, ask him what services he will provide for this amount.
The broker remains your companion in the transaction. Since he follows the evolution of the market, he will advise you in determining the selling price of your building by informing you of the latest transactions in your sector. In addition, he will give you recommendations on how to prepare and decorate your home to make it more attractive. Should I repaint? perform work? Important details that make the buyer’s eye shine.
Finally
Entrusting a brokerage mandate to a friend is not in itself a problem. However, you must inform them that you will carry out the checks listed above. If he’s a pro, he won’t hesitate to accept them.
And your friendship will not suffer.
Advice
- It is vital that your agent has a good knowledge of the local real estate market.
- Make sure the broker is available. Does he respond quickly to your inquiries?
- It is important that your agent is clear about the expected sales plan and that you are happy with it.