Let's talk Realtors

I'd like to spend some time this week talking about Realtors. I'm sure we are all very familiar with Realtors; they're the ones all over the bus stops that someone drew a funny mustache on. Most of you reading this have probably had direct dealings with a Realtor at one point or another.

There are Realtors, and there are Real Estate Agents. This may be different in the US, but in Canada, there is a difference between the two. Both are licensed to sell Real Estate, however, Realtors must subscribe to the Realtor code of ethics. I won't delve into that here, suffice it to say that Realtors are held to a much stricter code. If you would like to learn more about that, there is an excellent article on the subject here: http://homebuying.about.com/od/realestateagents/qt/RealtorvsAgent.htm . Just know that there is a difference, and all things being equal, a Realtor is potentially slightly safer than a Real Estate Agent.

So, the big question is: how can a Realtor make me rich? Don't they charge great big fees to sell my house? They certainly do, and in my opinion they are worth every penny. If you are trying to sell a property or even a business, they will work extremely hard for you and get you far greater exposure than you can on your own (especially in Canada with the MLS system).

Where I think they really shine though, is when you are buying an investment property. When you hire a Realtor to help you find and buy a property, you are hiring the services of someone who will scour the listings for properties that match your criteria, someone who knows the market and what the prices should be, someone who is an excellent negotiator and can easily save you thousands of dollars (mine saved me $14,000 on my last purchase - I was prepared to pay the asking price), someone that can put you in touch with other needed services (lawyers, mortgage brokers, locksmiths, electricians, etc, etc, etc). The best part of all of this, however, is that you don't pay them a single cent, the seller pays. You can argue all you like that the seller will just charge more for the house, but the fact is, the house is worth what the market says it's worth.

I can tell you from experience, it is very hard finding good investment properties that will make you money. Instead of trying to find them yourself, why not send your Realtor out there to find them for you? You still make the final decision on whether to buy it or not, and when you do, and you're ready to go, send your Realtor in to do all the dirty work. Talk about leveraging someone else's time!

Hats off to all of you Realtors out there and the valuable service you provide. Keep making us richer!

Dad