We’ve all been there before–you’re at a family gathering or a dinner party and someone mentions real estate and how you’re thinking about selling soon. “Well, you know what,” your great Aunt Linda says. “My son’s dogwalker’s husband just got his real estate license, you should call him!” 

You stare awkwardly into your glass of pinot wondering what’s worse, hurting Aunt Linda’s feelings or having her son’s dogwalker’s husband sell your home. It’s a tough call. 

It’s even tougher if you have a direct connection to the potential agent. Maybe it’s your own relative or a close friend who works in real estate. Will you hurt their feelings if you don’t hire them? 

Should you care? It’s a delicate situation for sure.

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Here’s the Tea

There are over 60,000 real estate agents in Toronto. And about 95% of them have had one transaction in the past year. Read that again. One transaction. In one year. 

Now to be fair, many of these agents are probably working on a part-time basis. But still.  

Think of it this way: Let’s say you are getting laser eye surgery. Do you want to work with the doctor who does Lasik all day every day? Or the doctor who only does it once per year?

That’s what I thought. 

The simple answer is that many agents out there don’t have the experience or qualifications to work in a market like we’re currently seeing, just based on the fact that they aren’t as immersed in the market themselves. 

Why Qualifications Matter for Buyers

Buying a home is more than just making an investment in real estate. It’s securing a safe and comfortable place for your family to live. It’s homework on weeknights at the kitchen table, barbecues in the summer on the back deck. It’s your future. And when you think about it like that, it becomes clear what an important decision this is. 

Not only does a more qualified agent have the ability to show you properties that are exactly in line with your wishlist, but they have industry connections and access to listings that some other agents might not even know about. 

And more, in a market like this, when prices are hitting the roof, it’s important for buyers to move quickly. 

Consider this. Even if prices go up 1% month-over-month, that could represent a $12,000 price increase on a Toronto property. So if your house hunt is taking several months, you could be adding $12k or more to your price tag with every month that you are not successful in finding a home. 

A hefty price to pay just to be polite and hire your friend. 

What About Sellers?

A seller needs a qualified agent almost even more than a buyer. In fact, some agents specialize in listings while others specialize in buying. 

A listing agent is important for a ton of different reasons including:

• Home preparation – A listing agent will know exactly how to prepare your home to make sure it stands out and appeals to buyers. Home preparation includes things like staging, cleaning, decluttering, home repairs, you name it! 
• Marketing – When selling your home, it’s all about making sure your home stands out to the right buyers. Listing agents do this with marketing. They know the best channels and resources to use to get your home in front of the right eyes. 
• Pricing – This is the big one! A listing agent knows the ins, outs, and nuances of the market to be able to price your home to perfection. 
• Negotiations – Probably as important as pricing, but getting the best price for your home involves negotiations. You need someone who knows what they’re talking about in this area. 
• Legalities – Selling a house is basically a huge contract. A qualified listing agent can speak legalese and knows exactly how to navigate the sale while keeping you protected from liabilities. 

The low-down: A qualified listing agent will protect you, save you money, and get more money in your pocket at the end of the day. 

Wondering if you should buy first or sell first in today’s market? Check out our blog to get the full 411 here.

So, Should You Hire Your Friend as a Real Estate Agent? 

The answer is a big maybe.

First, consider if the real estate friend in question is qualified. Do they already work in your area? Do they do a lot of business? Do they have experience selling or buying properties like yours?

If the answer is yes, then we can move down the flowchart to the next question. 

Are you able to be truthful with them? The relationship between agent and homeowner is all about being honest and working together to get the best deal. Sometimes this means expressing an unpopular opinion for the sake of the sale! 

If you don’t feel comfortable sharing your true feelings with this person, or if you’re too close and you worry about hurting their feelings, you should probably find another agent. 

Another thing to consider is, do you really want your BFF to know every last detail about your financial situation? If this is a person with who you don’t feel comfortable sharing such personal deets, you should move on to someone else. 

What Happens if the Transaction Goes Off the Rails? 

Hiring a friend or relative to buy or sell real estate is already a bit of a risky move. You have to be confident that they are qualified, and be ok with them knowing personal details and potentially sharing opinions and facts that are straight-up not what you want to hear. 

But what if something goes seriously wrong in the transaction. Think about how that could impact your relationship with the person? You can’t just cut ties forever and leave a bad Google review for your mother-in-law. Or can you? 

At the end of the day, only you know the right thing to do. If everything checks out and you really want to support your loved ones’ business, that’s totally your call. But I hope some of these tips help make your choice a little easier in the end! 

You can always call or text me at 647-973-8392 for your Toronto real estate questions, or sign up for our newsletter right here to get monthly updates delivered right to your inbox!