The Rocca Sisters Blog

The Real Estate Council of Ontario (RECO) has kicked off Financial Literacy Month by encouraging Ontarians to do their homework, ask the right questions and work with a registered real estate professional when buying or selling a home

At the Rocca Sisters & Associates, we believe in providing each and every one of our clients with an experience that is not just the best, but remarkable. When you entrust the Rocca Sisters Team with buying or selling your home, you can expect a personalized, hands-on approach that will make your real estate experience as comfortable and profitable as possible.

We found a recent RECO survey to be most revealing about the value of working with a Realtor. The survey reveals that 41 per cent of Ontario homeowners and 45 per cent of first-time homebuyers wish they had done something differently when buying or selling their home.

Among things buyers/sellers reported wishing they had approached differently when purchasing or selling their home was having a better grasp of the process (buying process: 26%; selling process 12%), seeing more houses (buying process: 21%), having a home inspection (buying process: 15%), spending more time researching and interviewing real estate professionals before selecting one (selling process: 9%), and understanding the contracts involved better (buying process: 14%; selling process: 9%).

“Buying or selling a home can seem confusing and stressful to many—but there are steps everyone can take to make the process easier, and more satisfying, including brushing up on the basics, doing some homework, asking the right questions, and working with a registered real estate professional,” says RECO Registrar Joseph Richer.

A further 32 per cent of first-time homebuyers reported that they did not feel prepared and knowledgeable about the process, and only half of Ontario homeowners aged 18 to 34 felt they were prepared and knowledgeable about it.

“These results are a telling reminder that a good understanding of the real estate process can lead to fewer long-term regrets,” says Richer. “This is why we are launching Fact or Fiction – a public education campaign to educate Ontarians about the real estate industry and what resources are available to help them when making such an important financial decision.”

The study, kicking off Financial Literacy Month, was hosted on the Angus Reid Forum for RECO as part of a province-wide public-education campaign to inform Ontarians about common real estate myths. The campaign also includes a fun, interactive online quiz that invites Ontarians to put their real estate knowledge to the test.

Real Estate Fact or Fiction?
The survey reveals that a surprising number of Ontario homeowners don’t know the facts when it comes to undertaking one of the biggest financial decisions of their lives, regardless of their age or previous experience buying or selling a home.

Contract confusion

• 52 per cent of those surveyed incorrectly think buyer and seller representation agreements are standardized, when many terms and conditions in real estate contracts, such as how long they will remain in effect, are actually to be discussed between the brokerage and the client.
• 43 per cent report there were sections of the real estate contract when they bought or sold a home that they did not fully understand.
• More than one-third of Ontario homeowners (36 per cent) mistakenly think that after a real estate contract is signed, a buyer or seller has a trial period during which they can cancel it, and an additional 33 per cent said they do not know.
• 26 per cent incorrectly believe that signing a representation agreement to buy or sell a home with one brokerage doesn’t limit a buyer or seller from working with representatives from another brokerage (21 per cent did not know).

“Every home is unique and so is the contract to buy it or sell it,” says Richer. “Signing your name on the dotted line is not something to be taken lightly when you’re dealing with binding contracts for significant values, so we encourage home buyers and sellers to be comfortable with the details before they sign anything.”

Multiple representation

• A majority of respondents (58 per cent) could not identify the conditions under which a real estate professional could represent both a buyer and a seller in a transaction.
• Only 42 per cent correctly know that real estate professionals may represent both sides in a deal only if the parties agree to “multiple representation” in writing. (Nineteen per cent incorrectly think real estate professionals are able to act for only one party.)

Deposits

• 55 per cent incorrectly believe that if you place a conditional offer on a home and the deal doesn’t proceed, you automatically get your deposit back. In fact, a deposit—which is held in trust by a brokerage—can only be released if both buyer and seller agree, or by court order.

“As the regulator mandated by provincial law to regulate the real estate industry in Ontario, RECO is committed to helping people better understand the ins and outs of buying and selling homes,” says Richer. “We encourage buyers and sellers alike to work with a registered real estate professional and to feel free to ask any questions they might have throughout the process.”

As the #1 Sales Team in Burlington for four consecutive years and the #3 Team in Canada out of 14,500 agents nationwide for Royal LePage in 2013, you can look to our full service, highly responsive, executive team of professionals for all of your real estate needs.

Unique to the Rocca Sisters is our specialized team of Buying and Listings agents – together, they are the best and the brightest in the business with decades of experience between them working in many facets of the real estate business. They are committed to working with you and for you and always have your best financial interests at heart.

To be set up on a personalized home search or for a free, no obligation home market evaluation, please call us at our office directly at 905-335-4102 or email us at info@roccasisters.ca. It would be our pleasure to assist you.