It’s happened in many industries. You can purchase stocks through a full service brokerage, or through a discount brokerage. You can also book your trip with a travel agent, or directly with an airline. Many industries now offer a discount option. The benefits to consumers vary by industry. The real estate industry is not immune to innovation and the changing needs of consumers. However, there is always a price to pay when using any discount service provider. Would you trust your health to a discount doctor, or your legal matters to a discount lawyer? Then why would you use a discount real estate brokerage for one of your largest financial transactions?
With discount brokerages, sellers may find they must do a lot of the work themselves. This could include staging their homes, taking professional photos, handling appointments and negotiating directly with buyers. Discount brokerages typically only list your home on the Toronto Real Estate Board’s MLS® System and may not provide any additional advice or guidance, such as drafting clauses and conditions. In Ontario, there is an important legal distinction between treating someone as a ‘customer’, and treating someone as a ‘client’. In a client relationship, the brokerage must protect a client’s interest and do what is best for the client. For example, a brokerage must not disclose a client’s confidential information to others. A brokerage must also make reasonable efforts to determine and disclose any material facts relating to the transaction that would be of interest to the client. A brokerage does not owe the same duties to a customer. These are important considerations when deciding whether to use a discount brokerage. As a full service REALTOR®, I strongly believe in protecting my client’s interests. My goal is to always help my clients obtain the best price, terms and conditions and to avoid any misunderstandings or unpleasant surprises.