For years, real estate brokers have become accustomed to advertise the properties they just sold and this is quite normal. The problem is that the majority of statements are not limited to the word “SOLD”. They add the now celebrated mentions like “Sold at 98% of the asking price!” or “Sold in 2 days!”. Basically it suggests some form of performance as we recall that 98% was an outstanding grade in school and two days in the current market is the dream of many sellers. The problem is this: These types of statements mean absolutely nothing without a point of comparison!
Here’s an example of two identical residences to illustrate our point:
House # 1
Asking price: $ 1,000,000
Average value: $ 1,200,000
Sold Price: $ 980,000
% of the sale price: 98%
Number of days: 2
House # 2
Asking price: $ 1,250,000
Average value: $ 1,200,000
Sold Price: $ 1,200,000
% of the sale price: 96%
Number of Days: 50
There is absolutely no merit for a real estate broker who sells a property at practically the asking price and within a short timeframe if the asking price is below the average value of equivalent properties! As a buyer, do you prefer a broker that will bring an extra $220,000 in your pocket as per the example above (before commission) despite a slightly longer period and a percentage that can give the illusion of a pseudo poor performance? The question itself is the answer!
In short, an honest mention should instead stipulate something like: “Sold at 98% of the market value *” or “Sold at market value in just two days compared to an average of 50 days *” with the disclaimer that explains the calculations and the source of the data. Elevate the profession of a real estate broker and let’s give it the credit it deserves.
If you wish to be represented by exceptional, honest and credible real estate brokers, who work for specialized and selective real estate agencies who have your interests at heart, choose:
McGill Real Estate
Real Estate Agency leader & expert in the sale and marketing of condos in Montreal
1/4 of the New Condo transactions within Montréal*
Transaction volume in Billion**
Our brokers sell 5X more properties than the average in Quebec***
We Sell Everyday…When you talk Condo, there’s one name to remember, McGill! ****
Engel & Völkers
World leader & specialist in selling or buying global luxury properties since 1977
+650 Agencies | 39 Countries | 6 Continents | +7000 Brokers
Patrice Groleau, owner
McGill Real Estate www.mcgillrealestate.com
Engel & Völkers www.montreal.evcanada.com
McGill Commercial www.mcgillcommercial.ca
Patrice Groleau was born and raised in Quebec. He completed a Bachelor’s degree in human resources at the Université du Québec à Montréal, as well as a graduate degree in Entrepreneurship at the Université de Sherbrooke and in Advanced Project Management from McGill University in Montreal. Patrice Groleau obtained licenses in Risk Management from the Université du Québec à Montréal and Canadian Securities from the Canadian Securities Institute, as well as a Real Estate Agent degree and a Chartered Real Estate Broker’s & Agency Excecutive Officer (AEO) degree from the Collège de l’immobilier du Québec. Patrice Groleau is also a OACIQ certified professional instructor specialized in the Sales & Marketing of Real Estate Projects. Member of the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) and of the Greater Montreal Real Estate Board, Mr. Groleau also has a solid background in finance, having worked for several major financial institutions.