A survey by the Real Estate Council of Ontario (RECO) says 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 was having a better grasp of the process, seeing more houses, having a home inspection, spending more time researching and interviewing real estate professionals before selecting one and understanding the contracts involved better.
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 RECO Registrar Joseph Richer. The study 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 an interactive online quiz that invites Ontarians to put their real estate knowledge to the test.
Among the survey’s findings:
• 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).
• 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.)
• 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.
The survey was conducted online from Oct. 10 to 14 among 1,043 randomly selected Ontario adults who own their home.
