Foreign Buyers Guide To How The Toronto Real Estate Market Works
From Licensed Agents To The Multiple Listing Service (MLS) In Toronto
The Toronto Real Estate Board is the largest real estate association of licensed REALTORS® in the world. In Toronto real estate agents must be licensed to sell real estate as Sales Representatives or Brokers. All licensed real estate professionals adhere to a code of ethics and must follow the law at both the provincial and federal levels.
As Toronto REALTORS® we operate under an organized system called the MLS or the Multiple Listing Service. That means that when a Seller retains a licensed realtor to sell their condo or house, the Seller’s agent posts the listing on the MLS database. It indicates to all real estate agents in Toronto that this property is for sale and that they will co-operate with other real estate agents from other real estate companies if they bring a buyer to the property. If it results in the sale of the property, the buyer’s agent is compensated through the listing broker for commission.
For the consumer, this eliminates the need to go from agent to agent or from brokerage to brokerage to see what listings they have because all that info is shared in one place on the MLS database. As real estate agents we are all looking at the same database of property information on the MLS. It is also beneficial for Sellers as their property is exposed to over 40,000 agents in the Greater Toronto Area as opposed to have it only sold exclusively through one real estate company or brokerage.
The Toronto real estate market moves quickly with good properties selling right away on the MLS. To help you stay ahead of the market, a Buyer’s agent can set up a customized home search for you and send you new property listings from the MLS as soon as they come up for sale. Retaining an agent to help you in the buying of your Toronto home or condo does not cost you anything as their commission is paid by the Seller through the Listing Brokerage.
Obviously buying a Toronto home or condo is not just about having an agent send you listings. A good real estate agent has many years experience in the Toronto neighbourhoods you are considering and can help you analyze the info so you can make a well informed purchase that will appreciate over time.