Discount on NEW home if not using a Realtor
Apr 5th 2011, 1:42 pm
#31
Lost in BE Cyberspace
Joined: Aug 2005
Location: South of Calgary
Posts: 13,374
Re: Discount on NEW home if not using a Realtor
I explain the contract to the buyer and if the buyer requests it I enter a "buyers condition". The condition states the contract is to be acceptable to the buyer after being reviewed by the buyers lawyer. I will give 7 days for the review and if this condition is not waived by the buyer by 9pm on condition day the contract is void. To date I have not had any lawyer advise the buyer not waive this condition.
Apr 5th 2011, 2:12 pm
#32
BE Enthusiast
Joined: Feb 2008
Location: Okotoks Albetra
Posts: 459
Re: Discount on NEW home if not using a Realtor
I don't know what percentage of FSBO's are listed on the MLS and the ones that are listed you see commissions ranging from $1 to 3.5% on first 100K 1.5% on balance.
Apr 5th 2011, 2:19 pm
#33
Assimilated Pauper
Joined: Mar 2005
Location: Ontario
Posts: 40,018
Re: Discount on NEW home if not using a Realtor
I don't think the intended target is estate agents, rather it's people wanting a house, so I find it odd that any commission should be offered.
Apr 5th 2011, 2:30 pm
#34
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Joined: Feb 2008
Location: Okotoks Albetra
Posts: 459
Re: Discount on NEW home if not using a Realtor
The percentage is low and most of my buyers make the decision not to have this condition entered as they dont want the added cost. At the end of the day I have to do what the client instructs (to within reason) and I cannot insist this condition is entered. When the condition has been entered I have not had any lawyers request changes be made to the contract. With regards to the contracts that are sent to me, I see very well written contracts with good conditions and terms and some absolute shockers that get sent straight back. I'm fortunate that we have monthly training sessions at my brokerage and the broker brings in a real estate lawyer and we speak at length about contracts.
Apr 5th 2011, 2:37 pm
#35
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Joined: Feb 2008
Location: Okotoks Albetra
Posts: 459
Re: Discount on NEW home if not using a Realtor
The target is to find a buyer, some people offer a commission as they want to attract Realtors with buyers. If I have a buyer who sees a FSBO that offers no commission I do not try and stop my buyer from buying that property if that's the property they want and I do not tie my buyers to me with a buyer brokerage agreement. Will I represent the buyer if I'm not getting paid, no I won't.
Apr 5th 2011, 7:11 pm
#36
BE Forum Addict
Joined: Jan 2003
Location: Edmonton.
Posts: 1,043
Re: Discount on NEW home if not using a Realtor
I'm currently taking the course to get my real estate associates license in Alberta. Having worked for two different Estate Agent's in the UK, I can state that the training and licensing requirements here are far more extensive. If I remember correctly, back in the UK I only had to do a course on the Property Misdescriptions Act.
I moved in to a new build just over a year ago, and negotiated the contract the year before that. If I'd known then what I know now, I am absolutely sure I could have negotiated a better deal if I'd used a Realtor.
Our neighbour used a Realtor for his new build, and said it was the best decision he ever made. Of course you do need to choose the right Realtor, and like any service provider, you can meet with and interview many Realtors until you choose to work with one. It's probably the biggest purchase you will make in your life, so why would you not thoroughly vet the person who is going to represent you in that purchase?
Personally, it was the little details I feel a Realtor would have helped with, for example, knowing exactly what kind of upgrades are available. As a relative newcomer to the country, and a first time buyer in Canada, I missed a few things I feel a Realtor would have caught, because they would have known to look for them.
For consumers in Alberta, you can check out the RECA site for more information about the buying and selling process here in Alberta, and what you should expect from your Realtor. http://www.reca.ca/splash.htm
I moved in to a new build just over a year ago, and negotiated the contract the year before that. If I'd known then what I know now, I am absolutely sure I could have negotiated a better deal if I'd used a Realtor.
Our neighbour used a Realtor for his new build, and said it was the best decision he ever made. Of course you do need to choose the right Realtor, and like any service provider, you can meet with and interview many Realtors until you choose to work with one. It's probably the biggest purchase you will make in your life, so why would you not thoroughly vet the person who is going to represent you in that purchase?
Personally, it was the little details I feel a Realtor would have helped with, for example, knowing exactly what kind of upgrades are available. As a relative newcomer to the country, and a first time buyer in Canada, I missed a few things I feel a Realtor would have caught, because they would have known to look for them.
For consumers in Alberta, you can check out the RECA site for more information about the buying and selling process here in Alberta, and what you should expect from your Realtor. http://www.reca.ca/splash.htm
