Real Estate commission....is it negotiable?
 

I've checked various threads regarding real estate, but can't find a definitive answer to my question...........so advice would be appreciated.
The only two real estate agents in town have been to discuss the house and its listing price (one of the agents is the one who sold us the house a few years ago); they agree on the listing price. They also both state we should list on MLS and the commission is 5%......they have both said an exclusive listing (which neither recommends), is 4%. Neither will budge on the commission fee. Surely it is negotiable? According to some websites I've looked at this morning there is no such thing as a fixed commission rate, as they are all open to negotiation, even for an MLS listing.
Help....please.

Re: Real Estate commission....is it negotiable?
 

4% sounds cheap to me. I thought that they were all 6% Very expensive properties are less I think. Perhaps why your quote is cheaper.

Re: Real Estate commission....is it negotiable?
 

5% MLS and 4% "exclusive" are the norm in this area regardless of property valuation.................whether or not it sounds cheap is immaterial........my question is, is it negotiable for an MLS listing?

Re: Real Estate commission....is it negotiable?
 

Hi OB

Commission is supposed to be negotiable but the agents I've spoken to both said 5%. We had considered trying to sell it ourselves but I think we have enough to worry about without adding to the stress.

Re: Real Estate commission....is it negotiable?
 

Hi Elaine....how's it going?
We have considered going it alone.....in fact I read several books about it during the Christmas shutdown. I'm still tempted, but as you may have gathered, this is a very strange town, and the "friendly folk" may think there's something wrong with the house, otherwise why not use an agent? It just hurts to have to part with so much dosh for doing, basically what we did to sell our house in the UK....and that is show the house to the many people who came to view. Agents in England do very little to earn their fee, but it is negotiable and often a flat rate.

Re: Real Estate commission....is it negotiable?
 

I know it sucks having to pay that much in commission and it looks like you don't have a big choice when it comes to agents, however I think generally the agents here do more for their commission than they do back in the UK.

As long as we make enough on the house to ship our stuff back to Ireland and have a bit left over to use as a deposit on a new place I'll be happy. I just hope someone buys this place otherwise we're stuck here for awhile. We hope to get the for sale sign up by the start of May after I get a few repairs organized.

I'll keep my fingers crossed for your sale too, good luck:thumbsup:

Re: Real Estate commission....is it negotiable?
 

If the only two agents you can deal with refuse to negotiate the it doesn't matter whether the rate is negotiable or not, in your case it isn't, you can't force them to negotiate if they don't want to.

You should not be having to show the house to anyone in fact you should not even be in the house when it is shown, at least that's how it's done in Calgary these days. Homes are shown by the agents.

Cheers
Steve

Re: Real Estate commission....is it negotiable?
 

Same here in Toronto, I really don't want to be here when people are looking around. I don't think I'd be able to keep my mouth shut if they said something rude.

Re: Real Estate commission....is it negotiable?
 

Yes, Steve, thank you for that......I sold a house over here way back, so I'm aware of the protocol re vacating the house when a viewing takes place. My point was that in England the agents don't show buyers around..........it's left to the vendor. Therefore anyone who has sold a house in England has that experience! I know agents do more here, but the comssion is high for what they do..............hence my orginal question. Reading various websites, it appears it is not set in stone, even for an MLS listing.

Re: Real Estate commission....is it negotiable?
 

I would think it is precisely for that reason. It allows the potential buyer to clearly state to their agent what they think of the property without insulting or hurting anyones feelings.

Re: Real Estate commission....is it negotiable?
 

I know that there is an agency here in newfoundland called one flat fee or something. According to their ads, they sell for a flat fee of about $2500, and i have seen their houses on mls so that must be included, but not with many photos.

Don't know if that helps much - but maybe a similar agency about your area?

Re: Real Estate commission....is it negotiable?
 

Absolutely agree, although having said that, when I was showing our house "back home" no-one was ever rude or negative about the house...........to my face.
But to harp on about the fee question........why is this fee non-negotiable?

Re: Real Estate commission....is it negotiable?
 

I can only think that the agents themselves feel that this is a fair rate and is as low as they are willing to go to provide their services.

Re: Real Estate commission....is it negotiable?
 

Vicarious liability
Contract Law
Competition Act
Nova Scitia Real Estate Commission By-laws
Real Estate Trading Act

Look them up! That's why I'll never list below 6%.

Also the agent who brings the buyer spilts the commission = 3%
Then the broker gets half = 1.5%

Stop being an old bag and think yourself lucky you have someone who has to "protect and promote the clients interest above all except the law" or lose their license!

Re: Real Estate commission....is it negotiable?
 

Basically I think it boils down to the fact that the two agents are asking the same fee. They obviosuly aren't so desperate for your business that they feel they have to come down at all on that fee.

If you could find another agent who would accept less then I suppose you might have a bargaining point.

It would appear that your choices are to keep looking for a "cheaper agent" (even if you didn't want to use that agent) or to sell it yourself.

Re: Real Estate commission....is it negotiable?
 

Hi Old Bag, I don't usually venture into this forum, but hoping I may be of help to you :). We put our house on the market last year (you can see further details in a thread I've just replied to in the MBUK forum). We contacted several agents, for a valuation and commission rates. Some agents will negotiate, others will not, maybe it depends on their broker I'm not sure.
Anyhows we agreed to list with a realtor for 4%. Funny enough the farm next to us listed with the same company for 5 % :D. One firm did state they were open to negotiation, but we decided against going with them at that point in time. This may change next time we list however. When we sold our last property we sold for 2 1/2 % commission :thumbsup: I note that there are only 2 realtors in your home town (your not that incredibly far from us...well by Canadian distances ;)). Have you thought about listing with an agent a little further afield, but one who can still technically cover your area. Worth a thought, as IMHO most properties are sold through the MLS anyhow. Most realtors will tell you this. I'd shop around for the price of a few telephone calls. Best of Luck :)
I've just noted the last but one reply (shameful) :thumbdown:. There are some rubbish realtors out there :curse: If you want any more details please P.M. me.

Re: Real Estate commission....is it negotiable?
 

This is a particularly caustic post, especially in the light of this other recent quote from yourself .... "Realtors charge up to whopping 6% commission for a Sale in Nova Scotia that is shared between the company representing the seller and the company representing the buyer"

You are a "Johnny come lately" to the real estate business in Canada, and one thing you might learn is to be respectful and helpful to potential customers. Be nice.

Re: Real Estate commission....is it negotiable?
 

There are some with a sense of humour though!

Re: Real Estate commission....is it negotiable?
 

That was before I found out what we do to earn it.............now I know, so learn.

Re: Real Estate commission....is it negotiable?
 

There's a phrase that " Patriotism is the last refuge of a scoundrel ". Similarly, to profess a joke or humour after a very poor post is the last refuge of someone caught in a headlight.

Re: Real Estate commission....is it negotiable?
 

Also he who laughs last laughs longest.

And if you read the post it is pointing out to look at the competition act, NSREC by laws, real estate trading act, contrcat law etc - that is where the answer lies as to why realtors will not negotiate to english sit behind a desk with feet up rates.

Re: Real Estate commission....is it negotiable?
 

Is that ok NSPaul?!:rofl:

Re: Real Estate commission....is it negotiable?
 

Back to work now:thumbsup:

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It wasn't the explanation per se that was objectionable, just the (humorous??) abuse that went with it.

It is, in fact, interesting to know the justification behind the fee.

Re: Real Estate commission....is it negotiable?
 

ontheboatout
I have met with a few realtors during the time we have been planning to move to NS. Some of those realtors had a better grasp of my requirements than others, but, without exception, they were all polite and helpful.

I have even met on or two realtors in NS on a more casual basis and have always found them to be polite and respectful.

The fact that they are probably nice people aside, they are also being astute from a business point of view. Word gets around in NS, networking is so important.

I can't imagine that you are going to do your business much good by being antagonistic to people having a perfectly reasonable discussion and pointedly rude to someone not even involved in the conversation.

I know that you and I haven't always agreed in the past, but I was always of the impression that you would be an astute businessman. Apparently I was wrong.

Re: Real Estate commission....is it negotiable?
 

What a lovely house you have bought and such a great deal.

Re: Real Estate commission....is it negotiable?
 

What abuse - the username is "old bag"!

Re: Real Estate commission....is it negotiable?
 

As a supplementary, is a discount for selling likely if one uses the same agent for buying an alternative property?

Re: Real Estate commission....is it negotiable?
 

Yes definitely - if someone sells and buys they should get a lower rate.

Re: Real Estate commission....is it negotiable?
 

Well thank you! I'm sorry but what happens to the commission once I've paid it is totally irrelevant........that's entirely up to the agent(s) involved. As for Nova Scotia laws - they only apply in Nova Scotia don't they? I live in Ontario, but you probably wouldn't know that.
As for your last sentence, I wish the agent who sold us this house in the first place had adhered to that; she wasn't concerned about anyone's interest but her own, which is why I'm reluctant to put my business her way.

I may, or may not come back to you when I've done as you so kindly suggest and "looked 'em up"!

Re: Real Estate commission....is it negotiable?
 

Thank you Sunshine Girl....your suggestion is most helpful......unlike a certain other poster!

Re: Real Estate commission....is it negotiable?
 

Please enlighten us all.............nicely, if you can......

Re: Real Estate commission....is it negotiable?
 

I'm currently listed with a local realtor (http://www.ranchesonly.com/overview.php?Listing_ID=145), and she was perfectly happy to sit and talk about potential commission - it was all about developing a strategy to sell the property that was appropriate for both parties. Commission rates can be negotiated, but IMO, it shouldn't necessarily be the deciding factor about which realtor you list with.

Re: Real Estate commission....is it negotiable?
 

Exactly - Diligence, Integrity, Competence, Knowledge - oops - an accidental acronym

Re: Real Estate commission....is it negotiable?
 

Why does everyone think I was being disrespectful - you were just going on and on and on ignoring all the good advice people were giving you. Anyway....I apologise if I offended you ...real estate agents are highly regulated, perform much of the work of solicitors in the UK and are pesonally liable if things go wrong - even at closing they may have to right a cheque if the figures are wrong. They have mandatory courses to attend to maintain their knowledge and have strict rules regarding advertising, interference, and fiducialry and facilitatory engagement.

Re: Real Estate commission....is it negotiable?
 

The rules in Nova Scotia would not allow this - we have to give at least three alternate practitioners for people to choose from.

Re: Real Estate commission....is it negotiable?
 

Not quite sure what you're referring to....?

I met with half a dozen realtors before making my decision about which to employ. The commission can be split between any other realtor that makes the sale, and it's an MLS listing.

Re: Real Estate commission....is it negotiable?
 

Apologies, your words sounded as though you were a realtor and were listing your own property with another.

Whether home inspection, lawyer etc etc I have to give at least three choices to clients to avoid falling foul of the competition act and to avoid illegal referral fees.

You don't know of a hobby farm for sale around $150K?

Re: Real Estate commission....is it negotiable?
 

Ahhh, right.

Nope - $150k round here gets you a smart trailer.

Re: Real Estate commission....is it negotiable?
 

are you a member of Costco - they have an executive membership deal with reduced rates - I know one of my neighbours used them and sold quickly - I thought the selling price listed was high but as far as I know they got it. I was told the rate in NB was 6% which I dread paying on a house we have just had for a year so will contact the costco group for rates but also shop around elsewhere.

I do like the way you can view the houses without the seller being there - but dread beign the seller in the same position, having to leave your house for a hour or so just so they can view it. We found it difficult to relax and really look into cupboards etc, which you are supposed to do. I watch the open house programmes on tv and they look everywhere. God even the thought of it, I am going to have to gut my kitchen cupboards, fridge and everywhere else - anybody offering ot help????