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Real Estate commission....is it negotiable?

Real Estate commission....is it negotiable?

Old Apr 5th 2008, 1:35 pm
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Default 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.
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Old Apr 5th 2008, 1:50 pm
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Default 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.
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Old Apr 5th 2008, 1:59 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by destinationnovascotia View Post
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.
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?
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Old Apr 5th 2008, 2:23 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by oldbag View Post
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.
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.
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Old Apr 5th 2008, 3:02 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Elaine B. View Post
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.
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.
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Old Apr 5th 2008, 3:15 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by oldbag View Post
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.
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
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Old Apr 5th 2008, 3:19 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by oldbag View Post
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.
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
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Old Apr 5th 2008, 3:29 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Steve_P View Post
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
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.
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Old Apr 5th 2008, 3:30 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Steve_P View Post
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
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.
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Old Apr 5th 2008, 3:33 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Elaine B. View Post
I don't think I'd be able to keep my mouth shut if they said something rude.
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.
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Old Apr 5th 2008, 3:36 pm
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Default 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?
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Old Apr 5th 2008, 3:47 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Steve_P View Post
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.

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?
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Old Apr 5th 2008, 3:50 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by oldbag View Post
But to harp on about the fee question........why is this fee non-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.
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Old Apr 5th 2008, 4:53 pm
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Default 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!
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Old Apr 5th 2008, 5:07 pm
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Default 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.
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