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Real Estate commission....is it negotiable?

Real Estate commission....is it negotiable?

Old Apr 5th 2008, 6:36 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Sunshine Girl View Post
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 % . 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 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) . There are some rubbish realtors out there :curse: If you want any more details please P.M. me.

Thank you Sunshine Girl....your suggestion is most helpful......unlike a certain other poster!
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Old Apr 5th 2008, 6:37 pm
  #32  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Ontheboatout View Post
That was before I found out what we do to earn it.............now I know, so learn.
Please enlighten us all.............nicely, if you can......
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Old Apr 5th 2008, 6:43 pm
  #33  
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Default 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.
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Old Apr 5th 2008, 6:49 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by R I C H View Post
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.
Exactly - Diligence, Integrity, Competence, Knowledge - oops - an accidental acronym
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Old Apr 5th 2008, 6:53 pm
  #35  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by oldbag View Post
Please enlighten us all.............nicely, if you can......
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.

Last edited by Ontheboatout; Apr 5th 2008 at 6:56 pm.
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Old Apr 5th 2008, 6:56 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by R I C H View Post
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.
The rules in Nova Scotia would not allow this - we have to give at least three alternate practitioners for people to choose from.
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Old Apr 5th 2008, 7:03 pm
  #37  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Ontheboatout View Post
The rules in Nova Scotia would not allow this - we have to give at least three alternate practitioners for people to choose from.
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.
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Old Apr 5th 2008, 7:16 pm
  #38  
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Default 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?
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Old Apr 5th 2008, 7:33 pm
  #39  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Ontheboatout View Post
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?
Ahhh, right.

Nope - $150k round here gets you a smart trailer.
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Old Apr 5th 2008, 7:42 pm
  #40  
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Default 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????
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Old Apr 5th 2008, 7:47 pm
  #41  
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Default Re: Real Estate commission....is it negotiable?

The answer to your question is simple really. Yes, the commission is usually negotiable in an active market, where there will be realtor competition for the business. There are two realtors in your town, who will protect "their patch" against someone from farther afield listing the property. Both realtors offer the same rate, because the other is likely to show the property and sell it. The commission is therefore being split between them. I would be in neither realtor's best interest to undercut the other. Pick the one you feel most comfortable with, wait until it is a done deal (because of the tax thing) and run! Best of luck with it all - I get very stressed selling houses.
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Old Apr 5th 2008, 8:03 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Ontheboatout View Post
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%.
Are you saying that regardless of the value of the property you will not list for less than 6% commission?

Sweet deal if you can get it.

Standard in Calgary I believe is 7% on the first $100,000 and 3% on any thing above that amount, I'm pretty sure that is what my son paid when he recently sold his house.

Which on a $450,00 home sale works out to 17,500 or a flat 3.9% your 6% amounts to $27,000 or $9,500 more.
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Old Apr 5th 2008, 8:16 pm
  #43  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by dingbat View Post
The answer to your question is simple really. Yes, the commission is usually negotiable in an active market, where there will be realtor competition for the business. There are two realtors in your town, who will protect "their patch" against someone from farther afield listing the property. Both realtors offer the same rate, because the other is likely to show the property and sell it. The commission is therefore being split between them. I would be in neither realtor's best interest to undercut the other. Pick the one you feel most comfortable with, wait until it is a done deal (because of the tax thing) and run! Best of luck with it all - I get very stressed selling houses.
No, that's forbidden by the Nova Scotia Real Estate Commission and contravenes the Competition Act = License lost.
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Old Apr 5th 2008, 8:19 pm
  #44  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Ontheboatout View Post
No, that's forbidden by the Nova Scotia Real Estate Commission and contravenes the Competition Act = License lost.
Perhaps it makes a difference that the OP is in Ontario
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Old Apr 5th 2008, 8:26 pm
  #45  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Steve_P View Post
Are you saying that regardless of the value of the property you will not list for less than 6% commission?

Sweet deal if you can get it.

Standard in Calgary I believe is 7% on the first $100,000 and 3% on any thing above that amount, I'm pretty sure that is what my son paid when he recently sold his house.

Which on a $450,00 home sale works out to 17,500 or a flat 3.9% your 6% amounts to $27,000 or $9,500 more.
6% in Nova Scotia is the current norm (though often 5%) but for high end properties/multiple properties, flat fees and lower rates can apply. It is unusual for a single agent to receive 6% as it is usally split with the other brokerage involved and the brokers. Generally agents have no salary except what they earn in commission. Look on them as lawyers instead of estate agents and it is more in line with what is done and how hard they have to work.
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