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Real Estate commission....is it negotiable?

Real Estate commission....is it negotiable?

Old Apr 5th 2008, 8:29 pm
  #46  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by destinationnovascotia View Post
Perhaps it makes a difference that the OP is in Ontario
Perhaps but all Provinces are covered by the Canadian Real Estate Association (CREA) and it's Code of Ethics and interpretations.
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Old Apr 5th 2008, 8:36 pm
  #47  
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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.
You haven't been here long have you?
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Old Apr 5th 2008, 8:40 pm
  #48  
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Default Re: Real Estate commission....is it negotiable?

I can only speak to my area.
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Old Apr 5th 2008, 8:41 pm
  #49  
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Default Re: Real Estate commission....is it negotiable?

When we sold last we paid 7% on the first $100,000 & 1.5% on the balance (after a bit of discussion). A lot depends on how hungry and motivated the Realtor is.
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Old Apr 5th 2008, 8:47 pm
  #50  
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Default Re: Real Estate commission....is it negotiable?

Was that in Nova Scotia? Maybe it varies by Province and area.
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Old Apr 5th 2008, 8:51 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Ontheboatout View Post
Why does everyone think I was being disrespectful
Because of this I think Ontheboatout "Stop being an old bag and think yourself lucky you".
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Old Apr 5th 2008, 8:52 pm
  #52  
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Default Re: Real Estate commission....is it negotiable?

7% on the first $100k and between 1-3% on everything else is the standard deal here (for an average family home), though as I've said those figures are negotiable.

Once the house price is over $1m, then the 'rules' change somewhat - sometimes a flat rate commission is offered, or lower percentages splitting the first $250K and everything above. I was offered a deal with a capped commission rate too.
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Old Apr 5th 2008, 8:58 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Ontheboatout View Post
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.
Why?

Realtors don't undergo the same length of study as lawyers to become qualified, and they do a different job. Why would I want to consider them similar?

I'm not anti-realtor, but your comment makes no sense to me. If you feel the need to justify the fees, then do a professional job for your client and make them feel that they're getting value for money, rather than trying to convince them you're virtually a lawyer.
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Old Apr 5th 2008, 9:14 pm
  #54  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Ontheboatout View Post
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.
Realtors are like Lawyers? One is a salesman who has passed the real estate course, which takes what, 12 weeks of home study and has to abide by a code of conduct (largely because their predecessors didn't). The other goes to university for 5-6 years and then works their way up in a firm for several years and is controlled by the law society. I have nothing against Realtors, however with prices rising to the degree they are and if commissions do not reflect this I think we will see far more types of businesses such as www.propertyguys.com


For 6% selling a $450,000 home that is $27,000 commission. Even my lawyer has never charged me that.

Last edited by Surrey Expat; Apr 5th 2008 at 9:16 pm.
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Old Apr 5th 2008, 9:18 pm
  #55  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Surrey Expat View Post
Realtors are like Lawyers? One is a salesman who has passed the real estate course, which takes what, 12 weeks of home study and has to abide by a code of conduct (largely because their predecessors didn't). The other goes to university for 5-6 years and then works their way up in a firm for several years and is controlled by the law society. I have nothing against Realtors, however with prices rising to the degree they are and if commissions do not reflect this I think we will see far more types of businesses such as www.propertyguys.com


For 6% selling a $900,000 home that is $54,000 commission. Even my lawyer has never charged me that, not even half.
Then of course you get the real estate agent who screw something up and expects the lawyer to fix it.
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Old Apr 5th 2008, 10:31 pm
  #56  
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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%.

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!
Mean post, nasty.
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Old Apr 5th 2008, 10:35 pm
  #57  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Tangram View Post
Because of this I think Ontheboatout "Stop being an old bag and think yourself lucky you".
But that's her/his username!!!!! "Old Bag" It's like a play on words - Shakespeare did it a lot in Hamlet.
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Old Apr 5th 2008, 10:37 pm
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Default Re: Real Estate commission....is it negotiable?

I know you said there were only 2 agents, and if so they probable agree what their fees are and so refuse to budge. Bit like the two gas stations that are opposite each other and always have exactly the same price.

Are there any bigger towns nearby where you could find someone to break this monopoly? Here there are a couple of agents who charge less, one is fixed rate and the other MinCom, (minimum commission) Cynic that I am I wondered if realtors didnt try to push houses that are sold by them as they would be paid less??

And on another point, whats a broker, what do they do?
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Old Apr 5th 2008, 10:39 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Ontheboatout View Post
But that's her/his username!!!!! "Old Bag" It's like a play on words - Shakespeare did it a lot in Hamlet.
Only Hamlet?

So do we say, Get On The Next Boat Out or stop being mean, or if you intention is a joke, use an emoticon then we know!!

see , like this
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Old Apr 5th 2008, 10:40 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Ontheboatout View Post
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.
I am well aware that the commission would likely be split with another agent but even at that it if the 6% applies then it is still considerably higher than here in Calgary.

I've been here long enough to understand the workings of real estate sales you don't have to explain (rationalise).
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