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Real Estate commission....is it negotiable?

Real Estate commission....is it negotiable?

Old Apr 6th 2008, 9:55 pm
  #121  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by No1_mom View Post

sorry I don't understand your calculations - if it is 6% commission, then on a $467k house that would be a total of $28020.

I dread paying over $12000 to sell the house which I have had less than a year - I will certainly be getting quotes from everyone.
The 6% is split 50/50 between the agents and then (usually) 50/50 again with the broker. So $28k becomes $7K in the jeans.

You may dread it, but unless you're lucky (and right now in the UK, you're not), selling a house after one year is likely to be a loss generating exercise. Sorry, but there you are.
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Old Apr 6th 2008, 9:57 pm
  #122  
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Default Re: Real Estate commission....is it negotiable?

Of course we, the ordinary people who have houses to buy or sell, could change the system by a)refusing to deal with agents who will not negotiate and b) going the FSBO route. ....wow, what a revolutionary idea!
It's usually (real) estate agents who scare us off trying this in the first place.......hhmmmm.
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Old Apr 6th 2008, 10:13 pm
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by oldbag View Post
Of course we, the ordinary people who have houses to buy or sell, could change the system by a)refusing to deal with agents who will not negotiate and b) going the FSBO route. ....wow, what a revolutionary idea!
It's usually (real) estate agents who scare us off trying this in the first place.......hhmmmm.
Here, here!
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Old Apr 7th 2008, 12:21 am
  #124  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by oldbag View Post
Of course we, the ordinary people who have houses to buy or sell, could change the system by a)refusing to deal with agents who will not negotiate and b) going the FSBO route. ....wow, what a revolutionary idea!
It's usually (real) estate agents who scare us off trying this in the first place.......hhmmmm.
If (and when) we get to put our house back on the market, we'll be going the F.S.B.O. route. I will not pay realtor fees - I'd rather eat my own right hand! We've sold a house in Alberta once already via this method and all it cost us was the price of the FSBO book (which was $40 at the time but is now about $25), one months advertising on the For Sale boards in our two shopping malls & their website ($140), couple of weeks advertising in the local rag ($36) and the lawyer's fees ($1200). One thing to expect if you do go this route, in addition to calls from prospective buyers, you'll also be mithered by Realtors wanting your business and trying to put you off selling it yourself....again, speaking from experience!

Good Luck Oldbag - I hope you come to a decision on how to sell it.
Rubes x
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Old Apr 7th 2008, 12:37 am
  #125  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Ruby Murray View Post
If (and when) we get to put our house back on the market, we'll be going the F.S.B.O. route. I will not pay realtor fees - I'd rather eat my own right hand! We've sold a house in Alberta once already via this method and all it cost us was the price of the FSBO book (which was $40 at the time but is now about $25), one months advertising on the For Sale boards in our two shopping malls & their website ($140), couple of weeks advertising in the local rag ($36) and the lawyer's fees ($1200). One thing to expect if you do go this route, in addition to calls from prospective buyers, you'll also be mithered by Realtors wanting your business and trying to put you off selling it yourself....again, speaking from experience!

Good Luck Oldbag - I hope you come to a decision on how to sell it.
Rubes x
Hiya Rubes....thanks for that......will PM you.
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Old Apr 7th 2008, 12:45 am
  #126  
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Default Re: Real Estate commission....is it negotiable?

You could put it up for sale yourself and at the same time offer it to one of your realtors for a percentage if they bring in a buyer.
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Old Apr 7th 2008, 12:49 am
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Paradisefound View Post
You could put it up for sale yourself and at the same time offer it to one of your realtors for a percentage if they bring in a buyer.
Surely if a realtor is willing to do this then they should be willing to lower their percentage to do the whole thing for her?
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Old Apr 7th 2008, 12:49 am
  #128  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by Paradisefound View Post
You could put it up for sale yourself and at the same time offer it to one of your realtors for a percentage if they bring in a buyer.
Yes, thanks, I had wondered about that option..........but I'm feeling pretty negative about R E Agents at the moment, as I've just had a rather rude one on the phone!

And..... AmyDavid....exactly what I was thinking!
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Old Apr 7th 2008, 12:53 am
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by oldbag View Post
Yes, thanks, I had wondered about that option..........but I'm feeling pretty negative about R E Agents at the moment, as I've just had a rather rude one on the phone!

And..... AmyDavid....exactly what I was thinking!
Well...honestly! It's like these realtor rules can be made up to suit the situation the realtor finds themselves in....
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Old Apr 7th 2008, 1:36 am
  #130  
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Default Re: Real Estate commission....is it negotiable?

I've been to see a brilliant house in Truro tonight that the couple want to try and sell privately first. If after three months they cannot sell they plan to list with me. In the meantime they have agreed 3% if I bring a buyer. They have posted photos if anyone is interested - PM me and I'll ask their permission to show them.

This is called Fee Agreement/Customer status that means I owe them only a duty of care, nothing else. I cannot support their interest in any way, advise them, negotiate, set a price, check out buyers credentials, find out the buyers motivation, show them actual selling prices instead of fictitious MLS listing prices etc etc.

I can see this a sensible approach that will be seen more and more - just seller beware instead of buyer beware.
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Old Apr 7th 2008, 1:45 am
  #131  
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Default Re: Real Estate commission....is it negotiable?

If you are dead set on it, I guess you can always try a FSBO first. There are some problems:

a) A house will sell quickly if it is under priced, will sell in a reasonable time if it is correctly priced, and will never sell in a million years if it is over priced. How do you know what the right market price should be? You can ask a realtor or two to give you a market appraisal, but if you have no intention of using their services it is hardly ethical.

You can guess of course, but the FSBOs I have seen have been greatly over priced. Sometimes people have an idea in their own head of what their house is "worth" that has little relation to what other people are prepared to pay for it.

b) How do you find someone who is prepared to pay for it? A realtor is not going to show it unless you are prepared to pay the selling agent's commission. Many will not on principle. You can't list it on the MLS. You only have the advertising you pay for. You might be lucky, but as 90+% of people who are buying homes will use a realtor you are showing your home to a very small selection of potential purchasers.

Say that you get an offer of 10% less that your asking price. How do you know if this is a true reflection of market price, or if you just haven't reached the people who are prepared to pay the full price?

c) How do you allocate value between buyer and seller? Many people who go the FSBO route are, how do I put this, are ... er ... "careful" with their money. If a realtor said the market value of a house is $400k and wants 5% commission, the FSBO seller doesn't list it at $380 - there would be no point. Of course, they list it at $400k or maybe a little over because either they know better than the realtor, or they want some wiggle room.

The trouble is that most buyers for FSBO properties know the score as well and there is no way they will offer anywhere near the asking price. The buyers are as "careful" as the sellers, and are looking for a bargain.

I once met a wonam who made her living by flipping houses. Her source was the FSBO listings in local newspapers. She would look for ones that seemed underpriced and then negotiate hard with the owners. She was an expert negotiator who could break the spirit of a seller by going through a house and listing all its faults in meticulous detail. As soon as she bought it at the lowest price the seller would go to she gave it a lick of paint, rented some furniture, and put it straight back on the market with full realtor service. Her target was to sell one house a month though sometimes she did better. Even after all her expenses, including real estate fees, she was earning over $200k a year.

If I haven't managed to put you off yet (and if you have plenty of time) why not try a FSBO. Let us know how you get on. And good luck with it.
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Old Apr 7th 2008, 1:50 am
  #132  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by oldbag View Post
So, really when an agent gives you a valuation, it isn't really a valuation of the property alone, but a valuation inclusive of the expected (5%) commission! Which should still be negotiable..... On top of that are the taxes...........PST & GST? Or just GST?
You will need to check with your province. In BC it is GST only.
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Old Apr 7th 2008, 2:53 am
  #133  
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Default Re: Real Estate commission....is it negotiable?

Originally Posted by JonboyE View Post
You can ask a realtor or two to give you a market appraisal, but if you have no intention of using their services it is hardly ethical.
Happens all the time in many aspects of business though, doesn't it?

You want some information, don't want to rely on just one source, so shop around and make comparisons. There's never an intention to ultimately engage all (or perhaps any) of the potential contacts you make, so I wouldn't really worry about an ethical dilema.

Realtors know that sellers window shop their services, make comparisons, see who they click with, who's brochures/marketing is most appropriate etc, that's part of their overhead, and there's never a certainty that they'll secure the business.

Whether it's feasible to market your own property comes down somewhat to the nature of what you're trying to sell. I wouldn't expect to be able to sell my property which is very much in a niche market without the help of a realtor. How can I realistically reach buyers that may well be out of province, or many 100's of miles away without spending a great deal on advertising? I've already had viewers from Edmonton, Vancouver and Kelowna. Commissions may seem high, but overheads aren't ten-a-penny.
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Old Apr 7th 2008, 3:06 am
  #134  
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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.
Don't know if you came across this article - good luck with the sale of the house
http://homebuying.about.com/gi/dynam....reco.on.ca%2F
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Old Apr 7th 2008, 3:16 am
  #135  
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Default Re: Real Estate commission....is it negotiable?

I have bought and sold many houses here in BC- sold two ourselves and bought one from a private seller. Have also used realtors.

We are thinking of listing our house and I was wondering if anyone has used One Percent Realty-I believe they have offices across the country. It seems their comission rates are much more reasonable.
Do other realtors shy their clients away from 1% Realty listed homes? Are there hidden costs?

I would love to hear from realtors too.
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