It should be noted that the real estate pricing scenarios being discussed in this thread are really only seen in the GTA and Vancouver areas. When purchasing outside these areas, your experience will likely differ significantly.

Of course, since the OP is looking to purchase in the GTA, this discussion has its merits in the thread. To the OP, I would second the opinion that you should initially rent - there will be a large number of things to adjust to after you move, and trying to find that 'perfect home' could just increase the stress on you and your family while going through the adaptation period.

Purchasing could also tie up a large portion of the discretionary funds that you're bringing over, which could mean you feel like you're less able to get out and enjoy the 'honeymoon' period of your move, as well as being able to find ways of dealing with those times when you start second-guessing your decisions etc.

Thank you

The bloke we bought our son's house from would have made a lot more money if he'd used an agent.

An agent would have told him to at least clean the place beyond the level of a pigsty before showing it. No wonder he wasn't getting offers, or visits lasting more than 30 seconds.

An agent would never have mentioned that the seller was about to be declared bankrupt and was facing foreclosure if he couldn't sell.

The bloke was a stupid twat. We probably saved him from being declared bankrupt but that's about it.

HGerchikov @post#44, thanks for replying to my post filling in those points.

HGerchikov, based on the following, what do you think, any comments or suggestions?

At the point of selling two properties we own in the GTA (at the same time within 30 days of each one) we have decided that after searching the last 3 months sold prices of comparable, that we shall list it MLS with an agent that works the area. We plan on listing them in the springtime, May or June. It could be this year (hopefully) if not, then next year or the year after

The listing shall include - all elf, ALL window coverings, all appliances, water heater, furnace (with their age) to be 60-90 day closing, when the roof was last replaced, the last 12 month all utility costs will go in the listing also. I shall insist that the basic MLS listing have the property taxes shown.

It'll be 'Two to three open houses (one or two days apart) with the listing agent & with us there, between x time to x time - then offers to be presented 7 days from when the listing first went up on MLS

Since we have two properties to sell we shall strive to get a respectable commission rate, we shall do the pre-inspection report & pay for it even if the listing agent insists on paying.

In the listing we shall add a clause of a cash bonus to the selling agent

We won't hang out or haggle over a couple of grand, or a purchaser wanting a reduction because they have to replace the furnace, kitchen, flooring etc... just get the sucker sold at fair market price & be done with it

Why give the agent a bonus? It's their job to sell the house and take the commission!

+1.

Listing in May is better if it's a family house as most people want to move in the summer in time for school in September.

I'd also suggest NOT being around for the open houses, leave that for the agent. It's so awkward to go to an open house with the owners there because you don't feel like you are free to wander, to talk openly, to take your time looking around because you really feel like you're in someone else's house and taking up their time and space. Go make yourselves scarce during the open houses. Better yet, just go away for the weekend completely.

And with the state of the market in the GTA, don't even wait 7 days for offers. List on a Thursday, open house Saturday/Sunday, and hear offers Sunday night. Disappear for Thursday to Sunday, and come back Sunday night to hear the offers. Also means you don't have to worry about keepig the house tidy or anything. Just disappear.

If you have multiple offers you won't have haggling over little things, you'll be able to just pick the offer you want. You'll probably get all offers with no conditions anyway, so you can just accept it and that's it.

I'm not a real estate agent but we bought recently and my parents are in the process right now, plus I maintain the website for a friend who is an agent, and have regular chats with her about the market and whatnot.

we shall have it listed at market whatever the last few properties sold for, knowing & happy with $x. The commission rate on MLS in the GTA for two sold properties we expect to be close to 4%.

Yes, we could go with the 1% brokerage firm, but what the heck

So, the bonus like any other bonus will be shared on a net net profit basis whatever it sells over the asking price minus the commission

On the basis the difference in the sold price from what the listing price was & from the net selling price (after commissions) to the 'sold for over price' is say $10,000, then the selling agent gets 10% of the $10k or $1000 extra just for being the selling agent.

The listing agent gets only if its a shared sale with a selling agent only get 25% of the total commission shown in the listing.

On a listed 4% commission split four ways 1% for each broker & 1% each agent + the selling agent agent gets an extra $1000

Makes you want to work just that little bit harder, maybe

Of course if it sells below the listing price then the selling agent doesn't get the extra

There was a property sold this last week in Toronto, a basic 1967 two storey half brick/half siding two storey that sold $1 million + over asking

Imagine if that had have been our property with the extra bonus clause

It's better for the seller to not be around when viewings are happening. It's certainly better to not be around when an inspection is taking place. You can't be asked awkward questions if you are not there.

I just don't get the point of the bonus. It's dumb and unnecessary.

Most places will have 5% commission - 2.5% to the selling agent and 2.5% to the buying agent, and both paid by the seller.

You won't be able to do anything on the buying agent percentage, but you might be able to get the selling agent percentage down by giving the agent two listings, so maybe 1.5% of each instead of 2.5%.

I would just keep it simple and leave it at that. They get two listings and the more they sell for the more commission they get. Don't bother with any of the cash bonus nonsense.

Comments added. General comment, you will be paying a listing agent serious money to sell your houses. The value to you for doing that is that they have done it before and knows what works and how to get the best price. If you try to dictate to this degree how it will be done then you take that value away. If you are going to pay someone to do it, let them do their job.

Edited to add: I see there have been a lot of comments made while I have been typing my response, I got distracted half way through. I think they reinforce what I am saying and those are from people who have recently been buyers.

Thanks for that

Its something to think about or consider, OK - here goes, a revised listing without ever going with a bonus


In keeping it simple (kiss principle) squeeze the commissions, list it below market, have the two or three open houses a few days apart, have the listing agent pay for the photo shoot and the property pre inspection report

Offers to be presented 7 days after the MLS listing goes up, 60-90 day closing

On the listing, 'just, & I mean just' show the listing price, basic property details & do not include any light fixtures, window coverings, details about the property taxes or the appliances.

Anything else to consider?

Honestly, talk to the agent about where to list it. Find someone who has sold a lot in the specific area, and they'll know the best pricing strategy. You can (and should) interview 3-4 agents and ask all of them where they would list.

Let the agent determine after how many days to hear offers. Again, in this market, you can list on Thursday and hear offers Sunday. 7 days is a long time in this market, especially if your property is in a very desirable and 'hot' area with no major issues. I suspect you'll still get some bully offers (list on Thursday, offer on Friday afternoon that expires Friday at midnight).

You're overthinking what to include/exclude. ELFs, window coverings, and appliances are standard to be included in a listing, and on the MLS listing you have to list inclusions and exclusions. Like the property taxes not everything goes through to the public listings, but those three things are pretty standard inclusions and will have to be listed. They just simply aren't a big deal. One place we looked at had two particular sconces listed as exclusions because they had sentimental value to the seller. Friends of ours bought a place last summer where they excluded the washer and dryer for some bizarre reason - they weren't even new, they were super old, but whatever, they wanted to keep them.

Honestly, open up any listing on realtor.ca and you'll see what's included there. There's way more detail that goes onto the 'private' listing, though, which includes the property taxes, inclusions and exclusions, and a bucket of other information. A serious buyer is going to want to see all that stuff, it's just not on the public listing.

I also am pretty sure that the seller pays for the preinspection, not the agent, but you can negotiate that. I think who pays for the photos is negotiable - our agent pays that herself because she wants the guy she knows to take good pictures, so she just does it herself, but others may prefer the seller to arrange their own photographer.

Seriously, interview an agent who does this for a living and who knows the market and knows the strategy way way way better than you do, and then just back off and let them do what you are paying them to do.

@ post #55 & #57, thanks for your responses & suggestions

I just spotted this post, somehow missed it this afternoon. What you are proposing as the bonus cannot legally be accepted. Salespeople are prohibited from accepting payments based on the difference between the listing and selling price.

Just to add an alternative viewpoint.

A family member was approached by a very well known agent in the area, who suggested putting his house up for sale at a 'low' price with the hope of achieving more. He offered to list at 5% commission.

The family member turned down his kind offer. Instead, he took photos himself and listed it on kijiji. He showed the house to several people over the week and told them all offers would be considered at 7pm on the Sunday. He had 3 offers in excess of $50,000 more than the agent wanted to list at (or expected to get), with one being $70,000 higher with no inspection.

The house sale went through without any issue 6 weeks later.