I emailed a whole bunch of them and they all came back at 5%, 4% if the buyer has no agent. I then emailed the same list proposing 4 and 3 and got very similarly worded rejections from all that replied. This led me to think that they're not keen on price competition.

Were they based on sole agency? Is there a "realtors code" prohibiting multiple agency selling?

I think all of the usual suspects aren't that keen on price competition - lawyers, accountants, doctors, dentists etc

Pretty much what I would expect. The realtors I know don't negotiate much on commission unless they are double-ending a transaction. If they have to split the commission with another realtor (who will not necessarily agree to take a reduced rate), then by the time they pay all their other costs there is not enough left to interest them.

When I sold a condo in a very hot market in Vancouver I was able to do a deal where if the place sold quickly (and it did, one open house) then I would get a lump sum back from the realtor. Wasn't a huge amount, but improved the situation a little.

The whole point of the MLS is multiple agency listing, every single agent on an areas MLS can sell your home when its listed on their MLS, that is the power of the MLS not Realtor.ca. So there is no point in multiple brokers listing the property, though it does happen sometimes with specialist properties like cottages where it may be listed locally and also in the nearby City.

In Winnipeg there are a lot of agents who wont list for under 6-7% as well as some who will do it for 3-4%, one is currently advertising listing on the MLS for a flat fee of $975.00.

The more successful the Realtor the less they tend to be inclined to discount.

Just a thought - considering how much realtors make, and how little they have to work for their money, you would think more people would quit their jobs and become realtors!

If you can represent yourself, then don't hire a lawyer: though it is an axiom that if you represent yourself you have a fool for a client!

If you can change your own brake pads and rotors then go for it - you don't need a mechanic!

If you can buy and sell a house yourself, don't hire an agent! If you do hire an agent cowboy up and demand good service and a fair deal!

Not sure about heart surgery, though it's probably been tried!

You can do the realtors exams. I've thought about it myself - there is going to a level at which the fixed price for doing the exams is less than the 4% you'd get back from doing them. Unfortunately the realtors organizations have protected themselves from this kind of thing and you can't register as a realtor unless it's your actual job - just being qualified isn't enough.

Are you saying that there could be 3 realtors involved in a transaction even though the seller only contracts with a single realtor to sell the house for a commission?

1. The realtor engaged by the seller
2. A realtor that makes use of the MLS to sell the first realtors listing for a cut of the commission
3. The buyers realtor who introduces a buyer for another cut of the commission

No wonder the pie has to be so big if so many want a slice.

In Manitoba you have to write 3 x 3 hour exams, and then indenture with a Broker for 2 years during which time you have to pass a further 2 x 3 hour exams. You also have to attend a full days course every year to maintain your license.

Remember also you would not save 4%, its a co-operative system so a 4% Listing is 2% for the selling Broker & Agent and 2% for the Listing Broker & Agent, in Manitoba a Real Estate agent is not allowed to charge a commission on the sale of their own property, though it is normal practice to offer a buyers agent the going rate out of your own pocket.

Commission in the North American way of selling real estate is normally split 4 ways.

50% to each of

The Listing Broker & The Selling Broker

There is usually then a % split then between the Broker & the Real Estate Agent it can vary from 50/50 to 90/10 depending on all sorts of things. There are also 100% Brokers who charge a Real Estate Agent a Monthly Fee plus charges when a house is sold.

Real Estate Agents & Realtors are independent contractors to Brokers.

Its this co-operative nature of the MLS and the Broker - Agent relationship that makes the process more expensive here than in the UK.

So it's not actually "value for money" then?

Get a mortgage through a purchase.

Apparantly all of these are Monopolies.

Now you are being deliberately obtuse. You know full well that if the state affords protection to any profession then the state has a right to dictate conditions of operation to said profession. Be it lawyers, realtors, doctors or whatever - it doesn't necessarily imply a monopoly (though in the case of mls it practically is), but it should be deemed to be fair and reasonable.

I was assuming 4% for each (total 8%). And those restrictions are the problem - to represent yourself you and get half the commission back you shouldn't need to go through that (or even do any exams). If I had the choice I would actually just pay a lawyer a fixed price to do the purchasing side.