Real Estate

Earn back buyer's real estate agent commission - Become an Agent!

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  • Mar 11th, 2019 9:45 am
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[OP]
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popbottle wrote:
Jun 4th, 2015 12:34 am
You don't need to become an agent. You can find a Realtor that offers cash back as many do, and start that right away without taking courses and stuff.

http://www.canadiandiscountrealty.com/C ... 72431.html

http://ontario.onepercentrealty.com/faq.cfm
"Our listings are shown by cooperating REALTORS® everyday just like other listings on MLS®. We cannot measure showings that we don't get. What we have seen across Canada over the years is that over 80% of our listings sales are sold by cooperating agents."
Nah, I want it all! 1% of the house price? That's ridiculous for almost no work!!!
[OP]
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lenkov wrote:
Jun 4th, 2015 12:26 am
Nice! But why do you need to become an agent to save on real estate fees on the buying side? There is no commission to pay.
You don't pay any commission as a buyer, but as a buyer AND a buyer's agent you get 2.5%. If there is no buyer's agent to pay the commission to then the listing/selling agent takes it ALL for himself by 'double-ending' the deal (or slightly less if there is a lower commission written the listing agreement for double-ended deals).
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eonibm wrote:
Jun 3rd, 2015 10:23 pm
My threads on real estate have become immensely popular so I thought I would start another one. I've already shown people how to save a ton of money on the selling their home with my handy dandy guide you can find here: How to Lower your Real Estate Agent Transaction Fees, but how about on the buying side?

If you become a real estate agent in Ontario then you can pay yourself the 2.5% buying agent's commission. The buying commission is a hard to avoid when selling a home because agent's won't show your home unless they get a decent commission so you have to offer at least 2.0-2.5%. It's unethical and they are not supposed to shun homes with lower commissions but, guess what - they do! So, given I have started the process to become a full-fledged agent I thought I'd share the up-to-date information on the process and costs. I'm doing it to save the 2.5% on all the future property I buy, probably will list the odd home here and there and just to see just what it takes to become an agent. Not much I have found, not much at all!

If you go to the Ontario Real Estate Association website (www.orea.com) there are 3 insanely simple steps: Pre-registration Segment, Approval & Articling Segment. You have up to 18, 12 & 24 mos to complete each of these respectively, but if you have the time and are determined you can be selling real estate in as little as 4-6 months from now.

You apply & pay to do the courses thru orea.com. All you need is to be 18 & have a high school diploma or write a small test instead, which mainly proves you are alive. You need to pass all courses by 75% but can write each twice without re-doing that course. The Pre-Registration Segment is 4 40-hour courses, 3 of which can be done thru correspondence or e-learning and one that has to be done in a classroom setting. There’s an exam after each of 1 & 2 and then one for 3 & 4 together. Some people have finished all 4 courses in 4 mos!

Then you have up to find a brokerage to associate yourself with and 12 mos to apply and get Initial Salesperson Registration at reco.com. Now you can start selling real estate & make those fat commissions. This is the Articling Segment during which all you have to do is 3 more 40-hour courses within 24 mos, one of which is in the classroom. Then you apply and get Salesperson Registration which you renew every 2 years and that’s it!

You don't have to transact a single real estate deal ever to become full fledged agent or anytime thereafter, just pay some fees annually.

Initial Fees

OREA 1st 4 courses (in 18 mos) - $1,870
RECO Initial Salesperson Registration - $350
RECO Errors & Omissions Insurance - $400
TREB (Toronto Real Estate Board) Registration, if in Toronto - $460
CREA/OREA (Canadian/Ontario Real Estate Associations Registration - $400
You can start doing deals after this and you've only spent $3,480!

Then:
OREA 2nd 4 courses (in 24 mos) - $1,280
RECO Salesperson Registration - $350

Total: $5,110


Ongoing Fees:

RECO - $350 every two years, ie $175 annually
RECO E & O Insurance - $400
Continuing Education (a few courses ongoing) - $44 every 2 years, ie $22 annually
TREB - $860 annually
CREA/OREA - $475 annually

(btw, TREB & CREA/OREA fees are not compulsory. You just pay those fees for their services and to access MLS. Your licence is as a result of paying RECO, not those associations).

Total: $1,932 per year to milk the commission gravy train (and less than $600 if you just want to 'park' your registration and not pay TREB ,CREA/OREA)

Yes, I know real estate agents pay part of their commission to their brokerage but this can be as little as $0 to $1,500/mos and/or a % commission split between the brokerage, which is negotiated but it can be in the low single digits % if anything. Aside from that all you need to have is business cards, some minor office supplies, a computer, smartphone, some decent clothes and a half-decent car and pay for gas. Most of that you’d have anyway, not to mention they are all write-offs against your income.

When you get a listing you then there are MLS fees and costs for brochures, pics, marketing material, advertisements, a website, etc but that’s a pittance compared to the listing/selling commission, not to mention they are all expenses deductible against income too.

The price of single family home in Toronto is now $1.15M. Let’s see. If I only sell one house, which is like shooting fish in a barrel, that's 2.5% or $28,750 commission. (HST has been left out for now for clarity purposes). Even if I give 10% to the brokerage that leaves me with at $24,000 after my annual fees I’m ahead at least $25,000 and that’s on one side of the transaction for ONE HOUSE! Geez, transact 4 houses a year, ie one every 3 months and make $100,000 take home for almost no-brainer work and not much work at that! And, yes I know not all houses are going to sell for over a million and some clients won't buy, etc, but I think you catch my drift.

Sign me up! Wait, I am already signed up and doing the course. I do have to say these OREA courses make the bird courses I took in university seem very difficult.

Oh, btw, I talk about how insanely easy peasy marketing a home is in my other threads. Turns out the OREA courses do not cover customer service or marketing at all. Not hard to figure out why. As they say 'it ain't rocket science!'.
Lol. :D You know what I said to myself a few weeks ago when eonibm stated that he was taking the RE agent courses? I figured once eonibm becomes a licensed realtor, he is going to be just like one of the realtors here on RFD that he knocks all the time but you will slowly see him change his tune now that he is on the other side. Mark you words.
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The BC course takes more than 2 months to complete unless you obtain permission to challenge the exam.
[OP]
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Captain_Ron5, an RFD member who is a realtor in BC reports on here that he did the course in 2 weeks.

But anyway, 2 weeks or 2 months. WOW such a huge hurdle to become a real estate agent and make tens of thousands of dollars for a few hours work.
[OP]
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Speedy1 wrote:
Jun 4th, 2015 1:06 am
Lol. :D You know what I said to myself a few weeks ago when eonibm stated that he was taking the RE agent courses? I figured once eonibm becomes a licensed realtor, he is going to be just like one of the realtors here on RFD that he knocks all the time but you will slowly see him change his tune now that he is on the other side. Mark you words.
Wow you can predict what I am going to do? Hardly! Just because that's what you would do doesn't mean I will. I don't need the money. I just like SAVING money. I already make enough money on my other ventures. I am going to use the licence to save on ridiculous agents fees when I buy and sell property for my own account. I already have enough on my plate and do not want to serve the masses. I just don't have the interest or time.

I have already told friends and relatives etc that want to list with me that it's really no work at all, they can do it themselves and have shown them my marketing plan on here and have encouraged them to just get a flat rate MLS listing but don't pay a %. I will tell them it is not necessary as there's no work and the marketing plan is a farce as I have already shown. 95% of the work is just getting the listing as agents keep telling me.

One thing I won't do is pull the wool over their eyes and tell them there are all these secret marketing techniques that cannot be revealed like so many agents claim on here even though top agents admit my marketing plan is 150% accurate and they can't add a thing.

:D :D :D
[OP]
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popbottle wrote:
Jun 4th, 2015 1:12 am
A person may challenge the exam and not take the course if he or she receives an exemption.

A person taking the course the normal way is _required_ to take over 2 months, not 2 weeks to complete it.
http://www.sauder.ubc.ca/Programs/Real_ ... g_Services
Again, 2 mos? Takes longer to get a driver's licence!
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eonibm wrote:
Jun 3rd, 2015 10:23 pm
The price of single family home in Toronto is now $1.15M. Let’s see. If I only sell one house, which is like shooting fish in a barrel, that's 2.5% or $28,750 commission. (HST has been left out for now for clarity purposes).
Have you ever shot a fish in a barrel? Not with a shotgun, with a rifle or something,, a spear? I hear its actually quite difficult.

On the other hand, you are about to close the deal and you find out that the buyer already took your advice from this thread!
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A few months of training with a high school diploma requirements... and those clowns were comparing themselves to lawyers, doctors and surgeons in some other threads... :D
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eonibm wrote:
Jun 4th, 2015 1:10 am
Captain_Ron5, an RFD member who is a realtor in BC reports on here that he did the course in 2 weeks.

But anyway, 2 weeks or 2 months. WOW such a huge hurdle to become a real estate agent and make tens of thousands of dollars for a few hours work.
how will you get clients?

and you need to give a cut to the brokerage as well
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izzyzz wrote:
Jun 4th, 2015 9:14 am
A few months of training with a high school diploma requirements... and those clowns were comparing themselves to lawyers, doctors and surgeons in some other threads... :D
i thought you were talking about cops
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I'm surprised realtor commissions aren't lower in hot markets. Like a million dollar home in Toronto is like three times the price that it is in most other places, but it's hardly like the realtor needs to do three times the work to sell it. If anything, they probably do less work to sell a house in Toronto than they would a similar house for a third the price in most other places.
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justaskthescientician wrote:
Jun 4th, 2015 9:21 am
I'm surprised realtor commissions aren't lower in hot markets. Like a million dollar home in Toronto is like three times the price that it is in most other places, but it's hardly like the realtor needs to do three times the work to sell it. If anything, they probably do less work to sell a house in Toronto than they would a similar house for a third the price in most other places.
Agreed. Properties have soared and commissions have gone along with them. $25K just to sell my million dollar house within a few days since offers are being held off? IMO the difficulty I guess is being lucky enough to get a listing. The rest of the work is easy peazy in today's market.

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