Real Estate

Lower your Listing/Selling Fees - Use Flat Rate MLS

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  • Sep 25th, 2020 12:32 pm
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Feb 15, 2018
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Edmonton
wJUvA7ZjUFZ20WkwWGhxy wrote: No, in the example above seller already signed a Listing Agreement with commission at 5% and 2.5% so no cash back applies in this example. My question is about how a buyer can save money when buying a house without an agent and why a seller would pick their offer.
A buyer does not save money because they are unrepresented. They save because they are a good negotiator and understand the market well. Not a very likely scenario due to asymmetric information as buyers do not have access to the same databases realtors can access for comparables and historic listing info. A seller would not care whether the buyer is represented or unrepresented as they still pay the same commission. The only one who wins is the listing agent who ends up collecting the full commission without having to split it with a buyer agent.
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Fernando Poo
Here in Ontario at least, we'd all be better off if we got rid of the current real estate system and went with an auction system instead. Here, of late, almost every listing is more of a "suggested starting price" with the aim of getting multiple bids at a higher amount. Oh, and if this doesn't occur, they up the asking price.

At least in a real auction, you can adjust your offer seeing what the other offers are. I'd like to see the end of real estate agents entirely which are basically running a scummy cartel. My agent doesn't see it this way. ;-)
Welcome to the Minitrue FDs, Ficdep
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canuckstorm wrote: A buyer does not save money because they are unrepresented. They save because they are a good negotiator and understand the market well. Not a very likely scenario due to asymmetric information as buyers do not have access to the same databases realtors can access for comparables and historic listing info. A seller would not care whether the buyer is represented or unrepresented as they still pay the same commission. The only one who wins is the listing agent who ends up collecting the full commission without having to split it with a buyer agent.
The info is no longer asymmetric. Have you been sleeping under a rock the past few years? Comparables and historical info are insanely easy to get for free now.

Who wins is the seller who didn't use an agent and saves the 2.5% +/-.
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Feb 15, 2018
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eonibm wrote: The info is no longer asymmetric. Have you been sleeping under a rock the past few years? Comparables and historical info are insanely easy to get for free now.

Who wins is the seller who didn't use an agent and saves the 2.5% +/-.
We have come a long way in terms of availability of info but there is still asymmetric info as these third party sites showing historical info are not accurate to the level of CREA databases. If you wanna rely on the such sites, I say buyer beware. Also, not all markets are served by such sites.
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Penalty Box
Mar 27, 2004
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bungol does not have the complete info you need to make a informed decision. you are not saving by trying to go to a listing agent yourself to buy a place. period. get an agent to give you a rebate as a buyer.
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wJUvA7ZjUFZ20WkwWGhxy wrote: This makes sense. So in short, there is no way for the buyer to win. Buyers may as well use agents then. Sellers should not use an agent and save 2.5% +/-.
Only if you are very diligent in following all the steps an agent would and as I described, ie listing on MLS, flowery description, staging the house, giving a decent buyer agent commission etc. Then if the house doesn't sell you lower the listing price as do all top agents when the house doesn't sell.
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canuckstorm wrote: We have come a long way in terms of availability of info but there is still asymmetric info as these third party sites showing historical info are not accurate to the level of CREA databases. If you wanna rely on the such sites, I say buyer beware. Also, not all markets are served by such sites.
And given the market changes so quickly and listing prices don't seem to mean much the usefulness of having more granularity on historical prices is marginal at best.
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oasis100 wrote: bungol does not have the complete info you need to make a informed decision. you are not saving by trying to go to a listing agent yourself to buy a place. period. get an agent to give you a rebate as a buyer.
Um, this thread is about listing not buying. Create your own thread if you want to give tips on using an agent to buy...
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Feb 14, 2016
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Hi,

I'm learning a lot from your post. I'm trying to sell my condo in Toronto Downtown. Would like to try listing it on my own

Can you suggest any flat fee MLS listing agencies?

Thanks!

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