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Realtor service for a single listing.

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  • May 28th, 2013 1:57 am
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Member
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Sep 9, 2006
217 posts
14 upvotes

Realtor service for a single listing.

Hi,

We are FTHB in GTA and after being to a few Open Houese, have located a property we would like to make an offer on. We are currently not working with a realtor as our initial game plan was to negotiate directly with the sellers agent in order to help bring down the purchase price.

I am confident with my negotiating skills and a fairly good idea on what I am going to be offering for the house, however admittedly a bit naive about the whole process.

Wondering if I should just cut a deal with a realtor to do the paperwork and have him represent us during the negotiation, just for this one assignment only and pay them in lieu a pre agreed flat fee for their services.

Has any one tried this approach and can provide feedback?
Will a realtor even agree to take temporary assignment such as this?
How much should I pay them for their services? Is $500, $1000 or $2000 good enough?

Thanks in advance.

jD.
justDeals is not a member of any public groups and a very unsatisfied Questrade customer.
24 replies
Member
User avatar
Sep 9, 2006
217 posts
14 upvotes
.....If you are a realtor and confortable with the above proposition, please PM me with your phone # and best time to reach you. Thanks.
justDeals is not a member of any public groups and a very unsatisfied Questrade customer.
Deal Fanatic
Jul 3, 2011
6517 posts
3798 upvotes
Thornhill
Since you are comfortable with your negotiation skills then my suggestion is to negotiate the commission with any REALTOR who offers their service to you and you start with whatever amount you think is worth starting with - no different to negotiating your purchase which essentially means that unless you know where to start you can't know where to end (up).

justDeals wrote: Hi,

...I am confident with my negotiating skills and a fairly good idea on what I am going to be offering for the house, however admittedly a bit naive about the whole process.

Wondering if I should just cut a deal with a realtor to do the paperwork and have him represent us during the negotiation, just for this one assignment only and pay them in lieu a pre agreed flat fee for their services.

Has any one tried this approach and can provide feedback?
Will a realtor even agree to take temporary assignment such as this?
How much should I pay them for their services? Is $500, $1000 or $2000 good enough?

Thanks and advance.

jD.
Deal Expert
User avatar
Nov 2, 2003
17117 posts
3872 upvotes
GTA
You don't know what you don't know. As property virgins, get a realtor. You think you are saving money by going directly to the listing agent but that is not always the case.

The listing agent cannot represent both sides even though on paper it may look that way. If you retained an agent, the buyer's agent is to get the lowest price possible for you, whereas the seller's agent is to get the highest price possible for you. When an agent represents both sides, there is an inherent conflict of interest.
Deal Addict
Jul 11, 2010
1294 posts
329 upvotes
Toronto
As a buyer you do not have to pay a realtor to work for you. You can sign a Buyers Representation Agreement with an agent and limit it to 1 particular house and a specific time length ie 2 days. Your agent wil look at at the recent sold prices of comparable houses in the area and advise you on what he/she thinks is reasonable offer to put in.You don't need to pay for this. I do think that you need a realtor to represent you as he/she can sort out the facts and the fictions that the listing agent may tell you if you try to go it alone. You will tend to get a lower price not because you are alone but because of something about the house - location, long time on the market, repairs that will have to be done.Don't forget to have a qualified house inspector look at it as a condition of an offer.
Doug Boswell
i
Member
Oct 21, 2007
478 posts
656 upvotes
dougboswell wrote: As a buyer you do not have to pay a realtor to work for you.
However, when you do make an offer, the seller will have included a markup to allow for the realtor agent fees...and if you don't have to pay for that mark up, you may be able to get a better deal. Realtor's like to tell property virgins that the buyer's agent's services are free(they like to tell a lot of other lies too)... but at the end of the day, it's the buyer who's actually paying for everything - including both agents.

I don't blame one for wanting to try to avoid using a real estate agent - it's shocking how little is required to become one, and at the end of the day, they are salesmen more than real estate experts. There are some good ones out there, but from what I've seen, they are a drop in the barrel. Many people will tell you how great their agent was - when all they did was pay them $20-40k for driving them to a few houses and filling out about 10 pages of forms...oh but they did it with a smile and give them a warm mushy feeling! You will have to do a lot of your own research to find out if what a potential agent is telling you is correct, or if they're just trying to move you towards a deal (that's their real job). Whatever you do, DO NOT sign a buyer representation agreement (BRA) that is not limited to 1 property, and for any longer period than it needs to be (also make sure there's no lengthy hold over period). Regardless of what an agent will tell you, BRAs are purely an agent contract meant to lock you to them for several months to make sure you have to pay them a commission if you buy a property during that time, regardless of what the agent does.

Call around to some real estate lawyers and ask questions... I think you'll get more straight answers from them than agents. The real estate lawyers actually do most of the heavy lifting in a real estate transaction, while the agents just try to get deals done faster. If you know what you're doing, a lawyer can handle everything for far less than an agent will (This is assuming you are able to negotiate the buyer's commission back) - some will even do some negotiating. If you are unable to negotiate the buyer's commission back, consider using a flat-fee or discount agent, who will give you back half of their commission - you'd still be paying them a lot of money, but you'd also be getting substantially more back. You can also negotiate the commission you will pay those agents.
Deal Addict
Jul 11, 2010
1294 posts
329 upvotes
Toronto
It is true that the seller builds the commission into the asking price. That being said I would not want to put a bid in on a home by myself. The reason is simple. To decide what a realistic asking price is you need to know what recent comparable selling prices are. Otherwise you have no idea if the asking price is realistic or inflated. Obviously the listing agent will tell you it is a realistic price. Only a realtor can access this type of info. If you do not have a realtor friend who will do this for you then you have to pay a realtor to do this. Whether an agent is willing to do this and this only for a fee is something the buyer will have to inquire about.
Doug Boswell
i
Banned
User avatar
Mar 31, 2010
1948 posts
441 upvotes
Check my thread called "Representing yourself ...." there you will find a guy who pretended he would represent anybody for just 500$.
Fair enough I would say. Make sure you agree with him on paper in regards to his responsibilities and what services he will provide to you.

good luck
PF
Member
User avatar
Sep 9, 2006
217 posts
14 upvotes
Need an agent who can offer cash back incentives. This will be an early close and easy $$$.
I can provide more details. Please PM.
justDeals is not a member of any public groups and a very unsatisfied Questrade customer.
Member
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Sep 9, 2006
217 posts
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Thank you everyone for some really good inputs.

Still looking for a REA with good cash back who can represent us. Relocation company will be paying the commissions and 2.5% is guaranteed.
justDeals is not a member of any public groups and a very unsatisfied Questrade customer.
Deal Fanatic
Jul 3, 2011
6517 posts
3798 upvotes
Thornhill
The relocation company would only be paying commission less any commission paid by the seller to the REALTOR’s brokerage which represents you. As a buyer you agree when signing a BRA that the brokerage is entitled to receive whatever commission rate you and they agree on.

I presume your arrangement with the relo co., is that you would have to pay any commission up front if the seller does not cover that agreed upon fee in which case, the relocation company would be refunding you the difference.

If you hire on a cash back basis and the relocation company has to top up the difference you should be providing them with a statement that identifies your cash back. This cash back will essentially nullify the 2.5% the relo co., agrees to cover.

So you’re asking for a cash back either because you’re unfamiliar with how icommission fees work or you plan on hiding it from the relo., co and hope to hire a dishonest REALTOR to assist?

justDeals wrote: Thank you everyone for some really good inputs.

Still looking for a REA with good cash back who can represent us. Relocation company will be paying the commissions and 2.5% is guaranteed.
Member
User avatar
Sep 9, 2006
217 posts
14 upvotes
easy big guy.

You assume too much before getting your facts straight.

Just for a few thousand dollars I am definitely not looking to run a con scheme here and get into trouble with the law. Did you even read my original post where I have acknowledged my limited knowledge about the whole process and use of word naive ?

One more reason I haven't signed a BRA yet, keep running into REA like you who are too cocky and assume they know everything about me. I am def. not looking to hire a dishonest REA, but ain't stupid to hire someone like you either...

Get your ego boost some place else mate and make space for other smart people to contribute.


licenced wrote: The relocation company would only be paying commission less any commission paid by the seller to the REALTOR’s brokerage which represents you. As a buyer you agree when signing a BRA that the brokerage is entitled to receive whatever commission rate you and they agree on.

I presume your arrangement with the relo co., is that you would have to pay any commission up front if the seller does not cover that agreed upon fee in which case, the relocation company would be refunding you the difference.

If you hire on a cash back basis and the relocation company has to top up the difference you should be providing them with a statement that identifies your cash back. This cash back will essentially nullify the 2.5% the relo co., agrees to cover.

So you’re asking for a cash back either because you’re unfamiliar with how icommission fees work or you plan on hiding it from the relo., co and hope to hire a dishonest REALTOR to assist?
justDeals is not a member of any public groups and a very unsatisfied Questrade customer.
Member
Jan 1, 2012
457 posts
9 upvotes
TORONTO
Anyone can go and make any offer on house without an agent. You have to hire a lawyer anyways to check everything. The sellers agent will be happy to receive any offer. Don't sign anything with the agent. If you bid 300k and so does some one else with an agent the buyer will get 9k more out of the deal with you. So they will definitely take you bid. So even if you bid 295k you might get it over the other bid of 300k.
Deal Fanatic
Jul 3, 2011
6517 posts
3798 upvotes
Thornhill
That is quite the defensive tirade you went on.

There is nothing within my post that suggests I know anything about you just as you know nothing about me to even suggest you could hire me. As you can only acknowledge I did not offer my services to you, did not pm you and am not interested in representing you.

Your initial post made it appear that you were a novice to real estate purchasing but your ensuing post about the relocation company’s involvement suggested something else for they would have explained to you the process by which they would pay fees in that you’re not footing the commission fee if one is charged to you yet you want a cash back for same. Frankly most people would inherently know and acknowledge that any rebates/reductions should accrue against any commissions the relo co. paid on your behalf and not to you.

The questions therefore were legitimate. You either asked because you were unfamiliar or looking to profit at the expense of your relocation company.

The information you sought is best answered by people who actually engage in the trade of real estate and any “smart” REALTOR who might take you up on your offer to pm you should also take the time to explain to you exactly how the commission structures work given the scenario you paint.

That you take such offense to my mention of a cash back nullifying whatever agreement your relo co. would agree to pay does now suggest to me that you protest too much.

Good luck with your purchase.

justDeals wrote: ...

You assume too much before getting your facts straight.

I am def. not looking to hire a dishonest REA, but ain't stupid to hire someone like you either...

Get your ego boost some place else mate and make space for other smart people to contribute.
Member
User avatar
Sep 9, 2006
217 posts
14 upvotes
Your last 3 post didn't make any sense and do not contribute to the information I am trying to gather here.

And don't need a lecture in honesty from a REA, especially when I see "agents" like you letting their clients pay over and above for a property that they very well know does not commands the price. It is a commission job after all.

Judging from your contributions on other threads, you seem disgruntle and discourage people from even entertaining the thought of cutting off the buyers realtor and dealing with a single agent to save their hard earned cash. whats wrong with that??

Real Estate Business and Brokerage Act, 2002 ??? give me a F break mate and shut up the #fearmongering.


licenced wrote: That is quite the defensive tirade you went on.

There is nothing within my post that suggests I know anything about you just as you know nothing about me to even suggest you could hire me. As you can only acknowledge I did not offer my services to you, did not pm you and am not interested in representing you.

Your initial post made it appear that you were a novice to real estate purchasing but your ensuing post about the relocation company’s involvement suggested something else for they would have explained to you the process by which they would pay fees in that you’re not footing the commission fee if one is charged to you yet you want a cash back for same. Frankly most people would inherently know and acknowledge that any rebates/reductions should accrue against any commissions the relo co. paid on your behalf and not to you.

The questions therefore were legitimate. You either asked because you were unfamiliar or looking to profit at the expense of your relocation company.

The information you sought is best answered by people who actually engage in the trade of real estate and any “smart” REALTOR who might take you up on your offer to pm you should also take the time to explain to you exactly how the commission structures work given the scenario you paint.

That you take such offense to my mention of a cash back nullifying whatever agreement your relo co. would agree to pay does now suggest to me that you protest too much.

Good luck with your purchase.
justDeals is not a member of any public groups and a very unsatisfied Questrade customer.
Deal Fanatic
Jul 3, 2011
6517 posts
3798 upvotes
Thornhill
justDeals wrote: Your last 3 post didn't make any sense and do not contribute to the information I am trying to gather here.
...

Perhaps because the information you are trying to acquire is circumspect.

You slam REALTORS like me who try to save consumers from making stupid, costly mistakes and strike me as among those who are always yelling and screaming that they are unethical but when it comes to choosing an agent unethical and underhanded is exactly what you want, isn’t it? Yet when left with a raw deal or a money pit because of your own misguidance and for listening to those as likeminded as you who would face no consequences for dishing out bad advice, you’ll do exactly what all those like you do – haul agent and seller into court for misrepresentation and lose even more than you thought you saved when they prove you represented yourself.

You ought to take a good hard look at the plethora of RFD real estate threads of buyers and sellers that deem to think they can do the job with minimal or no assistance then the threads where buyers complain about being screwed by REALTOR and/or seller; landlords complain about tenants; tenants complain about landlords. You’ll notice the vast majority have two things in common: the stories are always presented to paint the poster as the victim who blames everybody else for their own actions until RFD members start pulling out the truth and when the poster is asked about their own due diligence they go mute.

You do whatever you like and if by chance you find a REALTOR willing to give you a kickback that rightfully isn’t yours we’ll be sure to see a new pseudonym pop up in a few years complaining that the CRA is auditing you for undeclared income and how your agent, seller and relo co. all screwed you over.
Member
Jan 1, 2012
457 posts
9 upvotes
TORONTO
[QUOTE]Anyone can go and make any offer on house without an agent. You have to hire a lawyer anyways to check everything. The sellers agent will be happy to receive any offer. Don't sign anything with the agent. If you bid 300k and so does some one else with an agent the buyer will get 9k more out of the deal with you. So they will definitely take you bid. So even if you bid 295k you might get it over the other bid of 300k. [/QUOTE]

So is this right or what? I'm a newbie i was hoping someone would correct me or agree with me. What i gather is when they fax you the offer forms, just ignore the buy agreement stuff and fax back the rest?
Banned
User avatar
Mar 31, 2010
1948 posts
441 upvotes
justDeals wrote: Your last 3 post didn't make any sense and do not contribute to the information I am trying to gather here.

And don't need a lecture in honesty from a REA, especially when I see "agents" like you letting their clients pay over and above for a property that they very well know does not commands the price. It is a commission job after all.

Judging from your contributions on other threads, you seem disgruntle and discourage people from even entertaining the thought of cutting off the buyers realtor and dealing with a single agent to save their hard earned cash. whats wrong with that??

Real Estate Business and Brokerage Act, 2002 ??? give me a F break mate and shut up the #fearmongering.
Just ignore the guy.
There are a couple of REA around here who are wasting their time trying to convince the users that ONLY A REA can help you, no matter what your situation is.
Also you will hear them saying loud and clear that there is no real estate bubble in Canada

On topic: why can't you work with sellers agent?
Member
User avatar
Sep 9, 2006
217 posts
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PF4RedFlag wrote: Just ignore the guy.
There are a couple of REA around here who are wasting their time trying to convince the users that ONLY A REA can help you, no matter what your situation is.
Also you will hear them saying loud and clear that there is no real estate bubble in Canada

On topic: why can't you work with sellers agent?
She's a women.
And yes gandering thru her past posts, some one who talks down others.

Back on topic. We were able to find a REA who offers attractive cash back incentives, whilst providing all services a regular agent provides. And for those who 'think' they 'know' how it works - Its Legal.
So far it's been great and have no complaints. Feel free to PM if anyone would like more details, including their contact info etc.
justDeals is not a member of any public groups and a very unsatisfied Questrade customer.

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