Looking for an agent with good cashback for buying a townhome in the east end (anywhere from Markham to Oshawa).
Feb 19th, 2021 9:53 am
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Feb 22nd, 2021 12:46 pm
Wrong!Tailwind72 wrote: ↑ Also bear in mind that if you see a property with the listing agent, the listing agent is ethically and contractually bound to work in the best interest of the Seller - NOT you, the buyer. Sellers, of course, love it when Buyers see their property with their listing agent - its win win win for the Seller.
Feb 22nd, 2021 12:52 pm
Plz explain your position. Factor in that Buyers can get cash back, i.e. half of the Buyer's agent commission or more, when viewing a property with their own agent (not the Seller's agent)
Feb 22nd, 2021 12:59 pm
Feb 22nd, 2021 1:14 pm
There are roughly two scenarios when buying with the listing agent:
Feb 22nd, 2021 1:24 pm
And now we wait for the army of realtors to come in and tell me I’m wronglolbeast wrote: ↑ There are roughly two scenarios when buying with the listing agent:
1. The agent collects full fee
This is great for the buyer, the agent has a huge conflict of interest to push this buyer's offer through. The agent would stand to make 2.5% plus the listing 1% fee or whatever. The agent makes 3.5% in this case versus 1% on any other competing offer. Literally 350% extra money for no additional work.
In this case, the seller and the agent can work out whatever agreement they want to split up that 3.5%, or let the listing agent keep the entire 3.5%. Either way, this is amazing for the buyer because the pie is the same size, but there is one less party to split it with.
2. The agent waives the buying fee
This is great for the buyer. This is 100% cash back. If you offer 1m, and another buyer also offers 1m, the seller stands to collect more from selling to us, since only 1% will be paid out as agent fees, instead of 3.5%
Thanks for coming to my TED talk.
Feb 22nd, 2021 1:27 pm
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Feb 22nd, 2021 1:48 pm
So many things wrong with this post, just facepalmdeal_with_singh wrote: ↑ For anyone actually reading this forum, I'll just point out that lolbeast is in some fantasy world - and none of what he said above should be taken as actual advice.
Not going to continue my replies to him, this is more of a PSA so that people don't actually get misinformed - he will likely reply to this with more "FUD" but not worth arguing with trolls.
Under his scenario 1 - he states the other agent collecting a full fee is a good thing because it works out good for the buyer.
- As the selling agent, your sole job is to represent the seller. If you end up in a multiple representation scenario, your interests must align with the seller and not your own. Any evidence of the agent acting in his own best interest (i.e. for a higher commission) or in the buyers interest (to push the deal through) is a major RECO violation. In our current market with multiple offers on anything you list - this is very easy to "get evidence of" when there will be several offers made. Going with the listing agent and having something lower than the best offer will not get you the property despite the fantasy situation posted above.
Under Scenario 2 - Agent waives buying fee
- Again theres 0 incentive for the agent to "waive the buying fee" if there are already multiple offers on the property. Think logically. If there are 2 offers of $1M, one form the LA and the other from another agent - if the sellers agent waived his co-op - then first off he would have to disclose this to all other parties - and second he would still get the same commission, but actually lose out on a buyer side commission.
To expand on this, think of yourself as a buyers agent. You have a buyer as your client already. Now if you get them to purchase the property you listed yourself and waive the buyer side fee...you only get the commission on the selling side.
If the other agent who matched that offer gets his deal accepted instead - well now the agent still makes the same amount of money off that sale, but he still has his client which he can show other prospective properties to and earn a greater commission.
Now lolbeast is going to come and say, no he'll reduce his commission not completely waive it....ok sure, he "might" reduce his commission in such a case, what will he bring it down by? half? Ok well most if not all agents on this forum offer 50% cash back anyways, and some of the more desperate ones even go as high as 80% from what I've seen.
So whats better? A cash back agent where you know you're getting half the commission? Or a hypothetical fantasy scenario where you assume you "might" get a small discount if the sellers agent "might" reduce his fee.
Like I said, ignore the fantasies posted above, hes just an obvious troll - only posting this so that others don't actually just take him for his word.
Feb 22nd, 2021 3:27 pm
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