Real Estate

Earn back buyer's real estate agent commission - Become an Agent. New Humber College Course is now live!

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  • Oct 25th, 2020 7:42 pm
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[OP]
Deal Expert
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Aug 2, 2010
15193 posts
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Here 'n There
SkiLLz wrote: Given that I missed the registration for the humber course, would the best bet now just be to take the courses on OREA.com?
um, why don't you read the first post in the thread. no OREA any more...
Deal Addict
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Feb 1, 2004
2164 posts
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Mississauga
eonibm wrote: um, why don't you read the first post in the thread. no OREA any more...
Skimmed it but clearly I missed that
Newbie
Oct 14, 2019
1 posts
1 upvote
Hi eonibm,

Thank you so much for your post and it has inspired me to look into taking the Humber course to get myself licensed. I meant for this to be a pm, but since I created this account just now I don't have the ability to send pm's yet.

I'm pretty straightforward about my "why" of doing this - I like to sell and like to work for myself, but most importantly I like money. I'm also cautious because I've learned that there's no such thing as easy money and if anything sounds like easy money, this is it. If all it takes is 6 months to a year and you're on your way to getting 2.5% commissions on million dollar listings in this market, why aren't more people doing it (vs say going into debt for a 4 year bachelors)?

I'm wondering what's your take on the Toronto housing market (bubble or not)? Also, if buyers and sellers both benefit from flat fee listings or doing private listings why are realtors still around? Will they become the irrelevant middlemen that automation apps like Uber has reduced the taxi cab companies to? Very interested to hearing your take.

Thank you,
-Unconfirmed
Deal Addict
Mar 27, 2004
4620 posts
2264 upvotes
Toronto
unconfirmed wrote: Hi eonibm,

Thank you so much for your post and it has inspired me to look into taking the Humber course to get myself licensed. I meant for this to be a pm, but since I created this account just now I don't have the ability to send pm's yet.

I'm pretty straightforward about my "why" of doing this - I like to sell and like to work for myself, but most importantly I like money. I'm also cautious because I've learned that there's no such thing as easy money and if anything sounds like easy money, this is it. If all it takes is 6 months to a year and you're on your way to getting 2.5% commissions on million dollar listings in this market, why aren't more people doing it (vs say going into debt for a 4 year bachelors)?

I'm wondering what's your take on the Toronto housing market (bubble or not)? Also, if buyers and sellers both benefit from flat fee listings or doing private listings why are realtors still around? Will they become the irrelevant middlemen that automation apps like Uber has reduced the taxi cab companies to? Very interested to hearing your take.

Thank you,
-Unconfirmed
Because there are like 50k registered Treb members, and a vast majority do not even do 1 deal per year. Lots of part timers. It is not easy to get into, you will struggle for a few years. Start with family and friends and work your way from there.
Full-time Realtor
[OP]
Deal Expert
User avatar
Aug 2, 2010
15193 posts
4898 upvotes
Here 'n There
unconfirmed wrote: Hi eonibm,

Thank you so much for your post and it has inspired me to look into taking the Humber course to get myself licensed. I meant for this to be a pm, but since I created this account just now I don't have the ability to send pm's yet.

I'm pretty straightforward about my "why" of doing this - I like to sell and like to work for myself, but most importantly I like money. I'm also cautious because I've learned that there's no such thing as easy money and if anything sounds like easy money, this is it. If all it takes is 6 months to a year and you're on your way to getting 2.5% commissions on million dollar listings in this market, why aren't more people doing it (vs say going into debt for a 4 year bachelors)?

I'm wondering what's your take on the Toronto housing market (bubble or not)? Also, if buyers and sellers both benefit from flat fee listings or doing private listings why are realtors still around? Will they become the irrelevant middlemen that automation apps like Uber has reduced the taxi cab companies to? Very interested to hearing your take.

Thank you,
-Unconfirmed
I don't have an opinion on whether the Toronto market is in a bubble or not and if I did I don't think it would be worth much. I thought it was over-valued years ago. It will go one way...or the other. There are too many degrees of freedom in the equation to predict anything. As I always like to say" "Economists predicted 18 of the last 4 recessions...." 'Nuff said.

As for why realtors are still around, that's because there is a demand for them. The majority of people, and that is likely around 99%, do not want to handle nor do they have the skill to handle a real estate transaction themselves. Very few people have the time, money or inclination to become a real estate salesperson just to save a few shekels on the commission. The fact the real estate industry still has a good lock on MLS is a huge factor. The fact that REBBA restricts commission structures that would help sellers is another factor. Also, it's human nature as most realtors on the buy side will shun listings that don't pay a decent commission even though that is unethical not to mention against the rules. So, if you want the most exposure you pay a decent commission. If you don't pay a decent commission your property will have less exposure and those who are interested want a discount as you aren't paying commission.

Having said all of that, the selling commission is showing downward pressure and there is also a slow move to cash-back on purchases but neither has had major impact yet as the masses haven't demanded it.
Last edited by eonibm on Oct 21st, 2019 8:11 pm, edited 2 times in total.
[OP]
Deal Expert
User avatar
Aug 2, 2010
15193 posts
4898 upvotes
Here 'n There
wJUvA7ZjUFZ20WkwWGhxy wrote: https://www.reco.on.ca/wp-content/uploa ... Broker.pdf

The new RECO registration form apparently now needs a "Canadian Criminal Record and Judicial Records Check", not just a "Criminal Records Check". Anyone have their application denied because they submitted one versus the other? Reco still lists the old Criminal Records Check as the requirement.
I think that is because the police changed the name of the Criminal Records Check to add the judicial thingme:

https://www.torontopolice.on.ca/backgro ... -check.php

It does not appear that the substance of it changed. "Keep your nose clean and you'll be fine!"
Newbie
Oct 24, 2019
4 posts
Is there any disadvantage if you inform a seller / listing's agent that you are an agent and look for a house for yourself?
Deal Addict
Mar 27, 2004
4620 posts
2264 upvotes
Toronto
Hhusama wrote: Is there any disadvantage if you inform a seller / listing's agent that you are an agent and look for a house for yourself?
not really. just need to sign a disclosure you are listed as a buyer.
Full-time Realtor
Newbie
Jun 21, 2018
8 posts
Hey guys/gals I need some direction/reality check.

I competed my first course back in June of this year and then life got super busy with the summer and what not.

I am due for my second test 3rd of December and hopefully I can pass this one first time too. I realise that I have until November 2020 to complete all 5 tests and the articling course.

Realistically do I have enough time? I realise that I would have to be pretty gung ho going forward.. But is this an uphill battle or am I just freaking my self out?

I was told you can only write one test every two months? Doesn't seem true but the person who told me this did the classroom courses so perhaps it works differently.

Anyway your inputs would be greatly appreciated.

Thank you.
Member
Feb 26, 2014
417 posts
70 upvotes
Toronto
1happymoose3 wrote: Hey guys/gals I need some direction/reality check.

I competed my first course back in June of this year and then life got super busy with the summer and what not.

I am due for my second test 3rd of December and hopefully I can pass this one first time too. I realise that I have until November 2020 to complete all 5 tests and the articling course.

Realistically do I have enough time? I realise that I would have to be pretty gung ho going forward.. But is this an uphill battle or am I just freaking my self out?

I was told you can only write one test every two months? Doesn't seem true but the person who told me this did the classroom courses so perhaps it works differently.

Anyway your inputs would be greatly appreciated.

Thank you.
I think this all depends on how well you retain the information and the amount of time you'll have to set aside for studying. Some people have mentioned here they skimmed over the text and did well, and other had to study lots of hours. I've only completed the first two exams, going for the third in December, but I found that there was a lot more information than I anticipated. Even though I did really well on both exams, I still found I had to study way more than I wanted too.
The third test is supposed to be the hardest as it covers 2 sections basically, not sure how much easier it gets afterwards though.

I think you can write the next exam as soon as you want, it's just based on if there's availability at the locations you choose.
Sr. Member
Sep 16, 2010
860 posts
305 upvotes
Mississauga
1happymoose3 wrote: Realistically do I have enough time? I realise that I would have to be pretty gung ho going forward.. But is this an uphill battle or am I just freaking my self out?
I was told you can only write one test every two months? Doesn't seem true but the person who told me this did the classroom courses so perhaps it works differently.
Realistically, if you buckle up and start studying/taking the exams, you will have more than enough time. You can write the test any time after you have passed the previous one and there's no waiting period. It just depends on when the test centres have dates available.
Good luck!
Deal Fanatic
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Dec 11, 2005
8099 posts
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TO
Does anyone know if the entire program/exam fees are tax deductible if after you become a realtor and incorporate?
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Deal Addict
Mar 27, 2004
4620 posts
2264 upvotes
Toronto
You cannot incorporate as a realtor.
You can however deduct all the course and membership fees on your personal income tax later.
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Mar 23, 2003
4323 posts
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Hamilton
krysim wrote: I am writing my last exam this month. In addition to buying/selling homes for friends and family, I want to represent myself in the purchase of my own home. I want to be an agent part time and my marginal tax bracket is at 48-52% from my full time job.

If I am successful in an offer on a $2 million home and I represent myself on the buy side, I keep the 2.5% buyer agent fee so I have to report the $50,000 as income. Not only do I have to do the work being my own representative, with a 48% marginal bracket after taxes I only take home $26,000, even less if at 52% which gets me $24,000. And then I have to pay brokerage fees on the deal, etc. So less than 1.2-1.3% after taxes.

For the purchase of my own home, isn't it better for me just to find another agent that will give me 1-1.5% cashback and bank $20,000-$30,000 instead? As I understand, for a client's primary residence, the rebate is not taxable.

Deductions.
Expenses.
Leases.
Etc..
You don't just get taxed to the max and then pay fees.

Talk to your accountant.
Deal Addict
Mar 27, 2004
4620 posts
2264 upvotes
Toronto
What you actually do is tell the listing agent you are not taking a coop, and hopefully you get the savings.. This is pretty much what buyers try do all the time when they try to buy a property on their own.

However, your brokerage is going to make you to pay a flat fee to them instead for the transaction work that needs to be done on the back end.

krysim wrote: I am writing my last exam this month. In addition to buying/selling homes for friends and family, I want to represent myself in the purchase of my own home. I want to be an agent part time and my marginal tax bracket is at 48-52% from my full time job.

If I am successful in an offer on a $2 million home and I represent myself on the buy side, I keep the 2.5% buyer agent fee so I have to report the $50,000 as income. Not only do I have to do the work being my own representative, with a 48% marginal bracket after taxes I only take home $26,000, even less if at 52% which gets me $24,000. And then I have to pay brokerage fees on the deal, etc. So less than 1.2-1.3% after taxes.

For the purchase of my own home, isn't it better for me just to find another agent that will give me 1-1.5% cashback and bank $20,000-$30,000 instead? As I understand, for a client's primary residence, the rebate is not taxable.
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