Real Estate

Lower your Listing/Selling Fees - Use Flat Rate MLS

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Dec 21, 2010
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ddp wrote:
May 19th, 2015 9:17 am
I sold an investment property in Milton last year and found it easier to find someone to offer staging out there, for a property that was much less expensive. I'm talking to her about the Toronto property, she obviously wants to do it, just unsure if I want an agent from out there to represent in Toronto proper.
But nope this is not a vacant new build tower in the sky - a townhouse on a subway line, in the last 3 years only 2 have sold in property of 80ish places. Im finding it odd even the young agents wouldn't offer it to get business. I had one who has been in business for about 2 years and has one 2 listings in that time and this would be his most expensive to date and wouldn't talk about it - yet will spend money on his Audi...
I hear you... Milton is a very different area and demographic, but if you are confident in your agent's skillset, she should be able to expand her knowledge to Toronto.
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So 3% is the absolute minimum if I wish for a selling agent? This may or may not include free staging?
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I cannot answer that. I would suggest you talk to multiple realtors and see what they will provide.

At 3% total, you are asking them to work for 0.5% which is going to be a hard sell, to be quite honest.

What area do you live in?
Award Winning Realtor - I LOVE MY JOB!!
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loriblum wrote:
May 19th, 2015 10:27 am
I cannot answer that. I would suggest you talk to multiple realtors and see what they will provide.

At 3% total, you are asking them to work for 0.5% which is going to be a hard sell, to be quite honest.

What area do you live in?
So the buyer agent will get 2.5% no matter what, this can't be negotiated?

I live by the lake...in a van...down by the river lol jk.
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Nov 19, 2004
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tranquility922 wrote:
May 19th, 2015 6:02 pm
So the buyer agent will get 2.5% no matter what, this can't be negotiated?

I live by the lake...in a van...down by the river lol jk.
The buyers commission can also be negotiated. Talk to the selling agent and see what they think the buyer commission should be. 2-2.5% seems to be typical. The argument is that if it is too low, agents won't bring their clients through. That said, if a buyer wants to see the house, the agent has to show it. But you will get the agents who will conveniently not suggest it to their clients, or say they have already looked at it and it is in bad shape or some excuse to steer them away.

Commissions here are ridiculous. Most agents do little to earn their 2-2.5%. I doubt you would find many who will stage the house for that range. You will probably have to pay more to the selling agent to have them stage a home.
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don242 wrote:
May 19th, 2015 6:11 pm
The buyers commission can also be negotiated. Talk to the selling agent and see what they think the buyer commission should be. 2-2.5% seems to be typical. The argument is that if it is too low, agents won't bring their clients through. That said, if a buyer wants to see the house, the agent has to show it. But you will get the agents who will conveniently not suggest it to their clients, or say they have already looked at it and it is in bad shape or some excuse to steer them away.

Commissions here are ridiculous. Most agents do little to earn their 2-2.5%. I doubt you would find many who will stage the house for that range. You will probably have to pay more to the selling agent to have them stage a home.
That's what I'm finding out. It's more complicated in all areas of RE and the commissions are huge relatively-speaking. What I'm confused about is when this negotiation w/ the buyer agent will take place? I assume that there's no contact until they decide to show my property? Or is their commission somehow decided beforehand and how? Thanks.
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tranquility922 wrote:
May 19th, 2015 6:53 pm
That's what I'm finding out. It's more complicated in all areas of RE and the commissions are huge relatively-speaking. What I'm confused about is when this negotiation w/ the buyer agent will take place? I assume that there's no contact until they decide to show my property? Or is their commission somehow decided beforehand and how? Thanks.
You decide with the selling agent what you will offer the buyer. Basically you pay the full commission to the selling agent and that agent gives a portion to the buying agent. These numbers are discussed in your agreement with the selling agent. So you would agree to 3-5%+ with your agent, and of that ~2.5% would be for the buying agent.

You do not negotiate with the buying agent. Your agreement is with the selling agent.
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Dec 21, 2010
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tranquility922 wrote:
May 19th, 2015 6:53 pm
That's what I'm finding out. It's more complicated in all areas of RE and the commissions are huge relatively-speaking. What I'm confused about is when this negotiation w/ the buyer agent will take place? I assume that there's no contact until they decide to show my property? Or is their commission somehow decided beforehand and how? Thanks.
The commission is determined by the seller and it is explicitly written on the MLS listing. It is up to you to decide what to offer but I have given you the suggestion of 2.25-2.5% as this is what will likely attract most of buyer's agents. Again though, it is up to you. You can post it on a FSBO and do all the work yourself. Again, it's up to you.

It really is not as confusing as it might seem.

Decide on the listing price and add the percentage you decide to go with to determine a final selling price that you are aiming for. Done.
Award Winning Realtor - I LOVE MY JOB!!
At the end of the day, you're the boss and need to make sure I'm worth your rate of pay!
[OP]
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Aug 2, 2010
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loriblum wrote:
May 19th, 2015 10:27 am
I cannot answer that. I would suggest you talk to multiple realtors and see what they will provide.

At 3% total, you are asking them to work for 0.5% which is going to be a hard sell, to be quite honest.

What area do you live in?
I have interviewed some 'top agents' in my area (Rosedale), e.g. agents from Chestnut Park, etc. and they have agreed to list for 0.5% of sale price as long as I agree to use them as my buyer agent on my next home.

So, if I can get such agents in my area to agree to that fee structure you'll have no problem doing that either. Yes they will whine, hum and haw that "we don't do that", "we don't discount", "we offer premium marketing services", "our commission will more then be covered by the premium we get for your home' (as if they have anything to do with it in this frenzied market with 100-year low mortgage rates) and "[insert suitable real estate agent war cry here]", but when push comes to shove they do. They all do and they all do with the same 'marketing plan' you'd get if you pay more. Plus they are all hungry to put out flyers showing they are listing yet another home in the area and to do open houses as that is a great way to market themselves (doesn't do anything to help sell your home though as everyone uses MLS to locate homes for sale). With 40,000 agents in Toronto alone and growing and the fact that agents themselves will tell you that 90% of the work is done once you get the listing, they are all pretty hungry. I just say that this is the deal, take it or leave it and they have so far all agreed (but I'm going to do the MLS listing myself now). But if you don't want to do the work, don't pay more than 0.5% to the listing agent. That still way more than enough for the work that they do. That's like 1% 8 years ago when house prices were half what they are now and the work now is still the same.

Actually I have one agent from Remax that will MLS list for free if I use him as my agent when I buy my next home. Easy peasy. Don't by all the hype you hear from real estate agents on here. They are doing exactly as expected which is feverishly trying to protect their gravy train of listing/selling commissions that is easier work now than it ever was.

Btw, always keep the buying agent commission at 2-2.5% or you won't get agents showing your home. That is unethical as agents are supposed to be serving the client, not trying to get the most commission for themselves, but it happens constantly even though it is against the code of ethics (so are phantom bids but that also keeps happening). I was a victim of it myself. Thank God I found the house on my own by driving by (this was years ago before the Internet).

Use my easy-peasy guide to lowering your real estate listing fees in my first post and put the extra money in your own pocket instead of a real estate agents'.
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Apr 20, 2011
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loriblum wrote:
May 19th, 2015 10:27 am
I cannot answer that. I would suggest you talk to multiple realtors and see what they will provide.

At 3% total, you are asking them to work for 0.5% which is going to be a hard sell, to be quite honest.

What area do you live in?
Your advice is sound. Also, you actually state your things from experience through what I assume is dozens of transactions, also with access to the private part of MLS through your job which gives you useful data. One of the most popular discount brokers, onepercentrealty debunks the theory of other agents boycotting or not showing listings, which is against the code of ethics.
[OP]
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don242 wrote:
May 19th, 2015 6:11 pm
The buyers commission can also be negotiated. Talk to the selling agent and see what they think the buyer commission should be. 2-2.5% seems to be typical. The argument is that if it is too low, agents won't bring their clients through. That said, if a buyer wants to see the house, the agent has to show it. But you will get the agents who will conveniently not suggest it to their clients, or say they have already looked at it and it is in bad shape or some excuse to steer them away.

Commissions here are ridiculous. Most agents do little to earn their 2-2.5%. I doubt you would find many who will stage the house for that range. You will probably have to pay more to the selling agent to have them stage a home.
The MLS listing, a 2-2.5% buyer agent commission and home staging are primarily what what sell it (plus the other more minor items in my guide in post #1). You are paying for the staging yourself anyway (not to mention staging you pay for is going to be way better than what an agent will do/get if included in the fee), the MLS listing can be a flat rate of less than $1,000 and you'll be paying the buyer commission anyway. Don't get suckered into paying, as you say, the little selling agents do to earn their 2-2.5%. Use my handy guide in post #1 and put the $ in your own pocket, not line the pockets of listing agents for almost no work. If anything don't pay more than 0.5% to the listing agents. It won't affect the buyers agents showing your home as all they care about is the money the put into their own pocket.
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Dec 21, 2010
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popbottle wrote:
May 20th, 2015 12:09 pm
Your advice is sound. Also, you actually state your things from experience through what I assume is dozens of transactions, also with access to the private part of MLS through your job which gives you useful data. One of the most popular discount brokers, onepercentrealty debunks the theory of other agents boycotting or not showing listings, which is against the code of ethics.
Thank you. Real life experience has helped me gain the advantage over the wishful and hopeful.
Award Winning Realtor - I LOVE MY JOB!!
At the end of the day, you're the boss and need to make sure I'm worth your rate of pay!
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Apr 20, 2011
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loriblum wrote:
May 20th, 2015 12:57 pm
Thank you. Real life experience has helped me gain the advantage over the wishful and hopeful.
You're welcome. I don't make accusations of little work. I'm sure you've heard of www.fsbofsbo.ca which serves an interesting niche for an inexpensive MLS listing ($200). Also for full service agents you know that its a cooperative procedure between both ends equitably sharing the work and the compensation.

Here's a list of the value added services realtors provide
http://www.superiorschoolnc.com/postlic ... agents-do/
[OP]
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Aug 2, 2010
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This is a great list of what realtors can do for you that you can easily do yourself: http://www.superiorschoolnc.com/postlic ... agents-do/

Notice the duplication in many of the items to make the list seem 10x longer than it really is. Notice that most of these can easily be done by yourself. Notice that many of these services are provided for free anyway and/or can easily be paid for a la carte (comparables, historical prices, staging, photographs, etc). Notice that historical and listing prices have little relevance in the current frenzied market anyway. Lastly, notice you can do all of this yourself with an MLS listing.

Worth 2.5% of your house price? Pretty obvious that it hardly is. The only people that differ on this are real estate agents. Funny that...
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Dec 21, 2010
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popbottle wrote:
May 20th, 2015 1:06 pm
You're welcome. I don't make accusations of little work. I'm sure you've heard of www.fsbofsbo.ca which serves an interesting niche for an inexpensive MLS listing ($200). Also for full service agents you know that its a cooperative procedure between both ends equitably sharing the work and the compensation.

Here's a list of the value added services realtors provide
http://www.superiorschoolnc.com/postlic ... agents-do/
After 20+ years in the industry, I would never think to shun another agent/buyer/seller/prospective client. I pride myself on my way of conducting myself in business and in life :)
Award Winning Realtor - I LOVE MY JOB!!
At the end of the day, you're the boss and need to make sure I'm worth your rate of pay!

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