Real Estate

Lower your Listing/Selling Fees - Use Flat Rate MLS

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  • Sep 28th, 2019 1:08 pm
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Deal Fanatic
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Nov 19, 2004
8587 posts
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Cambridge, ON
loriblum wrote:
Jul 8th, 2015 4:51 pm
Sorry, but that makes no sense. If I take on a listing that has expired because some other agent could not sell it, I would most certainly mark it as a new listing and make sure that the listing is set to day 1
Same agent. Plus even agencies do the same. So even if you switched to another Remax agent for example, Remax still claims homes are sold within so many days if you use their agents. The whole thing Is just a manipulation to present false information.
Deal Addict
Dec 21, 2010
1459 posts
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GTA
don242 wrote:
Jul 8th, 2015 4:53 pm
Why lower the price when you are dealing with stupid buying agents who are acting in bad faith on offers on the house. No need for us to lower the price and neither did our agent suggest lowering it. Not sure where the "fault" comes in for not lowering the price.

Not to mention, if you list with someone else instead, aren't you beholden to pay to the original listing agent since they usually have some clause about selling even after your original listing is up. These guys have themselves covered so you can't just sell right after the contract ends and not have to pay them a commission.
Again, this is incorrect and clearly you did not read your contract or have it explained to you properly.

However, since you are using rudeness in your post, I will no longer reply to you as you clearly feel that you are correct and not interested in learning that you, in fact, do have a part in listing your own home whether you choose to believe this or not. It takes a buyer's agent to come in and present an offer on your property regardless, so before using words like "stupid" to describe them, you should be thankful if you did in fact receive an eventual offer.
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Nov 19, 2004
8587 posts
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Cambridge, ON
loriblum wrote:
Jul 8th, 2015 4:55 pm
As a buyer's agent, I would most certainly do my research and use the fact that a house has been relisted to my advantage. There are many angles to use this to a buyer's advantage. I don't know how you can't see this? It shows me that the seller is now in a position to be more desperate to make this sale! Perfect opportunity for my buyer to come and low ball!

As well, it is the seller's option to terminate an agreement.

Again, you will learn the terminology in the listings, such as "holdover" and others, and you will become better informed.

Best of luck. I'm off to a showing.
Exactly, so how do you propose switching agents when the holdover period would require you to pay both? Or am I misunderstanding?

Anyway, you could have come in with low ball offers, but then you would have l come away with nothing. We knew the market rate and just ran into a buchra of scummy buyers who would back out on financing. The new tactic, put the offer in, put a financing clause and then keep looking. Find something else, or you can't sell your home, then back out claiming "financing". It is and scummy way of doing things but happening a lot. Should be like in Quebec where they actually have to show proof that they couldn't get financing.

Anyway, we sold for our price, no thanks to any realtor. Next time I definitely would not bother with a realtor. Of course our realtor would claim they sold within 7 days. Stat padding at its finest.
Deal Fanatic
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Nov 19, 2004
8587 posts
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Cambridge, ON
loriblum wrote:
Jul 8th, 2015 4:59 pm
Again, this is incorrect and clearly you did not read your contract or have it explained to you properly.

However, since you are using rudeness in your post, I will no longer reply to you as you clearly feel that you are correct and not interested in learning that you, in fact, do have a part in listing your own home whether you choose to believe this or not. It takes a buyer's agent to come in and present an offer on your property regardless, so before using words like "stupid" to describe them, you should be thankful if you did in fact receive an eventual offer.
Sorry, not implying your stupid, but meant the stupid agents putting in offers in bad faith. All they are doing is adding to the bad rap that realtors continue to get. How that is good, I don't know.

And yes, I know I have say in my listing. I asked for certain revisions during our original listing and as mentioned, had no interest in lowering the price below market value. Not sure what you mean by not having a say in our listing since we of course had a say. Now if you are saying I could have switched realtors or went on my own after the original contract expired without any holdover fees if we sold with someone else, then I admit I was mistaken. But everything I have read indicates there is a holdover period.
[OP]
Deal Guru
Aug 2, 2010
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Here 'n There
loriblum wrote:
Jul 8th, 2015 4:55 pm
As a buyer's agent, I would most certainly do my research and use the fact that a house has been relisted to my advantage. There are many angles to use this to a buyer's advantage. I don't know how you can't see this? It shows me that the seller is now in a position to be more desperate to make this sale! Perfect opportunity for my buyer to come and low ball!

As well, it is the seller's option to terminate an agreement.

Again, you will learn the terminology in the listings, such as "holdover" and others, and you will become better informed.

Best of luck. I'm off to a showing.
Yes but many buyers are lemmings. They don't want a house that no one else wants. But, yes, you are right, the strategy could work both ways, ie Seller is desperate to sell - lowball them.
Newbie
Feb 29, 2012
40 posts
5 upvotes
VANCOUVER
Hey I got a scenario for you guys.
I am just selling a really run down property that is zoned for rm7 (rowhouse / townhouse 1.2 fsr). I don't want to put a sold sign, hold open house, or do any of that, I want to just sell as is where is because the value will just be in the land anyways. My goal is to sell my house along with the ones next to me to a developer for a premium. There are other houses in the area doing the same thing.

What kind of commission model should I be looking for?
Should I do flat rate mls listing?
Should I consider full service because the real estate agent might have more connections with developers?
Should I offer commission for the buyers agent, do developers have buyers agents? Probably? Would it also need to be roughly 2.5%?

Thanks!
[OP]
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Aug 2, 2010
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virgozero wrote:
Dec 14th, 2015 7:34 am
Hey I got a scenario for you guys.
I am just selling a really run down property that is zoned for rm7 (rowhouse / townhouse 1.2 fsr). I don't want to put a sold sign, hold open house, or do any of that, I want to just sell as is where is because the value will just be in the land anyways. My goal is to sell my house along with the ones next to me to a developer for a premium. There are other houses in the area doing the same thing.

What kind of commission model should I be looking for?
2-2.5% for the buyer's agent as I mention in the 1st post.
virgozero wrote:
Dec 14th, 2015 7:34 am
Should I do flat rate mls listing?
Sure, why not? That's what this whole thread is about.
virgozero wrote:
Dec 14th, 2015 7:34 am
Should I consider full service because the real estate agent might have more connections with developers?
No. Any developer will have a buyer's agent and it's the buyer's agent who brings the buyer. MLS broadcasts that your property is available to purchase. The commission is the carrot that buyer's agents look for. Remember, a listing agent is a buyer's agent and so they'll have 'connections' as a buyer's agent and let their clients know or they aren't doing a good job. Less than 2% of all sales are double ended by the listing agent so that should tell you a lot. Also most of the double end deals fall into their lap and even if they werent't the listing agent they are still going to market the property to their clients. Listing agents do the best they can in listing the property (brochure, pics, write-up, etc all of which you can do - see post #1) and then wait for buyers.
virgozero wrote:
Dec 14th, 2015 7:34 am
Should I offer commission for the buyers agent, do developers have buyers agents? Probably? Would it also need to be roughly 2.5%?

Thanks!
Of course or why should any buyer's agent market your property to their buyer?
Newbie
Feb 29, 2012
40 posts
5 upvotes
VANCOUVER
If the lots next to me are being sold with a buyers commission, wouldn't that be enough to get the developers agents attention?
Basically, can I get away with offering no buyers commission and using the fact that I am part of a land assembly to attract the developer? Wouldnt the developer be happy that they can even get an extra lot to extend their townhouse/rowhouse project? Or would the developers agent sway them away from taking my lot?

Also, is 2.5% for buyer the standard in just Ontario or also here in BC?
Deal Fanatic
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Apr 20, 2011
5310 posts
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Vancouver
In bc standard commssion is 7 percent on the first 100k and 2.5% of the portion above that . The buyers side will usually share about 45% of the total
[OP]
Deal Guru
Aug 2, 2010
14312 posts
4181 upvotes
Here 'n There
virgozero wrote:
Dec 14th, 2015 6:02 pm
If the lots next to me are being sold with a buyers commission, wouldn't that be enough to get the developers agents attention?
Basically, can I get away with offering no buyers commission and using the fact that I am part of a land assembly to attract the developer? Wouldnt the developer be happy that they can even get an extra lot to extend their townhouse/rowhouse project? Or would the developers agent sway them away from taking my lot?

Also, is 2.5% for buyer the standard in just Ontario or also here in BC?
If you have lots next to you being purchased by a developer why don't you just approach them? You already know who your buyer is going to be! Why even get the developers agent involved?

2.5% is pretty standard in Ontario. Where the commission is cut, say to 4% total, it is typically the listing commission that gets cut, ie to 1.5% (1.5% + 2% = 4%) as no one wants to make the carrot smaller for the buyer's agent because then they'll just shun your property, all things being equal. That is unethical and against RECO's rules but it's just human nature to want to get paid more.
Deal Addict
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May 15, 2016
4160 posts
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Does this technique apply if you buy a property through the developer?

Several questions!

1. Is the commission paid to both potential agents a total of 5%? Does it vary? I reside in Edmonton.

2. Assume that a house was listed for 550k and the seller is willing to sell at 500k. The selling agent is making a potential 5% on the deal. The selling agent knows that there are two deals available.
Offer A, 500k with no buyer's agent.
Offer B, 520k with a buyer's agent.

The listing agent will make around 25k with offer A
The listing agent will make 13k with offer B

Is the listing agent obligated to let the seller know that there are two offers on the table as he's guaranteed it will sell either way and knowing the seller will take 500k? He will gain an additional 12k in commission with offer A but the seller will "lose" 20k.

Thanks!
Deal Addict
Dec 18, 2006
1946 posts
351 upvotes
Markham
vivibaby wrote:
Dec 24th, 2016 2:42 am
Does this technique apply if you buy a property through the developer?

Several questions!

1. Is the commission paid to both potential agents a total of 5%? Does it vary? I reside in Edmonton.

2. Assume that a house was listed for 550k and the seller is willing to sell at 500k. The selling agent is making a potential 5% on the deal. The selling agent knows that there are two deals available.
Offer A, 500k with no buyer's agent.
Offer B, 520k with a buyer's agent.

The listing agent will make around 25k with offer A
The listing agent will make 13k with offer B

Is the listing agent obligated to let the seller know that there are two offers on the table as he's guaranteed it will sell either way and knowing the seller will take 500k? He will gain an additional 12k in commission with offer A but the seller will "lose" 20k.

Thanks!
Nowadays many developers don't even offer commission to agents as with the current demand, most of their inventory can be sold directly to the consumer. Eventually they may offer commission to agents (usually advertised in their material as "brokers protected") to unload next phases or straggling inventory that may be put on MLS

Unfortunately I'm not familiar with the Edmonton market - but if it's anything like what's happening in Ontario - it's not always a standard 5% total commission. Nowadays commissions in Ontario can be as low as 3% total - where 2.5% go to the buyer's agent and 0.5% goes to the listing agent (seller's agent)

With regards to your second question, unless an offer is officially made on paper with proper forms completed and signed by folks interested in the property - I don't see how it could ever be considered a valid offer. All valid offers & sign-backs received by an RE Sales Rep must be presented to their client, who in this case would be the seller. It is up to the seller to decide what is best for them, while their RE Sales Rep is responsible for performing their fiduciary duty and working in the seller's best interest.

Also, based on experience - just because a seller initially says they'll sell the property at X, it does not mean they actually will do so. Once the offers start coming to the table, *most* of the time they'll always end up trying to get more than X. I have yet to work with a seller who was a) unable to do basic calculations to see what offers would net them more after commissions (heck, I'd do it for them as part of full clarity and disclosure so there's no issues or misunderstandings/misrepresentations that can bite me in the ass after the fact) and b) who's said they'd settle for X when we'd sign the listing and then actually settle for X (it'd always be X + Y).

The code of ethics should be similar for all agents under the CREA umbrella, so theoretically, the situations you're asking about should not be happening (otherwise if there is a complaint filed and the agents were found doing funny shizz, they can be heavily fined and end up on the local governing body's wall of shame - ie. RECO in Ontario)

Good luck!
Jay Rana, Sales Representative
CENTURY 21 Titans Realty Inc. Brokerage
@RE4L.ca - Real Estate 4 Less
*Cash Back For Referrals & Purchases (conditions apply)*
Deal Addict
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Feb 1, 2008
3039 posts
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Niagara Falls, ON
Am I missing something? How are we to list our house on MLS without realtor now?
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May 13, 2007
278 posts
45 upvotes
Toronto
Sorry dumb question, does the seller still have to pay 2.5% commision (or half month for lease) for the buyer agent (tenant agent for lease)?
jaytoronto wrote:
Jul 6th, 2018 8:16 am
For less than $60/month you can get your property on MLS using a service like https://listedbyseller.ca/

I did it for my rental unit.

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