Real Estate

Lower your Listing/Selling Fees - Use Flat Rate MLS

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  • Oct 30th, 2019 8:33 pm
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Newbie
Dec 19, 2018
59 posts
27 upvotes
eonibm wrote: That's where you are so wrong my friend. Maybe if you are trying to do your own surgery. Being an agent doesn't come close.

Here's a clue: You only have to be 18, have not even finished high school, have $4K and 4 mos to study and then you are an agent. That is reflected in how easy-peasy it is to transact deals and earn the huge commissions. What part of that are you missing?

Your comments scare not only me but EVERYONE!

You got it the wrong way around my friend. As an agent now, I'm living proof that it's 'tripping over pennies to pick up the dollars'!

hahahah. You thinking that there are some areas where the seller doesn't hold the cards and can't twist the buyers arm says it all. Don't quit your day job

I'm saying focus on the good ones. The top 5-10% or so. Of course don't expect amazing results with someone new with little experience
[OP]
Deal Expert
User avatar
Aug 2, 2010
15195 posts
4880 upvotes
Here 'n There
Agents that offer cash back do it because that is the main competitive advantage they have or they wouldn't do it. For a growing percentage of clients, all things being equal, that's how they pick their agent. The problem is that qny agent can match the competition on that and even offer more. Agents that know how to market themselves do not offer cash back because they don't have to and there are enough clients that think that if they pay more they will get better service and a better price on the buy side. It's the same on the sell side with higher listing commission, ie 2.5% or even 3% if it's an exclusive listing. However, that is not necessarily the case. Given there is no control group when you list or buy a property how do you know you could have gotten more with another agent when you list, or got the property you wanted at the price you wanted when you buy? You don't know.

So, this is why even the OREA course states that the best skill a real estate agent can have is not in how to transact a deal but:

How to market yourself as an agent!

How telling! It's unfortunate that clients think that having transacted high deal volume, being on the President's List, etc. means your a great agent. Not necessarily, but what it does mean is you are really good at marketing yourself so you can get a lot of clients.
Deal Addict
User avatar
Mar 19, 2005
1255 posts
126 upvotes
Any recommendations for Calgary FSBO service? I have not seen much reviews on RFD/reddit for other services I found so far for Calgary or AB; FSBO.ca, propertyguys and purplebricks (former comfree). Also, I found they are less customized options; ie they don't start at $99 with options as additional.

Also, how do you guys deal with showings with Realtors and private buyers? I was thinking of getting electronic lock with temp code and I have some security cams setup inside; might move them to outside of entrances to allow them to see it without someone watching feeling. I'm thinking of personally showing the private sellers and give the temp code to agents; only thing is how do you verify if they are an agent or not if the showing request comes through a call... (email bookings confirmation?)

TIA!
Newbie
Jun 30, 2011
4 posts
1 upvote
RICHMOND HILL
wJUvA7ZjUFZ20WkwWGhxy wrote: I'm missing something here.
Using an example, the seller signed a Listing Agreement/SRA for 5% to the Listing Brokerage with 2.5% given to the co-operating brokerage, so each gets 2.5%. Assume we're talking about a $1M house.

Option 1: Bid $1M for the house. Buying agent and selling agent each get 2.5%, or $25,000 each for a total of $50,000. Net cost to seller: $950,000
Option 2: Bid $975K for the house and buy without an agent, saving your part of the $25,000. Even if seller takes your offer, seller needs to pay the Listing Brokerage 5% per the Listing Agreement/SRA, so $48,750. Net cost to seller: $926,250.

Why would the seller ever take an option 2 offer since they still need to adhere to the signed Listing Agreement? Even if the buyer reduces the price, the seller still needs to pay 5%.
The seller can make a side deal with a realtor and get some cash back?
Penalty Box
Aug 26, 2017
494 posts
115 upvotes
basketball wrote: Any recommendations for Calgary FSBO service? I have not seen much reviews on RFD/reddit for other services I found so far for Calgary or AB; FSBO.ca, propertyguys and purplebricks (former comfree). Also, I found they are less customized options; ie they don't start at $99 with options as additional.

Also, how do you guys deal with showings with Realtors and private buyers? I was thinking of getting electronic lock with temp code and I have some security cams setup inside; might move them to outside of entrances to allow them to see it without someone watching feeling. I'm thinking of personally showing the private sellers and give the temp code to agents; only thing is how do you verify if they are an agent or not if the showing request comes through a call... (email bookings confirmation?)

TIA!
Anybody know the answer to this?
Member
Feb 15, 2018
278 posts
354 upvotes
wJUvA7ZjUFZ20WkwWGhxy wrote: No, in the example above seller already signed a Listing Agreement with commission at 5% and 2.5% so no cash back applies in this example. My question is about how a buyer can save money when buying a house without an agent and why a seller would pick their offer.
A buyer does not save money because they are unrepresented. They save because they are a good negotiator and understand the market well. Not a very likely scenario due to asymmetric information as buyers do not have access to the same databases realtors can access for comparables and historic listing info. A seller would not care whether the buyer is represented or unrepresented as they still pay the same commission. The only one who wins is the listing agent who ends up collecting the full commission without having to split it with a buyer agent.
Deal Expert
User avatar
Dec 19, 2001
30596 posts
1519 upvotes
Fernando Poo
Here in Ontario at least, we'd all be better off if we got rid of the current real estate system and went with an auction system instead. Here, of late, almost every listing is more of a "suggested starting price" with the aim of getting multiple bids at a higher amount. Oh, and if this doesn't occur, they up the asking price.

At least in a real auction, you can adjust your offer seeing what the other offers are. I'd like to see the end of real estate agents entirely which are basically running a scummy cartel. My agent doesn't see it this way. ;-)
[OP]
Deal Expert
User avatar
Aug 2, 2010
15195 posts
4880 upvotes
Here 'n There
canuckstorm wrote: A buyer does not save money because they are unrepresented. They save because they are a good negotiator and understand the market well. Not a very likely scenario due to asymmetric information as buyers do not have access to the same databases realtors can access for comparables and historic listing info. A seller would not care whether the buyer is represented or unrepresented as they still pay the same commission. The only one who wins is the listing agent who ends up collecting the full commission without having to split it with a buyer agent.
The info is no longer asymmetric. Have you been sleeping under a rock the past few years? Comparables and historical info are insanely easy to get for free now.

Who wins is the seller who didn't use an agent and saves the 2.5% +/-.
Member
Feb 15, 2018
278 posts
354 upvotes
eonibm wrote: The info is no longer asymmetric. Have you been sleeping under a rock the past few years? Comparables and historical info are insanely easy to get for free now.

Who wins is the seller who didn't use an agent and saves the 2.5% +/-.
We have come a long way in terms of availability of info but there is still asymmetric info as these third party sites showing historical info are not accurate to the level of CREA databases. If you wanna rely on the such sites, I say buyer beware. Also, not all markets are served by such sites.
Deal Addict
Mar 27, 2004
4417 posts
2031 upvotes
Toronto
bungol does not have the complete info you need to make a informed decision. you are not saving by trying to go to a listing agent yourself to buy a place. period. get an agent to give you a rebate as a buyer.
Full-time Realtor
[OP]
Deal Expert
User avatar
Aug 2, 2010
15195 posts
4880 upvotes
Here 'n There
wJUvA7ZjUFZ20WkwWGhxy wrote: This makes sense. So in short, there is no way for the buyer to win. Buyers may as well use agents then. Sellers should not use an agent and save 2.5% +/-.
Only if you are very diligent in following all the steps an agent would and as I described, ie listing on MLS, flowery description, staging the house, giving a decent buyer agent commission etc. Then if the house doesn't sell you lower the listing price as do all top agents when the house doesn't sell.
[OP]
Deal Expert
User avatar
Aug 2, 2010
15195 posts
4880 upvotes
Here 'n There
canuckstorm wrote: We have come a long way in terms of availability of info but there is still asymmetric info as these third party sites showing historical info are not accurate to the level of CREA databases. If you wanna rely on the such sites, I say buyer beware. Also, not all markets are served by such sites.
And given the market changes so quickly and listing prices don't seem to mean much the usefulness of having more granularity on historical prices is marginal at best.
[OP]
Deal Expert
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Aug 2, 2010
15195 posts
4880 upvotes
Here 'n There
oasis100 wrote: bungol does not have the complete info you need to make a informed decision. you are not saving by trying to go to a listing agent yourself to buy a place. period. get an agent to give you a rebate as a buyer.
Um, this thread is about listing not buying. Create your own thread if you want to give tips on using an agent to buy...

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