Negotiating commission with a realtor who will help us buy 2 properties and sell 1

Apart from cash back also look at what the realtor can offer as far as services for buying and selling and hire someone who you think will provide the best overall value.

Ameliaski wrote: ↑ My parents are in the market and are buying a house. We negotiated a 0.5% cashback of the purchase price. Now we decided to sell our house and buy a bigger property. Looking for a realtor who can offer a good cashback on the buying and selling of our property. Since we are giving them 3 transactions, how much leeway do I have to negotiate and how much should I?

I was going to ask 0.5 of purchase price on parents property (could be better) and zero commission on selling our home and take full commission on the property we purchase (more value). Is this a good negotiation strategy or could be better?

I’d be worried about this strategy. Think about it…you are incentivizing a realtor to buy and giving them no incentive to sell your house. Unless you are selling before buying this could wind up with you having paid higher for a property than you should and an agent that no longer cares about selling your house.

Ameliaski wrote: ↑ My parents are in the market and are buying a house. We negotiated a 0.5% cashback of the purchase price. Now we decided to sell our house and buy a bigger property. Looking for a realtor who can offer a good cashback on the buying and selling of our property. Since we are giving them 3 transactions, how much leeway do I have to negotiate and how much should I?

I was going to ask 0.5 of purchase price on parents property (could be better) and zero commission on selling our home and take full commission on the property we purchase (more value). Is this a good negotiation strategy or could be better?

For the buying side, you can easily get 50% cash back.

For the sell side, I'd be more cautious on negotiating too hard, as you need to provide incentive to work hard to sell your home.

If you are asking your agent to stage your home and/or make other improvements factor that in to your cashback ask. As mentioned above you can easily get 50 off buying though.

Many moons ago when I sold my home and purchased another, I negotiated with my realtor for 1% cash back on purchase price and paid around $1000 for selling (listing/brokerage fees) plus 2.5% for buying realtor. She staged the house and sold for my asking price so I had nothing to complain. Home prices are now much higher, so 1.25% should be easy.

Your realtor would want to be aware of something called tied selling before structuring an arrangement like you suggest.

Ameliaski wrote: ↑ My parents are in the market and are buying a house. We negotiated a 0.5% cashback of the purchase price. Now we decided to sell our house and buy a bigger property. Looking for a realtor who can offer a good cashback on the buying and selling of our property. Since we are giving them 3 transactions, how much leeway do I have to negotiate and how much should I?

I was going to ask 0.5 of purchase price on parents property (could be better) and zero commission on selling our home and take full commission on the property we purchase (more value). Is this a good negotiation strategy or could be better?

0.5% cash back? come on, you can easily get 50% (1.25%) from most realtors for the buying side.

I paid 1% to my agent when I sell and get 50% (1%) commission back from her when I buy. Don’t do business with realtors who are not offering discounts. Houses sell itself nowadays.

Fact is that realtors are starving for your cash. They’re spending a lot on adds and doing everything that they can to make you choose them over someone else. They have quotas and are looking to meet targets. They have plenty of time in their year to sell additional homes that they will not because another realtor will out market them.

So if you come up with the willingness to work with them exclusively the ball is in your court. Just remember the commission also acts as an incentive for them to sell your home. On the buying side it’s less important and more of a money grab. A good lawyer and inspector is probably all you need. On the selling side real estate is like the mafia, if your not with them (then that house is not a good deal etc comes up) this is because they want their buyers to choose houses that give out top commission.

deal_with_singh wrote: ↑ For the buying side, you can easily get 50% cash back.

For the sell side, I'd be more cautious on negotiating too hard, as you need to provide incentive to work hard to sell your home.

How hard does a realtor have to work to sell a GTA house with multiple conditional offers? As both a realtor and property investor, I have always maintained the position that a house sells itself.

Ameliaski wrote: ↑ My parents are in the market and are buying a house. We negotiated a 0.5% cashback of the purchase price. Now we decided to sell our house and buy a bigger property. Looking for a realtor who can offer a good cashback on the buying and selling of our property. Since we are giving them 3 transactions, how much leeway do I have to negotiate and how much should I?

I was going to ask 0.5 of purchase price on parents property (could be better) and zero commission on selling our home and take full commission on the property we purchase (more value). Is this a good negotiation strategy or could be better?

While you get cashback on purchase, you are not going to be paid extra cash for selling your home. What would happen is that the realtor would discount their selling fees vs. giving you cash upon selling your house.

canuckstorm wrote: ↑ How hard does a realtor have to work to sell a GTA house with multiple conditional offers? As both a realtor and property investor, I have always maintained the position that a house sells itself.

This is a Realtor who worked hard to sell the property
https://housesigma.com/web/en/map?listi ... 1567537%7D


This is a Realtor who 'let it coast'
https://housesigma.com/web/en/map?listi ... 1567537%7D

Both units are the exact same floor plan with the exact same features.

One unit is on the 40th floor and comes with parking and sold for $650k
The other unit is on the 31st floor and does NOT come with parking and sold for $682k

The difference in commission paid was probably 0.5% at most or around $3400...except the guy on the 31st floor ended up with $32k more + did not include parking which is worth 'at least' another $50k.


Will the house sell itself? Sure it will...but are you getting the max $$$ by letting it sell itself vs putting in some effort?

Hope that helps!

deal_with_singh wrote: ↑ This is a Realtor who worked hard to sell the property
https://housesigma.com/web/en/map?listi ... 1567537%7D


This is a Realtor who 'let it coast'
https://housesigma.com/web/en/map?listi ... 1567537%7D

Both units are the exact same floor plan with the exact same features.

One unit is on the 40th floor and comes with parking and sold for $650k
The other unit is on the 31st floor and does NOT come with parking and sold for $682k

The difference in commission paid was probably 0.5% at most or around $3400...except the guy on the 31st floor ended up with $32k more + did not include parking which is worth 'at least' another $50k.


Will the house sell itself? Sure it will...but are you getting the max $$$ by letting it sell itself vs putting in some effort?

Hope that helps!

For HouseSigma, you have to generate the link with the "share" button instead of copying the URL straight, as the listing itself is a modal and not part of the rendered URL

https://housesigma.com/web/en/house/6zq ... 2-C5172569

https://housesigma.com/web/en/house/nbq ... 3-C5257031

It is a fair point, but at the same time, the higher listing was sold in April, arguably a slightly better market.

deal_with_singh wrote: ↑ This is a Realtor who worked hard to sell the property
https://housesigma.com/web/en/map?listi ... 1567537%7D


This is a Realtor who 'let it coast'
https://housesigma.com/web/en/map?listi ... 1567537%7D

Both units are the exact same floor plan with the exact same features.

One unit is on the 40th floor and comes with parking and sold for $650k
The other unit is on the 31st floor and does NOT come with parking and sold for $682k

The difference in commission paid was probably 0.5% at most or around $3400...except the guy on the 31st floor ended up with $32k more + did not include parking which is worth 'at least' another $50k.


Will the house sell itself? Sure it will...but are you getting the max $$$ by letting it sell itself vs putting in some effort?

Hope that helps!

Agreed here. You don’t just want the property to sell. You want it to sell for top dollar. That’s an 82k difference if you consider parking is $50k. One seller did well the other got ripped off. What’s the difference? There is value in a good agent, none in a lazy one who doesn’t put in the work and/or is clueless.

My agent told me I wasn’t going to get my price and to lower my extractions. I said no and got my price. I would have lost at least 20-30k if I didn’t know wtf I was doing.

deal_with_singh wrote: ↑ This is a Realtor who worked hard to sell the property
https://housesigma.com/web/en/map?listi ... 1567537%7D


This is a Realtor who 'let it coast'
https://housesigma.com/web/en/map?listi ... 1567537%7D

Both units are the exact same floor plan with the exact same features.

One unit is on the 40th floor and comes with parking and sold for $650k
The other unit is on the 31st floor and does NOT come with parking and sold for $682k

The difference in commission paid was probably 0.5% at most or around $3400...except the guy on the 31st floor ended up with $32k more + did not include parking which is worth 'at least' another $50k.


Will the house sell itself? Sure it will...but are you getting the max $$$ by letting it sell itself vs putting in some effort?

Hope that helps!

Too many variables to chalk it up to a realtor working hard to sell - timing, motivated buyer, motivated seller, bad buying agent etc..- nowadays there's no rhyme or reason to what people will pay for a place.

deal_with_singh wrote: ↑
This is a Realtor who worked hard to sell the property
https://housesigma.com/web/en/map?listi ... 1567537%7D


This is a Realtor who 'let it coast'
https://housesigma.com/web/en/map?listi ... 1567537%7D

Both units are the exact same floor plan with the exact same features.

One unit is on the 40th floor and comes with parking and sold for $650k
The other unit is on the 31st floor and does NOT come with parking and sold for $682k

The difference in commission paid was probably 0.5% at most or around $3400...except the guy on the 31st floor ended up with $32k more + did not include parking which is worth 'at least' another $50k.


Will the house sell itself? Sure it will...but are you getting the max $$$ by letting it sell itself vs putting in some effort?

Hope that helps!

Too many variables to reliably say it was due solely to how hard the realtors worked.

One looks staged and one isn't staged

staged got more money

higher unit getting less money..
there is some truth to the fact that prices are not as hot as April. I was able to get my clients a place on Shuter recently well below previous sold price.
nice grab there dealwithsingh