A No Agent Experience
- The 1st thing the listing agent does is before he would even confirm the visit, he would ask and make me confirm I am not working with any other agent.
- At the property, he spent more time asking me why I don't have an agent and trying to convince me to use him as an agent as opposed to selling me why I should buy the property.
- He asks me why I don't have an agent. I tell him I want to save the 2.5% and negotiate a lower price.
- He tells me the seller pays for the agent, and its "free" for the buyer. I disagreed and said both the buyer and seller pay for the agent via the 5% spread.
What I don't understand is
- Why is commission so high in Toronto? 5% spread is huge! What other deals cost 5% commission, especially when the agents don't even take on any liquidity risk? For example, a junk bond desk working on 100M deals usually take less than 1% commission, and they have to take on the capital risk and liquidity is even lower!
- Why do agents keep selling that its "free" for the buyer when it clearly isn't, its an insult to buyer intelligence.
- Why does the Toronto market not have tools available in many other markets (i.e., zillow, redfin, etc...)
- Why are agent commissions not flat rate as opposed to rate based? I don't see how you do more work on a $2M property vs a 500k property?
- The agent kept selling me that agents have more information, intelligence and experience than me. That statement may or may not be true, but how would I even quantify that and compare across agents? What can the agent do that the buyer can not? What do agents provide that I cannot do myself? Regardless of the advice an agent gives, the buyer (and seller) still needs to do their own due diligence.