Real Estate

Real estate commission. Eastern Ontario

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  • Aug 5th, 2020 4:48 am
[OP]
Jr. Member
Dec 31, 2015
127 posts
27 upvotes

Real estate commission. Eastern Ontario

Looking at selling a house in Belleville Ontario. I have been following the market and it seems crazy right now with most sales going over asking. My question is are all agents still charging 5%. I realize 2.5 goes to the buyers agent.
It just seems high for how quick and easy property’s are selling.
Thanks
12 replies
Deal Addict
Dec 20, 2018
3008 posts
2323 upvotes
Purple bricks and diy for selling?

Or find an agent from like RAH where they pay flat rate to their brokerage?

If you buy your new home from the realtor who sells your home, it's typical for them to sell for 1%
[OP]
Jr. Member
Dec 31, 2015
127 posts
27 upvotes
StatsGuy wrote: Purple bricks and diy for selling?

Or find an agent from like RAH where they pay flat rate to their brokerage?

If you buy your new home from the realtor who sells your home, it's typical for them to sell for 1%
Yes I’ve thought about purple bricks or others like that. Not sure I want the hassle but it sure would save money.
I was hoping to pay 4% commission which I think is lots but it seems most want 5%.
Just seems like a lot of money when the house will probably sell within a week.
Deal Fanatic
Jul 3, 2011
5726 posts
2903 upvotes
Thornhill
StatsGuy wrote: Purple bricks and diy for selling?
U.K.-based real estate brokerage firm Purplebricks pulls out of Canada, sells operations to Desjardins

theglobeandmail.com/business/article-uk-based-real-estate-brokerage-firm-purplebricks-pulls-out-of-canada/

Or find an agent from like RAH where they pay flat rate to their brokerage? If you buy your new home from the realtor who sells your home, it's typical for them to sell for 1%
How good an analyst and negotiator are those looking for rebates?

Do they consider the disparity in brokerage fees? Using the brokerage mentioned here, RAH got into the business to sell their brand to the public on the basis that their member Realtors can charge clients less because they themselves are charged a low and set brokerage fee.

So technically if a company like RAH charges a flat fee of a few hundred bucks for every purchase and sale, the questions become: are their realtors offering rebates that pass on that discounted fee or are they offering equitable rebates and pocketing the difference they save?
Deal Addict
Dec 20, 2018
3008 posts
2323 upvotes
licenced wrote: U.K.-based real estate brokerage firm Purplebricks pulls out of Canada, sells operations to Desjardins

theglobeandmail.com/business/article-uk-based-real-estate-brokerage-firm-purplebricks-pulls-out-of-canada/


How good an analyst and negotiator are those looking for rebates?

Do they consider the disparity in brokerage fees? Using the brokerage mentioned here, RAH got into the business to sell their brand to the public on the basis that their member Realtors can charge clients less because they themselves are charged a low and set brokerage fee.

So technically if a company like RAH charges a flat fee of a few hundred bucks for every purchase and sale, the questions become: are their realtors offering rebates that pass on that discounted fee or are they offering equitable rebates and pocketing the difference they save?
Purple bricks just sold their Canadian operations, but not like they closed up shop, much like how iNG sold tangerine to Scotiabank, but tangerine still exists and operates



The RAH realtors I know charge flat rate to sell but they do big volume, It's upto customer to know which brokerages charge flat rate like RAH, I'm sure some people don't know and they'll pay like 6% .

I mean people like Dan Wong and etc started off at RAH
Deal Addict
Dec 20, 2018
3008 posts
2323 upvotes
ontariobrent wrote: Yes I’ve thought about purple bricks or others like that. Not sure I want the hassle but it sure would save money.
I was hoping to pay 4% commission which I think is lots but it seems most want 5%.
Just seems like a lot of money when the house will probably sell within a week.
Well if you pay 4%, the buying agent gets 2.25-2.5%, leaving 1.5%-1.75% for selling and if they're with a regular brokerage , they have to give a % of transaction to brokerage leaving them less room for rebates

You'll have better luck with agents who work for flate rate brokerage like RAH but you need to do your due diligence (just like you should regardless) to make sure the agent is compatible able to provide what you expect in terms of service and commitment.
Deal Fanatic
Jul 3, 2011
5726 posts
2903 upvotes
Thornhill
StatsGuy wrote: Purple bricks just sold their Canadian operations, but not like they closed up shop, much like how iNG sold tangerine to Scotiabank, but tangerine still exists and operates
I'm not someone who deals in spin. Purplebricks failed. It sold. Buyer beware!
The RAH realtors I know charge flat rate to sell but they do big volume, It's upto customer to know which brokerages charge flat rate like RAH, I'm sure some people don't know and they'll pay like 6% .

I mean people like Dan Wong and etc started off at RAH
Have no idea who that is and don't care where he started. It only matters where one ends for if the start was so great they wouldn't end somewhere else as it's a testimony to them as a person and not as an employee of a company.

My point stands. If any real estate sales person is opting for a lower fee brokerage, it is only fair for the people who look to higher them to recoup that fee advantage.

Realtors can't have it both ways here negatively speaking of those who charge higher fees but not comparing their own net take.
Sr. Member
Sep 15, 2012
635 posts
264 upvotes
Mississauga
Look at the bigger picture.

Save $10,000 on commission, while losing maybe double that or more working with a flat rate realtor or a purple brick company that has no intention or incentive of putting more money in your pocket? As far as I know most realtors work on a % basis, so the higher they sell your home, the more money they net as well. Not that same deal for a flat-rate company. They can sell for $10,000 less or $10,000 more, they pocket the same commission - no incentive to sell your home for the maximum. I don't know that's just me.
Sr. Member
Oct 31, 2003
839 posts
128 upvotes
Woodbridge
kesleaf wrote: Look at the bigger picture.

Save $10,000 on commission, while losing maybe double that or more working with a flat rate realtor or a purple brick company that has no intention or incentive of putting more money in your pocket? As far as I know most realtors work on a % basis, so the higher they sell your home, the more money they net as well. Not that same deal for a flat-rate company. They can sell for $10,000 less or $10,000 more, they pocket the same commission - no incentive to sell your home for the maximum. I don't know that's just me.
Hardly.

If you have a $1 million property at a 5% commission, its $25k when you find a buyer. To get the buyer to pay $1,100,000, the commission at 5% jumps to $27,500. You get $2,500 more commission. No one works that hard to get that, especially if the buyer says eff that. So there is no incentive to begin with, might as well go with a flat rate brokerage
[OP]
Jr. Member
Dec 31, 2015
127 posts
27 upvotes
kesleaf wrote: Look at the bigger picture.

Save $10,000 on commission, while losing maybe double that or more working with a flat rate realtor or a purple brick company that has no intention or incentive of putting more money in your pocket? As far as I know most realtors work on a % basis, so the higher they sell your home, the more money they net as well. Not that same deal for a flat-rate company. They can sell for $10,000 less or $10,000 more, they pocket the same commission - no incentive to sell your home for the maximum. I don't know that's just me.
I know what you are saying. Just seems like a lot because houses are selling so fast here right now. It’s just a bit of paperwork and maybe a couple showings. 4% seems more than fair to me but they all want 5% here.
Deal Addict
Nov 22, 2004
1448 posts
481 upvotes
ontariobrent wrote: I know what you are saying. Just seems like a lot because houses are selling so fast here right now. It’s just a bit of paperwork and maybe a couple showings. 4% seems more than fair to me but they all want 5% here.
What's your timeline for selling like? I might be able to help out. Check your pm.
Heatware: 9-0-0
Realtor @ Royal LePage United Realty
Member
User avatar
May 10, 2017
269 posts
148 upvotes
I’ve been hearing that housing market in eastern Ontario is hot right now.
Any reason behind that?
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Penalty Box
Feb 29, 2008
11753 posts
6894 upvotes
Are agents really charging 5%? I thought it was 4-4.5%

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