Real Estate

Redfin Launches in Canada

  • Last Updated:
  • Feb 18th, 2019 12:33 pm
43 replies
Deal Addict
Jul 3, 2007
2727 posts
2862 upvotes
Toronto
Old school agents and their ridiculous commissions are in big trouble....

No one is paying 5% anymore....and I expect buyer agent commissions to come down from 2.5% soon as well....
Deal Addict
May 9, 2017
1065 posts
1098 upvotes
In Toronto don't most real estate agents offer 1% to listing agent anyway and 2.5% for buying agent.

Thanks for posting but what's new with this?
Last edited by NotRobot on Feb 13th, 2019 2:17 pm, edited 1 time in total.
Deal Addict
Dec 30, 2012
1098 posts
1147 upvotes
Toronto
It seems like, for the time being, their salaried agents only represent sellers rather than buyers?
Deal Fanatic
Feb 22, 2011
7299 posts
7784 upvotes
Toronto
They offer full service at a discount too? Doesn't this kill the value added argument?

Premier placement on Redfin.ca and syndication to Realtor.ca and other Canadian real estate websites via the Multiple Listing Service
Pricing and staging advice
Free professional photography
3D walkthrough of the home
Open houses
Yard signs
Beautifully designed marketing materials
Deal Addict
Jul 3, 2007
2727 posts
2862 upvotes
Toronto
mazerbeaner wrote: They offer full service at a discount too? Doesn't this kill the value added argument?

Premier placement on Redfin.ca and syndication to Realtor.ca and other Canadian real estate websites via the Multiple Listing Service
Pricing and staging advice
Free professional photography
3D walkthrough of the home
Open houses
Yard signs
Beautifully designed marketing materials
how so ?
Deal Fanatic
Feb 22, 2011
7299 posts
7784 upvotes
Toronto
joepipe wrote: how so ?
Agents were saying the 2.5% paid is worth it because of staging, exposure and open houses etc.

Looks like this is all being offered at a discounted price.
Deal Addict
Nov 2, 2011
2598 posts
1156 upvotes
mazerbeaner wrote: Agents were saying the 2.5% paid is worth it because of staging, exposure and open houses etc.

Looks like this is all being offered at a discounted price.
As if any of those "reasons" were even close to being worth 2.5% and over. I'd actually say they are worth 0% in most cases.
Deal Addict
Jul 3, 2007
2727 posts
2862 upvotes
Toronto
I still find it amazing how buying agents are getting paid 2.5% on properties north of $1 million..... $25k commission to bring a buyer?? Insane.....
Deal Fanatic
Feb 22, 2011
7299 posts
7784 upvotes
Toronto
joepipe wrote: I still find it amazing how buying agents are getting paid 2.5% on properties north of $1 million..... $25k commission to bring a buyer?? Insane.....
Ironically it hurts their business as a lot of people don't want to move simply because of transaction costs. Why downgrade to unlock $300k in equity if it will cost you $70k in commissions, taxes and fees.
Deal Fanatic
User avatar
Feb 2, 2014
8329 posts
2333 upvotes
Toronto
NotRobot wrote: In Toronto don't most real estate agents offer 1% to listing agent anyway and 2.5% for buying is still for buying.

Thanks for posting but what's new with this?
Yes, I don't get it. A ton of agents offer a 1% listing fee...nothing new at all.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
User avatar
Feb 2, 2014
8329 posts
2333 upvotes
Toronto
mazerbeaner wrote: They offer full service at a discount too? Doesn't this kill the value added argument?

Premier placement on Redfin.ca and syndication to Realtor.ca and other Canadian real estate websites via the Multiple Listing Service
Pricing and staging advice
Free professional photography
3D walkthrough of the home
Open houses
Yard signs
Beautifully designed marketing materials
This is what most agents do even at a 1% list fee.

And it says "staging advice" not staging. I don't they are paying for the staging at 1%.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Sr. Member
Mar 13, 2017
984 posts
1155 upvotes
CdnRealEstateGuy wrote: Yes, I don't get it. A ton of agents offer a 1% listing fee...nothing new at all.
Yes, but there are a massive amount of agents that have legacy customers who do the 1% / 2.5% deal and lead on like it's a major deal. And much of the 1% list-to-sell marketing has a discount feel to it.

The more 1 / 2.5 becomes the standard for full service, the faster "discount agents" will erode their price points.

You'd be amazed in AAA+ markets how many sellers still agree to the 2.5 / 2.5. Hopefully soon to end.
Deal Addict
Mar 27, 2004
4620 posts
2265 upvotes
Toronto
1% listing is standard. and 2.25 or 2.50 for coop is also the standard.

these guys are offering nothing new. paying for news coverage.
Full-time Realtor
Deal Addict
Mar 27, 2004
4620 posts
2265 upvotes
Toronto
joepipe wrote: I still find it amazing how buying agents are getting paid 2.5% on properties north of $1 million..... $25k commission to bring a buyer?? Insane.....
its because there is a lot more effort to show properties..it can take days weeks months and even over a year sometimes for buyers to find the right home. if you dont have experience being a buyer agent its to accept the fact its worth 2.5% . besides most agents also give rebates.

mortgage agents dont even have to get out of their chair and earn 1% of the borrowed amount.
Full-time Realtor

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