Real Estate

Sell a condo without paying buyer's real estate fees

  • Last Updated:
  • Apr 11th, 2017 11:31 pm
[OP]
Newbie
Apr 30, 2017
42 posts
13 upvotes
Toronto, ON

Sell a condo without paying buyer's real estate fees

Looking to sell my condo in the near future. I'm looking to sign up for courses to become a real estate agent myself, for my sole purposes.

Has anyone tried to sell their condo without posting a commission for the buyer's agent?

Questions:

1) What avenues (MLS, kijiji) did you try to sell your condo on?
2) How much of a shun did you feel from all agents when they see no commission for them?
3)Would you do it again?

Any advice would be great. Not liking paying their commissions, and also not in a hurry at all to sell, so I can def wait it out. Condo market in my area is really hot as well, so I'm comfortable for now.
Last edited by czup90 on Apr 5th, 2017 12:09 pm, edited 1 time in total.
46 replies
Member
Mar 16, 2014
256 posts
75 upvotes
CLAREMONT
You are saying not paying the sellers fees but you are the seller so do you mean offering 0% commission for a "buyers" agent?
[OP]
Newbie
Apr 30, 2017
42 posts
13 upvotes
Toronto, ON
Yes you are right. I edited my original post. Thank you.
Member
Mar 16, 2014
256 posts
75 upvotes
CLAREMONT
Yeah, I would imagine that if you are offering 0% for buyers agent then no agent will bring their clients to see your place, pretty simple.

Doesn't mean that you won't be able to sell it though as I'm sure some buyers prefer to not use an agent as they will feel they could get a better deal. Even though you're not going to sell you place for the 2.5% less they still feel good about it.

Just treat it like selling a car, throw it on Kijiji and see what happens! You can get really cheap services to list it on MLS but I don't know how that works if there's no commission offered.
[OP]
Newbie
Apr 30, 2017
42 posts
13 upvotes
Toronto, ON
It works, but it would show up that there is 0% commission to the buyer's agent. I just wanted to get a feel of how I will get shunned by other potential buyers with agents.
Deal Addict
Aug 12, 2004
3903 posts
1171 upvotes
Calgary
czup90 wrote:
Apr 5th, 2017 12:25 pm
It works, but it would show up that there is 0% commission to the buyer's agent. I just wanted to get a feel of how I will get shunned by other potential buyers with agents.
Think of it as if you were a real estate agent, as you claim you want to become one. You want to make money. You sign up with a person who wants to buy, and you sign an agreement that you get 3.5% commission rate upon purchase of a home (paid by the seller). He asks you what properties are around. There is the condo at 400k with 3.5% commision paid to buyer's agent, and the 400K condo with 0% commission. You are getting 3.5% regardless due to your contract, so you tell your buyer that there are 2 places priced the same, but for the one place with the cheapo on commission, the buyer will need to pay an extra 3.5% to cover the buyer's side of the commission. Which condo do you think the buyer will want to see?

Don't be stupid.
[OP]
Newbie
Apr 30, 2017
42 posts
13 upvotes
Toronto, ON
I understand your comment. However and obviously, it would be evident that I would be targeting buyers that didn't sign into contracts with agents. I wanted to find out if anyone has produced a number or percentage of how many buyer's look into the real estate market without an agent or without signing a contract with an agent.

I'm very confident I can sell my condo at a good profit (based on recent comparable), and I don't care at all about the buyer's commission. Time is also on my side as I am in no hurry. Just need to find that one sucka.
Newbie
May 8, 2015
71 posts
39 upvotes
All over the place
Back in '08 we sold our townhouse without a broker. We placed ads on ComFree (back then it was called Bytheowner) and Kijiji. We also placed an ad in the local paper. It was a buyer's market then and we still sold the place very quickly. There were a couple of real estate brokers who would call on a weekly basis asking to list with them and promises of a quick sale and so on but we managed without them and saved a heap of money.

If you're in the GTA, in this market, you could sell without an agent. The home will sell itself as long as it's in a decent condition. Be flexible with regards to the closing date and you shouldn't have any issues.
There are plenty of staging photographers who charge by the hour and would do a great job of staging your home. The cost of an ad is minimal and is peanuts compared to a broker's commission.


Good luck!
[OP]
Newbie
Apr 30, 2017
42 posts
13 upvotes
Toronto, ON
I'm in the Kipling station area, and the cost of units in my building have risen 30% over the past two years.

I'm also technologically equipped, with virtual home tours and have good photography skills myself.

Your comment is very helpful. Thank you.
Member
Mar 3, 2016
372 posts
197 upvotes
Just go find potential buyers yourself. Market it to the maximum number of people (Facebook, twitter, kijiji, etc...) and eventually you will find one who didn't sign a representative agreement. Many buyers nowadays don't have agents since they can do their own research. Many are also refusing to sign BRAs. You should take good quality pictures and maybe make a video and put it on social media. Create a "page" on Facebook specifically for the property and share it with neighborhood community groups. It's not rocket science. You don't need to become a realtor. You can even do the negotiation yourself and then once an agreement is reached, take the buyer to a lawyer to sign the agreement . One thing that does help though if you can get it on realtor.ca and there are many companies that offer just this service. However, be prepared to be harassed by many agents trying to get you as their client. Youtube "FSBO calls" to see how they manage to convince FSBOs to become their client. You can always have 2 asking prices, 1 for buyers with agent and 1 for buyers without agent.
Deal Addict
User avatar
Dec 27, 2011
2537 posts
1047 upvotes
Waterloo
I think you could easily sell your condo to private buyers who aren't using an agent. However, I also think if you offered a buyer's commission, even though you'd have to pay that % of the sale price you'll still come out ahead because the selling price would've been higher than the increase in commission.
Member
Mar 3, 2016
372 posts
197 upvotes
crystallight wrote:
Apr 5th, 2017 2:16 pm
I think you could easily sell your condo to private buyers who aren't using an agent. However, I also think if you offered a buyer's commission, even though you'd have to pay that % of the sale price you'll still come out ahead because the selling price would've been higher than the increase in commission.
That's the sale pitch all realtors will make. But can you actually test it? Maybe it's true or maybe it's not. It's always the fear of missing out that push sellers to hire a realtor in the end. However, if the budget of a buyer is $800K, it doesn't suddenly change to $850K once realtors are involved.
Deal Addict
Sep 30, 2011
1086 posts
232 upvotes
MISSISSAUGA
Sam9876 wrote:
Apr 5th, 2017 2:40 pm
That's the sale pitch all realtors will make. But can you actually test it? Maybe it's true or maybe it's not. It's always the fear of missing out that push sellers to hire a realtor in the end. However, if the budget of a buyer is $800K, it doesn't suddenly change to $850K once realtors are involved.
exact, The agent on buyer side say to the seller they are needed to push buyer to buy, but to the buyer they say they have negotiation skill to lower price.
WTF crooked business.
Dump Liberal ! June 2018 !!
Do Trudeau in 2019
Deal Addict
Sep 30, 2011
1086 posts
232 upvotes
MISSISSAUGA
crystallight wrote:
Apr 5th, 2017 2:16 pm
I think you could easily sell your condo to private buyers who aren't using an agent. However, I also think if you offered a buyer's commission, even though you'd have to pay that % of the sale price you'll still come out ahead because the selling price would've been higher than the increase in commission.
And the co-op commission is actually not a total agent commission, usually 1% is given to buyer as a rebate, which insane logic.
But just like credit card reward, it works easier for buyer to be hooked to his agent, and easier for seller to pull traffic. Even though the whole structure doesn't generate any value. It actually fool people well.
Dump Liberal ! June 2018 !!
Do Trudeau in 2019

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