Personal Finance

Selling house without a realtor

  • Last Updated:
  • Jun 6th, 2015 1:45 am
Tags:
None
Sr. Member
User avatar
Sep 2, 2010
836 posts
5359 upvotes
Mississauga

Selling house without a realtor

Has anyone here sold their house on their own? We're looking to list our home for sale in within the next 2 months and want to sell it privately as we're located in a very desirable neighbourhood where homes tend to sell quickly. My neighbour used a realtor and sold his house in only one day just a few months ago! We are located in Mississauga.

I see a wagjag out for comfree and am thinking about buying one of their packages. I know there is also property guys. Are there any other such websites out there?

Whichever way we go, we will definitely pay the extra $ to put our house on the mls.

Any insight would be appreciated - thanks!
110 replies
Moderator
May 28, 2012
12484 posts
5278 upvotes
Saskatoon
You only need one person who wants your house. If you live in a desirable neighbourhood, I don't see a problem with trying to sell the house on your own. You just have to educate yourself about any pitfalls to going this route. A friend of mine advertised her house in the classifieds on a Saturday and sold it that Tuesday. I guess someone was waiting until a house came up on that particular cul-de-sac. This was many years ago, so not sure if it would work in today's market.

Keep in mind that some people shy away from properties for sale by owner, and a lot of the ones that start off as for sale by owner end up being listed with a realtor when there is no interest. If you sell it yourself, you need to do your homework as to how to present your house for sale.
Deal Addict
Oct 30, 2006
2467 posts
1082 upvotes
GTA
Issues I see is you will still probably pay the other side 2.5% as a lot of purchasers are selling with an agent. also joe blow who does not have an agent will be hesitant of dealing with a sale by home owner. Another thought is people will think they can save 5% because you are not paying a commission. so in the end you might not save much and have to deal with calls/viewings yourself.

I don't like the 5%(should be less considering the increases in prices), but in the end I figured it saves me headaches and will help me save on the purchase and get a bit more for mine. we r in the middle of this as well.
Deal Fanatic
Nov 24, 2013
6479 posts
3344 upvotes
Kingston, ON
In theory you can save thousands by paying a ~$500+tx MLS listing and offering just buying agent commission. It's also a pain in the ass though. From personal experience, you're fielding a lot of calls from realtors, hosting your own open house (if you do one) and interested parties are less comfortable asking you questions directly as they would be asking your agent.

Using a realtor is a lot of money, but in the end I think you really are getting a service out of it. Whether that service is worth it to you or not is a very personal thing.
Sr. Member
User avatar
Sep 2, 2010
836 posts
5359 upvotes
Mississauga
Our house will sell for at least $800K so 5% on that is $40K. It's really hard to stomach giving up $40K to realtors when the house should sell easily.
Banned
User avatar
Nov 1, 2014
4317 posts
562 upvotes
Toronto, ON
you can easily find a good/competent realtor willing to sell for 1% or maybe even slightly less..but you will still need to pay the 2.25% to other agent

so you are only saving 0.75%-1% but do all the work yourself..most agents will stage and post on mls with professional photos, feature sheets etc for you.
Banned
User avatar
Nov 1, 2014
4317 posts
562 upvotes
Toronto, ON
Buffy905 wrote: Our house will sell for at least $800K so 5% on that is $40K. It's really hard to stomach giving up $40K to realtors when the house should sell easily.
you aren't going to save 5%...as stated you will still need to pay the buying agent 2.25%... you could save maybe 1% or less for services of a selling agent who will stage/take prof photos/list for you.
Sr. Member
User avatar
Sep 2, 2010
836 posts
5359 upvotes
Mississauga
How many buyers actually use agents though? Last two houses I bought I was never represented by an agent. I always just surf the MLS and if I see an interesting listing i contact the sellers agent.

As was mentioned above, I only need one buyer. My plan is to indicate "no agents please" on the listing and try to avoid paying real estate commission altogether.

Though I have been considering listing for 1% with an agent as I have seen a few offering that commission level.
Deal Guru
May 1, 2012
10538 posts
11427 upvotes
Toronto
Buffy905 wrote: How many buyers actually use agents though? Last two houses I bought I was never represented by an agent. I always just surf the MLS and if I see an interesting listing i contact the sellers agent.

As was mentioned above, I only need one buyer. My plan is to indicate "no agents please" on the listing and try to avoid paying real estate commission altogether.

Though I have been considering listing for 1% with an agent as I have seen a few offering that commission level.
You would be surprised at how many people actually use agents. Those people who stroll through your home in an open house, most of them aren't serious buyers. Those who employ agents, they are serious buyers.

Think of it this way, as a buyer you don't have to pay any agents. So why don't you insulate yourself by employing a person who will take care of you and your very expensive purchase?

You can try selling your house yourself, many people do that. But a predominant majority of people end up unable to sell their home due to varieties of reasons and employ an agent later on.
Sr. Member
User avatar
Sep 2, 2010
836 posts
5359 upvotes
Mississauga
Anikiri wrote: You would be surprised at how many people actually use agents. Those people who stroll through your home in an open house, most of them aren't serious buyers. Those who employ agents, they are serious buyers.

Think of it this way, as a buyer you don't have to pay any agents. So why don't you insulate yourself by employing a person who will take care of you and your very expensive purchase?

You can try selling your house yourself, many people do that. But a predominant majority of people end up unable to sell their home due to varieties of reasons and employ an agent later on.
Very true, I think I would give it a month and if no traction then yes bail and just go with an agent - wouldn't want to be stubborn for long but would also feel regret if I just went directly with an agent and didn't try and sell on my own first.
Good point on the open house. I think I could get by without having one and just go by appt only. That should help weed out people who really aren't interested to buy.
Deal Fanatic
Nov 24, 2013
6479 posts
3344 upvotes
Kingston, ON
LandKing wrote: you aren't going to save 5%...as stated you will still need to pay the buying agent 2.25%... you could save maybe 1% or less for services of a selling agent who will stage/take prof photos/list for you.
Yes, so at $800k, if you offer 2% to the buying agent and find a 1.5% listing agent, you'd save the 1.5% ($12,000) less the costs for you to list it on MLS yourself ($565+). If it's 2.25% to the buying agent and 1.25% or less to the listing agent, you'd be saving even less.

If you do get a buyer with no agent, they're going to ask for a discount for not using an agent anyway. Effectively the ~2% is a foregone conclusion.
Deal Addict
Oct 29, 2010
4475 posts
811 upvotes
Buffy905 wrote: How many buyers actually use agents though? Last two houses I bought I was never represented by an agent. I always just surf the MLS and if I see an interesting listing i contact the sellers agent.

As was mentioned above, I only need one buyer. My plan is to indicate "no agents please" on the listing and try to avoid paying real estate commission altogether.

Though I have been considering listing for 1% with an agent as I have seen a few offering that commission level.
It's very likely that if you buy without an agent, the agent of the seller will pocket the whole 5%.
So you are going to need to sell without an agent and tell the other side that you won't sell if they have an agent involved.
Member
Feb 4, 2015
215 posts
106 upvotes
York, ON
Phlegmbot wrote: Wat.
Port Credit does exist, to be fair.

The problem with FSBO is a lot of Realtors won't even take their clients to see one, regardless of whether there's commission on the table. The cartel knows how to defend itself - they try and stifle the FSBO out of the market.

This could result in a very limited number of prospective buyers - which could tank the value. Ergo, the "lost" $40k commission could be lost anyway by not being able to attract any decent offers - and I say this as someone who is not a huge fan of the Realty industry.
Deal Fanatic
Jul 3, 2011
6517 posts
3798 upvotes
Thornhill
Buffy905 wrote: Whichever way we go, we will definitely pay the extra $ to put our house on the mls
Buffy905 wrote: My plan is to indicate "no agents please" on the listing and try to avoid paying real estate commission altogether.
No harm in trying it yourself if you feel able to. FYI, if you choose to have your home listed on MLS you cannot say "no agents" and must offer at least one cent.
Deal Addict
Aug 28, 2010
1300 posts
365 upvotes
Toronto
Find a realtor who will do the paperwork for $1000.
Deal Guru
User avatar
Mar 31, 2008
13010 posts
3095 upvotes
Toronto
Do a search on this. A lot of topics on this just less than a year ago.
Deal Addict
Jan 30, 2012
1836 posts
1399 upvotes
TORONTO
wackojacko wrote: Issues I see is you will still probably pay the other side 2.5% as a lot of purchasers are selling with an agent.
Lol. No, you don't.

In fact, the standard BRA that buyers often sign with an agent says that the buyer is on the hook for their agent's commission if the seller doesn't pay it: http://www.torontorealestateboard.com/b ... 010_PL.pdf

However, many buyer agents avoid houses that sell without an agent, because it's more difficult to get paid. If the seller doesn't pay the commission, the buyer clearly sees how much they are paying, and the buyer is much more likely to contest the (usually overpriced) commission.

And clearly, the most important thing in any real estate transaction is that the agent gets paid.
Deal Fanatic
User avatar
Dec 10, 2004
7571 posts
3145 upvotes
Canada
Buffy905 wrote: Has anyone here sold their house on their own? We're looking to list our home for sale in within the next 2 months and want to sell it privately as we're located in a very desirable neighbourhood where homes tend to sell quickly. My neighbour used a realtor and sold his house in only one day just a few months ago! We are located in Mississauga.

I see a wagjag out for comfree and am thinking about buying one of their packages.
Lol, you are basically paying around $300 for them to take pictures of the house. That's expensive and it's not 50% off. It's about 300% markup on what photographers who are actually taking pictures there getting paid. Not worth it at all. nobody uses comfree.com nobody knows about. Nobody gives a crap about a listing there.

Look into MLS.
Deal Fanatic
User avatar
Dec 10, 2004
7571 posts
3145 upvotes
Canada
Buffy905 wrote: How many buyers actually use agents though? Last two houses I bought I was never represented by an agent. I always just surf the MLS and if I see an interesting listing i contact the sellers agent.

As was mentioned above, I only need one buyer. My plan is to indicate "no agents please" on the listing and try to avoid paying real estate commission altogether.

Though I have been considering listing for 1% with an agent as I have seen a few offering that commission level.
A lot of people even who use agents still look on MLS and sometimes then tell their agent what they want to check out. I was one of them. A few of my friends and family did the same thing too.
If you think your house is an easy sale. sell it by yourself. Maybe host a few open houses during which you can stage the home professionally. You DON"T need to pay 2.25% to the other agent. You can offer either nothing or WHAT YOU WANT. If you don't offer anything, their agent may not show it to the clients so it is better to offer something. You can perhaps offer 0.5-1% to the buyer's agent. 4k-$8K is more than enough for the work they do. Paying anything more is just stupid. Even 8K is TOO MUCH!! There's no difference between selling a 200K condo and 1.2 million house so why should they get more money because your house costs more???
It MAKES NO SENSE!!!

Top