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How do real estate commission rates work for selling and buying a property?


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#41 tjv

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Posted 07 December 2018 - 09:05 AM

^It would be interesting to see more listings like:

 

Price with buyers realtor: $849,900

Price with no buyers realtor:  $839,900


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#42 Mike K.

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Posted 07 December 2018 - 10:30 AM

That wouldn't fly. There's absolutely no incentive for a buyer to not use a REALTOR unless the price is significantly lower, but if it's significantly lower a buyer with a REALTOR won't care to offer anything above the no-REALTOR price.


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#43 tjv

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Posted 07 December 2018 - 10:52 AM

you wouldn't do that to save 10k?  Why not, I would, my real estate lawyer would still review everything.  I bought without a realtor and it was a great experience and it got me the house over the other offers.  I would definitely do it again

 

I've been to some stores in the US and there is a cash price and a credit card price.



#44 Mike K.

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Posted 07 December 2018 - 11:01 AM

Just to save 1.2%? Not a chance. I'll take my agent and buy from the next guy.

Drop the price by 10% compared to similarly-assessed homes and you might win me over, but there's no benefit to me as the buyer to move forward without representation unless the price is significantly reduced.

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#45 lanforod

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Posted 07 December 2018 - 03:20 PM

I think the only way it would work is if the seller also does not have a realtor, right?



#46 SamCB

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Posted 07 December 2018 - 03:34 PM

Just to save 1.2%? No a chance. I'll take my agent and buy from the next guy.

 

Drop the price by 10% compared to similarly-assessed homes and you might win me over, but there's no benefit to me as the buyer to move forward without representation unless the price is significantly reduced.

 

If you're confident in your knowledge of the market, a lawyer will gladly be your representation, for a fixed rate much MUCH lower than a realtor commission. 

 

I'm convinced Realtors will go the way of high-MER Financial Salesmen ahem--Advisors-- once the baby boomers die off. They are industries built on peoples' ignorance.


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#47 sdwright.vic

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Posted 07 December 2018 - 08:11 PM

Help a buddy sell a place in NYC. Placed an open house ad in the New York Time for an open house. Third person made and offer no contingency. Done and done.

No fees except to his lawyer and theirs. Its really not that hard to do it yourself... and if your good with software design stuff you can even make your own promotional material.

A lawyer is what's deals with the legalities of selling something, if you are willing to take the marketing on yourself, I say go for it. One less level of bureaucracy.
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#48 tjv

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Posted 07 December 2018 - 08:29 PM

^Exactly!  well said


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#49 Mike K.

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Posted 07 December 2018 - 08:33 PM

That’s a great suggestion for the seller but it doesn’t solve the issue of a buyer showing up with an agent.

What happens when the seller has no agent, but the buyer does?

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#50 sdwright.vic

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Posted 07 December 2018 - 08:34 PM

You add to your open house listing the words "no agents".
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#51 sdwright.vic

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Posted 07 December 2018 - 08:35 PM

As the seller you take on the role of "agent" on both ends of the transaction and the lawyers battle out all the bs
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#52 Mike K.

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Posted 07 December 2018 - 08:50 PM

Battling lawyers. Now there’s a surefire way to save some cash!

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#53 MarkoJ

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Posted 07 December 2018 - 09:01 PM

(2) ((my point was: if they can't sell themselves, selling your listing (competitively) appears pretty much doomed unless your asking price is rock bottom, and there seems also likely a modest or more than modest stigma out there with a cooperating realtor giving a discounter the time of day, unless their buyer is being pushy))

(3) There are areas (eg. Toronto) where the agents have allowed cheap MLS listings ($99 is what I've seen at times, $499 is commonly shown now on google, = https://oneflatfee.ca/package-1 ) -- now THAT'S the sort of non-refundable commission fee I'd like to see for Victoria (& I'll do my own dealing with inquirers thank you very much, while skipping the whole $9,500+ "discount" rate). And sure, if a realtor shows up with a buyer, I don't mind paying them a customary 3%/1.5% (though, I'd somewhat rather the Buyer pay their agent directly).

 

2) Sorry, but just makes zero logical or common sense. I just can't believe how the average person can't look at the facts and draw some reasonable logical conclusions......so many basic facts like listing agent cannot offer dual agency anymore, 98% of listings are on lockbox and are shown by the buyer's agent (listing agent is not there to show or sell), etc. 

 

I've represented some 300 buyers in my career and I honestly can't think of a situation where the listing agent sold my clients on the property.

 

3) There a few local REALTOR® including myself that have been offering mere postings since 2010 -> http://markojuras.com/flat-fee/


Edited by MarkoJ, 07 December 2018 - 09:24 PM.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#54 sdwright.vic

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Posted 07 December 2018 - 09:02 PM

Well that is what it is in the first place.

Funny how you are so pro Uber, but not pro people selling their own shite.

Look, I think you should just be able to freely buy and sell on the stock market just like traders as well... oh... what you can do that...

So what's the difference?

It is not about lawyers fighting, its about lawyers competing a contract.

I understand your apprehension to be supportive of something that doesn't involve a real estate agent though, since one supports this site.
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#55 MarkoJ

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Posted 07 December 2018 - 09:05 PM

^It would be interesting to see more listings like:

 

Price with buyers realtor: $849,900

Price with no buyers realtor:  $839,900

 

If I was a developer I would be the most hated developer in Victoria :)

 

I would set the condo price at $500,000, for example, and I would throw it up one MLS® with a $1 cooperating fee and then when buyers show up at the sales centre I would have two lines for pricing. Without REALTOR® representation $491,000 ($9,000 cooperating fee savings) and with REALTOR® representation $500,000. You as the buyer decide if you want representation for $9,000 :)

 

That is how I came up with this model back in 2011 -> http://markojuras.co...ondo-cash-back/


Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#56 MarkoJ

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Posted 07 December 2018 - 09:15 PM

I'm convinced Realtors will go the way of high-MER Financial Salesmen ahem--Advisors-- once the baby boomers die off. They are industries built on peoples' ignorance.

 

So when I started my real estate career in the summer of 2010 I was 110% convinced as well. At this point I am about 0% convinced. 

 

I thought I would own a brokerage by now focusing on mere postings which I falsely assumed would make up 10% market share by 2015....instead we barely cracked 1% and have decreased the last few years to below 1% again.

 

I thought my clever pre-sale cash back program would lead to hundreds of pre-sale buyers phoning me, etc. Who wouldn't want to save 5-10k buy literally doing nothing?

 

Don't get me wrong, I've done well personally as an individual REALTOR® but there seems to be little to no appetite for more reasonable priced services and I don't think it is a baby boomer thing. I can't really put my finger on it. I think it is different than the travel industry, uber, Airbnb, etc. 

I always drive by the Costco gas station and I don't understand how people line up for 15 minutes to save a few dollars but they can't use reasonable logic and 30 minutes of research to save 10k on real estate transaction fees?

 

The market in the US got completed opened up and everyone is still using full pop REALTORS®.


Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#57 Mike K.

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Posted 07 December 2018 - 09:34 PM

You and I have spoken at length about the future of the industry and you’re right, despite the advancements in online tools, access to information and instructional materials an average buyer is still more likely to seek the services of a realtor rather than buy an $800k home with a checklist downloaded from a website.

A home purchase is extremely stressful and can be complicated/involved. The last thing a buyer needs is a seller who wants to pursue an unconventional transaction or causes grief when the buyer shows up with an agent. It makes no sense to be that way and run the risk of alienating potential buyers.

Don’t want to use an agent to sell your home? No problem. But to make a fuss about a buyer having an agent is totally obtuse.
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#58 sdwright.vic

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Posted 07 December 2018 - 09:43 PM

I have personal experience that states otherwise.

Its a legal transaction, that is all. Once you get it to the bare bones of that, you are good. No need to tap dance. My lawyer talks directly to me, your lawyer to you. No need to pay $10K for someone to do that. Especially if you are not lazy.
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#59 Mike K.

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Posted 07 December 2018 - 09:46 PM

A buyer pays $0 to their agent to not have to talk to a lawyer at all.

(Save for 30 minutes of conveyancing and congratulatory remarks).

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#60 SamCB

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Posted 07 December 2018 - 09:47 PM

Interesting. My best guess then is that real estate dollars dont seem like real money to most people. For two reasons: because the amounts are so high that 1-3% of a million bucks feels negligible-- its just not a sum of cash that people are used to dealing with. So they don't think rationally.

and because many buyers and sellers are riding high on massive tax free equity gains. Why not splurge on $30k for "peace of mind" if you've made $600k in equity over the course of the last 20 years.

Edited by SamCB, 07 December 2018 - 09:48 PM.


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