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


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#81 dasmo

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Posted 09 December 2018 - 11:20 AM

Over the last 2-3 years if you offered even 5% under asking you’d get laughed out of the process. That’s starting to change now, though.

I don’t go shopping in overheated markets.... I bought my lot in 2016 for more than 10% less than ask after it had sat on the market and had price declines. Mind you that was right on the cusp. Literally as my 3 months of conditions were traveling by the market starting going nuts. Even had a lady with a clipboard show up at the lot asking questions. I had no competition at the time the offer was accepted though.

Edited by dasmo, 09 December 2018 - 11:25 AM.


#82 Mike K.

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Posted 09 December 2018 - 03:06 PM

Yup. The market went ka-razy in 2016 and that’s when we started seeing battles among buyers, unconditional offers, cash payments while viewing homes and a reduction in days-on-market.

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#83 MarkoJ

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Posted 10 December 2018 - 06:43 AM

1)  The sellers realtor I dealt with did it and simply deducted half the commission.  The sellers were sitting right next to me in their realtors office

 

If you get a really stubborn realtor, then here is what you do:

 

2)  How it plays out with a lawyer as an example "hey Bob, its Jim when are you headed home today?  5:30pm?  perfect, do you mind swinging by 1234 Fairfield on the way home, I want to buy it as you as the agent."  At 5:30:01 the lawyer shows up and says that's the house, at 5:30:10 the lawyer drives away

 

If you have a good relationship with a lawyer they won't even charge you.

 

Savings 15k to me on that example!  I encourage everyone to do it, but you don't have to either, I am simply pointing out options.

 

Problem is none of this applies to real life.

 

I honestly can't remember when I last had sellers in my office and I've been selling 90 to 100 places the last three years. It is called DocuSign.

 

Good luck getting a REALTOR® to deduct half the commission with the new agency rules. Why would a REALTOR® work with an unrepresented party when they would make the same amount if you came in with representation which is way less riskier and way easier for the listing REALTOR®.

 

As for the lawyer comment, how is he or she going to open the lockbox? I've never seen a lawyer at a showing in my entire career. Also, there is no way any reputable real estate lawyer would do this for a variety of reasons including conveyancing referrals. 

As I said, making an unrepresented offer is a solid strategy for a savvy buyer but the rest of your comments just have no relevance to how things actually work. 


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!

 

 


#84 MarkoJ

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Posted 10 December 2018 - 06:44 AM

Yup. The market went ka-razy in 2016 and that’s when we started seeing battles among buyers, unconditional offers, cash payments while viewing homes and a reduction in days-on-market.

 

A minority of buyers making unconditional offers had cash.....I would say 75% just crossed their fingers that the financing would come through. 


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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!

 

 


#85 tjv

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Posted 10 December 2018 - 08:08 AM

Problem is none of this applies to real life.

 

I honestly can't remember when I last had sellers in my office and I've been selling 90 to 100 places the last three years. It is called DocuSign.

 

Good luck getting a REALTOR® to deduct half the commission with the new agency rules. Why would a REALTOR® work with an unrepresented party when they would make the same amount if you came in with representation which is way less riskier and way easier for the listing REALTOR®.

 

As for the lawyer comment, how is he or she going to open the lockbox? I've never seen a lawyer at a showing in my entire career. Also, there is no way any reputable real estate lawyer would do this for a variety of reasons including conveyancing referrals. 

As I said, making an unrepresented offer is a solid strategy for a savvy buyer but the rest of your comments just have no relevance to how things actually work. 

the realtor I worked with did it, that's all I'm saying.  By my example, it is real life I am living proof

 

Does the law as you wrote say you have to go inside the house?  NOPE.  By what the law says they have to cross the property line and say there is the house and then bye.  Did they meet the conditions of ""Buyer agent must physically introduce Buyer to property or Co-op fee reduced to $1,000." YUP

 

Who says the lawyer has to show up at a showing.  You do all the leg work and when you are ready to buy then engage the lawyer, its pretty simple

 

Basically what I am hearing from you is you want to protect your profession and reasons why people need a salesman.

 

anyway, I am not going to beat this to death.  If anyone here wants to use the strategy, my advise is free of charge, I get nothing for it and just passing on the savings



#86 Mike K.

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Posted 10 December 2018 - 12:28 PM

I think if the goal is to assist people in taking matters into their own hands then this discussion we've just had is not in any way helpful. Full of contradictions, lacking in details, kinda hokey and confusing.

 

There's absolutely no law requiring you to use a REALTOR to buy a home, just as there is no law requiring you to hire a mechanic to fix your car or a contractor to expand your garage. Society by and large chooses to pay for those services because life is too short to learn the inner workings of an engine or building codes, and when it comes to spending large sums of money on a home having a support system can be a priceless advantage if for no other reason than to ensure your i's are dotted and your t's are crossed.

 

Is it worth $30k to sell a $1 million home? To the vast majority of individuals it appears to be, just like it's worth it for most vehicle owners to have a mechanic replace replace a $100 part that requires ten hours of labour or a contractor to blow out a couple of walls to expand a room. None of their services are rocket science but for gosh sake, they're also not a conspiracy concocted to outright rob you of your money.


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#87 James Bay walker

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Posted 24 December 2018 - 12:13 PM

 


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

Yes, but since your example link states you're typically the selling agent (too) [more than 50% of the time, anyway, and not some distribution of the 1,000+ other agents out there], I gotta wonder about your process. (Is your contact info included [I imagine that's required, regulation wise], or the vendor's, or both? If all inquirers have to go through you and not the vendor, $899 seems very steep as you're sitting pretty for using it to drum up buyer clients generally.) jbw

Edited by James Bay walker, 24 December 2018 - 12:14 PM.


#88 MarkoJ

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Posted 26 December 2018 - 10:08 AM



 Yes, but since your example link states you're typically the selling agent (too) [more than 50% of the time, anyway, and not some distribution of the 1,000+ other agents out there], I gotta wonder about your process. (Is your contact info included [I imagine that's required, regulation wise], or the vendor's, or both? If all inquirers have to go through you and not the vendor, $899 seems very steep as you're sitting pretty for using it to drum up buyer clients generally.) jbw

 

Where exactly does it say that I am the selling agent more than 50% of the time?


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!

 

 


#89 Victoria Watcher

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Posted 26 December 2018 - 10:52 AM

the misunderstanding is this:

 

your site says you are the agent in 50%+ of the mere listings in the city but the poster thinks this means you represented the buyers.

 

what it really means is that marko signs up more than half the mere listings in the whole city.



#90 MarkoJ

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Posted 26 December 2018 - 01:25 PM

the misunderstanding is this:

 

your site says you are the agent in 50%+ of the mere listings in the city but the poster thinks this means you represented the buyers.

 

what it really means is that marko signs up more than half the mere listings in the whole city.

 

Pretty clear it says LISTING agent

 

"In 2015-2017, based on VREB statistics, Marko Juras was the listing REALTOR® on over 50% of ALL sold mere postings in Greater Victoria.  All direct mere posting competitors combined had less than 50% market share of sold mere postings...."


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!

 

 


#91 Victoria Watcher

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Posted 26 December 2018 - 01:50 PM

james bay walker is not known for his/her comprehension.


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#92 James Bay walker

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Posted 27 December 2018 - 02:29 PM

 

Pretty clear it says LISTING agent
 
"In 2015-2017, based on VREB statistics, Marko Juras was the listing REALTOR® on over 50% of ALL sold mere postings in Greater Victoria.  All direct mere posting competitors combined had less than 50% market share of sold mere postings...."

Ah, I get it now. The 'mere' concept's essentially non-existent in our area except for your effort(s). That's so sad (I wonder if the Competition Bureau would look into it?). jbw

#93 Mike K.

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Posted 27 December 2018 - 06:15 PM

The competition bureau?

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#94 dasmo

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Posted 27 December 2018 - 07:08 PM

The first rule of the competition bureau is to not talk about the competition bureau!!!!!
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#95 James Bay walker

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Posted 03 January 2019 - 02:24 PM

The (Federal) Competition Bureau are the chaps who took CREA to task over a decade ago (a couple of steps up from our local VREB), for Realtor agencies throughout many parts of the country squelching competition (resulting in meaningful commission discount initiatives being greatly discouraged). http://www.competiti...bc.nsf/eng/home eg. http://www.competiti...g/04382.html I do think ~$1,000 for a 'mere' posting on the MLS service of one's property details is excessive (considering it's only a $100 cost [VREB fee] for the salesperson involved). So, I'm wondering at the absence of any of the other 1,000+ salespeople in Victoria offering the mere posting service at say, half that price ($500). jbw

#96 Victoria Watcher

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Posted 03 January 2019 - 02:36 PM

the other agents just want full commission deals.

#97 29er Radio

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Posted 03 January 2019 - 04:05 PM

There are alot of smart people who use "full commission" realtors and alot who dont. Anyone can ask a realtor to work for any level of fee and the realtor is able to agree or not. That a realtor "wants" a full commission is conceptually understandable as most people I know want to "make" as much money as reasonably possible whatever they do. 


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#98 Victoria Watcher

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Posted 03 January 2019 - 04:10 PM

if you are not a pain in the ass client your regular realtor will often adjust her fees to suit both of you. just ask.

#99 MarkoJ

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Posted 04 January 2019 - 10:30 AM

The (Federal) Competition Bureau are the chaps who took CREA to task over a decade ago (a couple of steps up from our local VREB), for Realtor agencies throughout many parts of the country squelching competition (resulting in meaningful commission discount initiatives being greatly discouraged). http://www.competiti...bc.nsf/eng/home eg. http://www.competiti...ng/04382.html I do think ~$1,000 for a 'mere' posting on the MLS service of one's property details is excessive (considering it's only a $100 cost [VREB fee] for the salesperson involved). So, I'm wondering at the absence of any of the other 1,000+ salespeople in Victoria offering the mere posting service at say, half that price ($500). jbw

 

There are cheaper options that I don't intend to compete with -> https://oneflatfee.ca/


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!

 

 


#100 Lorenzo

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Posted 09 February 2019 - 07:04 PM

Please help me square something in my mind. We have been clearing out a family members home for what we thought would be a sale in the spring. It is currently not listed. We recently became aware that a neighbour was really interested in buying it. The prospective buyers apparently had a realtor "friend" who was going to help them with the paperwork and wanted to make an offer, and apparently sell their home as well. Sure, no problem. Realtor shows up today as scheduled. Immediately spends 15 minutes explaining the risks and ramifications of not using a realtor,and that they can do nothing for us and can offer no advice and service at all. They then go on to say that they should receive a 3% /1.5% on our portion of the sale, or around $5300. WTF? The house isn't listed. The neighbours found us themselves. They have done nothing other than fill out a few boxes and had write an amount on the offer sheet. If they spent more than 1/2 hour total on this transaction I'd be surprised. Yet they were adamant that they could do nothing for us. I'll say. I need some clarification from those with more RE experience than me. Is this legitimate, and why?
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