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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® 2011-2017 | 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® 2011-2017 | 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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Citified.ca is Victoria's most comprehensive research resource for new-build homes and commercial spaces.


 



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