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


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#101 Victoria Watcher

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Posted 09 February 2019 - 07:43 PM

they can’t represent both sides anymore.

but you are not obligated to use a realtor on your side.

nor are you obligated to pay a commission to anyone. unless you signed on for that.

tell the neighbour the price you want arrange the dates of possession etc. and then just have your lawyer work your end.

it sounds like you would have to accept an offer subject them to selling their home anyway. are you sure you want to lock into such an arrangement? rather than listing it openly and looking at other offers?

Edited by Victoria Watcher, 09 February 2019 - 07:48 PM.


#102 MarkoJ

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Posted 09 February 2019 - 08:46 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?

 

Take the emotion out of it; just add $5,300 to your bottom line to compensate for the requested REALTOR® fee. The request for $5,300 should be signed by the buyer (the neighbours) and if they want to sign it their call. Unfortunately, from 100s of deals of experience, the average buyer is too dumb to recognize that if their REALTOR® is asking for a commission from the seller that it will impact the purchase price. It is what it is.

 

Re doing "nothing for you" just add a clause...."subject to the seller's lawyer reviewing and approving this contract by such and such date." Some lawyers will do it for free if you are using them for conveyancing and some will charge $100-$200. 


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!

 

 


#103 MarkoJ

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Posted 09 February 2019 - 08:49 PM

it sounds like you would have to accept an offer subject them to selling their home anyway. are you sure you want to lock into such an arrangement? rather than listing it openly and looking at other offers?

 

Always a risk selling privately and not going to the open market. Could get more or less if you open it up to the market. Selling it privately makes the most sense when it is relatively straight forward to come up with market value and then the two parties can split the transaction fee (commission) savings.


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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!

 

 


#104 Victoria Watcher

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Posted 09 February 2019 - 08:54 PM

Take the emotion out of it; just add $5,300 to your bottom line to compensate for the requested REALTOR® fee. The request for $5,300 should be signed by the buyer (the neighbours) and if they want to sign it their call. Unfortunately, from 100s of deals of experience, the average buyer is too dumb to recognize that if their REALTOR® is asking for a commission from the seller that it will impact the purchase price. It is what it is.

 

Re doing "nothing for you" just add a clause...."subject to the seller's lawyer reviewing and approving this contract by such and such date." Some lawyers will do it for free if you are using them for conveyancing and some will charge $100-$200. 

 

perfect.



#105 James Bay walker

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Posted 21 February 2019 - 01:52 PM

 

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.
 

Watch out for "DocuSign" files!!!

My realtor sent me a document of that character and it totally messed up my PC (way worse than the occasional virus I've contended with).

I'm hopeful (a couple of years later), that maybe the worst of the fallout from that fiasco will be cleaned up when I upgrade my PC's O/S.

jbw

#106 MarkoJ

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Posted 23 February 2019 - 02:57 PM

  Watch out for "DocuSign" files!!!

My realtor sent me a document of that character and it totally messed up my PC (way worse than the occasional virus I've contended with).

I'm hopeful (a couple of years later), that maybe the worst of the fallout from that fiasco will be cleaned up when I upgrade my PC's O/S.

jbw

 

 

Docusign is web based? You sure you didn't open spam?


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!

 

 


#107 tjv

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Posted 24 February 2019 - 09:41 AM

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?

I would tell this realtor bozo to take a hike.  You need a competent real estate lawyer anyway so have him go thru all the paperwork and confirm everything.  Who are you going to take advise from anyway someone with likely high school, a few weekends of study and a multiple choice exam aka a Realtor, or someone with 7 years of university aka a Real Estate lawyer?  The guy who fixes your toilet has more education than a realtor so think about it!

 

PM me for my local real estate lawyer, Mike used him and I think he was happy



#108 Victoria Watcher

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Posted 24 February 2019 - 09:43 AM

maybe lorenzo has an update?

#109 Mike K.

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Posted 24 February 2019 - 09:44 AM

Me? I don’t think so. Once I saw the trailer he works out of I ran as fast as I could.

J/k, but I did not use tjv’s lawyer.
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#110 tjv

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Posted 24 February 2019 - 10:53 AM

^ah I thought you did, fair enough



#111 Victoria Watcher

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Posted 27 February 2019 - 06:42 AM

Canadian startup Properly offers new way of buying and selling homes in Calgary

But uncertain market conditions in Calgary have some experts worried Properly's arrival is opportunistic

 

 

https://www.cbc.ca/n...lgary-1.5032771

 

Unlike a house flipper, the company's primary profit is not selling the house for a premium, but in service fees. On homes in good shape Properly says it will refund back 75 per cent of the difference if it sells a property for more than it paid.   

 


Edited by Victoria Watcher, 27 February 2019 - 06:44 AM.


#112 Rob Randall

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Posted 17 May 2019 - 11:00 AM

I wonder if Marko would take on The Donald as a client. From this morning:

 

Speaking to the realtors, Trump boasts that he only paid real estate brokers 1 percent instead of 6 percent. "I was famous for that,” he says, at which point some of the realtors booed. "Don’t worry. Nobody accepted it. But I tried like hell. But I’d get it down to 4 or 5."

 


"[Randall's] aesthetic poll was more accurate than his political acumen"

-Tom Hawthorne, Toronto Globe and Mail


#113 lanforod

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Posted 17 May 2019 - 11:01 AM

Seems to me that he negotiated the rate down. I don't understand why realtors would consider it an issue; isn't this always open for negotiation, especially when you're talking about multi-million dollar properties?



#114 Rob Randall

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Posted 17 May 2019 - 11:12 AM

I assume negotiating rates is fair game, especially with big properties. But I think Trump's game is to do the negotiating at the end of the deal where the service provider has less leverage and often they're given a take-it-or-leave-it deal.

 

And I'm sure some of the booing was in good humour. Still, it's a weird place to brag about it. Trump has this thing about saying what's on his mind regardless of how his audience will receive it. Like talking to the Boy Scouts about the wild Manhattan party he went to.


"[Randall's] aesthetic poll was more accurate than his political acumen"

-Tom Hawthorne, Toronto Globe and Mail


#115 MarkoJ

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Posted 17 May 2019 - 07:15 PM

I wonder if Marko would take on The Donald as a client. From this morning:

 

My going rate is 1.15% on the listing end....for a huge development I would take way less :)


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!

 

 


 



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