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Five Different Options for Selling Your Home in Victoria!


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#1 MarkoJ

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Posted 21 December 2012 - 02:36 PM

1# List privately for free on non-MLS® (Craigslist, Kijiji, UsedVictoria, etc.).

2# List on MLS® as a Flat Fee Listing, or "Mere Posting" with $1 commission offered to the buyer’s REALTOR®. A "Mere Posting" can typically range from approximately $499 to $999 and your listing goes on public (Realtor.ca) and REALTOR® (Victoria Matrix) MLS® for maximum exposure. The listing fee is paid upfront and typically non-refundable. Most brokerages charge a back end fee ranging from $500 to $999 upon successful sale. REALTORS® with buyers will call you directly to arrange showings and you will negotiate offers directly with the buyer’s REALTOR®. The Competition Bureau/CREA Consent Agreement defines a ‘Mere Posting’ as “a listing on a Member board’s MLS® System in respect of which the Member has chosen or agreed not to provide services to the Seller other than submitting the listing for posting on a Member Board’s MLS®.” Essentially what a Flat Fee MLS® listing, or ‘Mere Posting,’ amounts to is a For Sale by Owner (FSBO) with MLS® System exposure. After the home is listed, the homeowner takes control of the selling process.



3# List on MLS® as a "Mere Posting" with a reasonable commission offered to the buyer’s REALTOR®. Typically for about $499 to $999 (plus REALTOR® commission which may be 3.0%100k+1.5%balance, or you can set any other amount). Same deal as above, except if there is a reasonable commission offered, buyer’s REALTOR® may be more motivated to bring a buyer to your particular listing.



4# List with a full service REALTOR®; however, at a discounted commission rate, and sit back and have everything handled for you from start to end.




5# List with a full service, full commission REALTOR®, and like above, sit back and have everything handled for you from start to end. A commission may be something like 6%100k+3%balance or the equivalent of $21,000+tax on a $600,000 sale.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2023 | Fair Realty

www.MarkoJuras.com Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#2 VicHockeyFan

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Posted 21 December 2012 - 04:56 PM

In each example above, I'd like to see a final expression of what the vendor has left over after selling the $600k home. Even for #1.
<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#3 gjdavis55

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Posted 21 December 2012 - 07:10 PM

What exactly does a realtor do that is worth $21000? If you list a boat with a boat broker, he keeps it clean and looking good for the sale. If you leave a car with a car lot they do the same thing. Does the realtor do anything like that? How about mow the lawn?
Why does it cost more to sell a more expensive house than a cheaper house? Isn't the amount of work exactly the same? Why does the exact same house, in two different communities where they are worth different amounts cost different amounts to sell?

#4 vandervalk

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Posted 22 December 2012 - 07:44 AM

You bring up some interesting points, gjdaviss55. I would suspect that a more expensive house has far less potential buyers than a cheaper house on the market, so that would be an understanding of why it would cost more.

I would think choosing the right realtor would make a huge difference too. Find one that does a lot of social media/video/photo marketing, not just list it and show the odd open house.

But again, I guess that really only matters if you are in a rush to sell.

I'm not a Realtor, but have recently been asked to help sell a home. At this point they didn't want a Realtor and are hoping to find some interest through other marketing channels that I can provide.

They paid me to shoot their home, create a video and put together a small Wordpress website for them. I've just started to do some social media marketing for them as well.

They have opted to give me a bonus if I can sell their home within a year, they are in no rush to sell though.

We are exploring the MLS option right now and some other smaller, possible target marketing overseas.

I will share with you that so far they have invested $1500 in marketing with what I've done.

You can see the website, video and photos here if you wish to get a gauge of what they've done. http://www.surfsong.ca
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#5 VicHockeyFan

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Posted 22 December 2012 - 07:50 AM

You bring up some interesting points, gjdaviss55. I would suspect that a more expensive house has far less potential buyers than a cheaper house on the market, so that would be an understanding of why it would cost more.

I would think choosing the right realtor would make a huge difference too. Find one that does a lot of social media/video/photo marketing, not just list it and show the odd open house.

But again, I guess that really only matters if you are in a rush to sell.

I'm not a Realtor, but have recently been asked to help sell a home. At this point they didn't want a Realtor and are hoping to find some interest through other marketing channels that I can provide.

They paid me to shoot their home, create a video and put together a small Wordpress website for them. I've just started to do some social media marketing for them as well.

They have opted to give me a bonus if I can sell their home within a year, they are in no rush to sell though.

We are exploring the MLS option right now and some other smaller, possible target marketing overseas.

I will share with you that so far they have invested $1500 in marketing with what I've done.

You can see the website, video and photos here if you wish to get a gauge of what they've done. http://www.surfsong.ca


That's very interesting. I always wonder about video. I mean, anyone can film a walk though of a home, but I suppose the trick is A) making it look good, and large and B) not showing enough, or showing it in such a way that people want to visit. ie. you don't want the video to be so good, so comprehensive that the potential buyer thinks they have seen it, and now does not need a personal visit. Or do you want it that comprehensive?

WOW, sweet property, and that website is great VDV. Are they afraid of advertising an asking price? I mean it's real estate, every other ad has the price. I'm also happy to give you any social media tips, VDV, feel free to PM me. As you probably know, I run the 2nd-largest FB page in Victoria, out of over 3300 pages.
<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#6 gumgum

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Posted 22 December 2012 - 08:52 AM

You bring up some interesting points, gjdaviss55. I would suspect that a more expensive house has far less potential buyers than a cheaper house on the market, so that would be an understanding of why it would cost more.

I would think choosing the right realtor would make a huge difference too. Find one that does a lot of social media/video/photo marketing, not just list it and show the odd open house.

But again, I guess that really only matters if you are in a rush to sell.

I'm not a Realtor, but have recently been asked to help sell a home. At this point they didn't want a Realtor and are hoping to find some interest through other marketing channels that I can provide.

They paid me to shoot their home, create a video and put together a small Wordpress website for them. I've just started to do some social media marketing for them as well.

They have opted to give me a bonus if I can sell their home within a year, they are in no rush to sell though.

We are exploring the MLS option right now and some other smaller, possible target marketing overseas.

I will share with you that so far they have invested $1500 in marketing with what I've done.

You can see the website, video and photos here if you wish to get a gauge of what they've done. http://www.surfsong.ca

Great site, but can't find an asking price!

#7 MarkoJ

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Posted 22 December 2012 - 09:50 AM

In each example above, I'd like to see a final expression of what the vendor has left over after selling the $600k home. Even for #1.


If we assume commission is the only closing cost and ignore moving expenses, legal fees, and cost of terminating the existing mortgage. And if we also assume all 5 sellers attain the same sale price we get...

#1 - Approx. $600,000
#2 - Approx. $598,000 to $599,000
#3 - Approx. $587,000 to $588,000
#4 - Approx. $580,000 to $593,000 (depends on size of discount)
#5 - Approx. $576,500 (based on 6%100k+3%balance+HST)

Most sellers are not sophisticated enough to comprehend the net amount they will collect from a sale. For example, they will list on usedvictoria.com for $610,000 and it won't sell. Then they will list with a full commission REALTOR® for $599,000. The difference isn't really $11,000 rather $11,000 plus the $23,500 commission they are now paying.

Or they will list with a discount REALTOR® for $610,000...the home doesn't sell and then they re-list with a full commission REALTOR® for $599,000 thinking the reason the home didn't sell is because the discount REALTOR® isn't doing her or his job. In my opinion, 90% of the time their listing price is the problem. If they listed with a discount REALTOR® at $595,000 to start it probably would have sold.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2023 | Fair Realty

www.MarkoJuras.com Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#8 MarkoJ

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Posted 22 December 2012 - 10:00 AM

What exactly does a realtor do that is worth $21000? If you list a boat with a boat broker, he keeps it clean and looking good for the sale. If you leave a car with a car lot they do the same thing. Does the realtor do anything like that? How about mow the lawn?
Why does it cost more to sell a more expensive house than a cheaper house? Isn't the amount of work exactly the same? Why does the exact same house, in two different communities where they are worth different amounts cost different amounts to sell?


REALTORS® typically do not take care of the home while it is listed.

Why does it cost to sell a more expensive home? For homes in the $300,000 to $1,000,000 I don't know to be honest. Yes, the work involved is typically the same. The amount of work is not well reflected by price rather by other attributes. Is the property strata? Does it have development potential? Is it old and full of asbestos? Does it have a septic system? Well? There is probably more work involved in an old $300,000 home with septic, well, and asbestos than a two year old home in Oak Bay that is $1,000,000.

For homes over $1,000,000 often the sellers want expensive marketing and often the homes take years to sell so it should cost a bit more; however, some skillful REALTORS® have the seller pay for all the marketing.

Why does the exact same house, in two different communities where they are worth different amounts cost different amounts to sell?

I've never heard this angle but you bring up a very valid point. Do you mind if I use it in a video blog? To answer your question, I have no idea!! Seems ridiculous doesn't it.

To conclude, I think the consumer has to drive change in the industry by demanding better commission rates and a system that is more tied to the amount of work involved in selling a home.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2023 | Fair Realty

www.MarkoJuras.com Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#9 MarkoJ

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Posted 22 December 2012 - 10:14 AM

You bring up some interesting points, gjdaviss55. I would suspect that a more expensive house has far less potential buyers than a cheaper house on the market, so that would be an understanding of why it would cost more.

I would think choosing the right realtor would make a huge difference too. Find one that does a lot of social media/video/photo marketing, not just list it and show the odd open house.

But again, I guess that really only matters if you are in a rush to sell.

I'm not a Realtor, but have recently been asked to help sell a home. At this point they didn't want a Realtor and are hoping to find some interest through other marketing channels that I can provide.

They paid me to shoot their home, create a video and put together a small Wordpress website for them. I've just started to do some social media marketing for them as well.

They have opted to give me a bonus if I can sell their home within a year, they are in no rush to sell though.

We are exploring the MLS option right now and some other smaller, possible target marketing overseas.

I will share with you that so far they have invested $1500 in marketing with what I've done.

You can see the website, video and photos here if you wish to get a gauge of what they've done. http://www.surfsong.ca


Nice video, I like the website!

Regarding choosing the right REALTOR®. 95% of the time the property is not sold by the listing REALTOR®, rather by a buyer's REALTOR®. The 5% of the time the listing REALTOR® does 'double-end' the sale likely the buyer found it on realtor.ca and contacted them directly.

When you list a home on MLS® you automatically hire 1250 REALTORS® to help you find a buyer, odds are your listing REALTOR® doesn't have the buyer. This is why MLS® is such a powerful tool.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2023 | Fair Realty

www.MarkoJuras.com Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#10 VicHockeyFan

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Posted 22 December 2012 - 12:27 PM

Why does the exact same house, in two different communities where they are worth different amounts cost different amounts to sell?[/COLOR][/FONT]

[FONT=Verdana][COLOR=black]I've never heard this angle but you bring up a very valid point. Do you mind if I use it in a video blog? To answer your question, I have no idea!! Seems ridiculous doesn't it.


There will be a slightly higher advertising cost in the higher-priced locale. ie. an ad in the TC is higher-priced than the same ad in the Lethbridge Herald.
<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#11 MarkoJ

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Posted 22 December 2012 - 02:54 PM

There will be a slightly higher advertising cost in the higher-priced locale. ie. an ad in the TC is higher-priced than the same ad in the Lethbridge Herald.


Commissions vary from region to region. In Victoria a REALTOR® may charge 6%100k + 3.0%balance and in Toronto it may be 5% across the board.

I think what he or she is getting at is why does it cost $5,000 to $6,000 more to sell a 1975 2,000 sq/ft box in Gordon Head compared to a 1975 2,000 sq/ft box in Langford.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2023 | Fair Realty

www.MarkoJuras.com Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#12 North Shore

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Posted 22 December 2012 - 09:52 PM

Great site, but can't find an asking price!


I suspect that the old dictum applies: If you have to ask the price, you can't afford it!

Beautiful property, though. And a nice job on the website..
Say, what's that mountain goat doing up here in the mist?

#13 rjag

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Posted 22 December 2012 - 11:01 PM

Funny that the commission hasnt changed in 20 years, considering 6&3 on a house 20 years ago and today.

eg a house 20 years ago sells for $200k may be $750k today or even more.

Commission 20 years ago $9k split 2 ways so $4.5k less agency fees etc. Today that same property $25.5k or $12.25k before agency fees when split

Looking at the Bank of Canada Inflation Calculator that $4.5k in 1992 would be worth $6.5k today, yet they are now collecting double that.

I've always wondered why commissions were never capped or reduced to reflect rising house prices i.e. 6% on the first $100k, 3% on the next $400k and say 1% on the balance...nothing against realtors...its not like they are going to police themselves is it?

#14 vandervalk

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Posted 23 December 2012 - 12:03 PM

Sorry I haven't responded. Christmas time this year is hectic.

We chose not to list a price yet. We wanted to see if that would cause more people to ask about it or not. Basically testing the waters. I guess it's like one of those, if you have to ask, you can't afford it.

Maybe that isn't the best approach, but I'm welcome to suggestions and what you all think.

Thanks for the offer for assistance, VicHockeyFan. I might just take you up on that, advice is always helpful.

Thanks everyone for the kind words, really appreciate it!
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#15 VicHockeyFan

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Posted 24 December 2012 - 09:22 AM

We chose not to list a price yet. We wanted to see if that would cause more people to ask about it or not. Basically testing the waters. I guess it's like one of those, if you have to ask, you can't afford it.

Maybe that isn't the best approach, but I'm welcome to suggestions and what you all think.


It's silly not to post a price. It's real estate. EVERY property listed has a price. What is gained by not posting it? You hope someone will offer $1M more than the price in your vendors head? Just put a price on it.
<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#16 Mike K.

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Posted 24 December 2012 - 09:31 AM

Agreed, the one thing missing is the price. My instinctive reaction to listings for any product or service that does not immediately reference a price is the seller will be asking far too much and I shouldn't bother to pry.

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#17 VicHockeyFan

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Posted 24 December 2012 - 09:43 AM

Agreed, the one thing missing is the price. My instinctive reaction to listings for any product or service that does not immediately reference a price is the seller will be asking far too much and I shouldn't bother to pry.


Exactly. There are thousands of properties listed, all with prices. As nice as that website is, it's way too easy for a potential buyer to just move on to the next property that has a price tag.
<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#18 LJ

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Posted 24 December 2012 - 07:37 PM

I think the idea was if they didn't list a price they would get lots of people calling to ask "how much?". The problem is, most people don't want to call and then be told some price that is way out of their ballpark and then embarrassingly hang up. Put the price on and weed out the lookie loos.
Life's a journey......so roll down the window and enjoy the breeze.

#19 VicHockeyFan

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Posted 24 December 2012 - 08:39 PM

I think the idea was if they didn't list a price they would get lots of people calling to ask "how much?". The problem is, most people don't want to call and then be told some price that is way out of their ballpark and then embarrassingly hang up. Put the price on and weed out the lookie loos.


This.
<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#20 vandervalk

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Posted 25 December 2012 - 01:29 PM

Thanks for the comments in regards to the price. I will mention this to the seller when they return from their holidays and promptly suggest we put up the price. Thanks all and Happy Christmas!!
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