13 replies to this topic

[snub]

I'm looking at buying a house and am wondering if I should enlist the aid of a realtor. I've already found one (house) that I'm interested in. Seems to me only the vendor pays any fees so it's probably a good idea. Then how do I choose a realtor? The last time I needed one to sell some land I looked through the phonebook and chose the one with the nicest sounding name (Ocean City). Perhaps now I should be more scientific. Or maybe I should just call Marko J.?

[Szeven]

I have to ask given your recent posting history. Is this an investment property?

[snub]

Yes.

[lanforod]

I'm a fan of Realtors, however do keep in mind that those fees could mean the seller is trying to sell for a bit more, and not having a Realtor may bring that price down. However, it isn't easy to do a purchase of Real Estate without a Realtor at all, as it does depend whether the seller is using a Realtor.

Often times, if the buyer isn't using a Realtor, the selling Realtor will get full commission, rather than split with the buying Realtor. So you may as well get a Realtor to do some of the work for you, at the sellers expense!

[VicHockeyFan]

I'm a fan of Realtors, however do keep in mind that those fees could mean the seller is trying to sell for a bit more, and not having a Realtor may bring that price down. However, it isn't easy to do a purchase of Real Estate without a Realtor at all, as it does depend whether the seller is using a Realtor.

Often times, if the buyer isn't using a Realtor, the selling Realtor will get full commission, rather than split with the buying Realtor. So you may as well get a Realtor to do some of the work for you, at the sellers expense!

 

Wrong.  The listing Realtor never expects to double-end it, so he will normally sacrifice his "other" half of commission to make the deal work, thus you save money on your own.

 

Having said that, I think Marko will do your end for a discount, give some cash back from his end, so you get money back and the advice/skills of a Realtor.  I'm not sure that applies for all properties, or if you rely on him to drive you around to showings etc.

 

I could be wrong.

 

But when I sold new condos (1996), and after a first visit, the same client came back later with a Realtor, I'd shake my head, they just lost $3000 or more.

[VicHockeyFan]

I Perhaps now I should be more scientific. Or maybe I should just call Marko J.?

 

Of course we might be biased as we've all met Marko J., but you won't find anyone here that does not think highly of his skills and acumen.

[pherthyl]

Wrong.  The listing Realtor never expects to double-end it, so he will normally sacrifice his "other" half of commission to make the deal work, thus you save money on your own.

Depends. Some realtors will try to represent both ends of the deal. However this is a special case (forget the name of it, but you will have to sign a separate form) and not the same as you not having a realtor.
 

We bought without a realtor. Calculated how much the seller would save in commission and put that into our original offer as part of the justification.
Of course it is impossible to tell if we would have gotten the same price with a realtor or not. But the process itself wasn't hard. I wrote up the offers using the VREB form, had a chat with our lawyer (who you have to pay anyway) and mortgage broker about the offer beforehand and all the hard stuff is handled by the lawyer anyway.
If you're not sure, get a realtor that gives cash back.

Edited by pherthyl, 09 January 2014 - 07:28 PM.

[MarkoJ]

I'm looking at buying a house and am wondering if I should enlist the aid of a realtor. I've already found one (house) that I'm interested in. Seems to me only the vendor pays any fees so it's probably a good idea. Then how do I choose a realtor? The last time I needed one to sell some land I looked through the phonebook and chose the one with the nicest sounding name (Ocean City). Perhaps now I should be more scientific. Or maybe I should just call Marko J.?

 

Does the vendor pay the fees?

 

Let's say a buyer wants to purchase a home for $500,000 and the gross commission is $18,000+tax, for example.  The buyer gives his or her lawyer $500,000 whether it be cash, mortgage, or a combination.  The seller's lawyer receives $500,000 and pays out each REALTOR® brokerage involved $9,000+tax.  The seller receives the proceeds. Technically the seller pays the fees but only one person is bringing cash to the table, so who really pays?

 

How to choose a REALTOR®?

 

Good question.  Every single REALTOR® website will provide you with the same reasons to choose that particular REALTOR®; "honest, high level of integrity, superior negotiator will get you the lowest price as a buyer," etc.  Not very useful as a consumer.  

 

In my opinion talking to co-workers, family, and friends is sometimes not a bad way to source a REALTOR®.  In-depth online research can also lead to some great REALTORS®.  Once you have someone in mind maybe go view one or two houses with them and see if you can work with this individual? 

 

It is also important to look for value.  Maybe a buyer REALTOR® is willing to kick back some of his or her commission to you?  Maybe they are willing to pay for legal fees, etc.

 

Finally, as a buyer/consumer be very very careful if a REALTOR® asks you to sign an exclusive buyer's agency contract.  Watch this -> http://toronto.ctvne...aylistPageNum=1

Edited by MarkoJ, 09 January 2014 - 08:11 PM.

[MarkoJ]

I'm a fan of Realtors, however do keep in mind that those fees could mean the seller is trying to sell for a bit more, and not having a Realtor may bring that price down. However, it isn't easy to do a purchase of Real Estate without a Realtor at all, as it does depend whether the seller is using a Realtor.

Often times, if the buyer isn't using a Realtor, the selling Realtor will get full commission, rather than split with the buying Realtor. So you may as well get a Realtor to do some of the work for you, at the sellers expense!

 

As a buyer, Impossible to know how the listing REALTOR® is structuring the listing contract with the seller as that is confidential between those two parties.  For example, I have a clause in my standard listing contracts that if the buyer has no REALTOR® the gross commission is reduced by $5,000.  So, yes, sometimes the listing REALTOR® may pocket the gross commission if he or she double-ends the transaction but not always.  

[MarkoJ]

Wrong.  The listing Realtor never expects to double-end it, so he will normally sacrifice his "other" half of commission to make the deal work, thus you save money on your own.

 

Depends, I would replace "normally," with "sometimes."  

[Gary H]

Perhaps now I should be more scientific. Or maybe I should just call Marko J.?

 

As a very happy client all I can say is "just call Marko"!

[MarkoJ]

Depends. Some realtors will try to represent both ends of the deal. However this is a special case (forget the name of it, but you will have to sign a separate form) and not the same as you not having a realtor.
 

We bought without a realtor. Calculated how much the seller would save in commission and put that into our original offer as part of the justification.
Of course it is impossible to tell if we would have gotten the same price with a realtor or not. But the process itself wasn't hard. I wrote up the offers using the VREB form, had a chat with our lawyer (who you have to pay anyway) and mortgage broker about the offer beforehand and all the hard stuff is handled by the lawyer anyway.
If you're not sure, get a realtor that gives cash back.

 

Personally, I am not a fan of Limited Dual Agency (representing both ends of the deal).  It doesn't make any sense to me from any perspective, never has, never will.  When I have a listing and a buyer comes directly without a REALTOR® I offer him or her something called a Customer Relationship (Working with a REALTOR® who is not your agent) and I continue my Designated Agency with my seller which I started when we signed the listing contract.  I advise the buyer to seek his or her own legal council in respect to the contract.

 

Not necessary to write-up the offer yourself.  Even if you only have a  Customer Relationship with a REALTOR® he or she can write up the offer and explain the terms and practices. As a buyer make it subject to buyer's lawyer review and have a lawyer look over it.

 

Where a good REALTOR® is worth something is the various issues the may come up and they do come up.  

Edited by MarkoJ, 30 May 2014 - 10:51 AM.

[pherthyl]

Not necessary to write-up the offer yourself.  Even if you only have a  Customer Relationship with a REALTOR® [/size]he or she can write up the offer and explain the terms and practices. As a buyer make it subject to buyer's lawyer review and have a lawyer look over it.

Good to know. Thanks.
 

Last year I had a young couple that was purchasing an older home in Saanich.  On inspection vermiculite was found in the attic.  The sellers provided paperwork showing the vermiculite was tested by a legitimate local company and it was negative for asbestos.  I asked if that company had collected the sample as well and the answer was "no, the inspector collected the sample."  I advised my clients to get the vermiculite re-tested and to have the company collect the sample.  The vermiculite came back positive and we managed to negotiate for the sellers to pay for the removal (not always the case, but these sellers agreed).
 
It was the first time I had seen this type of vermiculite come back negative (out of 15 plus times I've come across it) and I knew from times before that there is a specific way to collect vermiculite samples which an inspector may or may not be aware of. Based on experience I determined it needed to be re-tested.  If you are not being represented by a good REALTOR® [/size]you may not have this experience behind you.
 
I am not saying REALTORS® [/size]are be all end all but sometimes there can be value there.  

I think the key lesson is to have someone advise you that knows what they are talking about in terms of the type of house you are buying and what problems could be hiding. A realtor would seem to be a logical choice given it is their job to care about houses, but I do find that the good ones are few and far between. Too many part timers in that business that want to make some cash off the side of their regular job.

Edited by pherthyl, 09 January 2014 - 09:02 PM.

[snub]

As a very happy client all I can say is "just call Marko"!

I did, and I am also very happy!