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Realtor Commissions | Your approach


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#21 lanforod

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Posted 18 February 2015 - 05:13 PM

If you sell without a a Realtor, can you dictate the terms of a buyers Realtors commission? How does that work?

#22 pherthyl

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Posted 18 February 2015 - 05:39 PM

Can't prove it saved me any money but we bought without a realtor and it worked fine. We used it as a bargaining chip when speaking to the seller.
Given we don't have a realtor, that saves them some $8000 right off the bat so knock that off the price.
What actually happened between the seller and the selling realtor who knows but if the seller was logical they would have demanded the buying commission be zero rather than paying it all to the selling realtor

#23 LJ

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Posted 18 February 2015 - 06:50 PM

^That is the whole thing tho, working without a realtor you expect $8000 knocked off the price. If they don't have a realtor then you expect another $8000 off the price. What's in it for them? They get the same money and have to do all the work. Don't get me wrong, I think realtor commissions are insane and should have been reduced over the years. A flat 1% would work for me.


Life's a journey......so roll down the window and enjoy the breeze.

#24 LocalMom

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Posted 18 February 2015 - 07:10 PM

Marko we will definitely be giving you a call when we decide to sell!
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#25 MarkoJ

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Posted 18 February 2015 - 09:13 PM

If you sell without a a Realtor, can you dictate the terms of a buyers Realtors commission? How does that work?

 

Yes you can.  With a mere posting you can choose the commission you offer to cooperating brokerages; however, the minimum is $1 (not a number I would recommend).


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!

 

 


#26 MarkoJ

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Posted 18 February 2015 - 09:25 PM

Can't prove it saved me any money but we bought without a realtor and it worked fine. We used it as a bargaining chip when speaking to the seller.
Given we don't have a realtor, that saves them some $8000 right off the bat so knock that off the price.
What actually happened between the seller and the selling realtor who knows but if the seller was logical they would have demanded the buying commission be zero rather than paying it all to the selling realtor

 

It doesn't save the seller $8,000 right off the bat.  The way our full service listings contracts are written the listing REALTOR® would have to agree to the $8,000 discount, for example.  Otherwise he or she collects the entire gross commission including the cooperating broker fee offered.  

 

Going straight through the listing REALTOR® definitely has its benefits for sure for various reasons.  For example, even if they don't discount the commission to the seller they are more motivated at that point to make the sale happen as they are pulling in double the commission.  

 

There is also a risk component of going directly through the listing REALTOR® for various reasons.  Maybe not so much of experienced buyers, but moreso for first time buyers not familiar with the process and potential issues.


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!

 

 


#27 dasmo

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Posted 18 February 2015 - 10:21 PM

I would use Marko as a realtor if I was selling....He wouldn't know it was me so I think he would take me....


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#28 pherthyl

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Posted 19 February 2015 - 07:29 AM

^That is the whole thing tho, working without a realtor you expect $8000 knocked off the price. If they don't have a realtor then you expect another $8000 off the price. What's in it for them? They get the same money and have to do all the work. Don't get me wrong, I think realtor commissions are insane and should have been reduced over the years. A flat 1% would work for me.

Well in the case of the buyers commission, they (in theory) can make the sale at a price $8000 less than they would have to someone with a realtor and make the same money.   

 

I think on the selling side, the DIY people are expecting to profit from the no selling realtor commission.  They do the work themselves so they pocket the $8000 on the selling side.  

 

In any case, the only important person is the lawyer.  I had mine check over the documents before I made an offer and that was that.  

 

One thing that's missing to make DIY buying effective is an online service to search the MLS database like the realtors have to get comparables, sales history, etc.



#29 pherthyl

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Posted 19 February 2015 - 07:32 AM

It doesn't save the seller $8,000 right off the bat.  The way our full service listings contracts are written the listing REALTOR® would have to agree to the $8,000 discount, for example.  Otherwise he or she collects the entire gross commission including the cooperating broker fee offered.  

 

Going straight through the listing REALTOR® definitely has its benefits for sure for various reasons.  For example, even if they don't discount the commission to the seller they are more motivated at that point to make the sale happen as they are pulling in double the commission.  

 

There is also a risk component of going directly through the listing REALTOR® for various reasons.  Maybe not so much of experienced buyers, but moreso for first time buyers not familiar with the process and potential issues.

 

Yes I would recommend going with a cash back realtor instead.  Find the place you want yourself, then get them to make the offer.    Worked fine without a realtor, but would have been easier with one, and get most of the commission back anyway.



#30 MarkoJ

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Posted 19 February 2015 - 07:58 AM

Yes I would recommend going with a cash back realtor instead.  Find the place you want yourself, then get them to make the offer.    Worked fine without a realtor, but would have been easier with one, and get most of the commission back anyway.

 

Either straight through listing REALTOR®or cash back buying REALTOR® can make the most financial sense for various reasons; however, more than 90% of buyers don't do that....they go with a non-cash back buying REALTOR®.


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!

 

 


#31 MarkoJ

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Posted 19 February 2015 - 08:01 AM

One thing that's missing to make DIY buying effective is an online service to search the MLS database like the realtors have to get comparables, sales history, etc.

 

This would be awesome in my opinion.  At that point the consumer would not need to go to a REALTOR® for data, but rather for a professional service.  

 

Right now a big reason for using the services of a REALTOR® is to get access to the data.


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!

 

 


#32 pherthyl

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Posted 19 February 2015 - 08:04 AM

This would be awesome in my opinion.  At that point the consumer would not need to go to a REALTOR® for data, but rather for a professional service.  

 

Right now a big reason for using the services of a REALTOR® is to get access to the data.

 

I assume your terms of use state you can't provide/re-sell this data?


Edited by pherthyl, 19 February 2015 - 08:07 AM.


#33 pherthyl

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Posted 19 February 2015 - 08:06 AM

Either straight through listing REALTOR®or cash back buying REALTOR® can make the most financial sense for various reasons; however, more than 90% of buyers don't do that....they go with a non-cash back buying REALTOR®.

 

My cousin's stepdad is a great realtor he showed me places and explained how it's a good time to buy right now.  And get this, he was totally free!



#34 lanforod

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Posted 19 February 2015 - 08:16 AM

My cousin's stepdad is a great realtor he showed me places and explained how it's a good time to buy right now.  And get this, he was totally free!

 

That's the best way - a personal connection who does it for free, or even better, kicks back any commission to you! That's how I do it ;).



#35 MarkoJ

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Posted 19 February 2015 - 08:58 AM

I assume your terms of use state you can't provide/re-sell this data?

 

No.  Every day I reply to 5 to 10 emails in terms of request for data a consumer could easily do on their own if a public database was available.  


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!

 

 


#36 Jimmyrig

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Posted 19 February 2015 - 09:01 AM

I offered the buyer's agent 1.5% of the home sale, which turned out to be about $8100. 

 

I debated offering them only 1%, which would have saved me about $2500, but decided that I didn't want to risk pissing off any big-name realtors or getting the house black listed. Considering my house sold in 1 day, maybe offering a bit lower would have been a realistic option. 



#37 MarkoJ

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Posted 19 February 2015 - 09:26 AM

I offered the buyer's agent 1.5% of the home sale, which turned out to be about $8100. 

 

I debated offering them only 1%, which would have saved me about $2500, but decided that I didn't want to risk pissing off any big-name realtors or getting the house black listed. Considering my house sold in 1 day, maybe offering a bit lower would have been a realistic option. 

 

My analytics show that the commission offered to the buyer's agent is 3.0%100k+1.5%balance (or higher) 97% to 98% of the time.

 

Having done this gig for a few years now in my opinion 1.5% if the smartest/safest bet in my opinion.  You save $1,500 to cover the cost of the mere posting services and the vast majority of the time the buyer's realtor does not want to go to their buyer and say, "l am only being offered $10,000, for example, so can you sign this piece of paper called a fee agreement where I ask the seller for $11,500 in commission."  You just don't see it happen very often especially on properties over $400,000.

 

When you offer $3,000 for the buyer's agent, for example, he or she can go to his or her buyer and say, "I am only being offered $3,000 so can you sign this...."  The chance of receiving a fee agreement as the seller increase substaintially.

 

The other problem I find with offering 1% or lower for example is if the property does not sell (often the problem is pricing) the mere posting seller starts questioning if the reason behind the unsuccessful sale is the cooperating commission offered....basically you introduce another variable to worry about.


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!

 

 


#38 pherthyl

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Posted 19 February 2015 - 10:41 AM

That's the best way - a personal connection who does it for free, or even better, kicks back any commission to you! That's how I do it ;).

 

I was actually being sarcastic :)



#39 pherthyl

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Posted 19 February 2015 - 10:42 AM

No.  Every day I reply to 5 to 10 emails in terms of request for data a consumer could easily do on their own if a public database was available.  

 

Right, but I'm thinking if you built an automated system where people could subscribe and pull data themselves through your account the CREA would crack down on that.



#40 lanforod

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Posted 19 February 2015 - 10:53 AM

I was actually being sarcastic :)

I wasn't, though a lot closer relation than a cousin's stepdad is probably needed ;).



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