How to cut real estate fees when selling your home : Toronto Star
Jump to Page:
< Previous [ 1 ] [ 2 ] [ 3 ] [ 4 ] Next >
Posted on: 28-08-15 14:56:38
.
RE agents don't really do much.
When you sell your house, you have to give commission to BOTH the Selling agent ( aka Listing agent ) and the Buyer's agent.
The typical commission is 2.5 % to the Selling agent ( Listing agent ) & 2.5 % to the Buyers agent + 13 % HST on top of it !!! . Huge chunk for doing nothing.
The stupid agent just tells you to clean the house & stage the house all at your cost. Then holds a stupid open house, where he is more interested in promoting his own business by handing out his visiting cards.
They don't really negotiate much & just want a quick sale, so that they can get their commission and get out of there.
Hiring a GOOD RE that has brilliant negotiation skills and know basics of home staging can result in fetching you far better price than expected . Not only his fees is paid from this EXTRA money but you also end up putting more money in pocket .
Dealing with street walkers and prospective buyer barging in house ANYTIME is a part of the packet when you sell it yourself .
I personally prefer to have a record of every person walking in my house which is possible only when appointments are made thru RE agent .
IF your agent is indeed doing NOTHING than may be its time to change your agent .
-----------------------------------------------------------------
Growing Old Is Mandatory ..Growing UP is Optional
You must be a RE agent yourself. Most agents I have met have been nothing but greedy fools. Its NOT hard to pass the stupid RE exam, even high school dropouts easily pass them.
Its a big myth that RE agents get you a better price, you can easily get the same or better on your own. Its the fear & the control & secrecy that MLS has created that deters people from selling on their own.
You think in an open house every Tom, Dick & Harry who walks into your house comes with an agent or has an agent with him ? Anyone can just walk in.
You can also show your house strictly through appointments & don't need a RE for that. You say that in your ad.
Quote:
Originally posted by AshwaniG
Hiring a GOOD RE that has brilliant negotiation skills and know basics of home staging can result in fetching you far better price than expected . Not only his fees is paid from this EXTRA money but you also end up putting more money in pocket .
Dealing with street walkers and prospective buyer barging in house ANYTIME is a part of the packet when you sell it yourself .
I personally prefer to have a record of every person walking in my house which is possible only when appointments are made thru RE agent .
IF your agent is indeed doing NOTHING than may be its time to change your agent .
Quote:
Originally posted by mcg7
Quote:
Originally posted by adamthorat
The typical commission is 2.5 % to the Selling agent ( Listing agent ) & 2.5 % to the Buyers agent + 13 % HST on top of it !!! . Huge chunk for doing nothing.
.
what you mean ?, you have to pay 18% cost of your home to agent ?
if your home cost 500K
18% of 500K will be 90 Thousand CAD
I don't think you have to pay that much amount to agent to sell your home
No I meant you have to pay 13 % HST on the 5 % RE commission, so more like 5.65 %,
5 % x 1.13 = 5.65 %
Its really foolish of you to think that the RE agent works hard to get you a better price. When a RE agent sells his own house he spends a lot more time than when he sells your house. A RE agent's OWN house is shown to way more buyers & is showed for a longer time than the houses of his clients, where he likes to go for quick & easy sale.
Say your house is listed for $ 500,000 and a quick & easy sale in 1 day gets the RE agent 2.5 % on it, so $ 12,500.
Now to get 10 % more for your house which is $ 550,000 that's a lot of money for you i.e $ 50,000 more ,but for the RE agent only gets 2.5 % of the extra $ 50,000 which is only $ 1,250 more for him . But for you its $ 50,000 more !!!
To get the $ 550,000 price the RE agent has to work really hard, spend lot of time, do more showings, drive more, do more appointments as opposed to the quick and easy sale for $ 500,000 .
Do you really think he is going to spend that much extra time & energy for the extra $ 1,250 in commission or is he going to go for a quick & easy sale & close the sale quickly & catch another " BAKRA "
So you are out of $ 50,000 & the agent only loses $ 1,250 . On top of it you are giving the agent $ 12,500 commission & the buyers agent $ 12,500 commission, so your net is only $ 475,000 !!
You could have easily sold it for more than $ 475,000 on your own.
Quote:
Originally posted by AshwaniG
Hiring a GOOD RE that has brilliant negotiation skills and know basics of home staging can result in fetching you far better price than expected . Not only his fees is paid from this EXTRA money but you also end up putting more money in pocket .
Dealing with street walkers and prospective buyer barging in house ANYTIME is a part of the packet when you sell it yourself .
I personally prefer to have a record of every person walking in my house which is possible only when appointments are made thru RE agent .
IF your agent is indeed doing NOTHING than may be its time to change your agent .
Quote:
Originally posted by mcg7
Quote:
Originally posted by adamthorat
No I meant you have to pay 13 % HST on the 5 % RE commission, so more like 5.65 %,
5 % x 1.13 = 5.65 %
still too much
so a 500K home owner has to pay $ 28250.00 for the deal
28 thousand CAD to real-state agent ?
some folks do labour / tim Horton jobs probably can't even save that much money in 1 year
Yup , that's why these guys are a joke. They just want a quick & easy sale without much hassle so each one makes 2.5 % commission + HST i.e both the Listing agent & Buyers agent.
If only one agent is involved its even better for him , he nets the whole 5 % ..its a conflict of interest, but the crooks do it anyways as its NOT illegal.
The agent will rather sell your house in 1 day for $ 500,000 than do lot of hard work & showings and spen his time, energy & gas for 60 days to sell your house for $ 550,000.
As 2.5 % of 500,000 or 2.5 % of 550,000 is not much of a difference for him as its only extra $ 1,250 in the pocket for him . But for you its $ 50,000 !!! not 2.5 % of $50,000.
That's why these greedy agents will pressurize you for a quick and easy sale for them and NOT for you & won't spend much time in getting the best price for you.
What would you rather do get 2.5 % of $ 500,000 in 1 day or spend time, energy , gas to get 2.5 % of $ 550,000 or even $ 600,000 in 2 months !! Quick & easy is better for the RE agent while the poor seller is out of thousands of $$$$
