Realtor commission

[69cougar]

Well is this great house market that seems to be cooling every day we were unable to sell our place by owner and are now looking at selling with a realtor.

With that in mind can come one please confirm what the base commision is. It was my understanding that it is:

7% on first $100,000 and 3% on balance.

What is the best break on that which i could negoiate with a realtor?

[HRD2PLZ]

The most common response from a Realtor you will get is 7% on the first $100,000 and 3% on the balance of selling price.

You will find some who will charge more and you will find some who will charge less.

Commissions are not "set" and are negotiable. Basically, it will come down to what the Realtor is willing to work for.

[Weapon_R]

You can negotiate a set price (IE - $8000 total to be divided by both) or you can negotiate a lower commission percentage.

It's really up to you and the realtor...

[Toma]

Most will go 6 and 3, or 5 and 3.5 etc.....

If you try and go 3 and 1.5, they will do an exclusive, then you might a well sell yourself.

Bring a realtor, see what he thinks he can sell it for, then list yourself at that price. ...or half the commission lower. Welist works well. Chances are your price is too high. Dont fall for the "tricks of the trade"... realtors have their lines....

"I already have a coupe clients looking in this area"
"or the markets are slow, if we overprice, we just help sell other houses."


Realtors in general are dirt bags and salesmen, and commission at their rates should be illegal. I mean, at 300K, you pay what... $13k? Fuck, it takes you 3-4 years to pay off 13k of your mortgage.

DIRTBAGS.

[Ajay]

Originally posted by Toma
Most will go 6 and 3, or 5 and 3.5 etc.....

If you try and go 3 and 1.5, they will do an exclusive, then you might a well sell yourself.

Bring a realtor, see what he thinks he can sell it for, then list yourself at that price. ...or half the commission lower. Welist works well. Chances are your price is too high. Dont fall for the "tricks of the trade"... realtors have their lines....

"I already have a coupe clients looking in this area"
"or the markets are slow, if we overprice, we just help sell other houses."


Realtors in general are dirt bags and salesmen, and commission at their rates should be illegal. I mean, at 300K, you pay what... $13k? Fuck, it takes you 3-4 years to pay off 13k of your mortgage.

DIRTBAGS.

They have to eat and make money as well. Do you work for free? Didn't think so....neither do realtors.

[robpark]

No kidding... Realtors pay for all the marketing, if you have a good one that is quite an expense... They pay all the fees associated with access to MLS and they safeguard your transactions...

DIRTBAGS?

And what makes you so noble?

[adamc]

rob, an aside, does your m3 have bbs wheels, and is it black with tan interior and parked in eau claire last night?

fuck I saw an amazing m3 there last night, so drool worthy.

[Xtrema]

I won't call them dirtbags but I do know a bunch of them doesn't deserve their commission. Those are the ones that the minute you sign on, they change from all smiling and attentive to don't give a shit.

Especially during the last 6 booming months.

Those are the agents that give welist.com a reason to exist.

[googe]

dont change the commission for the buyers realtor. many of the dirtbag realtors find this insulting and when they are going through houses to print off for their clients theyll just garbage those ones. my non-dirtbag realtor tells me stories of him overhearing other realtors make snide remarks when they see listings that the seller thinks they can stiff them on their commission for.

[Toma]

Lets say it takes 45 days to sell your house. At Average House price, that is about $15,000 in commissions. $7500 per realtor. Marketing your house? I have a hard time getting a straight answer. Some realtors tell me MLS is included in their monthly office fees, others claim it cost them $1400 per listing...

Fine, lets take $1400. $7500-$1400 is $6100 for 45 days work. Now, do you think he works on your house 40 hours per week? Fuck off. I bet most dont spend an hour a day per house. So, say 45 hours to sell a house.... $6100/45 = $135 an hour. Yeah, that is soooooo worth it. Some dirtbag with nothing more then a 3 week course, and they think they have a right to $135 an hour?

Fuck off..... realtors have to eat? At Hy's every night?

I hope places like welist get their shit together even better, and put the dirtbags out of business.

OR, make it like England or parts of eurupe etc where commission is 1.5%

[Xtrema]

Originally posted by Toma
OR, make it like England or parts of eurupe etc where commission is 1.5%

I love that idea as we are heading into multi-million dollar homes.

[robpark]

Toma, you use an awful lot of "ifs" and speculation in your statements...

Not every realtor is going to be on the up and up, just like not every lawyer, doctor, car salesman...will be a credit to their profession. Realtors did have it easy for the most part in the early part of this year...the market drove itself. Times change...realtors need to bank money during the busy times so that they can eat, pay bills and take care of office expenses when sales aren't so swift.

We put ads in the Calgary Herald, National Post, Avenue magazine, CREN...all of which costs money that is not recovered from the seller. These are marketing expenses that withdraw from your commission. 3 days in the National Post costs more than $400. Your outlook of the realtor's job is very narrow and not based on valid information.

[frozenrice]

Originally posted by robpark
Toma, you use an awful lot of "ifs" and speculation in your statements...

Not every realtor is going to be on the up and up, just like not every lawyer, doctor, car salesman...will be a credit to their profession. Realtors did have it easy for the most part in the early part of this year...the market drove itself. Times change...realtors need to bank money during the busy times so that they can eat, pay bills and take care of office expenses when sales aren't so swift.

We put ads in the Calgary Herald, National Post, Avenue magazine, CREN...all of which costs money that is not recovered from the seller. These are marketing expenses that do not recoverd. 3 days in the National Post costs more than $400. Your outlook of the realtor's job is very narrow and not based on valid information.

Don't forget the car payments on the M3.......I find the realtors that are successful are the ones that do a lot of marketing. There's at least a dozen names at the least that I can think of that plaster their name all over the place. I can't imagine that being cheap to do.
On another point though, sometimes I see it hard to justify the rates when a listing is sold in a few days. Sometimes the house/location sells itself so there's really nothing for the realtor to do. How do you justify the commission on one of those sales?

[robpark]

Those quick sales are not the norm... But even then, quick sales like that are very stressful as you get a massive volume of calls all at once, have to arrange all the showings...Honestly, there is more work that goes into moving real estate than is immediately apparent... Can you imagine the cell phone bills realtors have to pay?

Part of the value from hiring the realtor is removing the stress of the sale from your life. For some people, that is more than worth the price... All you have to do is sit back and the realtor will not only get the best price possible for you (if they are a good one) but they will also coordinate every aspect of the sale, from arranging showings, cleaning carpets to hammering out the details with a difficult buyer....

You don't necessarily have to justify the commissions... Being a realtor is like most other jobs, you are being paid a wage to do something someone else does not want to do themselves (or cannot do themselves).

[Mangina]

Originally posted by Toma
Lets say it takes 45 days to sell your house. At Average House price, that is about $15,000 in commissions. $7500 per realtor. Marketing your house? I have a hard time getting a straight answer. Some realtors tell me MLS is included in their monthly office fees, others claim it cost them $1400 per listing...

Fine, lets take $1400. $7500-$1400 is $6100 for 45 days work. Now, do you think he works on your house 40 hours per week? Fuck off. I bet most dont spend an hour a day per house. So, say 45 hours to sell a house.... $6100/45 = $135 an hour. Yeah, that is soooooo worth it. Some dirtbag with nothing more then a 3 week course, and they think they have a right to $135 an hour?

Fuck off..... realtors have to eat? At Hy's every night?

I hope places like welist get their shit together even better, and put the dirtbags out of business.

OR, make it like England or parts of eurupe etc where commission is 1.5%

Lol! You realize realtors pay brokerage fees (usually 20%) plus yearly CREB fees. So that realtor is taking a monthly check of around $3100 before taxes. I don't know what crappy ass job you have that makes you so angry and jealous, but I truly pity you.

I'll gladly support a realtors "luxurious" lifestyle so I don't have to deal with any of the legal responsibility.

(And most realtors don't make a deal every 45 days btw)

[driz6]

edit

[doublepostwhore]

doesnt Toma own a performance shop? If he worked on cars like realtors sell houses, at those prices... his shop would be under.

So the "speculation" on behalf of Toma's lifestyle is BS. He works ample hard for his money... you think a 9 second stang is cheap? :burnout: :clap: :rofl: :rofl:

[HRD2PLZ]

Originally posted by driz6

Expenses

Brokerage fees: $16000
Creb Fees: $1000
Training: $500
(on-going training
is mandatory every
year)
Loading listings $40/listing x 12 listings =
$480
Cell phone $3600
Buisness cards/
marketing $7000
Gas/car $9000 (based on lease insurance/gas)
try being realtor with a shity car



That is pretty basic for expenses. Large franchise brokerages will have higher fee's. All worked out, I pay about $20,000/yr with the brokerage I am at. Training is $500 at a minimum. CREB fee's are about $1250 annual and $50/mo at basic. But you got most of it.

[gamman]

Brokerage fees: $16000
Cell phone $3600


Which office are you out of? Oh wait, it must be Remax.

Where are you with your phone. Switch to Fido. They have/had a plan for $100 per month, unlimited eves/weekends. Wait, I guess if you add your home phone/fax...your right, it could get up there. Anyway, plug for FIDO, but now they are owned by Rogers, prices are creeping up.

Anyway, if you want to put a good foot forward for Realtors, you may want to A) ignore ignoramuses or B) quit dropping fbombs- you look bad. If you don't agree with someone. This is exactly the attitude which gets people mad at realtors in the first place. Disagreements on every little issue, and making us looking callous by calling them names?

Back to the topic, 69 Cougar, if you are going to list your house, PM me, I am a realtor, and I do negotiate my listing fees!!

And off topic, I have a shitty car... a srt and a ptgt. I don't care what people think of my cars, etc. I don't need/want to show off. I care that they are happy and refer me to their friends and family. You are probably right though, if you drive a big car they think you are a big-man-on-campus. Which is totally wrong. The big guys do squat for "service". They have underlings/peeons that do all the work, and they drive beaters.

[blitz]

My problem has been that there's very little training involved. The actual course is 3 weeks, is it not? So what happens? There are way too many realtors, and they have to charge high fees because they don't do that many deals.

If it was harder to become a realtor, or the class sizes were self regulated by some sort or Realtor association, there would be fewer out there, and fees could be lower.

You have to admit, although you're not guaranteed a paycheck every month, its a pretty slack job when you consider the education investment.

[HRD2PLZ]

Originally posted by blitz
If it was harder to become a realtor, or the class sizes were self regulated by some sort or Realtor association, there would be fewer out there, and fees could be lower.


The minimum requirements have changed and there is quite a few more exams now. The course has now been extended. I do agree with you though, Alberta was far too relaxed in regards to Realtor requirements. The turn over is quite high though, so the Realtors that shouldn't have made it through the course most often don't even last the first year. I run into Realtors occasionally that cause me to shake my head, but I think with the new requirements and regulations we should be seeing a better breed of Realtors :)