Flat Fee Listing on MLS

[thinkvision]

I am looking to sell my house this spring and didnt' want to pay the old style 7/3 percent commission to an agent. After the issues this summer with the Government trying to break the MLS monopoly I thought I would be able to find lots of places offering discounted access to the MLS (realator.ca) system, but I have not been able to.

Anyone have any experience in Alberta selling using a discounter offering access to MLS without paying the full listing percentage? The flat495 was the only one I saw operating in Alberta. And I realize they still want you to offer a commision to the buying agent, but you can set it to a dollar if you wish.

[civicHB]

Originally posted by thinkvision
And I realize they still want you to offer a commision to the buying agent, but you can set it to a dollar if you wish.

No experience with it, but it a good Idea.
If you have no commission for buyers agents then your only customers will be buyers who have no realtors.
There is no incentive for a realtor to recommend your place unless you have a commission involved.
Out East there are companies that list your property on MLS for $199. There may be cheaper options in Alberta as well. Cheapest I've seen is $649

Bemnet

[barmanjay]

I can tell you from experience:

Many realtors who are looking for houses for their buyers will almost always check the commissions offered (visible on the agents detail description of all listings).

If commissions offered are lower than what they somewhat expect,.. the likelyhood of them even mentioning, let alone showing the property is extremely slim.

If they do show the property, they will disclose to their buyer that the seller is not offering much for commissions - instant red-flag for the buyer.

realtors have families to support too, I doubt most will work for nothing,.... I wouldn't, I doubt Jordan would either.


Give it a shot if you feel compelled to try this way. Take the $649 listing and offer at least 2.25~2.5% for the brokerage representing the buyer.

[roopi]

Originally posted by barmanjay

If they do show the property, they will disclose to their buyer that the seller is not offering much for commissions - instant red-flag for the buyer.



Why would this be a red flag?

[davidI]

Originally posted by roopi


Why would this be a red flag?

Agreed. I think, if anything, a lower commission would give the buyer more room to negotiate on price given that the seller's are receiving more of the return anyways.

[Mitsu3000gt]

Originally posted by barmanjay
If commissions offered are lower than what they somewhat expect,.. the likelyhood of them even mentioning, let alone showing the property is extremely slim.

.

If I had a realtor that neglected to tell me about a house that precisely fit my requirements because he wasn't going to make quite as much money off of it and I found out about it, I'd go find a new realtor. IMO the realtor's job is to find me a house that best meets my requirements, not to only show me the properties that make him the most money.

[barmanjay]

Originally posted by davidI


Agreed. I think, if anything, a lower commission would give the buyer more room to negotiate on price given that the seller's are receiving more of the return anyways.


Do you think it might be possible that if the seller is not willing to offer a commission, that there might not be any negotiating room?
or perhalps they might be upside down on their mortgage?

could it not depict the seller is not willing to negotiate?

[bmeier]

if the realtor used those scare tactics yes...

[barmanjay]

Originally posted by Mitsu3000gt


If I had a realtor that neglected to tell me about a house that precisely fit my requirements because he wasn't going to make quite as much money off of it and I found out about it, I'd go find a new realtor. IMO the realtor's job is to find me a house that best meets my requirements, not to only show me the properties that make him the most money.


you are absolutely right!!

it IS the realtors job to present all the houses that precisely fit your requirements.

FYI: without a Buyer Brokerage Agreement (written contract between you and your buying agent), what you have is "implied Agency" (realtors guidelines/responsibilities are limited), not a contracted Sole Agency.

With the Buyer Brokerage, you can now hold the realtor fully responsible and expect full disclosure and due dilligence regardless what the commissions are offered.

[barmanjay]

Originally posted by bmeier
if the realtor used those scare tactics yes...

Those aren't scare tactics, honest questions I would ask if I found out the seller was only going to offer my agent only $1000 or less after we've spent weeks looking for a house.

[davidI]

Originally posted by barmanjay


Do you think it might be possible that if the seller is not willing to offer a commission, that there might not be any negotiating room?
or perhalps they might be upside down on their mortgage?

could it not depict the seller is not willing to negotiate?

It's possible, but it's just as possible that the seller doesn't see any reason to pay a realtor $10k to take shitty photos and put them up on a website when they're perfectly capable of doing that themselves.

No different than a house on WeList, only that people look to the MLS as it has better reach and search capabilities.

It's up to you and your realtor to decide what's fair to pay. If the seller is saving $10k on realtor fees, perhaps in the end they'll be willing to take $5k less than had they had to pay them - still saving $5k. If they won't accept the price you're willing to pay, so be it.

[turbotrip]

i paid someone around $6-700ish a few years ago to list a house on mls; ill try to figure out the contact info for you

[ExtraSlow]

Regardless of your feelings of what's "fair" in a transaction like this, you are running the risk that your pool of potential buyers is reduced. Having fewer buyers look at your property may mean it takes longer to sell, sells at a lower price, or both.

"Penny wise and pound foolish"

Myself, I've seen the value that Realtors provide on both ends of the transaction, and while I've paid for that service, i feel I've come out ahead each time.

Good luck with your transaction.

[roopi]

Originally posted by ExtraSlow
Regardless of your feelings of what's "fair" in a transaction like this, you are running the risk that your pool of potential buyers is reduced. Having fewer buyers look at your property may mean it takes longer to sell, sells at a lower price, or both.

"Penny wise and pound foolish"

Myself, I've seen the value that Realtors provide on both ends of the transaction, and while I've paid for that service, i feel I've come out ahead each time.

Good luck with your transaction.

As a buyer I haven't seen any benefit in having a realtor. I've only purchased a house once and the realtor I had here in Calgary seemed great but as soon as the papers were signed I never heard from her again. She was still supposed to provide me with some final details and she disappeared.

I'm sure I could have found my way through the house without her guiding me. I really don't know what else she did.

Not saying all realtors provide this same level of service but from a buyers perspective what is the benifit of the realtor?