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DAB
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Re: How much to pay realtor?

Thu May 19, 2016 8:56 am

I'll agree that Realtors are paid a lot. However people have been complaining for years about a 2.5% commission here in Vancouver. Seriously? Did you know our Canadian neighbours in Toronto charge on average a 5% commission. Sure Toronto prices aren't as high but they're getting awfully close. Did you know New York commission rates are 6% on average? New York real estate is significantly more expensive than Vancouver. I understand some people don't see the value in a good realtor that's fine everyone is entitled to their opinions. But before you start complaining about a ridiculous 2.5% commission you may want to take a look elsewhere around the world, helps put things back into perspective. We really don't have it that bad here in Vancouver. :D
So you think listing a $1,000,000 house that sells in 1 week after a few private showings and a 2 to 4 hour open house and paying $30.000 in real esate commisssions is good value for your money? How many hours realistically did the realtor work to list the property and complete the sale..........maybe 20 to 40 hours? The hourly rate a realtor charges after a 2 week course is the same as a top level lawyer or accountant after 7 to 8 yearsof education and many years of professional experience. Sure sounds like a good deal to me :roll:
Why don't we all quit our jobs and become realtors? It's easy money for little work right? :shock:
 
Geyser
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Re: How much to pay realtor?

Thu May 19, 2016 2:00 pm

I'll agree that Realtors are paid a lot. However people have been complaining for years about a 2.5% commission here in Vancouver. Seriously? Did you know our Canadian neighbours in Toronto charge on average a 5% commission. Sure Toronto prices aren't as high but they're getting awfully close. Did you know New York commission rates are 6% on average? New York real estate is significantly more expensive than Vancouver. I understand some people don't see the value in a good realtor that's fine everyone is entitled to their opinions. But before you start complaining about a ridiculous 2.5% commission you may want to take a look elsewhere around the world, helps put things back into perspective. We really don't have it that bad here in Vancouver. :D
Many people don't realize that it is payable by a percentage of the sale so if the price is higher they make more, the price is lower, they make less. That's what commissioned sales is. Its very rare people hire a realtor on an hourly wage lol
So you would prefer a system which would incentivize your realtor to sell your property for a lower price?
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
flipflop
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Re: How much to pay realtor?

Thu May 19, 2016 4:18 pm

I'll agree that Realtors are paid a lot. However people have been complaining for years about a 2.5% commission here in Vancouver. Seriously? Did you know our Canadian neighbours in Toronto charge on average a 5% commission. Sure Toronto prices aren't as high but they're getting awfully close. Did you know New York commission rates are 6% on average? New York real estate is significantly more expensive than Vancouver. I understand some people don't see the value in a good realtor that's fine everyone is entitled to their opinions. But before you start complaining about a ridiculous 2.5% commission you may want to take a look elsewhere around the world, helps put things back into perspective. We really don't have it that bad here in Vancouver. :D
Many people don't realize that it is payable by a percentage of the sale so if the price is higher they make more, the price is lower, they make less. That's what commissioned sales is. Its very rare people hire a realtor on an hourly wage lol
So you would prefer a system which would incentivize your realtor to sell your property for a lower price?
Well it is pretty easy to see who on this forum are the realtors on here or who has relatives that are realtors. With that logic why not pay realtors a straight 10% commission that would be even a better incentive for them to sell at the highest price.

My point is of course yes pay the realtors a commission, but pay them a commission that better reflects the actual amount of work it takes to sell a house in this market......say a straight 2% for them to split between the buying and sellling realtor. I was at an open house last month that sold after 1 week to multiple offers. There were 2 realtors there handing out flyers and the biggest intellectual challenge the realtors seemed to have was trying to make sure the Remax balloon didn't blow away in the wind :roll:
 
flipflop
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Re: How much to pay realtor?

Thu May 19, 2016 4:28 pm

I'll agree that Realtors are paid a lot. However people have been complaining for years about a 2.5% commission here in Vancouver. Seriously? Did you know our Canadian neighbours in Toronto charge on average a 5% commission. Sure Toronto prices aren't as high but they're getting awfully close. Did you know New York commission rates are 6% on average? New York real estate is significantly more expensive than Vancouver. I understand some people don't see the value in a good realtor that's fine everyone is entitled to their opinions. But before you start complaining about a ridiculous 2.5% commission you may want to take a look elsewhere around the world, helps put things back into perspective. We really don't have it that bad here in Vancouver. :D
So you think listing a $1,000,000 house that sells in 1 week after a few private showings and a 2 to 4 hour open house and paying $30.000 in real esate commisssions is good value for your money? How many hours realistically did the realtor work to list the property and complete the sale..........maybe 20 to 40 hours? The hourly rate a realtor charges after a 2 week course is the same as a top level lawyer or accountant after 7 to 8 yearsof education and many years of professional experience. Sure sounds like a good deal to me :roll:
Why don't we all quit our jobs and become realtors? It's easy money for little work right? :shock:
It is funny you say that because an aunt of mine who is a realtor has 1 daugher that is in retail and 1 daughter that is a haridresser and both are now thinking of becoming realtors. Before she was a realtor my aunt was employed unsuccessfully as a cleaner and in furniture sales. With no experience and no education required why not have the daugthers give it a try! I can just see the advertisements for the newest family "team of realtors" X 3 :D
 
eyesthebye2
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Re: How much to pay realtor?

Thu May 19, 2016 4:56 pm

Pay the realtor a flat fee.
The service isnt worth more than a few thousand dollars.
Using % hides the real cost...and it floats with the value if the property.
If the realtor told you he/ she were charging you 40k for less than 10 hrs work you'd laugh at them...right now theyre laughing at you.
 
whattodo
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Re: How much to pay realtor?

Thu May 19, 2016 8:13 pm

I agree with eyes. Anyone can sell a house with multiple offers over ask in this market. I bet I could do it too ... seriously! :D

A friend of mine sold his parents house recently. Listed at 1.8M. The realtor said commission would be around 50K. My buddy said 20K. He said take it or leave it ... He said I know I can get dozens or realtors who want to make 10K (sellers fee) for a few hours work. The realtor was shocked but said OK. House sold for 2.1M with a bidding war. I don't think it would have sold for more if he paid a full 50K commission. :roll:
 
yzfr1
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Re: How much to pay realtor?

Fri May 20, 2016 6:47 am

Anyone can make money in a bull market, it's if you can make money when the market is going sideways or is a bear one.

All of the useless realtors will be wiped out once the market goes back to a cooled down state. I'm sure you could see a house in the classifieds at the point, with money saved on realtor fees it would be a nice discount
 
Geyser
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Re: How much to pay realtor?

Fri May 20, 2016 4:24 pm

Flip flop posted:
Well it is pretty easy to see who on this forum are the realtors on here or who has relatives that are realtors.
I'm not a realtor, never have been, and none of my relatives a realtors. However, I've had some very good experiences thanks to the services of competent, well experienced realtors who managed to get my properties a lot more exposure and a higher price than I could have. They also screened the buyers, thus reducing looking loos and potential burglars.

I have no doubt that there are other realtors who lack competence and/or integrity but my experiences have been "mostly" positive. I do think the current bubble pricing is something that should help negotiate a more reasonable commission for the selling agent but I wouldn't try to turn the screws on the buyer's agent.
With that logic why not pay realtors a straight 10% commission that would be even a better incentive for them to sell at the highest price.
There are times when I would agree with an additional reward for the buyer's agent but this market is not one of them.
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
tdma800
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Re: How much to pay realtor?

Sat May 21, 2016 7:37 am

There's no set commission which is true however many people know the buyers agents can and do chose listings based on how much commission they see
 
Geyser
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Re: How much to pay realtor?

Sat May 21, 2016 11:25 am

There's no set commission which is true however many people know the buyers agents can and do chose listings based on how much commission they see
Exactly right, that's why I would not try to nickel and dime the buyer's agent. You will almost certainly lose a lot of showings if you do that. I'm not saying it's ethical but it's human nature.
In fond memory of Taipan, a model of modesty, decency, dignity and tolerance. Long may we all prosper from the tremendous legacy of worldly wisdom and specialized real estate knowledge which he left in the "Arguments" thread.
 
reallyreal2
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Re: How much to pay realtor?

Mon Jun 06, 2016 2:06 pm

You pay realtors as little as possible.

Personally - I would renegotiate their commission at the 11th hour after they have done all the work. It's pretty clear that most of them aren't worth much anyways so the idea is to pay someone what they deserve.
 
reallyreal2
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Re: How much to pay realtor?

Tue Jun 07, 2016 9:32 am

There's no set commission which is true however many people know the buyers agents can and do chose listings based on how much commission they see
Exactly right, that's why I would not try to nickel and dime the buyer's agent. You will almost certainly lose a lot of showings if you do that. I'm not saying it's ethical but it's human nature.
This is hilarious.

Rule #1 of buying or selling a home - do not rely on a realtor. They have the parameters of what you are wanting to buy. There is a public mls system. If they do not show you a house that you are interested in, ask them why? "Because they won't pay me a good enough commissions"... fire them!

They are helping you find a house. Not you are helping them get a commission.

When I purchased my home, I was on some realtors email blast telling me listings that fit my criteria. When the house we eventually purchased got emailed to me, we bought it within days (I did the work) and I cancelled the emails. The realtor calls me asking why we cancelled the emails and I told him we bought a house - he was surprised like I owed him something. LOL - I am trying to figure out for what? If he wanted a commission, he should have called me and showed me the house.
 
tdma800
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Re: How much to pay realtor?

Wed Jun 08, 2016 7:29 am

Rule #1 of purchasing or selling a house or apartment. rely on a realtor that you like. Unlike an average citizen, they are required to be not a high school dropout, be of good character, and pass several checks.

When I purchased my home, people in the know said that sure anyone can sell a house by owner then you get all the lookieloos that try to bargain the commission out of you making it a useless endeavour
 
stephen1291
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Re: How much to pay realtor?

Sat Jun 11, 2016 11:25 am

I put together a short youtube video detailing Realtor Commissions. If you want to know how much you should be/expect to pay then watch https://www.youtube.com/watch?v=8hJhNX8EaK0
 
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silverman
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Re: How much to pay realtor?

Sat Jun 11, 2016 3:48 pm

Very useful. So what you're saying/implying is, if a seller wants to save money on commissions, is to offer the full buyers agent fee but get a break on the listing side from you. Right?

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