Real estate commissions

[occasional thoughts]

Talking to a mortgage broker today and I mentioned I was interested in going the 2% Realty route to sell my home. He mentioned that it is uncertain in his experience as to how that company calculates and charges total commissions exactly.

If the buyer's agent represents a traditional realty firm charging 7% on the first $100,000 and 3% on the balance of selling price, that's what he/she will receive on his/her share (50%) of the total commission. But what about the 2% realtor, does he/she charge 2% on the total (100%) of the selling price, or just on the listing agent's half of the commission. Very very confusing and possibly tricky if one doesn't go into it with full knowledge.

I'm sure some wise people on the Forums have experience and/or know the answer.

[oneh2obabe]

Found this - fee is 2% of the selling price of your home. If someone is thinking of listing with them, I'd call and ask questions.

http://www.2percentrealty.ca/

[lesliepaul]

Not a 100% sure BUT.........if I list my home through the 2% company, in my opinion my agent should be piecing off the buyers agent out of the 2% commission. I have NO contractual agreement with the buyers agent in any way, shape or form showing a commission rate other than what I signed at. To me the buyers should not have brought an agent into the mix in the first place. If another POS agent representing a buyer enters the mix with the 2% company he should know what he is up against and that a HUGE PAYDAY will not be had. But......we all know what most realtors are made of and they will no doubt try to rip somebody off somehow. Remember......you as a buyer do not need an agent.

AGAIN........read the FINE print and have your lawyer go over the 2% companies paperwork BEFORE you sign ANYTHING!

[OgopogoO]

To me the buyers should not have brought an agent into the mix in the first place.

Why shouldn't the buyer bring their own agent? The buyer doesn't have to pay the agent directly anyways (yes, I realize the corrupt RE industry has it so the commission is split between buyer's & seller's agent). As a buyer my goal is to pay as little as possible and even make low ball offers below asking. Any seller that would take issue with a buyer's agent would be laughed out of the room.

[Canadian241]

Not a 100% sure BUT.........if I list my home through the 2% company, in my opinion my agent should be piecing off the buyers agent out of the 2% commission. I have NO contractual agreement with the buyers agent in any way, shape or form showing a commission rate other than what I signed at. To me the buyers should not have brought an agent into the mix in the first place. If another POS agent representing a buyer enters the mix with the 2% company he should know what he is up against and that a HUGE PAYDAY will not be had. But......we all know what most realtors are made of and they will no doubt try to rip somebody off somehow. Remember......you as a buyer do not need an agent.

AGAIN........read the FINE print and have your lawyer go over the 2% companies paperwork BEFORE you sign ANYTHING!

What a educated person.

Realtors work there *bleep* off. Once in a while a deal may fall in there lap that is considered easy. But most deals are very frustrating and can get very complicated. Having a realtor on your side is the smartest thing you could do if your in the market to buy a home. A listing agent already signed a contract stating that they are working for the sellers best interests.
"You as a buyer do not need a agent" Yes your correct you can do things yourself. But why? Unless you are extremely educated in this field, why would you ever do this on your own. As a buyer you are not paying your realtor. The Home seller is not going to drop there price because you don't have a Realtor either. A good realtor will fight for you. They will work on your behalf as a educated agent. Our Realtor saved us 45k on our last house, between fighting for fair market price and home inspection issues. On my own, I wouldn't have come close to those savings.

[lesliepaul]

Canadian241............you are right about something...........I am somewhat educated in selling my homes. I became educated BECAUSE I knew I was being screwed over and had agents that were not 100% on my side. Every house that I have sold I used............make that..........gave a chance to a realtor to sell. The first house I sold the agent was my best friends mother and she did what she had to do and got me my listing price in a matter of weeks........over 30 years ago.

The last few sales it was easy to see that effort was lacking........NO FEEDBACK from the agent after a showing, either through another agent or through mine. I will tell you........and this is what they are good for........."we have to lower the listing price"........even though them being so-called experts priced it.........there's your feedback. I let every listing run its course and sold the house MYSELF.........they got NOTHING! Their own fault because greed got in their way. A percentage of something is better than 100% of nothing.

Today I can read "B.S." a mile away.......not just realtors but in all walks of bigger dollar sales. YES........EDUCATE YOURSELF, YOU WILL BE FARTHER AHEAD.

[dontrump]

Talking to a mortgage broker today and I mentioned I was interested in going the 2% Realty route to sell my home. He mentioned that it is uncertain in his experience as to how that company calculates and charges total commissions exactly.

any mortgage Broker worth their salt knows full well that listing fees are based on the net sales price
the only hidden fee(in the fact they forget to tell you) is you pay 5% GST on the listing fees
so if u sell a house for 600K based on 3%(most popular these days) you pay $18000.00 plus 5% $(900.00)
if theres two brokers involved they split the commission

[forum]

Real estate agents had their day, every dog does. But we don't need real estate agents. Much like very few businesses need a secretary anymore. A website will slowly pave over real estate agents.

[lesliepaul]

Real estate agents had their day, every dog does. But we don't need real estate agents. Much like very few businesses need a secretary anymore. A website will slowly pave over real estate agents.

That day can't come soon enough!

[OgopogoO]

Real estate agents had their day, every dog does. But we don't need real estate agents. Much like very few businesses need a secretary anymore. A website will slowly pave over real estate agents.

Amen to that. I only agreed that the buyer (not the seller) should hire a realtor because it doesn't add any real cost to the transaction. But realtors are on their way out, and not a moment too soon. Now that the corrupt RE industry in BC is being regulated by the government, let's hope more crooked realtors are brought to justice.

[forum]

Just to summarize how pathetic it's become, let's think about staging a home for a minute.

Real Estate agents recommend staging a home.
Seriously?
People can't close their eyes anymore and "imagine" what their furniture would look like in the house? LOL
Sellers are paying moving trucks to bring fake furniture, blankets, tv's and pillows into a house to help increase the selling price?
And then paying the moving trucks again, to take the furniture out?
Sellers are paying someone to arrange their furniture and picture frames, so they are just right?

I've never seen a profession (and I use the term lightly referencing Realtors) get paid so much to "play house"

Canadians are so drunk on housing, the rest of the world is looking at us and laughing.
Foreigners are simply taking advantage of our stupidity and parking their illegal money into the unregulated system.
It's pathetic what people are paying for cracked foundations, and rotting plywood.

History has always proven, people pay for their stupid decisions.

[lesliepaul]

STAGING........what a scam that is. This is my HOME I am selling.........it will be clean and in order. Our taste in decorating is ours and has served our family........what the future owners do I could care less.......what an R.E. agent has to say is in one ear and out the other........is he inconvenienced? It is bad enough when you have children and the phone rings and they want to show the house in 2 hours. We had our agent call (years ago and before the key lockbox)) and tell us another agent would be coming at 1:00 PM..........wife and baby waited and the "B%#@H" showed up at 3:30. All I can say is she was lucky I was at work.

In the movie "American Beauty", one female character was a R.E. agent and one house she was trying to sell, she was ACTUALLY CLEANING THE HOUSE AND POOL FOR THE OWNERS.........can you imagine that happening here with these lazy POS. All they can do is POINT out things to you and spend your money then sit (and drive) in their vehicles and talk on the phone.

MY GOD, WHAT A LOW LIFE PROFFESSION!

[OgopogoO]

STAGING........what a scam that is. This is my HOME I am selling.........it will be clean and in order. Our taste in decorating is ours and has served our family........what the future owners do I could care less.......what an R.E. agent has to say is in one ear and out the other........is he inconvenienced? It is bad enough when you have children and the phone rings and they want to show the house in 2 hours. We had our agent call (years ago and before the key lockbox)) and tell us another agent would be coming at 1:00 PM..........wife and baby waited and the "B%#@H" showed up at 3:30. All I can say is she was lucky I was at work.

In the movie "American Beauty", one female character was a R.E. agent and one house she was trying to sell, she was ACTUALLY CLEANING THE HOUSE AND POOL FOR THE OWNERS.........can you imagine that happening here with these lazy POS. All they can do is POINT out things to you and spend your money then sit (and drive) in their vehicles and talk on the phone.

MY GOD, WHAT A LOW LIFE PROFFESSION!

I will get in trouble if I post the link to the most ridiculous staging in a Kelowna ad, so I'll just describe it. The house is a run-of-the-mill shack in Kelowna South, but the genius realtor has a Bentley in the garage. A Bentley

How ridiculous, how absurd, how incongruous. I nearly went to the open house to mock the realtor.

[forum]

Besides lot's of perfume and makeup, what else can a Real Estate agent do to put on a show?

[Bpeep]

What a educated person.

Realtors work there *bleep* off. Once in a while a deal may fall in there lap that is considered easy... Yes your correct you can do things yourself... The Home seller is not going to drop there price because you don't have a Realtor either... They will work on your behalf as a educated agent...

Yep. What a educated person.