selling a house, fees?

mark · #1 05-03-2010, 07:52 PM

Know the standard is 7% on the first $100K and 3.5% on the balance but wondering how much that is open for negotiation.

(can't go Comfree for FS by Owner as not near the property)

lastlight · #2 05-03-2010, 07:57 PM

If your mom is a realtor it's free

Have you asked yours?

edreinink · #3 05-03-2010, 07:58 PM

Its negotiable, currently federal employees on transfer have a standing agreement with Royal Lepage for 6 and 3 percent. Having said that your house is not as likely to get shown as the agent will not make as much money, especially if they have to split it with another agent.

mark · #4 05-03-2010, 08:15 PM

Thought to get an idea of what's going on before approaching the agent and possibliy insulting them.

Sounds like things are rather slow in the area (south central BC) so thinking they might be happy with any sale.

macky · #5 05-03-2010, 08:31 PM

Last time I sold a house 3 years ago I used a friend of the family and she gave me 50% of her selling commission. I am currently selling a house and using a different agent and he has agreed to give me 25% of his selling commission. It is always negotiable.

Cameron · #6 05-04-2010, 02:11 AM

It's always negotiable....if you are using the same agent for the purchase and sale they should give you a cut..

Pazil · #7 05-04-2010, 02:42 AM

Legally A real estate agent can not tell you that their commissions are not negotiable. They are!!!! With that being said..... I would not discount the selling realtors commissions. The 7 and 3 that is standard is split into 2 halves 3.5 and 1.5 for each realtor (listing and selling). If the selling realtor is looking at your property and sees that they are not making the normal 3.5 / 1.5 they may choose not to show you home to potential buyers. Ask your listing realtor to discount their commissions and leave the sellng commission full. I hope that makes sense.

If your are buying another home than use the same realtor for the listing of your home and the purchase of the new home and you should be able to get a great discount on your listing fees because the listing realtor is also getting paid the 3.5 / 1.5 on the purchase of the new home.

StirCrazy · #8 05-04-2010, 01:51 PM

Mark, ask your realitor, wont hurt. 7/3.5 was an alberta standard from a raging market. in BC the norm is 6/3 but on the contracts it is written in so it is a negociable thing. there is also 1% reality you can look into also. if your house is priced right and preped right it will sell its self fast, even in this market. I sold mine in vic for 40K over what the realistate agent though we should ask in 2 days. I did my own evaluation of the area and equivalent houses and decided the agent was behind in her numbers so I told her we would ask X amount. she said ok we'll try. 2 days later it was sold for 98% of asking, that did fall through due to financing but the day after it fell through it was resold for 99% of asking price. so what did my relastate agent do for her 6/3 got me to sign papers, had pictures taken and did up the MLS, gave me some advice on decluttering and touch ups, and the paperwork for the sale. do I feel she earned her money.. not sure.. lets seel 19000 in commision. 50% to the company so that leaves 9500 of which 50% goes to the other relitor so 4750.00 now 400 for the pictures some for gass ect.. we'll say 4000.00. her work time was about maybe 15 hours total so that giver her a hourly wage of 266.66/hour.

now with the new realistate law changes where individuals will have access to list on the MLS might be better to try for sale by owner if you arn't in a hurry.

Steve

mark · #9 05-04-2010, 02:13 PM

So talked to the agent and ask if negotiable. Told everything in life was, but considering she was dealing with 2 sellers (I co-own the place with my brother), we're both not local and she has to coordinate with the renters, her commission wasn't. Could try to find another agent but area is small and this woman comes highly recommended from a family friend placed well in the community.

Does hurt a bit thinking all I'll be paying out but I'm going from the perspective I sold my last place myself. Will admit though 5 years ago in Edm things were not the norm.

Thanks all.

Cameron · #10 05-05-2010, 04:41 AM

Working in finance I have seen many good MLS ads and many more poor ones.

1% people work hard for their $$.

What I recently saw was:

List price for $540,000, 1% commission is min $5800. House up on MLS and sold in less than 2 days.

Then my clients used the 1% guy to buy their next place for $720,000. 6/3 split from a ful serve broker, paid the 1% agent = 12,300. The 1% guy took his $5800 on the buying end and refunded the rest back to the client, $6500.

In the end it cost the client $700 to sell his home on MLS, in 2 days, full MLS service. The agent got paid approx $5800x2 = 11600 for 2 days of listing and 1 week to find the next place.

As most people find their own homes on MLS these days anyways.

I'm a true beliver in a 1% agent!!!