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Old 08-26-2019, 05:30 PM   #12
Travis Munroe
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Join Date: Feb 2009
Location: Calgary

Somewhat repeating my comments above but...

If following rules by the book, a realtor will have a buyer brokerage agreement signed when working with a buyer. This outlines that the realtor is being paid for their services by the seller of the property they purchase and how much they will make. Before viewing homes, a buyer would be asked if they want to view properties that are offering less than what is outlined on the document and if so, the buyer makes up the difference.

Many discount brokerages fail to point this out (or at least personal experience when selling a property that was previously listed with a discount brokerage). If a buyer sells their home and pays a commission on both ends and then is asked to pay again, there is a good chance they are not going to want to see it. Of course there are exceptions when it comes to a unique property but if there are 25 listings just like your own in the same area, a buyer feels they can find the same place without paying out of pocket for commissions.

There is often much more work for a buyers agent to put a deal together through some of the discount brokerages than a non discount brokerage. For example, I can schedule 10 showings tonight by using an automated system or picking up the phone and calling the realtor direct. There is a discount brokerage in town that has me call a hotline, leave a message and wait for a call back. When someone from the call center calls back who isn't in Calgary, they no absolutely nothing about the property and they rely on the seller to inform the buyer and myself. This now creates an awkward situation as a buyer doesn't want to be toured through a home by a seller as we can't speak openly.

Anyone who has worked with me knows that I take an approach of "you have just called me 5-10 years later to sell and I am going to point out the resale challenges". A buyer can see all of the great things in a home and it is my job to point out the concerns I see that will become a problem either right away or for resale. It is tough to do this with the owner right there. A famous saying that I find very true is that a buyer knows within the first 8 seconds of entering a home if they are going to buy it. I am sure those of you who have bought can confirm that when you walked into the house you bought, you just had a great feeling that no other home gave you.

I feel I could write a book on this subject but it is a very touchy one. It seems that it is ok for discount brokerages to knock full service brokerages in their advertisements but the slightest knock on a discount brokerage (even if completely true) can put someone in hot water. Don't get me wrong, if someone has the time & feels comfortable selling on their own, in a booming market, it could be worth it but then again, a booming market opens up the scenario of playing your cards right to maximize your return and if you don't have someone helping guide you, it could cost the potential of extra money.

My personal thought is that I don't see the future going towards discount brokerages. There is always a new one entering the market just as another one leaves. If there is going to be any disruption, it will be due to technology.

Travis Munroe | Century 21 Elevate | 403.971.4300

Residential Buying & Selling

Property Management
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