07-24-2014, 10:32 AM
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#1
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First Line Centre
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Selling without a realtor
I have a condo I want to sell this fall, and I have a couple good potential buyers.
Before listing with a realtor, I'd like to pursue these and potentially close the deal and save that cost. Is it difficult to close a deal without a realtor? It just seems crazy to pay someone 7% + 3% if I have already done the hard part and found the buyer.
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07-24-2014, 10:43 AM
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#2
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Franchise Player
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Not sure this is the kind of thread Realtor1 was imagining when he paid for this forum space...
BTW, I just sold my house to my brother. It was pretty painless.
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07-25-2014, 11:01 AM
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#3
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Franchise Player
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Quote:
Originally Posted by Eric Vail
I have a condo I want to sell this fall, and I have a couple good potential buyers.
Before listing with a realtor, I'd like to pursue these and potentially close the deal and save that cost. Is it difficult to close a deal without a realtor? It just seems crazy to pay someone 7% + 3% if I have already done the hard part and found the buyer.
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I've sold real estate both ways. If you already have a buyer, I wouldn't pay the 7/3 for closing. You should be able to get a reasonable form contract very similar to/identical to the real estate board one pretty easily. You could also offer to pay a service fee for a realtor to work through the process with you, if it's all negotiated and just needs to have paper put to the deal.
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07-25-2014, 11:13 PM
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#4
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RealtorŪ
Join Date: Feb 2009
Location: Calgary
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I don't mind such a question but appreciate the comment V
There is such thing as sellers rights. If you think you have a potential buyer, inform your realtor and you will put down the names of these potential buyers. A pre set arrangement will be in place should one of these buyers actually buy.
It wouldnt be 7 & 3 if you think you have a guy. Worst case scenario, you ask a realtor to take their half (3.5/1.5) to represent the buyer and you act as a private seller. You could also ask a realtor to fascilitate the transaction at a reduced fee.
Each realtor has their own ways - I had someone contact me the other night whom had already viewed a property and wanted to write an offer. Finding the property is a small portion of the actual work involved. The general public do not see the fine details behind the scene and the fact that hiring a realtor protects them from numerous potential issues that could end up in court. I gave the guy a verrrrrry small break as we worked something out and proceeded with writing the offer. 24 hours later we ended up getting a deal that was more than he thought could be had.
I see it all the time where someone feels they "saved" on commissions but in reality, they took a haircut on their sale price or paid too much. I know there are members on this site whom I have sold their house and we sold for more than they ever thought possible. The higher sale price was more than enough to cover the commissions when they looked at discount/cheaper options to sell.
At the end of the day, if you have someone who wants to buy and is ready to put pen to paper on a offer and cheque, your lawyer should be able to guide you through it for a slightly higher fee. Just be warned, if I got $10 for every person who told me they wanted to buy a property and backed out I would have retired by now!
Good luck with the sale!
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07-26-2014, 07:57 AM
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#5
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First Line Centre
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My sister and brother inlaw sold their home without a realtor. Since the sale price was so high, the commission they would've paid was high too (around $30k). They sold their home in less than a month and apparently it was pretty easy because the market is really hot. With the savings they furnished their new place and it looks awesome. Not for everyone, but also very doable and you can save a ton of money.
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07-26-2014, 08:35 AM
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#6
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Franchise Player
Join Date: Jun 2008
Location: Spartanville
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Quote:
Originally Posted by Realtor 1
The general public do not see the fine details behind the scene and the fact that hiring a realtor protects them from numerous potential issues that could end up in court.
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Can you elaborate on that please?
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07-26-2014, 09:07 AM
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#7
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Unfrozen Caveman Lawyer
Join Date: Oct 2002
Location: Crowsnest Pass
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Some unrepresented clients think the lawyer can give them all the same advice the realtor can, and for free. No and no.
A realtor has a special skill set, and knowledge about the market.
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07-28-2014, 02:06 PM
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#8
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Crash and Bang Winger
Join Date: Feb 2014
Location: Calgary
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I thought I would save some $ and tried to sell without a realtor in 2007 when things were going crazy. It was a lot more work than I had thought it would be and I had very little luck getting people to come see my place. Relators have a wealth of knowledge when it comes to giving advice on a sale but the one area that I appreciate their value in is the ability to market your home and draw in buyers. I think this is the main area I underestimated when I attempted to sell. After a month of nothing on my own I listed with a realtor and sold in a couple of days with competing offers. Sure paying those commissions is tough to stomach but they do earn that money.
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07-28-2014, 10:20 PM
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#9
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RealtorŪ
Join Date: Feb 2009
Location: Calgary
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Quote:
Originally Posted by Bagor
Can you elaborate on that please?
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Plenty of examples but I will use a common one -
Your advertised square footage. If your buying a condo at 500 a sq ft and you market it at 1000 sq ft and it is really 950, the buyer of your place may have a case to come after you for 500x50. A realtor assumes this risk which is why I have my listings professionally measured.
A recent example came where a parking spot was assumed to be assigned. It is in fact titled and the courts missed it years ago when foreclosing on the unit. The purchaser of this condo is the only one not at fault as he hired a realtor & lawyer to ensure these things were in order. It is now up to the industry professionals to resolve the issue.
In a way, part of hiring a realtor is almost like a insurance policy - not the best analogy but I am sure you see what I am getting at.
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01-16-2015, 10:28 AM
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#10
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Backup Goalie
Join Date: Feb 2010
Exp:
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What does the 7 & 3 mean?
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01-16-2015, 10:58 AM
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#11
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Franchise Player
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Quote:
Originally Posted by tenyardrambo
What does the 7 & 3 mean?
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7% on the first 100,000 and 3% for anything above.
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01-16-2015, 07:28 PM
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#12
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RealtorŪ
Join Date: Feb 2009
Location: Calgary
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^ that is correct.
That is then split between the buyers Realtor and the selling Realtor.
3.5% and 1.5% each.
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01-16-2015, 07:33 PM
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#13
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Franchise Player
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Quote:
Originally Posted by Realtor 1
^ that is correct.
That is then split between the buyers Realtor and the selling Realtor.
3.5% and 1.5% each.
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How negotiable is that, if it is at all? Are there alternatives to the traditional 7 and 3 commission from a sellers standpoint?
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01-17-2015, 11:54 AM
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#14
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RealtorŪ
Join Date: Feb 2009
Location: Calgary
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^ tons of alternatives and commissions are always negotiable.
I am not able to advertise any incentive - if I did, my entire brokerage would have to be able to offer the same thing.
There are brokerages/Realtors that will sell your house for 1% commission on each side.
There are brokerages that offer to put your house on the MLS and you handle everything.
There are full service brokerages (where I am)
At the end of the day, you get what you pay for and I know many on this forum can vouch for that. In fact, I have helped a handful of people on this forum who either A) tried going with a discount option at first or B) listed with me while their neighbor or someone on the street was using a discount brokerage (this case was entertaining as it was the same house and not only did we sell for way more but we sold way quicker). The unfortunate thing for the people who try the discount route first and if it does not work, list with a full service brokerage is that I can see how long you have been trying to sell your place. You only have one chance at the "honeymoon stage" where the listing is fresh to the market.
I will tell you the real struggle with many of the discount options. When I am booking multiple showings a day to show my clients, the system is set up to make it as easy as possible to reach the listing realtors and ask for a showing.
Many of the discount options have me contact the seller directly.
1) I do not want to talk to the seller as they try to sell the house on me and quite frankly, have no idea how the business is run and can become annoying
2) They never answer their phones (most likely because they have a day job of their own). I sometimes need to get in on a moments notice. The seller calls me back a day later and it is too late.
3) Often in this case, commissions are not set in stone. It is my job to negotiate with the seller on my commission. This is a huge flaw (IMO) of the system as it is a conflict of interest to my client. "Hi Seller, I want 3.5/1.5 commissions and I know that you are going to reply with an offer to give me 1% or less and then anything above that comes out of my buyers pocket on the purchase price" .... see the flaw?
In addition, my clients can vouch that although they pay full or close to full commission - they receive all the best in the industry. I can spend over $2,000 on any one of my listings before it has even hit the market and I have no guarantee of selling that property and getting that investment back. Why do I do it? Because a properly marketed property will stand a better chance at selling and will typically sell for more. Do the math on me getting 10 people through the door and a discount service who took their own photos getting 3 people through the door.
A discount service needs volume to stay afloat. They make less on each listing and spend much less marketing each listing. While the discount service may list 10 properties and sell 5 I prefer to list 4 and sell 3.
*Disclaimer - this is all personal opinions and in no way intended to knock/put down any other type of real estate model. I personally feel that the public is poorly educated on their options. We all hear the radio ads that slam the full service model and claim to save you thousands of dollars. We don't hear the full service brokerages advertising the differences in these models and if saving $7,000 on commissions is worth selling for $14,000. The discount route may be the right style for some people, I want CP to understand the differences so that they can make a decision best suited for them
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The Following 3 Users Say Thank You to Travis Munroe For This Useful Post:
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01-17-2015, 05:16 PM
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#15
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Lifetime Suspension
Join Date: Jan 2010
Location: Calgary
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nm
Last edited by 1stLand; 01-17-2015 at 05:19 PM.
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02-15-2015, 10:19 PM
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#16
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Backup Goalie
Join Date: Feb 2010
Exp:
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Maybe slightly off topic. I am wondering what percentage of buyers that see your listing and contact you directly. The potential buyer having no knowledge or understanding of the real-estate market, trends and history. They take the listed price just because they like it and what they see without negotiations etc?
I am stating this because if a person that doesn't use another realtor to seek a home that would be best suited for them, can backfire on them in the long run?
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02-16-2015, 11:03 AM
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#17
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RealtorŪ
Join Date: Feb 2009
Location: Calgary
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The listing agent would essentially double end the deal and see both sides of the commission. The contract you sign when listing your property states the total commission that you will pay which included both sides.
I truly believe that a realtor when buying is worth the weight in gold. The real work starts after you find a property. Any average Joe can go open lock boxes and show properties...when it comes to negotiating the deal, ensuring the paperwork is proper, giving opinions on the property, neighborhood, etc... those are all potential problems that could cost you tens of thousands in the long run.
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