Selling my home Over 1 million Negotiating realtors fees?

[Carene]

Gday

I am listing my prime residence for sale (downsizing- kids moved on)

I have a realtor that I bought a house from before and I like working with her
.

I will also be buyiing another prime home residence with her services

We discusssed if there is any negotiating on her commission- she says 7% on first 100K and 1.5 % on the balance

and that that is her OLD fee structure- That is $26500

I truly understand the nature of realtors` business as I have run a business for many years and only get compensated if I make the sale. I want to be fair but I want to negotiate a better OR fixed priced deal.

My house will show WELL It is in PRIME location I have staged houses many times I currently rent out this house in West Van furnished for $5000. I will take the loss of this and leave it vacant as it shows even better without the tenant`s stuff around which increases the realtors chance of getting offers. . It is not a hot sellers market- houses in the area could be on for 2-3 months

Are there any sellers who have realtors willing to negotiate their fees? What are other realtors fee structure?

Any ideas much appreciated...

Feel free to send me a private message

Happy investing!

 

[Thomas Beyer]

try 2% or 7% + 1.5% ..

or try: $20,000 plus 4% (or more) for anything over $1M !!

 

[RedlineBrett]

QUOTE (Carene @ Jun 23 2010, 11:05 AM) Gday

We discusssed if there is any negotiating on her commission- she says 7% on first 100K and 1.5 % on the balance

Happy investing!

Sounds like she is actually giving you a pretty substantial break already... In Alberta the "standard" fee is 7% of the first 100k and 3% of the balance, with each side taking 3.5/1.5. This is changing though with listing fees (so the seller`s agent side) coming way down. Sellers are free to negotiate on fees for service... so if your agent won`t take a commission structure you want then shop for another agent or sell by other means.

If fees are the same in Van then she`s only making 3500 on the sale of your place which is a pretty good fee in my opinion. If she isn`t asking you to pay for any marketing in the event the property doesn`t sell I don`t think you can expect to do much better.

She has to offer the full fee to a buyer`s agent (3.5/1.5) or your property won`t get shown or buyers will think you`re cheap when their realtor tells them that they have to tack on $X because a regular commission amount isn`t being offered by the seller. Buyers of seven figure homes tend to be a little high maintenance and as such they usually have good realtors and good realtors make sure they get paid.

 

[Carene]

Thanks Thomas and Brett

Anyone know What are the standard fees in VAncouver?

Please could you explain what yu mean by LISTING fees coming down?

Please correct me if I am wrong- do the seller`s agent and buyer`s agent split the fee 50-50? In this case both parties will make $13 250 with current structure


Are you saying that her issue is going to be that the buyers realtor will be reluctant to do this? I agree with the buyers in this price bracket being more demanding
....
However about 90% of buyers- me included- will go to MLS every few days and find the properties I want to see and then ask my realtor to arrange the viewing- in everyone`s opinion???- will a buyers agent refuse to show their client that property?? and I dont get the part about TACKING on $$ ARe you saying the buyers realtor will ask their CLIENT to make up the shortfall? How many buyers will one REALLY miss out on- the ones who rely totally on their realtor to find them properties?

Thank you for taking the time Brett ...

Sounds like she is actually giving you a pretty substantial break already... In Alberta the "standard" fee is 7% of the first 100k and 3% of the balance, with each side taking 3.5/1.5. This is changing though with listing fees (so the seller`s agent side) coming way down. Sellers are free to negotiate on fees for service... so if your agent won`t take a commission structure you want then shop for another agent or sell by other means.

If fees are the same in Van then she`s only making 3500 on the sale of your place which is a pretty good fee in my opinion. If she isn`t asking you to pay for any marketing in the event the property doesn`t sell I don`t think you can expect to do much better.

She has to offer the full fee to a buyer`s agent (3.5/1.5) or your property won`t get shown or buyers will think you`re cheap when their realtor tells them that they have to tack on $X because a regular commission amount isn`t being offered by the seller. Buyers of seven figure homes tend to be a little high maintenance and as such they usually have good realtors and good realtors make sure they get paid.

 

[RedlineBrett]

"Please could you explain what yu mean by LISTING fees coming down?

Please correct me if I am wrong- do the seller`s agent and buyer`s agent split the fee 50-50? In this case both parties will make $13 250 with current structure"

Every deal has a buyer and a seller. Usually each party has an agent that is compensated for the work they do to make their client happy with their end of the deal.

When you sign a listing contract you agree to pay the listing brokerage (seller`s agent) a fee to sell your home for you. They then offer an amount to buyer brokerages (buyer agent) to bring in a buyer and close a sale. In Alberta this fee is on the actual listing contract and you as the seller have to sign off on that amount.

There are no rules with fees and they are very seldom split 50/50. There is a `standard` amount for a buyer fee (3.5/1.5 in AB) and this number is made public for every realtor to see. When I pull a listing up it says the commission offered amount right on the sheet.

In an effort to stay competitive many listing brokerages (seller`s agents) have agreed to take LESS THAN 3.5/1.5 on their end to get the listing and sell the property. This is what I mean by `listing fees coming down`.

"Are you saying that her issue is going to be that the buyers realtor will be reluctant to do this? I agree with the buyers in this price bracket being more demanding"

Sounds to me like she is doing what I and many realtors do... reduce her end of the fee on the listing side but offer a full fee on the buyers side.

"However about 90% of buyers- me included- will go to MLS every few days and find the properties I want to see and then ask my realtor to arrange the viewing- in everyone`s opinion???"

Realtors own MLS... they chose to make properties available for everyone to see so that there would be one place to go to to see houses for sale and it would be easier for buyers to compare one property to the next. So every time you log onto MLS your realtor is working for you in the fees they pay to keep MLS up. Introducing a property to a buyer is only one small part of what buyer agents do for their clients. I won`t get into it here but negotiating, due dilligence, comparison, writing the right contract etc are where the service is really provided on the buyer side.

"will a buyers agent refuse to show their client that property?? and I dont get the part about TACKING on $ ARe you saying the buyers realtor will ask their CLIENT to make up the shortfall? How many buyers will one REALLY miss out on- the ones who rely totally on their realtor to find them properties?"

Well over 95% of all listings sold on MLS have a both a buyer`s agent and a seller`s agent. Since most listing agents are offering a full buyer`s commission with their listings buyers can use agents for free... so why wouldn`t they?

However buyer`s agents must show any property that fits their client`s criteria. They have a fiduciary duty to act in their client`s best interests within the confines of the law. So if you ask your agent to show you a property with a buyer commission of $0.01 he has to do it. There are brokerages out there right now that offer a 1% fee to buyers as standard, some allow the seller`s to post a listing and choose for themselves how much they want to offer.

I tell my clients before I ever turn a wheel that I work for 3.5/1.5 of whatever you buy so if a $0.01 fee is offered by the listing realtor then you must cut me a cheque for 3.5/1.5 out of your own pocket (minus the penny of course

). I liken it to a home with a roof that needs replacing or appliances that are out of order. That is how the property is being sold and I just pass the cost onto the buyer. Usually I can negotiate this amount off the purchase price so it`s no big deal but if a seller`s realtor is trying to cheap out by paying me less I make sure my clients know about it and it usually reflects poorly on the seller`s side. Every good realtor is doing this now.

 

[Carene]

Hi

Again Thanks for the education My realtor thanks you too!

Have a great day and many closings!

QUOTE (RedlineBrett @ Jun 23 2010, 01:01 PM) "Please could you explain what yu mean by LISTING fees coming down?

Please correct me if I am wrong- do the seller`s agent and buyer`s agent split the fee 50-50? In this case both parties will make $13 250 with current structure"

Every deal has a buyer and a seller. Usually each party has an agent that is compensated for the work they do to make their client happy with their end of the deal.

When you sign a listing contract you agree to pay the listing brokerage (seller`s agent) a fee to sell your home for you. They then offer an amount to buyer brokerages (buyer agent) to bring in a buyer and close a sale. In Alberta this fee is on the actual listing contract and you as the seller have to sign off on that amount.

There are no rules with fees and they are very seldom split 50/50. There is a `standard` amount for a buyer fee (3.5/1.5 in AB) and this number is made public for every realtor to see. When I pull a listing up it says the commission offered amount right on the sheet.

In an effort to stay competitive many listing brokerages (seller`s agents) have agreed to take LESS THAN 3.5/1.5 on their end to get the listing and sell the property. This is what I mean by `listing fees coming down`.

"Are you saying that her issue is going to be that the buyers realtor will be reluctant to do this? I agree with the buyers in this price bracket being more demanding"

Sounds to me like she is doing what I and many realtors do... reduce her end of the fee on the listing side but offer a full fee on the buyers side.

"However about 90% of buyers- me included- will go to MLS every few days and find the properties I want to see and then ask my realtor to arrange the viewing- in everyone`s opinion???"

Realtors own MLS... they chose to make properties available for everyone to see so that there would be one place to go to to see houses for sale and it would be easier for buyers to compare one property to the next. So every time you log onto MLS your realtor is working for you in the fees they pay to keep MLS up. Introducing a property to a buyer is only one small part of what buyer agents do for their clients. I won`t get into it here but negotiating, due dilligence, comparison, writing the right contract etc are where the service is really provided on the buyer side.

"will a buyers agent refuse to show their client that property?? and I dont get the part about TACKING on $ ARe you saying the buyers realtor will ask their CLIENT to make up the shortfall? How many buyers will one REALLY miss out on- the ones who rely totally on their realtor to find them properties?"

Well over 95% of all listings sold on MLS have a both a buyer`s agent and a seller`s agent. Since most listing agents are offering a full buyer`s commission with their listings buyers can use agents for free... so why wouldn`t they?

However buyer`s agents must show any property that fits their client`s criteria. They have a fiduciary duty to act in their client`s best interests within the confines of the law. So if you ask your agent to show you a property with a buyer commission of $0.01 he has to do it. There are brokerages out there right now that offer a 1% fee to buyers as standard, some allow the seller`s to post a listing and choose for themselves how much they want to offer.

I tell my clients before I ever turn a wheel that I work for 3.5/1.5 of whatever you buy so if a $0.01 fee is offered by the listing realtor then you must cut me a cheque for 3.5/1.5 out of your own pocket (minus the penny of course

). I liken it to a home with a roof that needs replacing or appliances that are out of order. That is how the property is being sold and I just pass the cost onto the buyer. Usually I can negotiate this amount off the purchase price so it`s no big deal but if a seller`s realtor is trying to cheap out by paying me less I make sure my clients know about it and it usually reflects poorly on the seller`s side. Every good realtor is doing this now.

 

[RedlineBrett]

QUOTE (Carene @ Jun 23 2010, 02:13 PM) Hi

Again Thanks for the education

My realtor thanks you too!

Have a great day and many closings!

No problem and good luck with the sale!

 

[Merriora]

If you are using the same realtor for both selling and purchasing, then you could always negotiate a kick-back upon purchase of your new home. Give him the full commission he is requesting for selling your home, but then get a few thousand back upon purchasing your new home. Remember, you are lucky to have a good realtor, but your realtor is lucky to have a good client. You are willing to do what it takes to sell the home quickly and for top dollar. It also depends on how picky of a purchaser you will be....do you like a lot of different homes or will your new house have to be perfect requiring you to look at many over the months?