QUOTE (RedlineBrett @ Mar 23 2010, 01:24 PM) Since it`s the seller paying the buyer agent fees this is why it is set this way.
Let`s look at the sale of a $400k house. In Calgary the `standard` fee is 3.5% of the first $100k, 1.5% of the balance to the buyer`s realtor + GST.
That`s exactly $8,000.
Let`s say the house ends up being $410,000 instead. well, that cheque grows by a whopping $150.
There is very little motivation on behalf of the agent to sell a more expensive house to their clients. Buyers see this when they do the math and usually have no problem with the commission structure. Moreso because they aren`t paying a dime
If you want a different relationship with your buyer agent this can be accomplished through a buyer brokerage agreement. Put an offer in front of your agent that you think is fair and see if you can come to an agreement. There are as many ways to slice the pie as your imagination can come up with. The seller-offered commission structure is just a base to work from in many cases!
He Aiden,
Tell you what. For me to pick you up from a meeting place in Calgary north and drive you down to Cranston takes at least an hour. Now you want to see the house and use my advice to make a profitable decision. Sure, the showing lasts typically half an hour. Now I drive you back and then I drive myself back to where I came from total time 3 hours.
I also provide you with e-mail information from selected areas and only specific types of houses. I arrange access to houses you would like to see. Say, that is another hour per house.
So I worked for you 4 hours per showing. Brent says, he shows 30 houses before he sells- ehh that is 120 hours of work. Oh and then you want to have advice as to what you should do as to home inspections, mortgage brokers, problems with the condo docs, and god knows what else. Hmmm...
Then I fill out and deliver the purchase offers often in the middle of the night. How many offers was housingrental making? 80 offers before he made his deal? Hmmm.... So that is 45 minute for each offer, $10 dollars for pulling title plus stationairy. Ah... that is say 1.5 hours per offer times 80 is another 120 hours.
Oh, and now, we have to help letting the home inspectors in, getting the condo papers to the buyers, and other last minute closing stuff. Oops another 10 hours of running around. So total hours spend 250 at $250 per hour is $62,500. Oops, are you still complaining about commissions?
And we haven`t even talked about all those clients walking away from deals, fightin about mirrors, deposits, and suing the rotten realtor because he made you pay too much. Our car and gas, our office costs, etc. etc. You want my cell phone bill? How much coffee do we have to buy for you clients?
And on top of that, you want to steal our MLS data base because you think that you work on the computer so well? Well if that was true, computer genius. Then why do you not have your own data base already in place? I tell you, looking back at getting my license was not such a bad deal afterall, because I have access and you don`t... nanananaha!
Sorry I couldn`t stop myself.