Realtors offer payment options.

[DragonflyProperties]

Hi all,

An article from The Edmonton Journal - http://www.edmontonjournal.com/business/Re...9556/story.html

Keith

 

[RedlineBrett]

QUOTE (DragonflyProperties @ Nov 21 2009, 02:10 PM) Hi all,

An article from The Edmonton Journal - http://www.edmontonjournal.com/business/Re...9556/story.html

Keith

This is nothing new. What the public thinks when they read this is that the fee is limited to $5,000 or whatever listing fee the agent is charging. What is not advertised is what the listing brokerage is offering to buyer brokers that work the other end of the deal. The big expense is the buyer agent fee which the seller must pay. If it`s not a full fee their listing won`t be shown. Buyer clients are 10x the work that sellers are and the fee structure is starting to represent this.

If you are going to go with a super discount fee (2% etc) you might as well just go FSBO because realtors won`t show your property if they aren`t getting paid the same as they would for selling any other listing.

 

[vandriani]

Speeking out of ignorance, why are agent fees based on the sale price of the property instead of an flat rate?

 

[RedlineBrett]

QUOTE (vandriani @ Nov 23 2009, 01:00 PM) Speeking out of ignorance, why are agent fees based on the sale price of the property instead of an flat rate?

The premise is that it takes more work to find a buyer for a more expensive property and the more expensive a property is the more baggage it typically comes with. 99% of home buyers could afford a $100,000 house whereas 1% could afford a $1,000,000 house.

Depending on the local market condition this may or may not be true. Flat rate listing fees will be the norm shortly but sliding scale buyer brokerage fees won`t be going anywhere.

 

[DaveRhydderch]

As a Realtor, I agree with everything Brett says and I really hope any investors is getting a discount of some sort when they`re selling their properties, esp. if you`ve used them multiple times.

The other thing to remember, is a for-sale with my name on it is a great advertisement for me. If someone (non-Realtor) calls me with interest in that property, I have a pretty good lead. Then putting a Sold sticker on that sign, well there`s a good reason we leave them up for as long as possible.

My point is to remember you`re helping that Realtor at the same time they`re helping you. Any good Realtor knows that and should be flexible with you....

Dave