Real estate agent? low commission? 1%

[SMARTT]

I need a real estate agent with LOW commission.

Anyone heard of this guy?

[charliebrown]

www.bytheowner.com
www.propertysold.ca

craigslist
kijiji

If you're selling (and not in a rush), the above sites will get seen. Listing agents havent really persuaded me into what separates them from every other agent who've called & want to list for me

[SMARTT]

how long did it take to sell urs?

[pm_john]

www.bytheowner.com
www.propertysold.ca

craigslist
kijiji

If you're selling (and not in a rush), the above sites will get seen. Listing agents havent really persuaded me into what separates them from every other agent who've called & want to list for me


just checked the two websites, not too much listing like mls.ca

[Babo]

He has a 1% fee when he is both the listing, and the selling agent. Should find out what his normal fees are, when he isn't the selling agent.

[JAGpilot]

These low commision fees are all scams according to my dad. Proper agents charge 4-5% since its split between the buying/selling agent. This 1% guy probably will say here is a list of houses, buy one of these or the deal is off. Trust me, I'm not being biased but my dad is one of the most honest Realtors in the business who is out to please the client, not make the money. I have seen the messes hes gotten into because of some fly-by-night realtors. You wouldn't believe the **** work some of these guys do. Your dealing with 100s of 1000s of dollars here. Biggest investment is your house. Go with an HONEST realtor and ASK for REFERENCE LETTERS before you do the deal. Any honest and good realtor will give you copies of them. What area are you looking to buy/sell in?

[be443]

These low commision fees are all scams according to my dad. Proper agents charge 4-5% since its split between the buying/selling agent. This 1% guy probably will say here is a list of houses, buy one of these or the deal is off. Trust me, I'm not being biased but my dad is one of the most honest Realtors in the business who is out to please the client, not make the money. I have seen the messes hes gotten into because of some fly-by-night realtors. You wouldn't believe the **** work some of these guys do. Your dealing with 100s of 1000s of dollars here. Biggest investment is your house. Go with an HONEST realtor and ASK for REFERENCE LETTERS before you do the deal. Any honest and good realtor will give you copies of them. What area are you looking to buy/sell in?

I completely agree witht he above statement. I used to be a real estate BROKER and it is IMPOSSIBLE as an agent to truly give 1% commission as here is the breakdown of costs of when I was an AGENT some 5 years ago (note isnurance costs have since doubled):

Company desk fees (just to be on the roster and have access to a conference room, receptionist, fax): $350/month
Personal liability insurance: $100/month
Errors & Ommissions insurance: $150/month
License: $100/month

Now you haven't even sold anything yet, and you have some start up fees:
Signs, average of $125 each and need a minimum of 5
Promise to purchase/lease, counter offer forms, etc, $200

Then there are your displacement fees:
Car lease, rental, payments, etc
Insurance for said vehicule
Gas for said vehicule
Pager and/or cell phone

Then marketing fees:
Advertising that place for sale on our local paper $175/week
Various other advertising (calendars, magnets, etc): $100/month

Then there is your time, which could mean you are working from 8am-3am at busy times, 6-7 days a week, always on call. During the summer, you basically work 3-4 days a week, 8am-7pm

It is hard work and LONNNGGGGG hours. The average sale from call to view the place to singing at the notary (here in QC you sign with a notary) was at least 30-49 hours of work. For 1% no way!

On a $200,000 home = $2000 commision at 1% - expenses (as listed above) and then income taxes, both taxes (employer & employee), QPP, etc. You are lucky to 'make' clear $800 if at all.

Also there is an industry wide acceptance that these people that offer 1% won't get alot of agents showing their place because after all the agent gets paid by the agreement with the listing agent/owner. I know I personall;y would avoid these places if I was still in the industry. In our area the going commssision rate is 6-7% and well worth it IMO.

My two cents, AM

[normistheman]

The old adage applies in this case... "You get what you paid for."

[SALTY3142]

says *when minfee lists and sells* so it's only when he's double ending the deal

[monomono]

Proper agents charge 4-5% since its split between the buying/selling agent.

I think 3-4% is a better range to aim for. In future when selling I will pay no more 1.5% for my agent and 1.5-2% for the buyer agent (although less than 2% the seller agent may ignore your listing). It really depends on your location and property. However, I'm in Toronto and as long as your property isn't a special case and priced correctly, the seller agent won't need to work very hard.

[charliebrown]

I think 3-4% is a better range to aim for. In future when selling I will pay no more 1.5% for my agent and 1.5-2% for the buyer agent (although less than 2% the seller agent may ignore your listing). It really depends on your location and property. However, I'm in Toronto and as long as your property isn't a special case and priced correctly, the seller agent won't need to work very hard.

Only real value the selling agent brings = listing on mls.ca & the website accessible only by agents :)

Pretty good way to make 1-2.5%

Atleast with buying agents, one has to drive around from place to place with the buyer.

Every listing i've seen, the selling agent was NEVER present. No one to explain things about the house/condo/neighborhood/features.

[eelfliw]

Every listing i've seen, the selling agent was NEVER present. No one to explain things about the house/condo/neighborhood/features.

Try going to some open houses. They'll be there.

The problem is, once you've done your research, you'll probably know more about the neighbourhood and house construction than the agent.

[radeonboy]

We had a low commission seller like Minfee. Long story short, dont go that route, you will have headaches later on. Such a bad experience.

[JAGpilot]

Real Estate is the biggest choice you make. Don't be a cheapass and try to save money when working with an agent. This minfee is a real scam who my dad has heard stories about. He will basically make you sign a paper saying he can basically do anything and then he will put it out for cheap, neglect everything and then say "you signed a contract, your not going anywhere without buying one of these ****** houses I have for sale". For your own good, PLEASE find an agent that charges at least 4% commision and ASK FOR REFERENCE LETTERS. Not to scare you but the odds of finding a good agent are like 1 to 6. You need to do your homework and dont just trust the first moron to walk by. Getting your license for real estate is easy and there are too many idiots in the business.

[felix]

Agreed. Go with someone you trust.

[eelfliw]

Real Estate is the biggest choice you make. Don't be a cheapass and try to save money when working with an agent. ....... For your own good, PLEASE find an agent that charges at least 4% commision and ASK FOR REFERENCE LETTERS.
Unfortunately, there are too many idiot real estate agents with fake reference letters out there conning people. How will the average Joe verify the reference letters? Agents won't supply negative references.

You can pay 4% and get a good agent. Or you can pay 5% and still get an idiot. Higher fees is no guarantee of agent quality.

Real estate agents are like used car salesman. If they help you, they earn commission. If they screw you, they still make commission.

What we need is a credible real estate agent rating system that can withstand regular audits. But there is no such a thing. Just like there are no way to rate street bums who ask for money if they're real or not.

Bottom line, don't trust your agent's ability and don't trust your agent's intentions. Ask for the world but don't expect much. They're a necessary evil when selling your home. That's the best way to protect yourself.

[deep]

Agreed. Go with someone you trust.
And if I've never met a real estate agent I trust? I dealt with a few agents when trying to purchase in my area, and they were all ignorant lazy dirtbags (I never generalize, by the way :))

I really don't know which way to go for my upcoming sale....

[SMARTT]

I contacted minfee and he sounds good. He did quite a bit of research for me about my listing price etc... and will be doing open houses too!

Where can I get reviews on him?

[grant]

how do you find any professional you trust? (1)referrals, (2)instinct, and (3)testing them out first.

Since most people do so few real estate transactions, you can't count on #1 and #3 as much. (sorry, but a satisfied client referral doesn't mean much since most people don't have enough experience to tell good from bad).

You'll have to interview the prospects and make sure the answers they give make sense and have the ring of truth to them. If you are selling, ask them what their marketing plan is. If you are buying, ask them their criteria for finding you the right home.

There are very few agents I would use. Not because they're dishonest but because they're not as competent as I demand. For example sooo many agents are lazy about requesting documents etc. so they frustrate the buyer with delays. (seriously, they should order the frikkin minutes as soon as the property is listed since they KNOW they will be requested).

Agents may also be great with market research, but they are NOT lawyers and they are NOT building inspectors, so you can't trust them to give useful answers about strata laws or the leaky roof. Yes they may be correct, or they may just be parroting what they heard from a previous client. So i recommend you don't expect anything but: marketing/market research and handling procedure up to the point that subjects are removed.

[grant]

Oh ya, about commissions.... if you offer less than full commission to the buyer's agent (typically 3.25% on the first $100,000 and 1.15% on the rest) you WILL lost prospective buyers because their agents will steer them away.

Personally i sell my properties with $1000 to my agent + full comission to the buyer's agent. for that price however I have to do all my own showings and also i don't require hand-holding during the process.

good luck!

[JAGpilot]

Unfortunately, there are too many idiot real estate agents with fake reference letters out there conning people. How will the average Joe verify the reference letters? Agents won't supply negative references.

You can pay 4% and get a good agent. Or you can pay 5% and still get an idiot. Higher fees is no guarantee of agent quality.

Real estate agents are like used car salesman. If they help you, they earn commission. If they screw you, they still make commission.

What we need is a credible real estate agent rating system that can withstand regular audits. But there is no such a thing. Just like there are no way to rate street bums who ask for money if they're real or not.

Bottom line, don't trust your agent's ability and don't trust your agent's intentions. Ask for the world but don't expect much. They're a necessary evil when selling your home. That's the best way to protect yourself.

My dad's letters have numbers/addresses which people can choose to use to contact them for a reference. Not too many agents have reference letters, let alone fake ones.

DON'T GO WITH MINFEE, FOR YOUR OWN GOOD.

This is what my dad says about low commission agents. "If they can't negotiate proper commission for themselves then how will they negotiate a better price for you!". Do you think an agent making a few hundred bucks on a sale is really going to care if your happy or work hard for you? "Give me the money and go **** yourself." Check both sides. If your agent is selling your house he should give more money to the agent who will be working with him (selling another guy the house). For example, my dad might take a listing at 4.5%. He will give the co-opperating agent (guy bringing the buyers) 2.5% and keep 2% before expenses. If my dad keeps 2.5 and the other guy gets 2 other agents will not be interested in selling the people the property.

[felix]

"If they can't negotiate proper commission for themselves then how will they negotiate a better price for you!". Do you think an agent making a few hundred bucks on a sale is really going to care if your happy or work hard for you?
I don't know this Minfee person but I can agree with this statement. :)

[grant]

This is what my dad says about low commission agents. "If they can't negotiate proper commission for themselves then how will they negotiate a better price for you!".
Right conclusion, wrong explanation... for a variety of reasons:

1) where exactly is the "negotiation" if a realtor demands the "standard" commission and will not lower his price? that's not negotiation that's "take it or leave it"

2) realtors CAN "take it or leave it" because 1 spurned customer is only a small part of their income; they will get new prospects every day or just enjoy the extra time off. However the person selling their house doesn't have the same luxury... they MUST sell EXACTLY 1 thing and usually in a timely manner.

3) Realtors are (in general) not strong negotiators for their clients for a variety of reasons. I have never seen (in deals involving about 15 realtors) one who negotiated equally as enthusiastically as I did. Almost always letting the realtor handle negotiations is an expensive mistake!

4) Many discount realtors are extremely skilled and useful, just like many full-priced realtors are complete fools. Price alone doesn't prove anything.

[patrob]

We had a low commission seller like Minfee. Long story short, dont go that route, you will have headaches later on. Such a bad experience.

Don't agree - when my mother sold her 2 houses, the "Low Commission" agent (which charged her total of 3% - 2.5% to buyer agent & only .5% to himself :!: ) Her both houses sold in a week with multiple offers...& in January!

So not always true that low commision agent will not work for you, he was great & really negotiated the best price. I guess each case is different but you should give them a chance ;)

[grant]

Don't agree - when my mother sold her 2 houses, the "Low Commission" agent (which charged her total of 3% - 2.5% to buyer agent & only .5% to himself :!: ) Her both houses sold in a week with multiple offers...& in January!
That's much different than the 1% realty discussed in the topic. On a moderately priced home, 2.5% to the buyer's agent is acceptable.

The fact that your home sold in a week with multiple offers (in january!) suggests it may have been underpriced.

[patrob]

That's much different than the 1% realty discussed in the topic. On a moderately priced home, 2.5% to the buyer's agent is acceptable.

The fact that your home sold in a week with multiple offers (in january!) suggests it may have been underpriced.

Sorry maybe I misunderstood... both houses set a new benchmark on their street, since no house ever sold for that much...so it was not underpriced, based on what others on same street sold for...

[eelfliw]

My dad's letters have numbers/addresses which people can choose to use to contact them for a reference. Not too many agents have reference letters, let alone fake ones.
Does your dad's letter contain a random selection of all the people he had represented or has he carefully selected the people to put on the list? Let's be honest, will he choose people who didn't like his service to put on the list?

This is what my dad says about low commission agents. "If they can't negotiate proper commission for themselves then how will they negotiate a better price for you!". Do you think an agent making a few hundred bucks on a sale is really going to care if your happy or work hard for you? "Give me the money and go **** yourself."
Has your dad ever negotiated a 6% commission for himself?

[monomono]

"If they can't negotiate proper commission for themselves then how will they negotiate a better price for you!"

Sorry I disagree with you. I have used an agent to sell a few properties (1 bed condos, not high value properties at all) and she negotiated excellent prices and worked extremely hard. I do not believe any other agent could have got me a better result. Her commission: 1.5%.

If someone can do an excellent job for 1.5% then why should anyone else charge more?

[patrob]

What sells homes in Canada is a listing on MLS not a sellers agent. Thus your goal should be to minimize any fees you are paying to a sellers agent while still getting a listing on MLS. Here are the steps.

1) Find a discount sellers agent. You should not pay more than 0.5% for the listing service.
A couple of examples are http://www.select-plan.com/intro.htm or http://www.erealty.ca/
There used to be www.realtysellers.com that listed houses on MLS for $695 but the real estate board is driving them out of business.

2) You need to offer 2.5% to the buyers agents otherwise they won't show / push your house to prospective buyers.

3) Add a little incentive to the buyers agent so that they act in YOUR best interest not the buyers best interest. I would recommend offering an additional $1000 - $2000 to the buyers agent if the house sells for asking price or above. You would only use this strategy if your house is priced slightly above market value.

In the end you get full exposure since your house is on MLS, your total fees are 3% and maybe $1000-$2000 more assuming you get the full asking price or above. Don't waste your time with 5% or 6% commission real estate brokers. They are just scammers.

Otherwise list FSBO and eliminate the commission but be advised you will lose a lot of exposure since it is not listed on MLS.

Totally agree - don't pay more than 3% :!: Or try bytheowner.com

[alysomji]

What sells homes in Canada is a listing on MLS not a sellers agent. Thus your goal should be to minimize any fees you are paying to a sellers agent while still getting a listing on MLS. Here are the steps.

1) Find a discount sellers agent. You should not pay more than 0.5% for the listing service.
A couple of examples are http://www.select-plan.com/intro.htm or http://www.erealty.ca/
There used to be www.realtysellers.com that listed houses on MLS for $695 but the real estate board is driving them out of business.

2) You need to offer 2.5% to the buyers agents otherwise they won't show / push your house to prospective buyers.

3) Add a little incentive to the buyers agent so that they act in YOUR best interest not the buyers best interest. I would recommend offering an additional $1000 - $2000 to the buyers agent if the house sells for asking price or above. You would only use this strategy if your house is priced slightly above market value.

In the end you get full exposure since your house is on MLS, your total fees are 3% and maybe $1000-$2000 more assuming you get the full asking price or above. Don't waste your time with 5% or 6% commission real estate brokers. They are just scammers.

Otherwise list FSBO and eliminate the commission but be advised you will lose a lot of exposure since it is not listed on MLS.

I fully agree with the bolded parts and they should be your first resort.

However, I wouldn't list my own home under any circumstances. Find a good, reputable agent and the price he should be able to obtain for your home should more than offset the cost of hiring him.

[SMARTT]

I need a real estate agent with LOW commission.

Anyone heard of this guy?

http://www.minfee.com/

I have DEALT with MINFEE and I must say that he is HIGHLY RECOMMENDED. HE was EXCELLENT and will deal with him AGAIN for sure.