Do you think traditional real estate agents charge too much to sell your home ?
Do you think Real Estate agents charge a too much money?
10 years ago agents would have been able to justify a 5% or 6% commission, but not today.
Over 80% of buyers are finding properties and agents from the internet. So now all the agent has to do is input your listing into the local MLS system and the buyers will find it automatically.
Do you know how long it takes to input a listing in the MLS system?
Half an hour to maximum one hour! After that EVERY agent in the Area will know about it and ANY buyer ANYWHERE in the world will know about it.
Do you know how much a traditional agent wants to charge you for that one hour of work?
Anywhere from 2 percent for himself (the listing agent) and 2.5 for the agent bringing in the buyer (the buyer’s agent). The commission usually totals 4.5% to 5%. Do you think 2% is a lot of money for 1 hour’s of work?
If you own a $300,000 house that equals $6,000 just for his end. That does not include $7,500 paid to the buyer’s agent.
How long did it take you to build up the equity in your home?
And the agent wants to just come and take it away for a few hours of work.
There is a better way, find yourself an agent in your area that will give to a fixed low price rate for listing, say 1%, you can then save yourself the other amount for yourself, if he sells your property he will still make the selling agents commission but you won’t pay the large amount for 1 hours work.
Vic Singh is a Brampton real estate agent who specializes in low commission real estate transactions. He represents Remax Brampton.
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Comment by Mike Montague
January 30, 2007 @ 5:53 pm
Talk with a realtor who was in the business 10 years ago. Ask him what percentage of his income went to cover costs then compared to now. Ask him (or her) if they are working any less time or require any less effort to complete a deal now than 10 years ago. Ask if they are required to be more specialized and bare higher liability for their profession. The cost of living keeps pace with the cost of housing. At best most Realtors are holding ground on a per trade basis. If all you are doing for your clients is what you outline in your post then I am sure you are earning every penny of your commission.
Comment by Rob Parker
January 30, 2007 @ 7:09 pm
The post was on behalf of the site listed, I am sure that this realtor feels that the percentage for listing and the subsequent %ge he makes if he makes the sale is adequate for what he is expecting.
Comment by Mike Montague
January 30, 2007 @ 7:27 pm
I am sure that this realtor feels that the percentage for listing and the subsequent %ge he makes if he makes the sale is adequate for what he is expecting.
That is apparent in his comments Rob however this person goes well beyond stating his own expectations and clearly slanders the industry he represents and all for his own personal gain. Very unprofessional Plain and simple.
Comment by Jeff
March 29, 2007 @ 7:12 am
I think that Realtors charge way too much money. I have just put my condo on the market with a cmpany called Fortune International Inc.. They in turn listed it on a website.
They put little of no effort into the sale, apart from a five showing to an interested buyer. Yet they charge 6% which will net them $11,000 for sitting on their butt and doing nothing., They will also try to mug the buyer with extritionate ‘Closing Charges’ and if that buyer is gullible they will end up paying unnecessary fees and hidden charges. A ‘transaction fee’ is also added on which they expect both the buyer and seller to pay.
It is a major rip, it’s hghway robbery and should be stopped. FREC the Standards Agency for Relators should be made to investrigate what is essential theft.
Comment by Joey Peglar
May 18, 2007 @ 4:06 pm
Just remember you get what you pay for. If you want a 1% agent you will get a 1% job. The cost of advertiseing is out of this world. My company spends over 5,000 a month just with the local newspaper not to mention 2500 a month for the local radio then you have the local MLS board that charges you for everything you input. The cost of a nice web-site will put you back another 650 per month and that is just a few things you will never see a discount fly by night company ever do. Then you still have all of the little magazines that every seller wants to see there property featured the cost is about 250.00 per page if you are lucky. Did you know that a spot on realtor.com will cost an agent or a company approx 750.00 per month per features listing OUCH!!!! That is all before you pay for your normal over head cost. Do we get lucky sometimes yes..do we sometimes list peoples homes that are over priced because they think they have the best home ever made YES and guess who pays for all that advertising when your home does not sell. NOT THE SELLER
Comment by Are you out of your flipping mind?
May 31, 2007 @ 11:16 am
“Do you think 2% is a lot of money for 1 hour’s of work?”
WHAT?!!? Are you out of your flipping mind? There is A LOT of behind the scenes work that still has to be done all the way up to the day of closing and in some cases after closing.
To say that a realtor makes that much money for one hour of work is just plain ridiculous on your part!
Comment by rich purdie
June 10, 2007 @ 1:16 pm
selling my house..3% to my agent 4% to others. will i get more agents willing to sell my house if i up the commision to 5% to my agent and 6% to others?