Posted on: 15-03-11 15:58:55
A friend is looking to sell his house in Brampton and move to Mississauga. What are the typical rates being offered by RE agents? The last I heard, that somebody selling and buying through one agent had to pay 3.5% (2.5% for the buying agent on the sale of property and 1% to the selling agent, provided the person uses the selling agent to purchase his next home). Is this typical or are better deals available?
Request : -) RE Agents on this forum please do not solicit by sending me PMs. I am just enquiring on behalf of a friend.
Most RE agents charge 3.5% to sell the house irrespective of signing a buyers agreement .
IMHO it is better to pay full 5 % commission to deserving agent than to negotiate low commission . A good agent will work hard to earn commission like advertising your house in local newspaper , distribute flyers , staging e.t.c . At the time of closing he can negotiate better prices and better terms . Whereas when you pay low commission ( generally accepted by part timers ) you may end up in losing more than 1.5 % .
So chose your agent wisely . We all often tend to chose cheaper options .
Good luck
AG
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My take...
Based on the location and condition of the house (meaning, if it does not require much effort to sell), you can negotiate more into the deal - like free lawyer etc. Also, it will depend on the actual $ value of the buy and sell (there by how much the agent makes), the agency to which the agent is affiliated (The cut the agent gets varies by agency and their experience etc.).
Personally, I don't think the agent can affect the buy/sell price much, if you are clear on the price, the selling points of the house etc. The comparative market analysis is essentially based on recent transactions in the locality. Part will depend on luck too - if there are competing bids, if there is a motivated seller etc. and your own negotiation skills, risk taking skills, how motivated you are etc. Think of it as a poker game.
As long as the buyer's agent's commission is kept at 2.5%, you will get showings. The price offered will be, in general, in the same range. The buyer's agent also does the same CMA. He is going to come with the print outs of all recent sales etc. In general, the price may be in a 3% rage - ie. say between 295-305 kinds. Whether you get close to the 295 or close to the 305 depends on the luck and your skill factor I mentioned above.
I will say, choose your agent based on your buying needs instead of selling. Getting a good agent can really help your buying (ofcourse, again, it will depend on individual traits). Especially if your friend is open to any where in Mississauga, (s)he should get an agent very comfortable and knowledgeable in Mississauga area. That will help him/her locate the house in quick time and without frustrations. If not, he may end up seeing each and every house listed in MLS and soon will be frustrated (as well as plenty of gas and time wasted). Frustration can lead to unwise buyings - ending up something he don't really like or paying more just to get it done!
Just my take, based on my experience. Take it with a grain of salt!
Quote:
Originally posted by freakoutguy
A friend is looking to sell his house in Brampton and move to Mississauga. What are the typical rates being offered by RE agents? The last I heard, that somebody selling and buying through one agent had to pay 3.5% (2.5% for the buying agent on the sale of property and 1% to the selling agent, provided the person uses the selling agent to purchase his next home). Is this typical or are better deals available?
Request : -) RE Agents on this forum please do not solicit by sending me PMs. I am just enquiring on behalf of a friend.
Just curious to know the reason for your friend selling in brampton and buying in mississauga.
Is it becoz of job or some other reason to leave brampton ?
I observed Mississauga is overpriced and multiple offers on even so called houses.
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MK
When renting or buying a property you need to pay brokerage fees to your real estate agents. Brokerage takes minimum 1% commission of the selling property.
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