commision from realtor
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Posted on: 12-07-09 02:43:24
Quote:
Originally posted by frnd
Yes.
In that case, make sure you put your offer correctly because home inspector and lawyer comes afterwards and neither helps in putting an offer/negotiation.
Why not engage the lawyer upfront?
Quote:
Why not engage the lawyer upfront?
What if offer gets rejected by seller? Would you pay lawyer for every offer you write?
Thanks Guys for your responses .
I am sure offer letters must be having some prescribed format with conditions of financing / inspection/title etc thrown in .
Does anyone know any such web link which points to a proforma for the same ? Otherwise , one can hire a lawyer for the first such letter and use the same format for other properties .
Upon googling this is what I found :
'An offer letter should clearly present the elements of your offer: It should specify the property address (both the common address and the legal--such as lot and square--address). It should specify the amount you're offering. It should specify any conditions you're attaching to the offer--for instance, subject to a home inspection, and/or subject to your finding acceptable (to you) financing. Beyond the issue of a home inspection, it should specify whether you are buying the house in "as is" condition, or whether you require any repairs to be made. It should specify a time frame by which the transaction must be completed. It should specify who the purchaser is/purchasers are, and should identify all sellers. '
Is there anything missing ?
The point is - out of the 4 commissions (buying and selling later ) , the buying commission is the easiest to save ......... full 2.5% or 7.5K on a 300K property ............ you have to get an inspection done any case and the lacking find therein can be used to negotiate further ........
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Fido.
Quote:
Originally posted by Trinity
Quote:
Originally posted by Agent Raj
Quote:
Originally posted by Rajeev Narula
Did you know that INDUCEMENTS in any form offered by any REALTOR are prohibited by law & contrary to RECO code of Ethics. If someone is willing to ignore these to get business, what else would this person be willing to do that may not be ethical or lawful? Food for thought!
Rajeev,
I am with Century 21 Green in Mississauga. I do not believe that INDUCEMENT is the correct/appropriate term. If you charge 5% commission but the client will only sign at 4.5%, it cannot be assumed that you are inducing the client with a lower rate. In an open market, negotiations are key part of the Selling/Buying process beginning with the commission rate.
The clients now do a lot of research (www.mls.ca) before contacting a Real Estate Salesperson/Broker to help them with the sale/purchase of a home. Since the clients do a lot of the "legwork" (internet work), there are several companies that are embracing new ways of conducting real estate to reduce their expenses and therefore offering the savings back to the clients.
Real estate is evolving for the betterment for everyone involved.
Raj Bajwa
Salesperson
Century 21 Green Realty Inc., Brokerage
Office: 905.565.9595
It is rare to get an unbiased view when there are vested interests involved.
And talking of "inducements", really interesting to note an agent calling price negotiations as inducement. Is it because it reduces the commission? If one finds the agents commission too high or unreasonable, a buyer must have every right to negotiate.
And about ethics, the lesser said the better. One case in point - why do all agents/ brokers say that the buyer does not have to pay the agents commission, when as a matter of fact the buyer is charged back (5% to 8% of the deal value) by the seller to pay both brokers through a commission inflated house price? Hence the buyer in effect ends up paying both agents (indirectly through the seller). Misrepresentation of facts is not ethical (even though it is an accepted norm).
One query - why does the MLS website not provide the level of detailed information that most of the 'For Sale By Owner' websites provide?
Trinity
Trinity,
Vast majority of the real estate salesperson do have the clients best interest at heart and do adhere to the RECO code of conduct. However, that does not hide the fact that there are a few real estate salesperson have been known to put commission before customer interest/service.
Here are couple of things to consider:
1. Buying
- The real estate salesperson have all the tools available to show the Buyer the market value of the property. The real estate person should do the required research provide this in writing to the prospective buyer before submitting any offer. The Buyer can then make an informed decision on how much they wish to pay for the property depending on their needs/wants and instruct the salesperson to stay within that limit.
2. Selling
- In my 5+ years real estate career, I have always presented a detailed (written) Market Evaluation to arrive at the market value of the clients property (and I am sure vast majority of real estate salesperson do the same). However, a lot of the clients tend to value their property higher regardless of the facts we present to them. This has no relation to commission one charges but potential buyers can assume that real estate salesperson has listed higher to make higher commission.
3. Commissions
It is an open market place, therefore the commission should always be negotiable as long as it is reasonable to all parties involved. The real estate salesperson work very hard in this competitive market to make money. However when negotiating commission, the client should also consider how comfortable they would feel if their employer asked to reduce their wages. It is a sensitive topic therefore both parties should negotiate in good faith while understanding all services and restrictions involved.
4. Ethics
As to your ethics point, amount of commission charged has no bearing to being ethical. One simply does not lose their ethics/honesty by charging 4% versus 5%. I regularly visit the FSOB websites and also contact "Private Sale" properties. A lot of those properties are listed quite a bit higher than what a salesperson would list the property for (reasoning is in my point 2. Selling). Similarly, a Buyer without the detailed market analysis might end up paying more for the property since their logic dictates that: no agent = commission savings.
5. MLS website
The site offers a lot of useful information to potential Buyers/Sellers. I am sure it will evolve even further to address any concerns that potential visitors have however there will always be some privacy issues that may prevent all information from being disclosed in a public site/forum.
In closing, vast majority of the real estate salesperson are hardworking, honest, adhere to RECO code of conduct, and always put their clients interests above everything else. The clients also rewards these salesperson with loyalty and referrals.
Have a great summer...
I'll give you my recent personal experience about buyers calling me off the realtor.ca or after looking at the lawn sign of my listings for sale. 100% of good and well priced listings did sell before buyers' phone calls, many times there were offers on sign back etc. Many of these buyers did not have their pre-approvals in place. Some of these direct buyers (unrepresented) were too naive in their home buying approach.
They needed education on home buying costs, monthly expenses, mortgages and many other things.
Uninformed buyers are a risk not only to themselves but also to the sellers' realtors and other stakeholders in any real estate transaction. Many are bound to make mistakes, for sure. Many realtors out there refuse to double end their own listings, they are concerned about conflict of interest when working for their seller clients.
Working with one's own Realtor is the best way to go. It is the consumers' choice to select one based on trust, knowledge, referral, word of mouth, ethinicity, specialization, neighbourhood expertise, commission, brokerage (discount or full service) and many other reasons.
Thanks,
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Its unofficially official . Almost every realtor I m talking with is trying to offer me 1% cash back ...... and are somehow assuming that I would do a buyer's agreement with them ........... I have to clear their misconception that I want the full 2.5% ............ and wish to go directly .......... for others I would suggest that they should clarify the 1% cash back initially with the realtor and that should not affect the professional working of the realtor . Its negotiation .
I am reminded of an incident 10 yrs back when I and a friend of mine went to attend a seminar of an Immigrant consultant in the Gulf . Upon calling my friend for a personal interview and looking at his resume he assured that my friend could successfully migrate to Canada BUT only if he would go through him ........ My friend asked him very candidly as to what would the Agent do to his resume / application ........... to which the agent responded ... Well that's a trade secret ... !!
Needless to mention neither me nor my friend went through and agent and are currently enjoying Canada for the past couple of years .....
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Fido.
I have made my first "Forums" error. I tried posting a response here but accidently clicked on New Topic...
Here is the link to my response.
http://www.canadiandesi.com/read.php?TID=24915
Hope that works
