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Agents balk at lowering commissions

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Real Estate Professional | 29 Jun 2015, 07:50 AM Agree 0
High real estate prices in one Canadian city has some calling for agents to take less commissions, saying it’s high time for a downward adjustment in agents’ fees given that home valuations have increased.
  • PoeticLicense | 29 Jun 2015, 12:34 PM Agree 0
    In Ontario agents already charge what they believe they are worth!
  • Luisa Fleming | 29 Jun 2015, 12:44 PM Agree 0
    If the owners are getting higher prices is irrelevant to what the commission is. The commission is related to services not to the price of the house.Sometimes, sellers are greedy and even when they are netting the amount they want they try to cut the agents commission. In my experience I had a case of an income property I was listing, the owner ask about the amount of my commission , my replied was funny but truthful: I deserve the commission I am charging, and you ate getting the amount of money you want to make, do you prefer to pay Revenue Canada what you want to take of my commission? Of course, she got my point and she got more than she was expecting from the sell.But it seems to be an automatic reaction from the seller to bargain with the agent's commission .
  • hamiltonrealtor | 29 Jun 2015, 01:10 PM Agree 0
    Everytime i hear sellers wanting to reduce my commission i laugh, Would they be willing to take less wages if their company was doing well?
  • | 29 Jun 2015, 01:12 PM Agree 0
    It's interesting that in a down market Sellers also want to have a lower commission based on the fact that their place will sell for a lower amount( maybe even less than they paid for it), prices going down, not going to realize as much profit, etc., etc. even though it may take longer with more time spent by the realtor and money on advertising etc. Perhaps a suggestion would be that Sellers would front the costs and realtors would be paid for services as provided instead of taking all of the risk of being paid at all.
  • | 29 Jun 2015, 03:01 PM Agree 0
    They don't make more money if their companies are doing well. Their wages stay the same. The company gets the profit.
  • M. Eisner | 29 Jun 2015, 03:15 PM Agree 0
    So... people who are making an extra $2, $3, $400,000 profit on their property in a relatively short period of time, would like agents to reduce their fees so the sellers can have MORE profit from the proceeds when they sell their properties and agents should earn less. Make sense to me NOT!
    Notice the words Make (profit) and Earn (fees). Ask any of the home owners to take less and less in their place of work and see what they say. This is a free market (capitalism at its best) and any owner is free to negotiate the fees they are willing to pay agents for the work, exposure and results they get. I think one way of getting agents to reduce their fees is for the clients/sellers to pay the fees UPFRONT, regardless of the outcome, just like lawyers do which by the way do get paid regardless of the outcome. No one seem to care what lawyers are making and at $3, $4, $500 (or more) an hour everyone seem ok with it and no one will negotiate because they know they are worth it. Well, good agents are worth the fees they ask and more.
  • M. Eisner | 29 Jun 2015, 03:18 PM Agree 0
    So... people who are making an extra $2, $3, $400,000 profit on their property in a relatively short period of time, would like agents to reduce their fees so the sellers can have MORE profit from the proceeds when they sell their properties and agents should earn less. Make sense to me NOT!
    Notice the words Make (profit) and Earn (fees). Ask any of the home owners to take less and less in their place of work and see what they say. This is a free market (capitalism at its best) and any owner is free to negotiate the fees they are willing to pay agents for the work, exposure and results they get. I think one way of getting agents to reduce their fees is for the clients/sellers to pay the fees UPFRONT, regardless of the outcome, just like lawyers do which by the way do get paid regardless of the outcome. No one seem to care what lawyers are making and at $3, $4, $500 (or more) an hour everyone seem ok with it and no one will negotiate because they know they are worth it. Well, good agents are worth the fees they ask, and more.
  • Edward E. | 29 Jun 2015, 04:00 PM Agree 0
    In addition to the likes of Fee Duck & Rebate Crew etc. entering the realm of commission reduction, there is a new Vancouver area company that has just launched across North America using a Reverse or Dutch auction to reduce real estate commission.

    www.realestatecommissionwars.com
  • TruthAnyone | 29 Jun 2015, 04:12 PM Agree 0
    Funny that literally *every* and *all* agents don't feel that any of the ancillary companies deserve any pay increase. Floorplan measuring.... feature sheet printing.... photographers.... the sign installers.... print ads.... they all catch MAJOR CRAP from the agents when they adjust their prices in passing years. In fact, they still search for the lowest/cheapest price for those services when marketing their listings. Somehow only agents feel they deserve the extra income from a hotter market (even though it required no change in effort). Brokerages still hire big-breasted receptionists at bottom dollar ..... agents fight any fee increases from TREB/OREA. Its all a joke. Free market enterprise? Except when other entities compete with the agent. Then they don't want the free market. Pack of losers.
  • Robin Telfer - RE/MAX Real Estate (Central) | 29 Jun 2015, 05:52 PM Agree 0
    Commissions are always a hot topic for those who don't have to work to earn one. Whatever is negotiated is what is deemed to be earned. If some journalists researched other countries they would quickly discover that commissions generated in Canada are of considerable value. If you were to buy a beachfront villa in the Turks and Caicos, six per cent of the purchase price is common. If you were buy real estate in Southern California expect to pay seven per cent of the total price. After the first $100,000.00 most Western Canadian REALTORS® compensate with the remaining balance at a discounted rate. So a three million purchase price equates in the Turks & Caicos the commissions would be $180,000.00, Southern California works out to $210,000.00 whereas BC is a paltry $79,500.00. Even in Alberta the commissions would be $94,000.00 - I have immense respect for journalists who do their research, unfortunately this is not the case here. I am disappointed in the quality of the article, the lack of true investigative reporting and the lack of expertise displayed therein.
  • Maxy | 30 Jun 2015, 02:28 AM Agree 0
    Very well said, HamiltonRealtor. No better way to close the debate.
  • Mike | 30 Jun 2015, 03:00 PM Agree 0
    A realtor I work with directly had to deal with this. She sold a couples home for well over the market value of what she thought it was really worth after months of doing weekly open houses, advertising aggressively and putting in hours of face time every week with her clients. They proceeded to ask her after all the paper work was signed and completed to cut her commission. She couldn't believe it but she's also big into customer satisfaction so she offered to cover the cost of some documents they were missing for their home as well. I told her she should not have budged if this wasn't discussed PRIOR to listing with her. Its not like she hides the commission and usually most people have that discussion early on. If others want to cut, thats their prerogative but it should never come up after all the work has been done unless its extenuating circumstances.
  • Sam | 30 Jun 2015, 03:09 PM Agree 0
    @Truth

    Well the inherent cost of those services shouldn't go up due to something unrelated like home prices. If your service is to measure a house, you bill by the hour don't you? So if its a bigger house thats worth more, you get paid more. Otherwise that's like saying the price of oil went up so now photographers deserve a pay increase. The inherent value of the property is directly tied to a realtors commission so there's a correlation between the two. What if a none realtor hires a photographer for something, does he keep his prices high because real estate prices are high? Guess what, there are still tons of realtors that sell lower priced homes and work for smaller commissions but they specialize in those but don't earn the same as big name realtors who charge full commission on million dollar homes. Your post reeks of someone who doesn't understand the market around them. Low % brokerages & sell it yourself type start ups have grown for a reason and that's why some sellers/buyers are choosing to vote with their dollars.
  • Dinasour | 30 Jun 2015, 07:14 PM Agree 0
    The wisdom of the world has spoken competition is doomed!!!! Monopolies are the only way !!! Why be fair when greed makes more money. The digital age is doomed too and we will stay in the hands of the Dinasours to trade real estate...
  • Comparable looker upper | 01 Jul 2015, 01:00 PM Agree 0
    The old dinasour talk you get what you pay for, how hard will they work for that feee/wage... that is the argument?

    Of course when u pay full price commissions problems don't happen and you don't lose ?? Naive !!!! There are great RE tour guides that will do a amazing job,work triple hard and great results for the $1,000-$2,000!!!

    I could argue the same thing each way pay more and you don't get great service
  • Comparables | 02 Jul 2015, 09:12 AM Agree 0
    The world of trading REstate will survive without the high commission . They are not surgeons they can be replaced with New Generations that bought into the easy money of trading real estate. The greedy tourer is forcing the market with lower rates and selling of the license to become Tourer and make easy money.
  • Ego | 02 Jul 2015, 01:53 PM Agree 0
    The big ego tour guides spoke to soon..Zoocasa relaunched under new tech RE/investors who smell the Wars of overcharging FEES
  • | 06 Jul 2015, 04:29 PM Agree 0
    I can see Realtors racing to bid on these properties. Seriously? Someone posts up to 2 pictures of their home and you want me to bid my fees lower than other agents to get the listing? Why would a realtor sign up for this? Why would you ever negotiate your fees before actually meeting with the seller and seeing the entire house.

    I don't know when this site was launched but currently there are no homes listed on the site.

  • Competiton | 07 Jul 2015, 10:47 AM Agree 0
    The guides have spoken competition is dead Monopoly wins!!
  • door Opener | 10 Jul 2015, 09:31 AM Agree 0
    john's revelation is astounding !! He doesn't have a pension,pays his owns benefits and has expenses that is why being a tour guide,door opener,comparable looker upper is worth 20,000-50,000!!!!?? No wonder I was mixed up!!!

    I think 70 % of the country employed are in the same boat!! NO PENSION, NO BENEFITS...Think everyone who doesn't have a pension/benefits should get a MONOPOLY and start charging tour guide fees

    John is reaching pretty desperately on justifying those door opener fees.
  • Reality!! | 11 Jul 2015, 09:30 AM Agree 0
    I agree there a lot of people who work 18 hours a day, no pension, no benefits but don't ask for 20,000-50,000 to take people on tours of houses/condos..It is a monopoly and that is why the competition bureau is challenging the model..and many great services are providng it for $1000-$2,000 because they KNOW THE FUTURE IS HERE!!!!!! Consumers are seeing the return on those fees DO NOT JUSTIFY THE COST. That is why many GREAT SERVICES ARE DOING IT FOR A FRACTION OF THE COST AND DOING A GREAT JOB!!!!!!

    $1,000-$2,000 per transaction ..YEAH!!!! Keep ur money for ur own kIDS!!!!

    I could see if it was difficult to become Tourer but it takes a 3 month multiple choice course/test!!! Why do u think there are 60,000 tourers ..... Everyone has to eat .... That math works out to 2-3 deals per year for the 60,000 !!!!
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