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Why your clients shouldn’t care about home prices

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Real Estate Professional | 23 Feb 2015, 09:41 AM Agree 0
When determining a property’s affordability, your clients will likely bee-line to the price tag, but these industry experts say there’s another factor that’s far more important.
  • Commission Wars | 23 Feb 2015, 11:59 AM Agree 0
    They should focus on the realtor fees that are built into the deal or have to pay. Imagine , Buying or selling a a average home in GTA and paying a extra $25,000-$35000. Not sure how the industry can Justify these types of fees . There are a lot of realtors charging $1,000 -$2,000 total per transaction who are Qualified ,professional,,well informed,hard working and get the job done. They are making a living and providing amazing results and not gouging the consumer for a service that basically use resales to aim for on selling and lisiting?

    I have used many vetran agents and low commission agents and never saw any real magic. Just amore aggressive ,pressure coming from the vetrans who have the experience and use that to their advantage against the in-experienced sellers and buyers.
  • | 23 Feb 2015, 04:19 PM Agree 1
    Not gonna happen. We get paid for results.
  • Ruben Lee | 23 Feb 2015, 04:58 PM Agree 1
    @Commission Wars - In the end consumers still can decide to pay more or less. To say that Realtors are gouging their clients based on the regular rates is a bit extreme, while not all, a few if not some really work for their money. Perhaps you should get to know what they have to go through to make a living providing the services they do. To undermine the type of fees that they are charging for a profession where they have been doing so for the longest time is like taking an axe to an ancient tree. Just because some Realtors choose to be paid less then the average is their right to do so like wise the choice of the consumer. In the end, really you do get what you pay for and there really is a difference in skill/service offerings. Just like you get between a Honda and a Ferrari. They both offer great services but there is always a level of distinction.

    In regards to your last quote, to each his own experience I guess, some because there aren't that many - don't use any magic or anything out of the ordinary, it's called skill and how they make use of this ability is what makes them great Realtors. The unfortunate thing however is that the profession is saturated with Realtors who barely conduct their services. I remember a published study that a large majority of Realtors (something along the lines of 60-75% - probably way more) make 1.5 sales transactions a year. That's about roughly +/- 13K Gross (in the GTA) before deductions and taxes which if you ask me, is not enough to support a decent living. If Realtors are to be financially sound FULL TIME then I think it's fair to say that whatever they are doing means that they are delivering on their bottom line and that is providing the pay-worthy services that consumers "choose" to pay whether it happens to be more or less.
  • Realtors are worth it! | 23 Feb 2015, 05:30 PM Agree 0
    -Commission Wars: Without Realtor`s and the MLS system the house prices would be 25-30K less. It is because of what we do to sell homes that they are worth more. Sure there are fees (like with every service) associated with listing a property but the fee is built in. Don`t use a realtor and put your home on the market yourself and you can save the commissions. Don`t cry to us when you're being served with a lawsuit! Why don't you get your license and you can charge 1K per deal. You`ll be done in 3 mos. Don't cry Apply!
  • | 23 Feb 2015, 10:28 PM Agree 0
    The real estate profession is one of the most litigated domains in North America.

    Do you know why that is?

    Because the system is working.

    Buyers who have been or feel that they have been cheated have recourse.

    And a system that offers such recompense has a price to pay.

    But feel free to go ahead and buy all the property that you want without a fail-safe system. It may very well work for you. But then again it might not. And if it doesn’t. let’s hope the seller of your property has, first of all, moved to a locale that has internet access and that, secondly, he takes the time to respond to your concerns.
  • Commission Wars | 23 Feb 2015, 11:10 PM Agree 0
    The master agents have spoken without their HIGH FEES you are doomed!! "you get what you pay for" more dinosaur talk from the 80's like a used car salesman . Can't blame them for preaching their high fee model ..we look up resales and SHOOT FOR THAT ON SALES AND LISTINGS!!! what a formula!!! Tour with door opening to every room in the home...exhausting....

    You can get the same results by googling flate rate service for $1,000-2,000 total!!! Rememeber the prices of homes increased not the Value of the agent. Nothing has changed in their service in the last 40 years. Keep ur money for ur kids education and ur own mortgage payments.

    Agents created price wars and time we created commission wars!!!
  • GG | 24 Feb 2015, 02:16 PM Agree 0
    @commission wars

    It's great to see options for services. Lower fees are obviously nice to get yet, for over 30 years one low cost model after another comes to the market with little to no meaningful success. Why? With little to earn you get low motivation (human nature) and most of these agents with talent eventually move to a more traditional (higher fee) structure. It's slowly coming out now that the stats most of the low fee companies use are not true. Most expire and sell on MLS. They then tout that they sold the home. Sad. Further, there is simply NO TRUTH to the matter that prices on homes are "bumped up" to reflect commissions. Totally silly. This remains a market. Large and affected by macroeconomic forces. NOT commission. 30 years in the business and yet to have ANY client successful in adding commission to their home price and getting it. You fail to understand the power of a large, organized market on achieving superior results. With that come higher costs to participate. Think real estate commissions are expensive? Try Barrett Jackson or Sothebys!
  • Commission Wars | 24 Feb 2015, 02:31 PM Agree 0
    Most buyers and sellers fall victim to these high fees because of the emotion and in-experience ...bought one home in their lives!!! Please tell ur clients that only way to motivate u is ' high commission realtors is the only way too motivate'!!!?? When someone speaks like that they don't understand what real work means!!! That is just EGO telling themselves I am worth bloated fees that I can take advantage of buyers and sellers who are emotional and in-experience in buying their first or second home.
  • Neil Hamilton | 26 Feb 2015, 03:04 PM Agree 0
    Buyers/Sellers always like to think realtors are gouging them on their fees. Unfortunately they really do not realize all the skills that are brought to bear to make a deal happen, and with a minimum of problems. The "ancillary" things that most good realtors do for their clients is manifold. "...oh, do you know a good lawyer?...what home inspector will do a good job for me?...do you know a good mortgage broker who can get us the best rate and terms?"..."gee, it looks like we need a structural engineer to examine the foundation...do you know a good one? "..how much should we offer and what subject conditions should we omit with 5 other bids coming in...? People outside the industry have no idea how much work goes into developing the knowledge and the kinds of professional relationships realtors have to have (i.e using different people and over time knowing the good ones, going to dozens of networking meetings, using other good realtors for solid referrals etc...) to make the deal "go smoothly" for their clients. If all goes well, the client thinks it was a piece of cake for the realtor, so why did they have to pay them so much? If they were in a multiple offer scenario and won, the realtor was a genius, if he/she lost the deal, they were no good and didn't know the market. As a realtor I can tell you that our profession is one of the most maligned out there - some our own fault admittedly as the "1.5 deals per year" guys basically shouldn't be in the business, because they're not in the market every day and shouldn't be passing on inexperienced advice to their clients. But the good ones earn their commissions and have had to put in a lot of time and effort to know what and who they know to make the deal "go smoothly" for their clients...
  • Mart | 26 Feb 2015, 08:28 PM Agree 0
    Interesting comments by someone that clearly doesnt understand real estate and suggests hiring someone for $2,000. If you think it is important to pay your Realtor to market your home 300k -500k investment/home less than you pay a car salesman to buy a $25,000 car, I can only wish you best of luck with the experience you will receive for the $2,000 real estate agent. In GTA average agent sells 4-5 homes per year so would be earning based on your model $10,000 annually to live. And probably working as a car dealer the rest of the time based on your model. Sounds like a well planned and thought out marketing plan? Ps. It costs $200 to run one ad in the newspaper and hundreds of other dollars to run a web campaign and many hours in the background - what do you expect to get for $2,000 exactly if Realtor has to pay 25% in income taxes and $200 to run just one ad for you?
  • M | 26 Feb 2015, 08:29 PM Agree 0
    agents created price wars... for your benefit as a seller
  • Cry Babies | 27 Feb 2015, 10:28 AM Agree 0
    Commission Wars..
    Listen to the cry babies it cost me so much for ads and make so little!!! ;-( Hire that guy who sounds so desperate!! Sounds more like charity he is asking/preaching for!!!!??
    More commission wars!!!! Hire a agent for $1,000 and keep shopping till you find a good one that has a track record,experienced,knowledgeable and will let u keep ur money for ur kids schooling,mortgage payments ,expenses....There are plenty of $1,000-$2,000 great agents that will provide all u need!!

    "Agents created price wars" this is what they brag about?? We all know paying top dollar never guarantees you results and same with paying very little. But we all know you find a great agent who charge $1,000 per transaction..

    Commission Wars
  • | 01 Mar 2015, 02:58 PM Agree 0
    I think that most people forget that the average agent in Toronto makes under $40k a year . Regardless,, what anyone believes or thinks , the average deal requires an average of 50 calls to get it from Sold to Closed. Real Estate agents work very hard for their money and put up with a lot of aggressive behaviour from clients, in most cases they do it diplomatically.
  • Commission wars!!! | 01 Mar 2015, 10:49 PM Agree 0
    Commission Wars!!
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