This is coming up more often every day. A serious seller wants me to sell their home. They know about me, my reputation, my experience and, most importantly, my ability to sell my listings for more than most agents are able to. Yet, they know of an agent that will take a lower commission. Reasonable concern. They want me, but they also want to pay less. Understood. Usually, however, sellers don’t realize how the commission is usually split between two agents; one who lists the property and one who brings the buyer with an acceptable offer- this agent is called the ‘Co-operating Broker’. They are expected to get 2.5% which is paid by the seller. The rest of the commission usually goes to the ‘Listing Agent’ who is representing the seller. This is where the commission is cut. If the Co-op agent does not see that they are getting 2.5% for their offers they likely will decide not to show it at all. No seller wants to take that chance. If a Listing Agent takes a smaller portion at their end something is sacrificed in the whole process. The seller may end up saving .5% of the commission but, for many reasons, sell their home for ten of thousands less than they should/could be. Remember, if you start with quality you end up with quality. You would never hire a discount surgeon, would you? If your home is one of your most valuable assets (kids probably come first), think twice about selecting a discount Broker because the biggest discount may be the price of your home! Focus on what you could net in your pocket, not what you pay in commission. In fact, a discounted commission even suggests the services offered (including negotiations) are compromised. Make your first choice your best choice. Think big! Sell Big! Choose wisely!
Archives for May 2014
After a gruelling winter we are finally seeing signs of the Spring real estate market in full bloom in the GTA. More listings (still not enough), multiple offers, open houses, crazy bidding wars, etc. Remember last year? The Spring market actually started in February; better weather, more listings. This year, we didn’t see the market open up until well into April. Why is that? Two very obvious reasons are weather and inventory. If there is very little for sale (on average) and an average temperature of -12C people just don’t have much to look at and besides… it’s too darn cold!! Now that the hats and gloves are packed away (not to come out till December- fingers crossed) people are starting to think about buying houses again. Hallelujah! Of course, we need more good properties for sale. In fact, the GTA listing inventory is down about 20-25% from this time last year. What does this say for sellers? Sell now! You have much less competition. In fact, houses are not for sale in hot areas for more than a few days and are getting bidding wars. Not all areas are comparable, therefore, many areas may be experiencing cooler levels of activity. Overall, however, every area in the GTA is in full Spring real estate market mode. Oh yeah, it’s on!