Selling property without expensive agent

Published by: jack 2009-01-09

I want to sell a condo I own in Toronto, Canada. However, the 5% fees that real agents charge are pretty ridiculous (2.5% to listing agent, 2.5% to purchaser's agent). Is there a less expensive way to sell? I am willing to pay up to 2.5% in total commissions. "For sale by owner" is supposed to be less effective, I am told. Are there discount agencies or the like?

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Greetings TraderRaider: A friend of mine purchased a FSBO through ReMax and the commission she paid was 3% for the realtor to handle every detail of the transaction. ReMax is in Canada at http://www.remax.ca/ and I discovered a list of Canadian FSBO links for you offered at http://www.getyourhousesold.com/fsbo.htm#canada. A site at http://biznet.maximizer.com/fsbo/msg8.html offers FSBO contacts and a contact page at http://biznet.maximizer.com/fsbo/msg8.html. Also, visit FSBO Properties Canada at http://www.nbhomeweb.com/ and http://allthelistings.com/, the latter having a searchable province directory for Canada (see "Choose state or province" in the upper left column). Note the resources at http://www.forsalebyownercanada.com/resource.htm and visit their "Home Selling Tips" page at http://www.forsalebyownercanada.com/tips.htm I caution you not to sign with any FSBO realtor or plan until you have reviewed a few agents' commissions and what the commissions include - they should include everything that a normal realty sale would involve. It is wise to use an agent or a lawyer for a home sale because of the intense paperwork involved. Plus, they are working for you and you are able to direct them to handle all the intricacies of the purchase. There are also "flat fee" realtors which are becoming popular with sellers. Some Canadian links I found for those were: Fairfield Realty http://www.tonybrogan.com/partsell.html Flat Fee Realty http://www.flatfeerealty.ca/ I hope you will be able to find the right realtor for your FSBO needs from the links I have provided. Should you need clarification of any of the information I have provided, please request it and I will be happy to respond. SEARCH STRATEGY: Canada FSBO realty Canada flat fee realty ReMax Canada

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Isn't ReMax like every other real estate agency? Don't they charge the same type of commissions? When your friend sold her place, did the buyer pay the 3% commission? If so, didn't she have to adjust the price accordingly to make the place attractive, thus neutralising the savings? Please clarify. Thanks.

My friend found the FSBO on her own. However, she had been working with a ReMax agent looking at listed properties, too, and when she saw the FSBO while they were out seeing houses one day, she liked it and contacted the buyer directly. Then, after my friend saw the FSBO, she phoned the realtor and asked what would be the charge for the realty company to take care of the sale. The realtor stated 3%. Although my friend could have handled the purchase through other means, such as paying a lawyer (because she found the FSBO, not the realtor so neither she nor the seller had any obligation to the realtor), she chose to honor the realtor with a buyer's commmission because she had seen the FSBO while looking at nearby property *with* the realtor (who had shown her a lot of properties during the weeks before). The purchase was then handled professionally sparing my friend any headaches with any part of the purchase, necessary papers, etc. In the transaction, my friend added the commission to the sale price of the property and then the seller immediately gave back the added commission to the realtor. In essence, my friend paid the realtor a seller's commission but it was half the 6% the seller would have paid a realtor had the property been listed. The realty agency had incurred no expenses for listing, advertising, etc. so they were pleased enough with 3%. This is done frequently by realtors with FSBOs. It's just not widely known because the realtor makes less so they don't encourage the practice. The attractive part for my friend was this: She had seen homes in the same neighborhood through the realtor for $7,000 to $10,000 more than the FSBO. The FSBO commission she paid was under $2,000. So my friend bought her home for under market value in the area where she preferred to live. Even after her closing costs she came in under the asking price of the other homes in the neighborhood. She recieved instant equity that way. Most realtors will deal just like other salespeople deal. If I am not mistaken, ReMax is mostly all brokers, if not all and it's a franchise name. They pay commission only to themselves and their business expenses (office, etc). Regarding FSBOs being less effective, that depends on if you choose to advertise the property in a local paper or on a local website. Part of the realtor's general commission is to handle promotion of the property. Also, if a property is for sale near you, with a sign, people visiting that property will see your sign. In a condo area, there is usually a steady flow of traffic and neighbors will mention it to friends and co-workers. Two of my other friends have bought FSBOs because of a lead they heard at work from the FSBO neighbor.