Real Estate Talks

We are looking at selling my mother's house in Surrey. There is very little or no inventory in a desirable family neighborhood and we estimate the current value of the house is around $950,000. The house is 25 years old and is dated but in good shape. We are planning on doing very little to spruce it up and just plan to list it on MLS with a realtor, have 3 or 4 open houses, and then take offers on the house so we think it should be a quick sale. 

What would be a reasonable commission to pay the realtors? One idea we are considering is paying the buyer's realtor the full 3.255% commission on the first $100,000 and 1.1625% on the balance and paying the selling realtor a flat fee of somewhere around $10,000. On the estimated selling price of $950,000 the total commission would be $23,136 ($10,000 + $13,136) + GST.  Does this commission structure sound reasonable instead of paying the usual commission of 7% on the first $100,000 and 2.5% on the balance ($28,250 commission)?

It's all very context dependent.  If the seller agent isn't going to much involved beyond putting up a sign and listing on the mls, than yeah, I can see where you might want to save on commission.  Especially if your equity is particularly low.

Make the buyers part large then buyers agents will steer clients over

It's all very context dependent.  If the seller agent isn't going to much involved beyond putting up a sign and listing on the mls, than yeah, I can see where you might want to save on commission.  Especially if your equity is particularly low.

Thanks for the response back Austin and Tdma800. Just out of curiosity why would the amount of her equity in the house impact the decision on the amount of commission to pay the realtor?

Realsitically we would expect the listing realtor to list with pictures on the MLS, perhaps have an agents showing, 2 or 3 open houses, and then take offers 2 weeks later..

There are a few agents in the Surrey area that will sell for a lower commission on the listing side.  The key is to ensure the buyer's agent side is enticing.  The list price is a big marketing factor - the lower the price, the more eyes will be on it.  And, you want to ensure that the listing agent does more than just hang a sign and post on MLS.  Ensure that the property is exposed as far and wide as possible from day one of listing with good pics and a good write up.   (MLS, Craigslist, Kijiji etc).  Hopefully, that will ensure that it moves quickly and doesn't sit on the market.  Having a property sell fast is good for the listing agent too.  It makes them easy money and it looks good for their business.  My two cents.  Good luck. 

There are a few agents in the Surrey area that will sell for a lower commission on the listing side.  The key is to ensure the buyer's agent side is enticing.  The list price is a big marketing factor - the lower the price, the more eyes will be on it.  And, you want to ensure that the listing agent does more than just hang a sign and post on MLS.  Ensure that the property is exposed as far and wide as possible from day one of listing with good pics and a good write up.   (MLS, Craigslist, Kijiji etc).  Hopefully, that will ensure that it moves quickly and doesn't sit on the market.  Having a property sell fast is good for the listing agent too.  It makes them easy money and it looks good for their business.  My two cents.  Good luck. 

If I were a realtor (which I'm not) why would I take a listing with lower commissions?  I take all the costs associated with the listing and advertising, the risk if the deal goes sideways, or if the buyer sues down the road for whatever reason, I could get tangled up in a lawsuit, all for lower commissions.  I guess if you can get them to lower their commission all the power to ya, but why would a realtor do that, unless they are really hungry, which probably means they aren't the best anyways, which means it could cost you more than you save on the final sale price.

There are a few agents in the Surrey area that will sell for a lower commission on the listing side.  The key is to ensure the buyer's agent side is enticing.  The list price is a big marketing factor - the lower the price, the more eyes will be on it.  And, you want to ensure that the listing agent does more than just hang a sign and post on MLS.  Ensure that the property is exposed as far and wide as possible from day one of listing with good pics and a good write up.   (MLS, Craigslist, Kijiji etc).  Hopefully, that will ensure that it moves quickly and doesn't sit on the market.  Having a property sell fast is good for the listing agent too.  It makes them easy money and it looks good for their business.  My two cents.  Good luck. 

If I were a realtor (which I'm not) why would I take a listing with lower commissions?  I take all the costs associated with the listing and advertising, the risk if the deal goes sideways, or if the buyer sues down the road for whatever reason, I could get tangled up in a lawsuit, all for lower commissions.  I guess if you can get them to lower their commission all the power to ya, but why would a realtor do that, unless they are really hungry, which probably means they aren't the best anyways, which means it could cost you more than you save on the final sale price.

irrelevant- plonk

There are a few agents in the Surrey area that will sell for a lower commission on the listing side.  The key is to ensure the buyer's agent side is enticing.  The list price is a big marketing factor - the lower the price, the more eyes will be on it.  And, you want to ensure that the listing agent does more than just hang a sign and post on MLS.  Ensure that the property is exposed as far and wide as possible from day one of listing with good pics and a good write up.   (MLS, Craigslist, Kijiji etc).  Hopefully, that will ensure that it moves quickly and doesn't sit on the market.  Having a property sell fast is good for the listing agent too.  It makes them easy money and it looks good for their business.  My two cents.  Good luck. 

the other noob very clearly unlicenced.  Yes in Surey and elsewhere there are a variety of commissions.  If it goes out the door that fast it was too low lol

Noob?  I hope you don't mean me!  lol.  I was simply answering the question.  Whether it is the right decision or not is in the hands of the seller. 

Noob?  I hope you don't mean me!  lol.  I was simply answering the question.  Whether it is the right decision or not is in the hands of the seller. 

No

I meant the smelly one

Noob?  I hope you don't mean me!  lol.  I was simply answering the question.  Whether it is the right decision or not is in the hands of the seller. 

Maggie best advice on the forum put Moonboy on Ignore!!!

Noob?  I hope you don't mean me!  lol.  I was simply answering the question.  Whether it is the right decision or not is in the hands of the seller. 

Maggie best advice on the forum put Moonboy on Ignore!!!

Unlicensed noob - plonk

Why is there sudden rush of foreign chinese investors in Surrey?

^--- drooling with envy