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1% Realty

May 22, 2014, 11:07 a.m.
Posts: 13931
Joined: Feb. 19, 2003

^^^

CS, i don't think you can compare things like that unless your buying the same or very similar condos in the same building. there's so many variables to consider like the property itself, buyers interest in the property, owner's need to sell, etc. just because you got $80K off your deal doesn't mean it was all due to the realtor. if your offer was the only one on the table and there hadn't been any action for a while maybe the owner was just up against a wall and needed to sell.

Completely agree that it's not apples to apples. But to generalize that using a realtor is ripping yourself off, or focusing in on the commission to the exclusion of all the other variables is equally naive. There's no question in my mind that in my situation, I saved more by using a realtor then I would have by trying to go it on my own. YMMV.

May 22, 2014, 11:19 a.m.
Posts: 19
Joined: Nov. 20, 2002

Just to clarify, I'm not against realtors. I'm sure in some situations it's a good idea BUT the fees they charge for what they do is insane. Specially when houses sell them selves. On my street two houses sold in less than 5 days for asking price in april/may of this year.

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May 22, 2014, 11:48 a.m.
Posts: 1080
Joined: May 4, 2006

Well, Id fire my realtor if I found out he/she was purposely avoiding showing me 1% realty properties…

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May 22, 2014, 12:14 p.m.
Posts: 0
Joined: Aug. 29, 2008

My realtor took us to 1% listings and we even made an offer on one.

What I remember most of all was a time I was walking by a 1% open house so just rolled through on my own. Guy asks if I have a realtor already and when I say yes, he gives me his card and says to give him a call if I want to buy the place an cut my realtor out of the deal.

It struck me then that maybe 1% is searching for this type of 1 sided deal all the time…

Regardless is was a sleazy move, and one I had never experienced in other like situations. So just as is the case with all industries. There are douchebags, and people that are good at their job, operate with integrity, and who deserve to get paid for their services.

As someone mentioned above, find someone who you know will negotiate hard for you and get top dollar and they will pay for them selves. If you pay peanuts you will get monkeys.

May 22, 2014, 12:33 p.m.
Posts: 4857
Joined: Nov. 25, 2002

Just to clarify, I'm not against realtors. I'm sure in some situations it's a good idea BUT the fees they charge for what they do is insane. Specially when houses sell them selves. On my street two houses sold in less than 5 days for asking price in april/may of this year.

yeah, Vancouver is a bit of a special situation. both me [HTML_REMOVED] my wife sold our previous properties on our own [HTML_REMOVED] the process was surprisingly quick [HTML_REMOVED] painless. definitely worth the chunk of change we saved.

May 22, 2014, 12:38 p.m.
Posts: 8256
Joined: Nov. 21, 2002

^^ interesting

when my mom sold her house on her own, the realtors would take down her signs.

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May 22, 2014, 12:50 p.m.
Posts: 815
Joined: March 13, 2004

True, but buying agents will actively avoid showing your house to clients, or demand that their fee get 'topped up' as part of the sale (if it happens), which provides a disincentive to the purchaser.

Any educated purchaser needs to seriously consider who their representative is if they aren't willing to show the property they might be interested in at any price.

May 22, 2014, 1:33 p.m.
Posts: 255
Joined: Jan. 8, 2013

Fair comparison in our building: two units, same floor, mirror images of each other. Not much time difference (market condition) between the two sales. The only difference was the flooring in one had been changed, and even that wasnt new.

The one sold by 1% got significantly less $, and the guy clearly put less effort into the deal. I would say 1% will clearly put in minimal effort.

This is in vancouver, btw.

The tactics/moral standing/need for realtors is a separate discussion. (Kind of like travel agents?)

May 22, 2014, 3:33 p.m.
Posts: 0
Joined: Oct. 9, 2009

Fair comparison in our building: two units, same floor, mirror images of each other. Not much time difference (market condition) between the two sales. The only difference was the flooring in one had been changed, and even that wasnt new.

The one sold by 1% got significantly less $, and the guy clearly put less effort into the deal. I would say 1% will clearly put in minimal effort.

This is in vancouver, btw.

The tactics/moral standing/need for realtors is a separate discussion. (Kind of like travel agents?)

In that case you're saying it's probably a much better deal to target 1% realty houses when purchasing?

May 22, 2014, 4:01 p.m.
Posts: 5329
Joined: Feb. 3, 2006

As with most things in life. You get what you pay for.

May 22, 2014, 4:02 p.m.
Posts: 11297
Joined: June 4, 2008

So if I pay a lot for a realtor I will get a good one?

May 22, 2014, 4:42 p.m.
Posts: 323
Joined: Nov. 23, 2002

So if I pay a lot for a realtor I will get a good one?

i hear gearwhore is the best, but he charges like 98% commission. not sure if that works for you.

I'm not a human in real life, I just play one on the internet. 

May 23, 2014, 12:24 a.m.
Posts: 10010
Joined: March 11, 2003

So prices go up 100% and you want a proportional increase in your fee for the same or less service in the age of the internet?? Bahahahahah

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Is there a Vancouver in Taiwan?! I had no idea!!

Nothing sums up my life's achievements like my stuffed corpse, suplexing a cougar.

May 23, 2014, 10:22 a.m.
Posts: 7707
Joined: Sept. 11, 2003

Realtors don't work for you. They work for themselves. And who can blame them? Get a Realtor with good recommendations, just don't drink the kool-aid. There is zero evidence that any realtor can generally get you a better price on a RE transaction. In fact, the RE business operates on principles contrary to this.

http://www.moneysmartsblog.com/why-you-cant-trust-real-estate-agents-when-buying-a-house/

http://www.moneysmartsblog.com/why-you-cant-trust-real-estate-agents-when-selling-a-house/

May 23, 2014, 1:22 p.m.
Posts: 1584
Joined: June 20, 2003

True, but buying agents will actively avoid showing your house to clients, or demand that their fee get 'topped up' as part of the sale (if it happens), which provides a disincentive to the purchaser.

Also, you should compare the level of service or advertising that you will get from 1% compared to a full agent. My understanding is that they will spend significantly less on marketing of your house (less money to spend).

Not arguing one versus another, but it's not cut and dried IMHO.

I have been told by realtor friends this very same thing. Why present a place to your clients where your commission is next to nothing when there's a comparable property with a proper commission available? Also, there is nothing preventing an offer from being presented that requires the realtor fee being increased as a condition of the sale.

Selling one's house on one's own is particularly easy if you already know someone who is interested. In our case it was a friend of our then neighbour, so it was win win for all of us on that deal.

I still lean toward the "you get what you pay for" comment, though. I used a realtor to sell my last place (and shopped several realtors to do so) and ended up with an aggressive realtor who was a great negotiator and ended up getting me more money out of the sale than I thought possible under the circumstances. It more than paid for her commission and I still ended up ahead. Part of that could have been market timing but it still doesn't discount her tough negotiating style.

Lots of options and I don't' think there is one answer for every scenario.

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