Insiders in the Ontario real estate industry have, or should have known this was coming for a long time now.
I’ve just discovered a Realtor that will list your property on the Toronto Real Estate Board’s multiple listing service (“mls“) for the flat fee of $95!
Now, there has always been “For Sale By Owner” but the reality is, that without access to the multiple listing service (historically exclusively available to licensed Realtors) it was very difficult.
Recently the Canadian Competition Bureau cracked down on the industry and required that Realtors could come up with whatever commission schemes they want.
Many brokerages turned to flat fee service whereby they simply list your property for you and leave all the rest to you depending upon their offered packages.
Now, in reality, there is only a small percentage of sellers willing to take on the challenges of answering phone calls at all hours of the day answering questions and arranging viewing appointments for buyers, let alone jump into the negotiations arena with brokers who’ve been negotiating real estate deals for years!
That small percentage of owners remains small due to most people’s lack of comfort and/or confidence in becoming a Realtor over night without any training whatsoever, to handle the sale of an inventory of homes for sale limited to one (their own).
I’ve never supported this approach as it leaves too much wiggle room for errors which could end up quite costly.
However, this Realtor gives a pretty impressive package for sellers for a flat fee of $95.00, but he can give sellers the experience that they need to ultimately be successful at selling their home.
I’m offering a remedy. People should list with that Realtor (for $95) and refer all respondents to me where, for a flat fee of 1% of the selling price, I will handle all of the inquiries, schedule appointments and negotiate the sale for them.
You see all these commission schemes ultimately require that the seller deal with and pay the conventional 2 1/2% buyer agency portion of conventional commissions so the flat rate deal really only applies to the “listing portion” of that 5% – 6% conventional commission.
I would recommend that you list your property with that Realtor at $95 (contact me and I’ll give you his contact information) offering a 1% buyer agency commission so, in the end you’ve sold your property from about 1/3rd the going rate (a total of 2% plus the $95) instead of 5% – 6%.
And you have a professional handling both ends for you. Odds are good that I will be able to do the deal for you myself, taking away all the headaches of trying to sell your own home (without years of professional training) while saving you almost 4%!
Let’s look at the sale of a million dollar condo.
6% of that equates to $60,000 in commissions. But when you buy the flat rate deal at $95 and pay me 1% to handle the traffic plus another 1% for the buyer agent you pay only $20,000 (2%) plus the $95 for a total of $20,095.
Now, that’s roughly $40,000 (or the price of a new car) and you got the job done by a pro!
If you are interested in discussing this money saving way to sell your property, give me a call at 647-667-9707.