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1% low commission Brampton agent

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Hello, my name is Vic Singh. If you’ve decided to sell your house than you’ve probably got real estate commissions on your mind. Up till now there were the two usual options. Go for a full service agent and pay a hefty commission or go for a discount agent and hope you get some kind of service.

I’m offering a third alternative. I’m a full service agent for the past 13 years that’s charging only 1% commission. Internet has made selling houses a lot easier. Marketing costs have come down quite a bit. For that reason I’m able to charge less commission and still make a living. Let’s get started, and hopefully I’ll answer any questions you might have if you’re skeptical.

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My commission rate is very easy to understand.

  • If you need to just sell: I will charge 1% commission to list your house.
  • If you need to sell AND buy: I will charge only $1,500 to list your house.
  • Buyer agent (if there is one) will get 2.5% in either case.
  • That’s it. No surprises, no sales tricks.

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 You get full MLS service including:

  • Listing uploaded on the MLS and MLS.ca
  • Also on Zoocasa.com
  • Over 700 local real estate sites
  • Panoramic virtual tour (see sample)
  • Professional photography (see sample)
  • Facebook ads
  • Google ads
  • Listing promoted within the office (over 640 agents)
  • Full color Feature Sheets
  • For Sale Sign (with link to the virtual tour)
  • Email local agents your listing with the virtual tour
  • Email agents who show your house for feedback
  • Constant communication with you
  • The rest of the marketing plan we can discuss in person

 newspaper-advertising

The only thing that is not included is newspaper advertising. Some agents still push for newspaper ads. However, I don’t know of many young buyers looking through newspapers to find houses anymore.

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Yes, commission is important but it’s not the only thing.

  • You get NO sales pressure from me. You’re the boss. I’ll only give you my expert opinion.
  • I reply to emails within 14 minutes. You won’t have to wonder about any question longer than 14 minutes.
  • I email agents for feedback on all the showings. This is valuable information that I later pass on to you.
  • 13+ years of full time experience. This shows other people in Brampton have trusted me with their house. See list.
  • Quality of work/marketing materials is second to none. I spend the extra money to hire good professionals.
  • “Easy Exit Listing”: If you are not satisfied for any reason, I will cancel the listing. No penalties charged.

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Less overhead: My company charges me less monthly fees, franchise fees, and less per transaction. I had worked with the number one company in North America for 7 years (I think you can figure out which one I’m talking about). What I found was nobody bought a house because their company logo was on the sign. Nobody paid more or less because of which company I was with.

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1% commission real estate agents in Brampton

Real estate commissions explained

Very quick and to the point introduction to real estate commissions

1. There are no “standard” commissions.

2. Sellers agree to pay commission when they hire a real estate company to sell their house.

3. Commissions are divided up into 2 parts. One part goes to the Listing Brokerage (LB) the other to the Brokerage (BB) who brings in the buyer.

4. It’s not always divided up into equal parts between the Listing Brokerage and Buyer Brokerage.

5. Even though there are no standard commissions, buyer agents seem to getting 2.5% in the Brampton market.

6. LB commission in Brampton is anywhere from $999 to 2.5% (that’s what I’ve noticed. Others might be charging more or less).

7. There’s HST on real estate commission. It’s 13% on the commission portion.

8. Generally no commission is paid if the house does not sell. Unless it’s a FSBO company that might charge upfront.

9. Usually it’s not a good idea to pick an agent just based on commission. Check for track record, services, experience, and your comfort level.

10. Some believe the more commission you pay the better the agent. Not always the case.

11. Commission is paid the the LB, then a cheque is cut out to the BB for their portion. Your contract is always with the LB.

12. Upon closing, your lawyer will cut out the cheque to the LB. You don’t need to worry about anything. Lawyer handles everything.

13. Some companies (as mentioned above) will charge an upfront fee whether the house sells or not. You have to do all the work (and still pay     the BB whatever you negotiate with them on your own).

14. Be careful of agents who might charge $500 or $1,000. Usually there are catches. Be sure to ask lots of questions and read the fine print.

 

1% Commission Brampton agent

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Real estate commission on your mind?

If you’ve got a house to sell than you’ve probably got real estate commission on your mind. Some of the common things that run through home sellers’ minds are:

1. Why do they charge so much?

2. I wonder if I can just post it online and sell it myself

3. Aren’t all agents the same? I’ll just get the cheapest agent

4. Why should I pay for the buyer agent’s commission?

Those are all fair concerns. After all, it took years to built up equity in the house and for one reason or other you are selling and in danger of losing a chunk of that equity.

Commission Breakdown

Here’s a quick overview of how real estate commission work.

In order to have your listing posted on the MLS (#1 real estate tool for marketing listings) you need:

1. To be listed with a real estate Broker.

2. Agree to offer commission to the Listing Broker and Buyer Broker.

The Listing Broker’s (LB) commission is negotiable and agents charge anywhere from $500 to 2.5% of the sale price of the house.

The Buyer Broker’s (BB) commission is also negotiable but most people seem to be offering 2.5% of the sale price. You can offer less but if there are lots of houses like yours on the market and they are offering 2.5% then the chances are BBs will lean towards those.

Oh, there’s also HST on real estate commission. It’s 13% on the commission. So if the commission works out to $10,000 the HST on top of that will be $1,300.

Commission Loopholes?

According to the Real Estate Board’s rules you have to offer the BB some commission in order to get on the MLS. So what a couple of companies decided to do was offer $1 commission. They would charge the sellers a flat fee upfront (regardless is the house sells or not). This allowed them to post their listings on the MLS.

Problems with this idea?

The company’s “catch” was that the seller had to do all the work. Arrange showings, weed out prospects, deal with BBs direct to negotiate their commission. The BB would show the house and then ask the seller for a fair commission. Chances are it would work out to 2.5% in the end for the BB.

So all that happens is the seller ends up doing all the work and still end up paying 2.5% (and also paying the LB a flat fee even before the house has sold).

Bigger problem with this loophole? Most BBs will check how much commission they are being offered before showing the house. When they see an amount like “$1″ they might just skip that listing altogether. Ask yourself, if you had a family to feed and had only that one buyer client which listing you might push him towards? One that offers 2.5% or the other that offers only $1.

Commission summary so far

  • In order to get on the MLS you need to hire a real estate broker.
  • Commission is divided up into 2 parts. Listing Broker portion and Buyer Broker’s.
  • Commission is negotiable on both sides. Buyer Broker’s seem to be at 2.5%.
  • There’s HST on real estate commission.
  • You can offer less to the Buyer Broker but your house might not get shown.
  • Some discount companies will charge a flat fee upfront and post your listing on MLS. You do all the work.

How much should you pay the Listing Broker?

Listing Broker’s commission can be anywhere from $500 to 2.5% of the sale price.

Few things to keep in mind:

  • Just because they work for a big brand doesn’t mean you’ll get full service.
  • Just because they work for a small company doesn’t mean you’ll get bad service.
  • Individual agents sell the house, not the company.
  • If they’re offering you the world, get it in writing.
  • Newspaper ads don’t sell houses anymore. Some agents might use this to justify commission.

The $500 agent

Every agent has the right to decide how much they’d like to charge. You just have to ask yourself how hard this person might work if he’s only making $500. Is he doing this part time? because it’s hard to survive on $500. Will you be able to get a hold of him when you have questions?

The 2.5% agent

These agents say they offer full service. They’re usually with the big brands. However, before signing up ask yourself:

  • What exactly will do in terms of marketing?
  • What’s their justification for asking the 2.5%. Some might just say “it’s the going rate”
  • How much experience do they have?
  • If the house sells in 3 days through the MLS…where did the money go

Bottom Line

Most agents provide exceptional service and are worth every penny. Some agents will negotiate really hard for you and get you extra money from the buyers that’ll cover their commission and then some.

4 ways not to pick an agent

  • Don’t pick someone just based on commission. Commission is one factor, but should be the only thing.
  • Don’t pick an agent because they say they’ll get a really high price for your house. This is called “buying the listing”. The idea is to outbid other agents and knock you down later about pricing.
  • Don’t forget to read the listing agreement. Anything preprinted is for your protection. You need to focus on the “fill in the blanks” portion. There’s 3 main things to look for: Price, length of contract, and total commission.
  • Don’t pick someone just based on their company name. Companies don’t sell houses..agents do. A lazy can be found in a big company or a small company. A great agent can also be working in a small company.

Some questions to ask real estate agents

  • What will they do to sell your house. Try to get it in writing.
  • What’s the commission? Is it different if they sell it themselves?
  • What’s the length of the contract?
  • Can you cancel if you’re not satisfied? Will there be any penalties?
  • How many houses have they sold in that area?
  • Can you see sample Feature Sheets, fliers, etc.
  • Do they do panoramic virtual tours? or just a slideshow? (Big difference).
  • Do they have an online marketing plan?
  • Can you speak to some past clients

I tried to cover as much as I could in just one article. Hopefully this is helpful to you. Good luck with the whole process. You can contact me if you have any further questions.

Questions to ask real estate agents

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Looking for a real estate agent?

There are lots of real estate agents in every market. How do you choose which one to go with? Here are a few questions to help you narrow down the field.

1. Can you tell me what you do to sell your listings?
A good real estate agent will have a marketing plan in writing. He will have exact steps outlined that he will take in order to sell your house. Ask to see some samples, maybe sample ads or pictures from another listing. You want someone who will actively be out there promoting your house. Gone are the days where you could just upload the listing on the MLS and it would sell in 2 days with 10 offers. The market is turning, listings are taking longer to sell.

2. How many houses do you sell per year?
This is a tricky one. You want someone who is selling houses consistently but be careful how stats are presented. Some agents will say they sold 200 houses last year. Ask them how many they had actually listed. If they listed 500 houses and 200 sold, than that’s not very impressive. If someone listed 30 homes and 29 of them sold, that really good.

3. Do you work in the area?
This is important because you don’t want an agent who spreads himself too thin. I’ve seen ads saying “covering Kitchener to Oshawa”. Find someone who knows the local area.

4. Can I speak with your 3 most recent clients?
Past clients are an excellent way to get the truth about an agent. Good agents will have no problem providing your references.

5. How much commission do you charge? Is it negotiable?
The real estate industry is very competitive. That usually means prices (commissions) come down. It’s the same in any industry. The more competition there is the cheaper something becomes. Some agents will want the full 5% commission (2.5% for them, 2.5% for the buyer agent). Ask them to justify it. If you see the value then you should pay for it. On the other hand, some agents will charge ridiculously low commission like $500 to $900. You really have to ask yourself what type of service you will get. Honestly, a person can go to McDonald’s and make more than that. Try to find a middle-ground somewhere.

6. How long will you take to return my calls/emails?
Number one complaint consumers have against real estate agents is “I can’t get a hold of him”. With today’s technology there’s no reason your agent shouldn’t be able to get back to you at reasonable hours.

7. If I’m not satisfied with your services, can I cancel the listing? Are there any penalties?
You don’t want to be stuck in a contract with someone who can’t get the job done. Discuss this before listing the house and get it in writing. Some agents will agree to it, most won’t.

8. Do you know the neighbourhood? Schools, amenities, etc..
Your agent should be able to sell the neighbo rhood to potential buyers. Knowing the schools in the area, any special things about the area, rec centres etc.. all help a potential buyer make the decision.

9. How did you come up with the price for my house? How do you support it?
Most agents will prepare a CMA (Comparative Market Analysis) for your house. This shows all comparable listings that have sold or are currently for sale in your area. This is the best way to arrive at your listing price. However, if an agent is not prepared he will just approximate or just go with the price you suggest (even if it’s high) just to get the listing.

10. If you sell the house yourself what will be the commission?
Some agents will want to double their commission if the buyer doesn’t have an agent. Some agents will put that commission towards the price to make the deal work. All this should be discussed before the listing.

11. How long have you been selling real estate? Are you full time?
Nowadays buyers want information instantly. If a potential buyer emails regarding your listing and an agent doesn’t get back to them right away chances are the excitement dies down and the buyer moves on to something else. Being part time it is very difficult to be available right away.

12. Do you sell every listing you take?
This is an important question because there are some discount agents who charge $500 to list a house (for example) therefore they get lots of listings. However, half or more of those listings don’t sell. All that happens is the sellers get stuck in a contract they can’t get out of and their listing is used to generate buyer leads.