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OREA reminds consumers Realtor commissions are negotiable

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guest | 03 Oct 2011, 02:31 PM Agree 0

But the Ontario Real Estate Association (OREA) Monday sent out a press release to remind consumers of an important detail left out by those criticizing commissions – they are often negotiable, and always have been.“Correcting misconceptions about commissions is something that is very common for Realtors,” said Barbara Sukkau, OREA president. “A Realtor’s commission isn’t set in stone, it is agreed upon by the client and Realtor in the Buyer Representation Agreement or Listing Agreement.”She recommended potential clients interview more than one Realtor before committing to one.In July, Realtysellers and PropertyGuys.com merged to offer both private listing and brokerage services, boasting lower prices and more choice. At that time, a Burlington, Ont. agent from Re/Max told CRE that Realtors needed to remind consumers that they can negotiate costs down with them as well, while still getting quality service and representation.The OREA press release didn’t mention the merger directly, but seemed to be aimed at the same message.“Whether a client is a first time or experienced homebuyer, part of finding the right Realtor is looking for one who asks the right questions, gets to know their finances and demonstrates expert knowledge of current market trends,” said Sukkau. “It also means setting on a commission that works for everyone.”The commission is either a percentage of the sale price, or a previous agreed lump sum, but cannot be a combination of the two, said the OREA. Before signing up with a Realtor, the OREA suggested speaking to them about these details:•         Length of contract: How long will you be working together and what regions does the contract cover?•         Value: A seller's Realtor can complete a market value assessment and advise on a listing price. A buyer's Realtor will help them find a home in their price range and make sure to consider their list of 'must have features' in their home.•         Representation: Services offered by a Realtor can vary, so it is important for a buyer or seller to agree with their Realtor on how they are going to work together to either find the right home or sell their home for the best price possible.
  • you friendly neigborhood broker | 06 Oct 2011, 02:01 AM Agree 0
    I wish someone would start explaining to the public at large that our commission is not all take home pay!! The actual amount left to us at the end is far from being all ours, and to be quite honest, after the brokerage firm cut, the collaberating agent's fee, all of the advertising, real estate boards fee's, Revenu Canada and all the many miscellaneous fees (like gas, cell phone bills etc. etc...) there really is not that much left!! Take that amount and divide it by the number's of hours we spend on the phone, evening, weekends and all the other hours we spend on that file and what we make in the end is an ok salary. I wish more time would be spent explaining to the general public just how hard we work, the long hours, basically being "on call" 24/7, not to mention the amount of stress we endure in order to ensure that our clients are well served and extremely satisfied instead of focusing on how easy it is to sell one own home or how to cut our commission!! When was the last time you saw a federal government employee offer to take a pay cut? Sorry but just my two cents worth after an extremely long day!!
  • you friendly neigborhood broker | 06 Oct 2011, 03:01 AM Agree 0
    I wish someone would start explaining to the public at large that our commission is not all take home pay!! The actual amount left to us at the end is far from being all ours, and to be quite honest, after the brokerage firm cut, the collaberating agent's fee, all of the advertising, real estate boards fee's, Revenu Canada and all the many miscellaneous fees (like gas, cell phone bills etc. etc...) there really is not that much left!! Take that amount and divide it by the number's of hours we spend on the phone, evening, weekends and all the other hours we spend on that file and what we make in the end is an ok salary. I wish more time would be spent explaining to the general public just how hard we work, the long hours, basically being "on call" 24/7, not to mention the amount of stress we endure in order to ensure that our clients are well served and extremely satisfied instead of focusing on how easy it is to sell one own home or how to cut our commission!! When was the last time you saw a federal government employee offer to take a pay cut? Sorry but just my two cents worth after an extremely long day!!
  • Sensor | 03 Nov 2011, 10:57 PM Agree 0
    THIS BLOG IS CENSORED!!! IF ANYTHING IS POSTED THAT GOES AGAINST THE TRADITIONAL REALTOR IT IS DELETED!!! IF YOU HAVE READ THIS PLEASE CHECK BACK SOON AND YOU WILL SEE IT HAS BEEN DELETED!
  • Sensor | 03 Nov 2011, 11:57 PM Agree 0
    THIS BLOG IS CENSORED!!! IF ANYTHING IS POSTED THAT GOES AGAINST THE TRADITIONAL REALTOR IT IS DELETED!!! IF YOU HAVE READ THIS PLEASE CHECK BACK SOON AND YOU WILL SEE IT HAS BEEN DELETED!
  • Your Friendly Sales and Marketing Consultant | 09 Nov 2011, 01:02 AM Agree 0
    Although I agree with the friendly neighborhood broker, I don't see how you feel that it is up to homeowners to pay for your bills. You really just explained it perfectly. You need to charge 4-6% to survive in a cut throat industry where the average Realtor does 3 deals a year. That does not mean you are earning your money. If it wasn't an open market and there were half as many Realtors, the need to overcharge wouldn't be there and ruling like the one made last year would not have been approached. CREA, OREA, TREB and RECO on top of all the other boards are crooks. They steal from you, overcharge and we all know RECO hardly does anything to regulate anyone. Ask any Realtor who has done the course how many people fail Phase 2. They claim they want to weed people out but really if over 50% of the people fail this exam and take it again at another $89...Hmmmm...I personally have made 3 claims to RECO that went no where. The days of Realtors are over my friend. I was one a long while back and realized I wouldn't pay anyone that kind of money to sell my own house...you should realize it to and get into something else before the thousands of Realtors are all out there looking for work.
  • Your Friendly Sales and Marketing Consultant | 09 Nov 2011, 02:02 AM Agree 0
    Although I agree with the friendly neighborhood broker, I don't see how you feel that it is up to homeowners to pay for your bills. You really just explained it perfectly. You need to charge 4-6% to survive in a cut throat industry where the average Realtor does 3 deals a year. That does not mean you are earning your money. If it wasn't an open market and there were half as many Realtors, the need to overcharge wouldn't be there and ruling like the one made last year would not have been approached. CREA, OREA, TREB and RECO on top of all the other boards are crooks. They steal from you, overcharge and we all know RECO hardly does anything to regulate anyone. Ask any Realtor who has done the course how many people fail Phase 2. They claim they want to weed people out but really if over 50% of the people fail this exam and take it again at another $89...Hmmmm...I personally have made 3 claims to RECO that went no where. The days of Realtors are over my friend. I was one a long while back and realized I wouldn't pay anyone that kind of money to sell my own house...you should realize it to and get into something else before the thousands of Realtors are all out there looking for work.
  • kipper | 18 Nov 2011, 01:17 AM Agree 0
    I negotiated my realtors fees. Be strategic about it. Incentivize the realtor to make your asking price, by offering a better %. And if not a sufficient %, plus you can ask for things like staging and advertising be included. Figure out what your property needs to make it sell. If you can't figure that out, then email me I'll do it for you for you (for a price ;). gordonwoodsratepayers@rogers.com
  • kipper | 18 Nov 2011, 02:17 AM Agree 0
    I negotiated my realtors fees. Be strategic about it. Incentivize the realtor to make your asking price, by offering a better %. And if not a sufficient %, plus you can ask for things like staging and advertising be included. Figure out what your property needs to make it sell. If you can't figure that out, then email me I'll do it for you for you (for a price ;). gordonwoodsratepayers@rogers.com
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