Hi All,
Please have a read at the blog on a popular realty listing web portal which is being reproduced below:
Blog.ByTheOwner.com
A blog about the real estate market and the for sale by owner process
« SPIS Form: Sellers Property Information Statement
Alberta, Saskatchewan and BC Overpriced: Globe and Mail »
July Information on the Greater Toronto Market
Here is a link to an article from the Toronto Star about the July real estate agent results. According to the article, real estate agent
sales are down 12% in July and listings are up 28%. The average price for a home was $371,427 which is “the lowest year over
year increase since the first quarter of 2001″.
http://www.thestar.com/article/473583
If home prices have only increased 1% from July 2007, that means that anyone who purchased a home in the last year and needs
to sell it would lose money if they went with an agent! If we look at a $400,000 example:
SELLING WITH AN AGENT
2007 Home purchase price =$400,000
1% Home Price increase = $4,000
2008 Selling price = $404,000
Land Transfer Tax = $4,475
Real Estate Commission (5% +GST) = $21,210
OWNER KEEPS = $378,315
OWNER LOSES = $21,685 (OUCH!)
SELLING WITH ByTheOwner.com
2007 Home purchase price =$400,000
1% Home Price increase = $4,000
2008 Selling price = $404,000
Land Transfer Tax = $4,475
Real Estate Commission (5% +GST) = $0
ByTheOwner Fees = $649 (max)
OWNER KEEPS = $398,876
OWNER LOSES = $1,124 (Much better than losing $21,685!)
In this example, the owner saved more than $20,561 from the sale of their home by using ByTheOwner.com!
ByTheOwner.com
This entry was posted on Thursday, August 7th, 2008 at 8:05 am and is filed under Real Estate Market. You can follow any responses to this entry through
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In my opinion, this information is misleading as they cannot generalize the things.
I invite all the members of the public and the realtors to submit their comments here so that a case can be taken up against the propagators of such maligning compaign.
Thanks,
Paul Cheema, Salesperson
http://www.quicksellnbuy.com/
http://www.canrealty-mart.com/
www.century21.ca/paul.cheema
Serving people in finding Condominiums (condos) in Toronto, Brampton, Mississauga, & Oakville. Please subscribe to my blog if you want to be updated on a regular basis. Many new Condos to be announced in coming months. So, stay tuned. Paul Cheema
2 comments:
Hi Paul,
Have you noticed that majority of those sites often provide misleading information? There is much more to marketing a property for sale than just placing it on a ByTheOwner.com. It is a nice site and I use it all the time! It’s a Gold Mine! But… wait a minute, I AM a REALTOR! Now I have noticed that there are listings still posted there that have long since sold with a Realtor…
There is no easy answer for a homeowner. That commission will always be in the picture. But if someone is only considering the numbers… forgoing everything else that a Good Realtor has to offer… well, you know how it ends…
Lets not forget those who choose to buy without an Agent. Here’s a story, you have to read: http://askagerber.activerain.com/post/588358/Buying-a-home-without-an-Agent-
And take a look at this as well: http://www.selling-barrie-homes.com/sale-by-owner.html
All the Best!
Joanna Gerber
Sales Representative
HomeLife
Kempenfelt-Kelly
Realty Ltd. Brokerage*
Barrie, Ontario
www.Selling-Barrie-Homes.com
Joanna@Selling-Barrie-Homes.com
Hi Joanna,
Very right. The sellers turn greedy and in that greed they forget that they are doing harm to themselves. They just see that the neighbours housesold for a specific amount and then try to sell their for the same amount not realizing that the other seller paid the realtor's commission. Now a buyer comes with a realtor and the realtor asks for commission agreement with the seller of unlisted property. Either the seller accepts it or waits till infinity to welcome another buyer. I pity those thoughts. People just think that the realtors are just for stealing money from their wallets little realizing the services the realtors provide and the expense they incur in advertising the property. Anyways the better sense should prevail.
See this link for a nice video on FSBO:http://www.youtube.com/watch?v=KGqepd-Azzo
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