dealing with buyer's agents

Although about 50% of our mere posting MLS® System listings sell directly to the buyer without any buyer's agents involved, preparing yourself to negotiate and interact with buyer's agents is a very important element of a successful private sale.

We have included this information to help you better understand exactly what your role in the sale of your property is, and what the basic rules are when it comes to working with buyer's agents.

1

As a Private Seller, you Take on the Role of the Listing Agent

Becoming the Vendor and the Salesperson.

When you sell your home you take on two roles. First as the seller, you become what is called the Vendor. Just like any other vendor, you must keep your shop/home in order during the sale. Appearing organized and at ease will go a long way in providing for a better experience with your buyers when they come to check out your home.

Your second role is that of salesperson. As the salesperson and the home owner, you already know pretty much everything there is to know about the property. And if you think about it - there is probably no one better to show your property to prospective buyers than you anyway, so create a positive vibe and have a bit of fun while you do it!

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2

Common Things Agents May Tell You to Try to Get You to List with Them

The bottom line is - agents don't really want you to be successful...

Let's face it, successful private sellers is the last thing the Real Estate industry wants, and there are many stakeholders whose commissions are lost every time a Canadian home owner chooses not to list their property with a Real Estate Agent in Canada.

The key word in the above statement is "list". When you cho ose not to "list" your home with a REALTOR®, you take control of the process, and the agents no longer have it.

Because of this, there is a very good chance that you will be contacted by agents who will try their best to cast doubt on your chances of success, hoping that you will change your mind and list with them - after telling you all about the scary pitfalls of selling on your own.

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3

The Truth About Mere Postings in Canada

The act of selling your property For Sale By Owner has been made much easier by a few different key factors.

The first and most important factor is technology. Technology is now providing sellers with many of the tools they need to successfully sell their own home. From websites (like ForSaleByOwner.ca) that market the home, to the computers, smart phones, hand-held tablets, social media sites, email and text alerts that buyers now use to access the listings and easily connect with the sellers, technology alone is the major reason why so many people are able to now consider selling on their own.

The second major factor is that back in 2010, following negotiations with the Federal Competition Bureau, the real estate industry made it possible for private sellers to utilize the power of the MLS® System by allowing access to the various local Real Estate Board's MLS® System, and the national Canadian website at www.MLS.ca, and its successor, www.REALTOR.ca, through a Mere Posting.

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FSBO MLS Mere Postings in Canada
REALTOR.ca Screenshot
4

How Your Property Appears on REALTOR.ca

As mentioned above, most of our clients simply want to have their property shown on the REALTOR.ca website, and there is very little difference in how our listings show up there.

The main difference is that our listings contain a statement in the description that lets buyers know that there is more information about the listing if they follow any of the specified links on the REALTOR.ca listing page.

We include this statement because the REALTOR.ca rules dictate that we cannot show the seller's contact information on the REALTOR.ca listing page, and the goal is to get the buyers to click on these buttons so that they can contact you directly, and learn all about your property with the simple click of a button.

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5

REALTOR.ca - Stats and Information About the Website

More Traffic, More Leads, More Sales.

According to the 2019 REALTOR.ca Insights Report, the REALTOR.ca website received:

  • 50 million REALTOR.ca visitors
  • 291 million REALTOR.ca total visits
  • 983 million property views (an average of 112,000 property views per hour!)
  • $166 billion average total value of REALTOR.ca listings at any given time
  • 303,000 listings on REALTOR.ca at any given time
  • 92% residential leads
  • 8% commercial leads
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6

Negotiating with Buyer's Agents

What should you do if you are contacted by a Buyer's agent? Here are a few things to consider:

The number one thing you need to know is that there are NO posted minimum or maximum percentages for commissions payable to agents throughout Canada - period. How much a seller pays an agent to sell their home is completely up to the seller. There are however, known commission rates that are typically paid to them, and they vary from province to province. Simply put, you are in control of the negotiations when it comes to what you are willing to pay to an agent, if you are approached by one who claims to have a buyer for your property. Armed with this knowledge, here are a few more points to consider.

A) Set the maximum commission or finder's fee you are willing to pay to a buyer's agent who contacts you with a potential buyer.

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7

commissions - tips & Information

Here are tips about real estate commissions you may want to give some serious thought to.

When you are selling your property privately, the total commission you would "normally" pay to a full service real estate agent is about $17,500 on a $400,000 property.

This amount is calculated using the formula of 7% payable on the first $100,000 of the sale price, and 3.5% on the balance of the selling price - which is $300,000 in this example. So the total commission is $7,000 on the first $100,000, and $10,500 ($300,000 x 3.5% = $10,500) on the remaining $300,000 for a total of $17,500 commission payable by you, the property owner.

Don't forget, you also have to pay sales tax on real estate commissions, so you will have to pay $875 if you're selling in Alberta, right up to $2,275 in tax for Ontario's taxation on commissions - for a grand total of between $18,375 to $19,775 in fees to sell a $400,000 property.

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8

don't give up

The biggest obstacle private sellers face is "losing their confidence". This can happen after listening to the horror stories many agents will throw at them, and this is exactly what the industry wants to happen to you.

Remember, the face of Real Estate has changed in the age of computers and the Internet, and you now have a very good chance of selling your own property with the assistance of technology, and websites like ForSaleByOwner.ca and REALTOR.ca.

If you ever need a boost in your confidence level during the sale cycle, or if an agent has told you something that you would like clarification on, please feel free to contact us on our toll-free number anytime at 1-800-831-3726 extension 101, and ask for Rob.

Thank you for taking the time to read this important information, and good luck with the sale of your property!

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