People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.
Well i think, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments.
I won't pretend to know everything, though. Her name is Amber Angelyn O'malley but I won't say anything more. Most likely, you can find her basic information online; you are welcome to do further study.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
So they were charging 5% commission when a house was selling for $50k a few decades ago and still charging 5% when the same homes are selling for 1.5 million now . What a scam. It should be a flat fee.
There have always been "flat fee" brokerage such as ComFree. There are even free websites such as FB, EBay, Kijiji, etc. You have the freedom not to do business with anyone if you don't need the service or don't accept the fee, just don't be toxic. I won't pay $100 to do nails, but I wouldn't say it's a scam.
Exactly… Home prices gone up 5-10 times last few decades… So are realtors doing 5-10 times more work today??? Hell no! They’re doing LESS today than before… Buyers/sellers can search on internet themselves!
When I listed my property in Langley BC. The real estate agent signed a six month contract with me. In this time he flipped it one million higher than the listed price. There are quite a few greedy and corrupt real estate agents flipping properties.
It’s not as simple as that. People these days are free to post onto the MLS system by paying a licensed company an a La carte fee without commission. I think like $500. This was allowed years ago after a court battle. But, it is not commonly used as your cutting out 10,000+ BC buyer Realtors if you offer no commission. The system is not perfect but it’s constantly changing with the times. More transparency. Good agents survive the bad markets and bad agents either get complaints and fines, or cannot make a living because due to poor work practices.
Realtors are such scammers. When i bought my house the realtor got the total amount as they were the buyer and the seller. First off it should NEVER be a percent of the value. It should be a set price per unit.
By some stroke of luck my last relator sold my last house and sold me my new one in the same transaction . The house he sold me house been worth less than I paid for it for 10 years. This is in Alberty.
Sounds like you should have shopped around. It's hardly a SCAM when you decide to buy a house that your realtor has listed. Did you pay the commission or did the vendor?
@@reejan8109 The real estate commissions are built into the price of the house. I paid for both. It was new construction. Any home builder would have real estate commission as a line item for any Performa they produced before building the house. CIBC did their drive by appraisal and said it was market value. I guess that is just crappy Alberta real estate. The market really hasn't moved in 20 years.
Currently, the fee structure is a matter between the listing agent and the seller. So, as a buyer, you have no say over it. When it's your turn to SELL the property, then you can fill in the whatever amount you want on the listing contract.
In BC, the checks have been put in place. Independent disciplinary council and Superintendent of Real Estate punishes bad Realtor. In the past council were elected Realtors and maximum fines $10K but not anymore. Now fines can go up to $250K. Basically they will bankrupt a bad Realtor to get them out of the business and revoke their licenses for public safety. No more slap on the wrists. People not in the industry do not know of these changes over the years.
@@elai3147dude.. if you got a good property it sell itself you think it’s because of the work of the realtor? A great realtor can’t sell a crappy house, a worst realtor can sell a high demand and popular house easily. Its simple.
Not all of the Realtors are “rockstars” making $1M/yr. The average income is $50K which is far from lucrative. Hot markets attract people to get their license to do part time even though they have a regular job, but they jump out when markets slow down. “Fly by nighters.” The career full time Realtors keep at it through good times and bad and keep gaining valuable experience and knowledge. And what’s with 7% on 1st $100K and 3% on balance commission the reporter mentions? Normally it has been 7% and 2.5% is most common in B.C. I know Vancouver Island uses the high rate.
34K commission on a 1M million sale for nowadays 1 day of work. Repetitive paperwork and listing it online. This definitely needs a revisit. The work doesn’t match the payment anymore.
Is there a more under-skilled over-paid glorified job than a realtor? Maybe a landlord, who's basically a business person without any acumen but at least they own the property they're exploiting people for. A realtor is essentially someone without morals or a life plan, who then decides to become a realtor. No one at school says they want to become a realtor.
I personally think realtors are useless, realtors don't do much. It is the lawyer or notary person's job that are related to legal matters. And just for showing me home or just for listing the home and thet take too much out of it.
I think the issue is all the secrecy. There’s no way as the buyer for you to know what your own realtor makes off a sale. Suppose there’s 3 homes. One that’s $500k, $750k, $800k. You would think that your realtor would for sure make more money off the $800k home but not necessarily. Maybe your realtor nudges you towards the home in which they make the most commission, the issue is you have no idea. Only the sellers agent has this information and it’s hidden from the buyer.
Actually in BC, the Buyer’s Realtor is required to disclose their commission and have them sign acknowledgement. Only Realtors worth their salt give good advice to their clients on the basis of client needs, and commission is secondary. A full time, career Realtor will want repeat and referral business so it is their benefit to keep their client happy and not be short sighted over a single commission or transaction.
I have been saying this for 35 years and told the Realty Boards but of course, they ignored my suggestion..... the commission-based is a dated technique that factors in and increases the value of the selling price of a home. Realtors never want to admit that but sellers account for this when they sell. There is a far easier solution.
~Then what is the answer and the best proper way to do it.?? A flat rate percentage commission of 6% “or” 7% on the first hundred thousand dollars and 3% after that on the remaining amount “or” have NO percentages using just a ‘set flat dollar rate’ instead.??
Why can't make things transparent and more friendly so that anyone can sell and buy a house just like we all buy used cars? I rather pay some few to a lawyer for documents than an real estate agent
Actually theres many budget options people don't realize, and all commissions are negotiable and much lower then in the US here. In Manitoba its usually 4%
There's a poker game with a house- the house has 2 players (homeowner) with blindfold and earplugs 1 of the other 2 players that get to see the cards that the homeowner has and each others. The 2 players who can see all the cards go as high as they can take each other's clients or as low I've seen it each way Realtors control the whole game unless you sell by owner. Real estate in Canada is bent
Selling a house for profit needs to be illegal. It needs to be removed from the concept of business. A house is where you raise a family not flip for a buck. If you are too defective to not come up with a business idea better then exploiting homes then you should be poor. Hands off Homes.
My home is my nest egg when I down size or retire. Not intended as an investment but it would be a shame if it’s legislated that we cannot get the growth of the market for all the years we own our home. Just go after the short term speculator or house flippers. Long term investor who provide rental housing also deserve their profit from capital gains when they eventually sell.
@@Coinpicker no one is throwing you out of your house; you can sell it and buy something smaller. what is being removed is the ability to sell it for massive profits. linked to inflation and nothing else. you would not be limited in anyway by changing houses to be "homes" not flipping tools for greedy pigs.
What about lawyers fees, accountant fees, Dentist and Doctors fees. Don't just challenge the real estate agent fees. You will see agents exit the profession in large numbers in Ontario and BC.
Just like with any industry, there are good and not so good agents. Interview your agents before agreeing to work with one and read your contracts no matter who puts it in front of you. By the way, the commission is split 4 times. smh
There seems to be some lack of understanding about real estate commissions in BC. First of all, there is no SET rate as that would violate price fixing laws. Real Estate Companies set their own rates. A realtor does not take home the entire commission on a sale. The company he works for also takes a cut - starting out at about 40% down to 10%. The other realtor involved in the deal also gets paid, as does the company he works for. The listing realtor, the one who did the advertising, held the Open Houses, answered all the calls/questions about the listing, showed potential buyers the house and on and on and on with all the things a realtor does to get you a sale....he doesn't pocket the entire commission!! Before prices went insane, I remember some listings that required so many hours to get a sale that the realtor wasn't even making minimum wage!
True commissions can be negotiated but virtually all realtors refuse to lower their commissions, and they will steer their buyers away from those listings with lower commission rates. Widely reported.
Those are just lazy ones. Good agents will still show the listings that offer sub par commission but will either request the listing agent and owner to top it back to regular rate or may have have a buyer agency agreement already signed for such situations. That is when buyers s agree in advance if they buy a place that offers in adequate commission to their Realtors and buyer pays the difference. All these concerns and comments have already been addressed by the Real Estate Boards years ago but the general public are not aware.
Houses have never been the driving force of human society, if they cost too much money, human development will slow down because we have few resources left to invest the development.
Looking forward to CBC being de-funded. None of the information in this piece on BC real estate practices is correct and the US settlement will have Zero impact in BC or any other province.
@@EdwardCheung1 6% on the total price of the property? You do the math - which is less - BC 7% on the first $100,000 and 3% on the balance or 6% of total?
The B.C. way of calculating commission is like this because in the past houses were no more than $100,000 in price. When the market grow exponentially, this rate was created to give Sellers somewhat of a break on commissions. Other places still use a percentage across the board like the US and Eastern Canada which is a lot more money.
@@Coinpickerwhen i lived in the US i would work with a lot of realtors as a contractor . A lot of the realtors there earned the money a bit more by preparing the houses for sale like paying for cleaners /carpet cleaners painters out of their own pockets to get the house ready for market, of course any major work was at the homeowners cost. When i was viewing houses in the lower mainland i could not believe the state of them , how dirty and unprepared for market and asking for a lot of money as well . I questioned what the realtors actually do here ? Just do a 5 minute market analysis (which is very easy to do) take some underwhelming pictures and stick it on MLS ?? Its about a couple of hours work at best
People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts.
Buy now, home prices will not go lower. If rates drop, you can refinance.
The government will have no choice but to print more notes and lower interest rates.
Well i think, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments.
I won't pretend to know everything, though. Her name is Amber Angelyn O'malley but I won't say anything more. Most likely, you can find her basic information online; you are welcome to do further study.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
So they were charging 5% commission when a house was selling for $50k a few decades ago and still charging 5% when the same homes are selling for 1.5 million now . What a scam. It should be a flat fee.
There have always been "flat fee" brokerage such as ComFree. There are even free websites such as FB, EBay, Kijiji, etc. You have the freedom not to do business with anyone if you don't need the service or don't accept the fee, just don't be toxic. I won't pay $100 to do nails, but I wouldn't say it's a scam.
Exactly… Home prices gone up 5-10 times last few decades… So are realtors doing 5-10 times more work today??? Hell no! They’re doing LESS today than before… Buyers/sellers can search on internet themselves!
When I listed my property in Langley BC. The real estate agent signed a six month contract with me. In this time he flipped it one million higher than the listed price. There are quite a few greedy and corrupt real estate agents flipping properties.
A family pays off their home over 20+ years, and someone gets 5% just for posting it online.... This is ridiculous and exploitive.
It’s not as simple as that. People these days are free to post onto the MLS system by paying a licensed company an a La carte fee without commission. I think like $500. This was allowed years ago after a court battle. But, it is not commonly used as your cutting out 10,000+ BC buyer Realtors if you offer no commission. The system is not perfect but it’s constantly changing with the times. More transparency. Good agents survive the bad markets and bad agents either get complaints and fines, or cannot make a living because due to poor work practices.
should be free lol such a scam@@Coinpicker
Realtors are such scammers. When i bought my house the realtor got the total amount as they were the buyer and the seller. First off it should NEVER be a percent of the value. It should be a set price per unit.
By some stroke of luck my last relator sold my last house and sold me my new one in the same transaction . The house he sold me house been worth less than I paid for it for 10 years. This is in Alberty.
Sounds like you should have shopped around. It's hardly a SCAM when you decide to buy a house that your realtor has listed. Did you pay the commission or did the vendor?
@@reejan8109 The real estate commissions are built into the price of the house. I paid for both. It was new construction. Any home builder would have real estate commission as a line item for any Performa they produced before building the house. CIBC did their drive by appraisal and said it was market value. I guess that is just crappy Alberta real estate. The market really hasn't moved in 20 years.
You should have read the contract regarding dual agency which informs you. Did you read it?
Currently, the fee structure is a matter between the listing agent and the seller. So, as a buyer, you have no say over it. When it's your turn to SELL the property, then you can fill in the whatever amount you want on the listing contract.
terrible reporting, so whats the proposed %? or the proposed solution?
Yup the scam estate agents here are horrible too they should be checked and laws should be put in place
In BC, the checks have been put in place. Independent disciplinary council and Superintendent of Real Estate punishes bad Realtor. In the past council were elected Realtors and maximum fines $10K but not anymore. Now fines can go up to $250K. Basically they will bankrupt a bad Realtor to get them out of the business and revoke their licenses for public safety. No more slap on the wrists. People not in the industry do not know of these changes over the years.
7% of first 100K, then 3% of remainder… so on a $900K home, a BC realtor makes $31K… well, damn, should’ve been a realtor. 😳
it's split between two realtors so roughly half that, but yeah it's great if you can complete deals, keep in mind though most can't
@@elai3147dude.. if you got a good property it sell itself you think it’s because of the work of the realtor? A great realtor can’t sell a crappy house, a worst realtor can sell a high demand and popular house easily. Its simple.
Not all of the Realtors are “rockstars” making $1M/yr. The average income is $50K which is far from lucrative. Hot markets attract people to get their license to do part time even though they have a regular job, but they jump out when markets slow down. “Fly by nighters.” The career full time Realtors keep at it through good times and bad and keep gaining valuable experience and knowledge. And what’s with 7% on 1st $100K and 3% on balance commission the reporter mentions? Normally it has been 7% and 2.5% is most common in B.C. I know Vancouver Island uses the high rate.
realtors take a college course for a few weeks and make more money than the lawyer closing the deal
34K commission on a 1M million sale for nowadays 1 day of work. Repetitive paperwork and listing it online. This definitely needs a revisit. The work doesn’t match the payment anymore.
Is there a more under-skilled over-paid glorified job than a realtor? Maybe a landlord, who's basically a business person without any acumen but at least they own the property they're exploiting people for. A realtor is essentially someone without morals or a life plan, who then decides to become a realtor. No one at school says they want to become a realtor.
I personally think realtors are useless, realtors don't do much. It is the lawyer or notary person's job that are related to legal matters. And just for showing me home or just for listing the home and thet take too much out of it.
In my opinion the realtors are not need at all.
Not following this. What's the issue, the % commission, the way it's split, or the fact that it's split?
I think the issue is all the secrecy. There’s no way as the buyer for you to know what your own realtor makes off a sale. Suppose there’s 3 homes. One that’s $500k, $750k, $800k. You would think that your realtor would for sure make more money off the $800k home but not necessarily. Maybe your realtor nudges you towards the home in which they make the most commission, the issue is you have no idea. Only the sellers agent has this information and it’s hidden from the buyer.
Actually in BC, the Buyer’s Realtor is required to disclose their commission and have them sign acknowledgement. Only Realtors worth their salt give good advice to their clients on the basis of client needs, and commission is secondary. A full time, career Realtor will want repeat and referral business so it is their benefit to keep their client happy and not be short sighted over a single commission or transaction.
issue is the seller having to pay the buyers agent fee
@@BobTheBob647 - do you know the percentage that your car sales person or furniture sales person makes?
I have been saying this for 35 years and told the Realty Boards but of course, they ignored my suggestion..... the commission-based is a dated technique that factors in and increases the value of the selling price of a home. Realtors never want to admit that but sellers account for this when they sell. There is a far easier solution.
~Then what is the answer and the best proper way to do it.?? A flat rate percentage commission of 6% “or” 7% on the first hundred thousand dollars and 3% after that on the remaining amount “or” have NO percentages using just a ‘set flat dollar rate’ instead.??
Take care Kate. Support Royal family. Love from Hong Kong
Why can't make things transparent and more friendly so that anyone can sell and buy a house just like we all buy used cars? I rather pay some few to a lawyer for documents than an real estate agent
Actually theres many budget options people don't realize, and all commissions are negotiable and much lower then in the US here. In Manitoba its usually 4%
and if you list too low agent wont show your home ....check out the story on Market place on agents
There's a poker game with a house- the house has 2 players (homeowner) with blindfold and earplugs 1 of the other 2 players that get to see the cards that the homeowner has and each others. The 2 players who can see all the cards go as high as they can take each other's clients or as low I've seen it each way Realtors control the whole game unless you sell by owner. Real estate in Canada is bent
Selling a house for profit needs to be illegal. It needs to be removed from the concept of business. A house is where you raise a family not flip for a buck. If you are too defective to not come up with a business idea better then exploiting homes then you should be poor. Hands off Homes.
My home is my nest egg when I down size or retire. Not intended as an investment but it would be a shame if it’s legislated that we cannot get the growth of the market for all the years we own our home. Just go after the short term speculator or house flippers. Long term investor who provide rental housing also deserve their profit from capital gains when they eventually sell.
@@Coinpicker no one is throwing you out of your house; you can sell it and buy something smaller. what is being removed is the ability to sell it for massive profits. linked to inflation and nothing else. you would not be limited in anyway by changing houses to be "homes" not flipping tools for greedy pigs.
It is about time they do something about these greedy real estate people 😡😡😡
What about lawyers fees, accountant fees, Dentist and Doctors fees. Don't just challenge the real estate agent fees. You will see agents exit the profession in large numbers in Ontario and BC.
Just like with any industry, there are good and not so good agents. Interview your agents before agreeing to work with one and read your contracts no matter who puts it in front of you. By the way, the commission is split 4 times. smh
Its not the seller that really pays its the buyer who brings the cash. Without realtors the price should be 6% lower surely ?
There seems to be some lack of understanding about real estate commissions in BC. First of all, there is no SET rate as that would violate price fixing laws. Real Estate Companies set their own rates. A realtor does not take home the entire commission on a sale. The company he works for also takes a cut - starting out at about 40% down to 10%. The other realtor involved in the deal also gets paid, as does the company he works for. The listing realtor, the one who did the advertising, held the Open Houses, answered all the calls/questions about the listing, showed potential buyers the house and on and on and on with all the things a realtor does to get you a sale....he doesn't pocket the entire commission!! Before prices went insane, I remember some listings that required so many hours to get a sale that the realtor wasn't even making minimum wage!
True commissions can be negotiated but virtually all realtors refuse to lower their commissions, and they will steer their buyers away from those listings with lower commission rates. Widely reported.
Those are just lazy ones. Good agents will still show the listings that offer sub par commission but will either request the listing agent and owner to top it back to regular rate or may have have a buyer agency agreement already signed for such situations. That is when buyers s agree in advance if they buy a place that offers in adequate commission to their Realtors and buyer pays the difference. All these concerns and comments have already been addressed by the Real Estate Boards years ago but the general public are not aware.
Marketplace on u tube did a story on this agents wouldnt show houses with low commissions@@dinoa9608
Houses have never been the driving force of human society, if they cost too much money, human development will slow down because we have few resources left to invest the development.
Looking forward to CBC being de-funded. None of the information in this piece on BC real estate practices is correct and the US settlement will have Zero impact in BC or any other province.
BC pays the highest realtor rates in Canada
Absolutely NOT true.
Ontario pays 6% That’s a fact.
@@EdwardCheung1 6% on the total price of the property? You do the math - which is less - BC 7% on the first $100,000 and 3% on the balance or 6% of total?
The B.C. way of calculating commission is like this because in the past houses were no more than $100,000 in price. When the market grow exponentially, this rate was created to give Sellers somewhat of a break on commissions. Other places still use a percentage across the board like the US and Eastern Canada which is a lot more money.
@@Coinpickerwhen i lived in the US i would work with a lot of realtors as a contractor . A lot of the realtors there earned the money a bit more by preparing the houses for sale like paying for cleaners /carpet cleaners painters out of their own pockets to get the house ready for market, of course any major work was at the homeowners cost. When i was viewing houses in the lower mainland i could not believe the state of them , how dirty and unprepared for market and asking for a lot of money as well . I questioned what the realtors actually do here ? Just do a 5 minute market analysis (which is very easy to do) take some underwhelming pictures and stick it on MLS ?? Its about a couple of hours work at best