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Kat’s Blog
For Sale By Owner (FSBO) – What Are You Really Saving?

If you are considering selling your home yourself, your goal is to save yourself money.

However, it is important that you understand how real estate fees are calculated before you make the decision to proceed without an agent.

An agency listing representation commission consists of both a listing and a cooperating fee. So, even if you decide to go the For Sale By Owner (FSBO) route you will most likely still have to pay the cooperating fee (2.5% standard) to attract a potential buyer.

Most qualified buyers are under contract with a buying agent. These buyers have already agreed to pay their agent the cooperating fee. So by not offering the cooperating fee, you pass that cost to the buyer, which makes your home less attractive.

I would never advise to withhold the cooperating (buying agent) fee, because you might end up waiting for a buyer who is not represented by an agent — that might take sometime. Also without a cooperating fee, agents may ignore your listing.

If you wisely decide to offer a cooperating fee, the only part you will be saving is the listing fee. But, how much will you really save?

For instance, you will be taking on many jobs including: photography, videography, marketing, promotion, market research, hosting open houses, keeping track of your visitors and their feedback, reviewing and negotiating the contracts, dealing with home inspections, amendments and other possible offer conditions.

On top of all the work you still will have to pay additional fees to your lawyer to review your deal, make deposits to a trust account, and implement any changes to the contract. That might get costly, since the lawyers will charge for every amendment made to your deal.

However, if you hire a listing agent most of these transactions are completed by the agent, including changes to Agreement Of Purchase & Sale and executing amendments.

Also, for most homeowners it is a challenge to be impartial and emotionally detached during the sale of their home. A realtor is trained to handle the complicated negotiations and they know exactly how to close the deal.

In the end, considering that all realtor fees are negotiable, you might find it more economical and less stressful to hire a realtor. You will save time, money and effort, and you will get the best return for your home.

If you considering listing your home, please contact me for a free, non-obligation listing consultation. I would be happy to market and sell your home for a competitive listing fee.

By Kat Anderson

 

TREB’s December Update

Source: Toronto Real Estate Board News Release

December 4, 2013 — Greater Toronto Area REALTORS® reported 6,391 residential sales through the TorontoMLS system in November, representing a 13.9 per cent increase over the sales result for November 2012. Over the same period, new listings on TorontoMLS were down by 4.4 per cent and month-end active listings were down by 12.1 per cent

“Growth in sales was strong for most home types in the Greater Toronto Area. Sales growth was led by the single-detached market segment followed by condominium apartments. Together, singles and condos accounted for almost three-quarters of total GTA transactions,” said Toronto Real Estate Board President Dianne Usher.

“With National Housing Day having just passed, housing affordability is top of mind in the GTA and indeed nationally. Despite strong price growth and an uptick in borrowing costs this year, monthly mortgage payments on the average priced home remain affordable for a household earning the average GTA income,” continued Ms. Usher.

The average selling price for November 2013 TorontoMLS transactions was $538,881 – up by 11.3 per cent in comparison to the average of $484,208 reported for November 2012. The MLS® Home Price Index (HPI) Composite Benchmark was up by 5.7 per cent over the same period.

“Whether we consider the average TorontoMLS selling price or the MLS® HPI Composite Benchmark, annual home price growth remained well-above the rate of inflation in November. This makes sense given the fact that competition between buyers increased last month. Transactions were up strongly year-over-year while the number of homes available for sale was down,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

TREB’s September Update

Source: Toronto Real Estate Board News Release

August 2013 Sales and Average Price Up Over 2012

September 5, 2013 — Greater Toronto Area REALTORS® reported 7,569 residential transactions through the TorontoMLS system in August 2013. This represented a 21 per cent increase compared to 6,249 sales in August 2012.

“Sales were up strongly this past August for all major home types compared to last year. Many households have accounted for the added costs brought on by stricter mortgage lending guidelines and have reactivated their search for a home. These households have found that a diversity of affordable ownership options exist throughout the GTA,” said Toronto Real Estate Board President Dianne Usher.

The average selling price for August 2013 was $503,094 – up by almost 5.5 per cent compared to the average of $477,170 in August 2012. The MLS® Home Price Index (HPI) composite benchmark was up by 3.7 per cent over the same period.

“Despite an increase in borrowing costs during the spring and summer, an average priced home in the GTA has remained affordable for a household earning an average income. With this in mind, tight market conditions are expected to promote continued price growth through the remainder of 2013,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

TREB’s August Update

Source: Toronto Real Estate Board News Release

Greater Toronto Area REALTORS® reported 8,544 residential sales through the TorontoMLS system in July 2013. Total sales were up by 16 per cent compared to July 2012. Over the same period, new listings added to TorontoMLS and active listings at the end of the month were up, but by a substantially smaller rate of increase compared to sales.

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HomeLife/Realty One Ltd.
Real Estate Brokerage*

501 Parliament St. Toronto, ON M4X 1P3

Mobile: 647.225.2426
Business: 416.922.5533
Fax: 416.922.5808
E-mail: kat@katanderson.ca


*Independently owned and operated, REALTOR®

DISCLAIMER: Not intended to solicit currently listed properties or buyers under contract.