What if I told you that an Edmonton Real Estate company charged its clients over $1 Million in fees and provided no results?
"It’s the scam of the century!" many of you would tell me. "Crooks and cheats" many have howled for less. How could this happen in the most regulated real estate environment in North America?
First of all you’d have to operate outside the jurisdiction of the Real Estate Council of Alberta and from there it’s easy. In the regulated world of Alberta real estate, when I tell you that the average time on market for 2007 for one of my properties is 8.5 days as opposed to the industry average of 22 days, and that our little company (I haven’t seen better yet) has an average list to sale price ratio of 105%, it had better be accurate. If I give you these stats inaccurately my butt’s in a sling (a very painful sling) – but if you aren’t licensed by RECA it looks like you can publish whatever you want.
So back to the $1 million fees paid (according to my estimates) with no results.
A well known unlicensed real estate marketing company in Edmonton started publishing some of their statistics on their web site for all to see some time ago. We’ve always found some of the numbers a little fishy, and with no third party auditing their stats I’d say it’s safe to call them unreliable at best, especially since there is no requirement, process or penalty for failure to report accurately.
So we got our sharpest pencils out and we crunched the numbers. I’m seriously laughing right now because it was almost impossible to get their numbers to add up, but at the end of the day – and I mean the end – we found some very interesting stuff.
Listing to Sales Ratio
The correct way to calculate this number is to take the total number of sales for the month, and divide that by the number of new listings for that same month. This statistic helps identify whether we are in a seller’s market, a balanced market, or a buyer’s market.
When you go through the stats from this particular company and follow this formula, you don’t get anything close to the numbers they’ve published. For example, for April 2007 they claim to have had 505 sales, and 788 new listings. They claim their sales to listing ratio is 78% for April (while the real estate board reported a 76% ratio – a strong seller’s market). Do the math, and you’ll find that 505/788 is 64% – which puts their clients just a notch away from a balanced market and at a serious disadvantage to those represented by licensed professionals! It also means that 34% percent of their properties did not sell in April.
My personal favourite is October ’06 when they claimed an 85% ratio when the formula gives you 57%. Hmmmmm….I wonder if they "forgot" to include some of the canceled listings in their numbers (i.e. the people that didn’t sell on their own and decided to list with an Realtor® – did they include those as sales?). To be honest, I don’t know where they got the numbers from, I’ve tried numerous methods of calculating this data from their stats and I can’t get a 78% or 85% ratio out of any of their numbers.
One point of clarification – you can’t "list" your home with a marketing company as that would make them trading in real estate which would mean they’d fall under the same regulations that licensed real estate brokerages fall under. They should probably consider refraining from using the word listing for their own protection.
Market Share
How about the claim they’ve made a number of times over the past year: "we have a 30% market share in Edmonton." While it may be true that at one point this company had almost 1/4 the number of active listings that the Cooperative Listing Bureau (a.k.a. the Edmonton Real Estate Board) had, that does not mean they had 30% or even 25% market share.
Market share in every industry is based on the number sales, not the amount of product available for sale. If I produced more running shoes than Nike, without selling a single pair, does that mean I have a greater market share than Nike? Not on your life!
In May ’06 (one of the times they claimed a 30% share) this company reported just under 500 sales, while the cooperative reported 2565 sales, accounting for 84% of the market, assuming that the market only includes the cooperative, and one FSBO marketing company. Don’t forget, there are plenty of choices out there for sell-it-yourselfers, and these companies eat away at each other’s market share.
Commissions Saved?
I’m sure you’ve figured out who this company is by now, but here is the biggest hint: the stat they love to throw around the most is the amount of commission saved by their clients. For one thing, we all know that different agents charge different amounts, and everything is up for negotiation. Their "commission saved" number is based on the fiction that every single transaction had a fixed amount.
It looks to me like they are saying their clients are saving commissions even when a fee was paid to real estate agents representing buyers that purchased homes marketed with this company. I wonder if they deduct those fees from their "commission saved" tally? I doubt it, even though it happens on a regular basis.
So who is this mystery marketing company, and how did I arrive at $1 million in fees paid by home sellers for no results?
It’s a little complicated but here goes… I added up the total number of "listings," and the total number of sales reported on this marketing company’s site since March 2006 (as far back as their stats go). Turns out there have been 7518 homes marketed through this company, and 5708 homes sold, which leaves 1810 homes unsold!
Maybe they should post a "money wasted instead of commission saved" column for all the people who paid the currently advertised rate of $699 up front and in the end didn’t sell. My quick calculations show that to be more than $1.25 million, and that’s assuming none of these clients paid any up charges for larger ads or virtual tours. So in the end its probably more than 1.25 million. If my guess is correct there are actually more than 1810 of them that paid upfront, were unsuccessful, then listed and sold with a Realtor, especially since all their other stats have proven to be so accurate.
To be honest, I could keep going on and on here, but I think you get the point. Don’t believe everything an unregulated company with a million dollar agenda tells you. And before many of you get your knickers in a knot spouting you hate Realtors® (to be honest some of you have earned that right the hard way) check the math out yourself – someone tell me I’m wrong.
Why do they do it?
Possibly to create the impression that they have larger market share then they do. They also play to our fear of paying money to sell our homes, and in the end it doesn’t matter to them if you sell or not because they get paid either way. Hence the $1 million or more in fees paid by sellers who never sold.
All this doesn’t even include the seller’s time, lost opportunities, or any economic distress a seller would have endured because they didn’t sell. And how many of these sales have ended up in court for misrepresentations by the sellers, or failures to disclose latent defects or personality disagreements between the parties?
However, it’s what they do – they are a marketing company period. I’m just a little guy that gets phenomenal results for my clients. On average I’ve made my clients $12,122 over THEIR list prices this year. In many cases I’ve made my clients well over my fee and the buyer agent’s fee, while handling the sale of their property professionally. So you’re right, I have an agenda too. I want to properly inform people and I want people to check into the fuzzy math I find floating around out there.
I’m not saying that everyone should list with a brokerage, I do feel that companies should be honest when they report statistics, or don’t report them at all. Our little company gets results.
Quite frankly if you use them you lose, especially when you compare their results to our little company.
Your quote “In the regulated world of Alberta real estate, when I tell you that the average time on market for 2007 for one of my properties is 8.5 days as opposed to the industry average of 22 days, and that our little company (I haven’t seen better yet) has an average list to sale price ratio of 105%, it had better be accurate.”
If this is true, does that not mean that your listings are undervalued on a regular basis? I’m no real estate expert but if you continuously sell for more than list value and sell in a short time frame, I’m thinking your advice to your clients is to sell for less than market value to achieve multiple offers. Is this true? Or am I reading to much into this statement.
May 2, 2007 REALTOR spin. From the offisial Edmonton Real Estate Board press release:
“We have said before that the Edmonton market is just catching up to market increases that appeared in other major markets one or two years ago,” said Pratt. She noted that there are more homes being listed than last year at this time and inventory is growing slowly. “Price increases may moderate slightly as the market returns to pre-boom levels but I do not anticipate that actual prices will decrease.”
1. Edmonton has had the highest % YOY gain in history and is only behind Vancouver, Toronto and Calgary in terms of absoulte price. So the statement “just catching up” is questionable spin.
2. Inventory was growing at a quick pace for the time period this report applied to. So using “slow” inventory growth is more spin.
3. Every reasonable person expects that price increases will at least moderate going foward. So it is interesting to note that the phrase “may moderate slightly”. As in the might and only slightly if then. Then does not anticapte price drops but apply little justification.
I haven’t seen actually fabrication of numbers so i guess that is less bad. REALTORS are much more sophisticated than that.
INTERESTING!!! Short story to think about… last year I was selling my condo in the downtown area and my boss gave me the name of the realtor who helped him buy his house and that again was working on the sale of the same house as my boss was moving from Alberta. I call the realtor and arrange an appointment at my condo. This gentleman comes to my place with a big binder (his portfolio) and shows me his sales, how he works, etc… then was time to talk about the asking price, and this gentleman tells me that I should list my condo for 265K, what surprised me because I was expecting more based on a search I did myself. When I said I did not agree with that price, he said that would not get more than that and showed me other properties in the area and the asking price of those. To shorten this story, I sold my condo myself 10 days later for 275K, so my suggestion to those who want to use “professional” advice is to find a real professional, because if you sell your property for 10K or 20K below, this virtually does not alter the “professional” commission, HOWEVER FOR YOU…
Hmmmm. I as well am thinking about selling my house. I asked 3 realtors to give me a home evaluation last month. The 3 assessments came in at 495000, 520000, and 540000. So which realtor has given me the most accurate value for my house? Well I would suggest that somewhere in the middle. My suggestion to everyone is to get at least three evaluations and then decide what price YOU would like to sell your house for. Then decide which realtor to go with. Their are some realtors out their who like a quick sale and will give you a low evaluation. This will mean less time for them advertising and will make their stats look better. Some realtors (usually the less busy ones) will give a high evaluation to try and get your business. I couldn’t believe when my evaluations came in with a $45000 spread. I still haven’t put my house up for sale but I am really not looking forward to getting an evaluation done again.
It is not rocket science pricing your home – although all the comparables you see are based on historical data. As a real estate salesman in my past life I have seen a lot but the most common thing was to get a listing at almost any price and work it down later. Today it is even better for realtors as the market will catch up real quick it seems. Try selling and thriving in a market were the price is dropping like in the early 80s. Most out there today selling homes would be doing something else. If you can get listings in todays Edmonton market the money you will make is obscene. More than Doctors, Lawyers, rocket scientists or Presidents and Prime Ministers make.
Wish all realtors were diligent like you Sheldon. Last year I sold my condo through a well-known local realtor for what later turned out to be ten grand less that the market price. He actually brought over the buyer’s realtor to our home and pressured me into accepting the offer.
Later when we questioned him his reply was, “I’d rather make a little less and sell quickly than list it at the top price and not make anything at all.” Of course in the process it’s ok to screw over the seller.
I’m afraid the Alberta Real Estate industry is far from being regulated. There needs to be more transparency and the public should have access to the actual sales figures and history for all properties. Then it would be easier for both the buyer and seller to make an informed decision.
Sheldon, why don’t you ask the EREB to track how many properties sold by it’s members were formally listed on FSBO’s.
I follow the Edmonton market quite closely and have noticed quite a few overpriced FSBO’s languish on those sites for months only to end up on MLS at a lower price that sell very quickly. That’s how I bought my last house in December 2006 (and Yes, I used an experienced Realtor).
I think if you use a FSBO, price your property right, or else you may be sitting on it for quite a while. As an example there was a FSBO down the street and it sold in less than 3 days, I don’t know at what price, but personally I thought their asking price was underpriced by at least $20K.
Kraig also raises a good point too, in this market if you overprice your property, don’t worry, just sit and wait, sooner or later the market will catch up.
And Sheldon thanks for this blog I think it’s a very non-bias, informative veiw on the current Real Estate market.
PS: One last jab at EREB, Please look at the CREB website and learn…. Please, Pretty Please…
A tad bit underpriced is the way to go in a market on fire like Edmonton. Better to have buyers fighting for the house than it is to be fighting for an offer. Go 5 points under and you’ll likely end 5 points over, perhaps better.
Our local fsbo site is a favourite for flippers. “Sold” properties have been known to resurface very quickly at much higher asking prices, but hey, at least they saved a commission.
First, statistics, in general, are open to all kinds of BS and interpretation, whether we’re talking stories in the Edmonton Journal or Sun or businesses who use them. For example, your statement on the “correct” way to calculate the listing to sales ratio is subjective…it’s your opinion that that’s the correct way. The fact that your board or X number of agents uses that manner doesn’t make it any more correct or right than another method of obtaining statistics. It’s simply a method. In the end, numbers can easily tell the story you want them to tell, and someone else can use different numbers to tell an opposing story. Both stories will seem “legit.”
Your first sentence about “providing no results” is a pretty wide blanket to toss. (No, I am not affiliated with ComFree in any way, shape or form). I’m curious about something if you’re willing to do this for an interesting discussion about pricing and the effect of the community of agents on pricing:
In late April (April 12, to be exact) we consulted with 2 realtors about what to list our place for and considered listing on the MLS. Here are the stats on it which should be enough for comps and analysis:
3 bedroom condo
millwoods location (Tipaskan)
1 bath
built in 1973
1050 sq. ft
newly renovated, inc. 5 appliances
AT THAT TIME (mid April), based on area comps (there should be about 3 comps available for comparison) what would you have recommended for a listing price? What would you have told us you think we’d get as our best offer? (Approximately) How long do you think it would have taken to get that best offer?
I’ll share our experience in a later post if you’re willing to post what you would have advised price wise, etc. FYI, I highly respect one of the agents we contacted–he’s a long term business associate and highly competent agent. I’m not trying to burn him or Realtors here, but rather present another angle to the FSBO or Comfree way of selling your home in response to this entry.
I think a company like com-free just would not survive in England;mind you in England “real estate agents” charge typically 2-3%. I appreciate your blog/forum Sheldon.
The bottom line is that real estate commissions are too high and that’s what has created the market for fsbo firms. If commissions were in line with other world markets, which is the 2 or 3% range as Reese quotes, then the local FSBO site, which is a big thorn in the side of local Realtors, would likely fade away. The commission structure/listing contract needs to change. It’s crazy to pay someone $15,000 to list and sell your property in two days. That is why companies like We-List(big in Calgary), Comfree (popular mainly in Edm), and other FSBO upstart firms are prospering.
Thanks for the excellent comments. A couple of points. If you look at every single property we have listed and the sales graph we prepare for each one, you would notice that we have listed our properties at or a few percent above the most recent comparable sale. In many cases before the property has gone on the market we could see the level of activity and in many cases raised the price between 5000 to 20000.
It would be simplistic to say that we under price are homes but the sellers I work with chose their price. Many of our sellers read this blog and I’d be stunned if anyone felt at any time we didn’t go for the maximum market value. There are a number of reasons are results are different then the average but its mostly because we do the marketing and orchestrate the negotiations to our clients best advantage. There are numerous things that we do that most Realtors in this market or any market are just not capable of and that is also part of the reason for our better than average results.
As for the appearance of this industry being under regulated. It is a well known fact in Canada that our Real Estate Council is one of the strictest and most restrictive in Canada. Find me a jurisdiction in Canada and only a handful in the states where new agents are finger printed. Our disciplinary process is open to the public and so are the results. Several full time prosecutors, and investigators deal with every complaints and prosecute many. The amount of legislation from the Real Estate Act, to our code of conduct and ethics, legislation for Financial Proceeds of crime to privacy to municipal regulations, and not to mention the facets of agency and common law that affect us and so on. Ever changing legislation means never ending changes in contracts and these are just some of the things we deal with behind the scenes. Fact is though if a Realtor does something wrong they are accountable both from a disciplinary aspect and from a civil liability stand point. When a seller a buyer screw up on their is no one to point the finger at and any perceived savings in commissions might in fact have been well worth it.
As for the public having information to sales info. You do. The public has access to land titles and all sales information can be found there. As for all the STATS we collect on MLS, that is ours I’m afraid and it SHOULD not be made accessible to the public at least not with the out that person receiving the correct training and to utilize it properly. The fact is a member of the MLS I have and so have my fellow professionals have paid for that infrastructure to maintain these stats. Give me the secrets to your work and I’ll give you mine. Coke doesn’t give its formulas, pharm company’s are protective of their ingredients as well. Not to mention, Stats are just part of the picture. An informed Realtor will assist you in interpreting the stats correctly. If you want the stats, get your license like we have to and pay the fees that we have to have access and maintain this information and help support the infrastructure to maintain the integrity of the database. That is the whole point of this article. Our stats have integrity. Some companies stats, certain ones in particular don’t have any integrity.
As for the comment on the sale of $275 vs $256. Truthfully that is why you need to shop around for agents. Out of the over 7000 transactions to date, I have not seen a complaint like yours come before the professional standards committee of the Edmonton Real Estate board. My past sales and awards are only an indication of past ability not a guarantee that the same results will be realized. The other side of the coin look at our track record and compare it to others and I think you’ll agree you have a far better prospect of getting superior results with us. We do everything we can to ensure that we create a successful environment for our properties to get the best results. I treat every property as if it was my own. That level and involvement is why I can’t possibly sell as many as some in this industry who focus on the number of transaction not the success of each on. By the way I am not unique in this approach. I know plenty of really hard working dedicated professionals in this industry that I would have no problem using at other companies. We definitely are in a position to provide more marketing and higher level of service because of our unique structure. We suggest that every seller get at least 3 evaluations as well.
Norm is right. Flippers love the fsbo sites because they know that the average buyer doesn’t have access to the information that would help them make an informed opinion about the property. Another integrity issue, but more importantly did they save the commission or did the buyer still pay it but the seller kept it. Each case is different. We are certainly not for everyone nor do we try to be everyone Realtor. We love what we do and we love our clients and it shows in the quality of our work and our results hence we don’t take on everyone who comes to us. Sara and I started this blog to help inform people. You don’t have to agree with us after all it is our point of view.
As for the The Realtor association of Edmonton becoming more like the Calgary Real Estate Board. Fat chance. For better or worse these two organizations work as differently as China and the U.S. It is something that I talked about at length about just under a week ago with Harvey Gamble who is the executive director of the Real Estate Insurance Exchange. How could two organizations be so different in the same province,we wondered? The list of rule differences are staggering. Some of Edmonton’s rules are better and some of Calgary’s are better. We’re definitely aren’t perfect but the people who I know who volunteer at the different committee’s for the Edmonton Real Estate association are some of the best and brightest this industry has to offer. They are certainly ahead of the curve when it comes to what’s going on.
Btw there are companies who will sell your home on MLS for 2% or less. Their alternative options.
The MLS is still the best vehcile to sell your property 84% market share because of the access to more buyers and sellers period. That is undeniable. If you want to sell for less on your own and assume all the risk that is your choice and their is nothing wrong with that choice as long as you are happy with it and nothing goes wrong.
FSBO companies are so big because they are unregulated marketing companies who won’t let a little thing like the truth get in their way.
I will simply say that you may want to consider that you may not get the results they are marketing to you. Btw I think I’m worth every penny I charge only because my clients routinely tell me so and keep using me.
Reese, when I do an evaluation it takes a huge amount of time and effort so while I appreciate your angle here I am not a non profit organization and there is only so much time I have to support this hobby of mine. I would sooner send you the graphs of our sales versus the comparable sales.
And friends of fsbo companies are welcome here. to get information and if i doesn’t work out on their own they can contact us to see what we can do for them…damm that’s a shameless plug…sorry bout that.
Hi there.
Can you please tell me what the average realtor commissions are in Edmonton right now and for how long they’ve been at that rate?
Thanks in advance for your time
Jennifer there is no fixed rate of commissions. The last I saw, stats can reported the average Realtor earned around 20,000. annually. I know the 5 people in my office that make up the team that assist me in servicing our clients couldn’t live off of that.
I Know many companies have a set policy and some brokers will allow their agents to negotiate from that policy to a certain extent.
There are numerous business models out there though. Lower isn’t always better and higher isn’t always the best either. You have to call around and ask.
The problem with that is that you are focusing on the cost side and not the net. Even though commissions factor into the net. Some people may charge you more and deliver more depending on your needs. Some will charge you less and provide limited or no services which may impact your net proceeds.
Jennifer, I talked with several edmonton Realtors. Their commission structure was 7/3, which meant 7% on the first 100k and 3% on anything after the 100k. So on a $250,000 property sale, that would be a commission paid out of $11,500, leaving you a net of $238,500.
Speaking of net profit, Sheldon, I understand you not wanting to do a home evaluation. After all, what you do is not a hobby, as you mentioned, and you’re in this business to make money–which is what most businesses do. The issue I have with this article is the statement that Comfree produces no results. I have an extra 12k or so in my pocket that disagrees.
the realtors who evaluated our place both came to very similar recommendations on what to price at–around 225,000 or 229,000. Comparibles, including a property in better shape and NEWER than ours, that were less than a month old, showed sales prices around this range–225k. They felt we would likely see a bid for about 5-8% over that asking price, so let’s go on the higher end and say a final offer of $247,320. After the commission paid out under the standard structure of 7/3, that leaves us with a net of around $236,000.
We declined to list with an agent, and used Comfree instead. We priced our home higher than recommended–at $239,000, to be exact. Within 30 MINUTES of our house up on t heir website, we had numerous phone calls and email inquiries. We did our first home showing to several people a day later, and received an offer, immediately, for $250,000, unconditional, with a 10k deposit check.
Our net PROFIT, after Comfree’s $700 fee (minus legal expenses, which would occur regardless of whether you use a Realtor or not), is $249,300. To make that net profit using a Realtor with standard commission rates, our home would have had to sell for around $265,000. There’s no way in h*&l it would sell for that much even today, a month and a half later, particularly if it were listed on the MLS. Other agents would see the listing, do comparibles on it, and conclude the price is way out of the ballpark for the area, condition, etc. That information woudl be shared with their clients, and we’d likely receive offers for under our asking price, if at all. Even at a lower commission structure, as Sheldon mentions some agents offer, the home would still have to be overpriced for us to recoup the same profit.
Bottom line: we sold in a day, unconditionally, for substantially more than we were asking,and our asking price was ABOVE what 2 realtors recommended we list at for that time.
Comfree isn’t for everyone. But that doesn’t mean that a person who uses it or does a FSBO sets themselves up for disaster. The stipulation that only qualified agents can accurately determine the value of a property and get you the best price for it is unfair to the numerous people who’ve sold–at a great profit–through FSBO-type places. And the argument that we ‘got lucky’ can’t apply. This is the second time in a year we’ve sold through Comfree, both at higher prices than the current MLS market demanded.
I think that if you don’t have the time, knowledge or interest in selling your home yourself, or it’s a strong buyer’s market, agents can be very valuable. If Edmonton were a buyer’s market, we would have used an agent–no question. We also use them when we BUY. But in a strong seller’s market like the one we have here, where plenty of people are exposed to Comfree or other listing services, the “need” for an agent is lessened, particularly if you’re astute, follow the market closely, have experience in sales and feel confident negotiating.
It was once said on this blog that the Comfree contracts favor sellers. If that’s the case, doesn’t it make sense to use them if you’re a seller? Selling ourselves worked for us. Does that mean we’d do it all the time? No…it really depends on the market. But a total slam on Comfree isn’t fair to them and the people who’ve sold their homes and done well. I think Comfree probably is tossing around loose numbers with their advertising, which is unfortunate, but at the end of the day, that doesn’t render their services ineffective.
It’s totally fair Reese. Your case is the exception to the rule. I have plenty of properties that refute your example where people listed with me after wasting time and money on Comfree. We listed their property for much higher then they had on their own, and sold it for more than our asking price. In two such cases the sellers netted $12000 and $450000 more with us respectively. This is just two cases.
As for what your agents quoted you we dont charge that and I stand by our bottomline. It wouldn’t matter how many Realtors you talk to, there isn’t anyone doing the type of marketing we are doing. Guaranteed!!
Is it ok for a company like Comfree to slam an entire industry, lumping everyone into the same pile? I’d say its ok if what they are saying is accurate. It’s definitely ok for me to point out when they are not. In terms of the number of properties unsold and their reports of market share and commissions saved, I’d say they’ve got the fuzziest calculators ever.
I can’t speak specifically to your case but I’m glad it went well for you, and I’m not saying it can’t. You’ve sold two homes. I’ve sold over a thousand in my career and I am continually surprised at the funny stuff that comes up. It’s safe to say you gamble when you don’t use a Realtor. As one reader pointed out before – he successfully sued his realtor for $50,000. If he had acted on his own he would have had no chance at any compensation.
You are totally right, there are different options for everyone. Not everyone shops at Wal Mart, or Holt Renfrew.
So with tons of respect to you, pointing out their deficincies is fair game. Tit for Tat I’d say. I’m sure they can handle it. I mean, they’ve got over 1 million reasons why they can.
Based on our records for our sales, I’d be more than happy to show you how many neighbourhood and complex records we’ve shattered. I fully believe we could have sold your property for more. Hard to convince us otherwise.
As for the contracts. For certain I wouldn’t count your money until it closes. I’ve had to go and cleanup some fairly big messes for dire sellers who have bought a home based on their private sale, because their private sale collapsed before closing. One couple we ended up working with had 6 offers fall apart while marketing with Comfree before they came to us and netter more.
Point in fact I have often said that they do a better job marketing their properties than some Realtors, but hey don’t come close to us in this regards.
Hi Sheldon,
I picked up on your blog a few months back and have enjoyed your no-frills, cut to the chase commentary on the hot Edmonton Market.
You’re right, Comfree and other FSBO’s can handle the critisism and certainly should be criticised, as in the long run it will make them more accountable.
I was looking to sell a property and of course knew about Comfree. Their stats looked very positive and using the ‘If it’s too good to be true’ philosophy, dug a little deeper. I talked with others that had used their service, talked with people who bought comfree homes, etc. In the end, Comfree is the right way to list my property for me right now. I’m not desperate to sell as the house is vacant (sorry Edmonton renters looking for a place to live). In a few months, if it is still unsold, I may be motivated to use the services of a realtor. Is my fee paid to Comfree a waste of money? Is it a swindle on their part? I don’t think so. If it sells soon, it’s a hell of a deal. If not, it was worth the risk for saving some commission.
Like anything, it should be buyer beware. Comfree does not promise to sell your home in any time frame, and will not comment on price (the guy who looked after me would not, anyways).
In deciding who will sell my house for me, it was easier to pay for a tool and know that it is up to me to use it and know the risks involved. In choosing a realtor, I would have had to meet many different realtors, all with some pressure to use their services, and their own stats. Stats are very easy to manipulate or omit undesirable info from. Would the agent tell me how many houses he was unable to sell? How many listings he signed and then lost to Comfree after the contract expired? How many he lost to other agents?
Would that agent underprice my property to “generate lot’s of offers” and then try to offload it quickly because he’s too busy and the money’s too easy? Would that agent allow me to name my own price and then ignore it until I agreed to reduce? Is that agent farsighted enough to work with me for his eventual gain, or is he only woring for himself? Will he let me price a little high or is he worried about me screwing up his stats because the property will sit for a few months? (Please don’t take my comments on stats the wrong way, I offer them only as examples of things I want to but may never know about a specific realtor. Your blog alone tells me that you really do work for your clients).
I in no means intend my comments to paint all realtors with the same brush. There are many excellent agents in this city that work very hard for their clients, buyer and sellers alike. And, like in any industry, there are also bad apples, apathetic mouth breathers, and the stereo-typical used car salesman types that only care about how fast they can get their next commission cheque.
It takes a lot of time to find a realtor that you want to work with, and as it is with Comfree, or anything else that one buys, buyer beware is best followed. Comfree allows the seller to keep the commission, but also requires the seller to do the work. This seems to be oft forgotten in a very hot market.
Cheers.