You know those people who just have no idea what is going on around them? They cut you off in traffic (pedestrian or car), or they almost get hit in the head with a flying puck and have no idea they were inches from a trip to the ER, or they talk so loudly in a restaurant that the whole place has to listen to their conversation, or they say something completely offensive to someone in a conversation with no idea they’ve just hurt that person’s feelings….
Sheldon and I call those people unaware-ites. Once you start using the term, you won’t believe how often you’ll find yourself applying it to different situations.
Usually it’s just something funny, like when someone is driving on a completely flat tire, or you look in the fridge for milk and drive off to the store to get more when there was a full jug sitting right in front of you that you just didn’t see. But when it comes to more serious things, being unaware is no excuse.
In court, there is a difference between making a mistake (aka negligence) and being unaware (aka ignorant). If you are representing yourself selling or buying a home, and you are not aware of your requirements, procedures or the numerous laws, and you end up in court, ignorance is no excuse. If on the other hand, you are represented by a professional and they are not aware of something, guess who takes the fall? Not you, the professional.
I just put an offer in on a property which is subject to sale of my home. The real estate agent I am using is only representing me as a buyer. My real estate agent was fully aware that I had never intended to use him as a selling agent. When we completed the offer we had to fill out a “sale of buyers home” form. When I told my real estate agent that I had decide to use Comfree to sell my property, he told my that his office wouldn’t accept an offer like this. I asked him to at least present this offer to the other agent and let the seller decide if she would accept it. He told me that it was unlikely that the other agent would accept this offer as well. He finally agreed. We are now waiting for a decision from the seller.
My question is, why would it be up to the real estate agent to decide what offer he presents for the buyer or accepts for the seller? Shouldn’t this be up to the buyer or seller and not up to the agents? Is it true that certain real estate companies are doing this and if so why would I as a seller use this company to sell my house if I wasn’t presented all offers and not just the ones my real estate agent decides is a good one. In my opinion this is just another way for the real estate agents to push out Comfree.
***So let me get this straight. You’ll buy through an agent but not sell through one. If I was the seller I wouldn’t accept your offer because your home is statistically unlikely to sell, plus the potential ramifications to them if the sale of your home incurs problems due to something you or the buyer did. The issues I have had with Self represented sellers would lead me to advise my clients of these risks and it would be up to them.
As for the agents company policy, I can’t speak to that. I don’t have a policy like that. The associate does have the ability to determine if they would represent you in bringing an offer or they could recommend you get another brokerage to represent you.
Sounds like I’m only getting half the story and since it sounds like an ongoing transaction I’m not inclined to stick my neck on the chopping block as per the Canadian Real Estate Association code of ethics
Article 20: Respecting Contractual Relationships
The agency or other contractual relationship of a Registrant shall be respected by all REALTORS®.
Negotiations regarding an offer or the acceptance of an offer with any party who is exclusively represented shall
be carried on with the Registrant representing the party except with the consent of the Registrant.
***Sheldon
Allin, I am really not surprised with your story… listen to this.
The other day I placed a post on this blog and to later on found out it had been deleted. Do you want to know why? Well, my post talked how realtors are boycotting a company called ****, simply because if you list your property with **** realty and a seller’s agent take his client to a property listed by this company, guess how much the seller’s agent commission will be?
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Hope this time Sheldon and Sara don’t delete my post, since this is supposed to be a democratic place.
***Edmontonian, your post was deleted because it had nothing to deal with the article at hand. Just like this post where you always try to tie in another company it seems more like advertising. btw this is not a democratic place. And heresay is best delivered at that other blog.
The allegations you are making are serious and to my knowledge unsubstantiated. If you have proof you can forward it to me and I’ll publish it and you can forward it to the competition bureau. Otherwise I don’t know if you are member of that company trying to advertise on our blog in which case I’ll have no problem deleting your posts and you can start your own blog…adios…Sheldon
Ops, one correction, I meant “buyer’s agent”.
I have met a **** realty guy, they are just wonderful and respectful, do not push people and are quite honest, I have a lot of respect for them
Sarah, sounds like you’re recommending Comfree…lol
Seriously, an Unaware-ite selling her 300,000 condo through a professional Realtor at 7/3.5 may also not realize that the true cost in dollars is about $15,000 in commissions. That’s a loss of about 4 years of equity based on a typical mortgage where 4,000 in principal is paid each year!
Bottom Line. Commissions are too high or there would be no market for Comfree. Realtors provide a great service, but it’s a very overpriced service!!!
***Let’s see even Comfree says you should reduce your price by the commissions to get your home sold. So that arguements out the window. Depends on the Realtors. Fees vary and so do service and marketing. Their are numerous options out there. But if you’re home is not selling and you’ve paid almost a 1000 and you still have the hours of work and time and effort. So if your home takes months to sell and you only value your time at minimum wage you are into it for several thousands of dollars. Then you take on all the risks and at the end of the day when it doesn’t sell you go see a REALTOR. I’d recommend a good one they are worth it and they don’t get paid for it and they know a hell of alot more about whats going on to sell a house then you do. Forgot to mention that there is also a portion for the buyers agent lets say its half. then in my case, I have to cover all my marketing costs, operating costs and staffing costs and still make a profit. I also cap our fee at different levels for different price ranges but if I don’t like you there’s only one fee the highest fee I can think of . But if you sell your home for 480,000 using a me and the highest offer you got on your on through a private sales company was $420,000 would I be worth it if you had to sell? in your world probably not but in those peoples world they thought I was worth every penny and even have come back to have me find them another home and sell another property. – Sheldon
I do have to agree with some of the comments here. Although I have used a realtor for purchases, I have difficulty in justifing them for sales at the “current” 7/3 commission scale. I still haven’t sold a place but feel that when I do I will seek propective agents who are looking for a job. The job will be to sell my place for “X” dollars – “X” being a function of the property’s approximate current market value and some of the costs incurred by a realtor to sell said property. Anything above and beyond “X” is profit for the realtor(s).
This is much like selling your car on a dealer’s lot…
I know not all realtors will jump at this method – but I feel that a fair commensation for a job well done can be reached – plus the realtor has an incentive to get “top dollar”. A “win/win” environment can be had…
Feedback?
***Rhettro. That is called a Net listing and it is illegal in Alberta and would be in contravention in the Real Estate Act. Lets say for example a seller lists their home for x but do to a micro event the property is worth x plus 50,000 and you had agreed to pay them everything above x. ouch. btw where do you get 7 and 3. There are companies and people that charge alot less and some more.
You should get to know what the options are you’d be surprised. Albeit sounds like you have your mind made up any ways. Live dangerous go cheap.
Sheldon you wrote,
***Edmontonian, your post was deleted because it had nothing to deal with the article at hand. Just like this post where you always try to tie in another company it seems more like advertising. btw this is not a democratic place. And heresay is best delivered at that other blog.
I think whether a post is hearsay should be left to the discretion of the audience. You want people to believe that there is open dialog on your blog, and then stop removing different view points and opinions. You lose credibility when you do this. People love this blog when they can have a opinion. I hope you leave my post, and I am curious as to your rebuttal.
***Some comments are pure crap. I could leave everything up and let the extremists take over and I’m sorry. When someone has something to say that is basically suggests REALTORS are actively participating in criminal activity then this is not the forum. I don’t worry about contrary opinions but I do worry about my legal liabilities and I’m sorry its not up to the audience to determine whether something is legitimate.
I also don’t need employees or relatives of other companies advertising on our blog. I don’t buy it for a second that he’s a satisfied customer.
I thought the law was all realtors HAD to take offers to the homeowner, no matter how small the offer… Am i right?
***All written offers have to be presented to the seller. Yes. Some sellers will decide in advance that they don’t want to see any offers below a certain value. If that is the sellers instruction. So then your comment wouldn’t apply.
In addition if I see a potential problem or conflict in representing a party or they are abusive with me or my staff then I discuss this with my seller before writing that party. In the end I would still have to agree to represnt that party. If my seller wanted me to still write the offer then as long as the buyer agrees to “my” terms of representation then I would write the offer and present the offer.
for example if the buyers already having problems with me personally, I would send them get their own representation by another brokerage. In the months to come the rules about concurrent representation are going to change so what I’ve said today may apply differently after Oct 1, 2008.
Sheldon, what is wrong with my last post. Why do you feel that if you don’t like a post, or it is against something you agree with, you choose to delete it. That is debate. Two people with differing opinions, the whole exchange of ideas. Come on, be better than that.
***I didn’t delete it. So quit crying already (why do you always complain that I delete your posts when I never have). I added my comments to the bottom of it. I believe in a exchanging ideas and noone loves a good debate as much as I do. But some things are just not appropriate and are completely offside or they are just rude and offensive.
Thanks for your input sheldon, I was unware of the violations that could occur in such a scenario.
I picked up 7/3 from the usual or customary commission structure that exists in the market place. I’m sure there are variations – like any commission based industry. I’m sure if I took a sample of just my clients – who are real estate agents – I would find variations.
My mind is not as closed as you lead on – perhaps it is you who should not be so quick to judge one person’s ideas and opinions – because that is all they are.
There is a lot of information when it comes to real estate and it is important to get a variety of opinions and views so that one can decern between good and bad information. Your blog allows this passing of information – thanks!
***Thanks for the spanking Rhettro. It is well deserved and I apologize if I was hasty in my comment. Sheldon
I will do an atricle in a future post that talks about the Competion Bureau and the prohibition order that it placed on the real estate industry for 10 years back in the early 90′s. In my world its fascinating stuff and imaybe others will find it of interest as well.
Sara/Sheldon,
I believe that most visitors and participants here are interested in information on buying and selling RE in general, process rules in Alberta, the current state of the RE market in Edmonton and possibly Alberta, forces impacting on these markets, possible future developments, and the perspectives of two RE agents on these issues.
While some may assume that you set up the blog simply because you have an obvious interest in the industry, it is reasonable to expect that you hope to find some new clients. I have directed many people new to Edmonton to the site, the EREB site stats’ section, Truman’s site, and with some caveats, to the AltaBubble Blog site. I also alert them that this ia a reasonably civil and constructive site.
It might be useful for you to place a new statement of this type–not necessarily this– near the top of the blog: your mission statement. It will then easily be understood by reasonable people why some offerings are rejected as inappropriate.
I do not see that attacks on the propriety of commission fee structures, personal attacks, comments on other RE agencies, thinly veiled self-promotion ads by agents of other RE companies, or comments on the virtues/limitations of Comfree or private sales are appropriate on this blog. This is not to say that these are not important, it just means they do not contribute to the information dissimination and dialogue that this site was established to promote.
I, personally, would make one exception on Comfree: it is relevant and appropriate to re-report Comfree statistics here and to critique those stats in order to provide a more complete picture of the market.
We have all seen the destructive impact on some blogging communities of the failure of the owner/manager/monitor to enforce the rules and edit to ensure focus and civility. Hey! We are guests in your house.
Wow can’t believe the debate over the commission rates..we’re coming to Alberta due to job transfers this spring and have already sold out house (in the GTA in two days for over asking) with believe it or not a coldwell banker team..for 4% commission!.After reading from this and other Alberta blogs,think we’ll rent to save on future commission loss not to mention uncertainty in the market and we’re only in Alberta for five years.Doubt we’ll make equity in five to compensate for the lowering of prices that we’ve seen already on Mls! So would you call us unaware? No I would say educated
My comment was deleted, and I appreciate being called a crybaby. So you can be rude, but posters can’t. Man up, and stop deleting posts. If you don’t agree, challenge my opinions and thoughts. Resorting to calling my a whiner is a garbage. Deal with the fact that you don’t like being challenged. What next, banning me because I challenge you. I never write posts that insult, but if I don’t agree with someone, I am willing to exchange my viewpoint. I hope that if someone thinks I am wrong, that they challenge me in appropriate fashion. Is this not what you want on your blog. I think people get turned off to your blog when they can post a contrary opinion, because they feel you have an agenda. If I am wrong, compel me with a thoughtful argument. Now I will go back to sucking my thumb.
My apologies, however my post appeared to be deleted earlier. Maybe it was under review, and not on the blog when I looked. Feel free to delete my last post.
My apologies, however my post appeared to be deleted earlier. Maybe it was under review, and not on the blog when I looked. Feel free to delete my last post.
Bottom line is that real estate agents add limited value at best and the current compensation structure is grossly misaligned.
The beloved mantra of “we will get your home listed on MLS” is hardly a justification for exorbitant fees.
Also, most people recognize how difficult it is to make a decent living. So, when an agent roles in and tells you that the home you are interested in “has 4 rooms, a yard and new shingles”, and then turns around and says, “now I will have my $22,000 in commission”, it is likely to garner feelings of resentment.
Also, there is no incentive for a buying or selling agent to truly hold the clients’ interest as a priority. In the former case, if a buyer pays more, the agent receives more in commission. In the latter, if the seller sells for less, the agent is more likely to receive his commission sooner.
Furthermore, lets use a metaphor of a waiter. If the waiter serves me a hamburger vs. a fillet mignon should that waiter be paid more for the delivery of the fillet? Clearly most would agree NO. He still walks over a plate from the kitchen. However, in real estate somehow consumers have allowed this very thing. Same procedure = > $ because the home is worth more. What the F%^&??!! It’s an affront to reason and nothing more than acting as an opportunistic leach.
My proposal would be that a flat rate be used, one that allows for some adjustment resulting form effort.
My sentiments are shared by many and evidenced by all those who list on Com Free or other similar services elsewhere.
P.S. I do have friends in this line of work, and I have shared my thoughts openly and with greater vigour with them. Over some beers and good-natured ribbing some admitted with a mischievous smirk that what is going on is nothing short of a racket.
***Lol…your analogy if kind of funny. What type of filet is it? what is the history of the filet? how was the filet prepared? Does your waiter use any discretion or judgement in acting on your behalf? Were you looking for a filet or a rib eye?
What surprises me is that you and your friends are clearly unaware there are numerous models of compensation. Its as if you’ve only discovered one glass slipper. I suggest you do your research or you’ll end up with a hot dog.