Why is communication vital for both the listing agent and the seller? We all agree on the importance of communication, yet, many issues arise because of a lack of communication. The process of selling a home is complex and involves many decisions.
Hence you must make sure you are clear with the details of your communication with the agent. For example, how often would you be updated, what kind of update will you be getting. Also, you like to know when and how you can get in touch with them. The details of the communication must be crystal clear.
If the agent's communication strategy and style do not fit your expectation, you should move on. I found calling my clients once or twice a week seems to work for both myself and the client.
Sellers should also be aware that agents need some time off so they can be at their best. Hence, if you lay out the expectations early on, both sides can focus on the mission at hand.
Is the real estate commission negotiable? Real estate commissions, like most other services, are negotiable. Keep in mind that the interview is both ways; real estate agents will be assessing the terms and conditions of the seller before agreeing to list the property. There seems to be a false notion that real estate agents will jump to any listing terms and fees. The real estate profession is commission-based; hence, waking into a wrong agreement means a waste of time, money and no commission.
The 5% commission is the industry standards in Toronto, Ontario. However, you will find many variations based on the community and area; specially the commission for the listing agent. The commission is split between the listing agent and the buyer's agent. The commission split varies depending on the arrangement between the seller and the listing agent. Typically buyers agent commission is 2.5%; I have rarely seen lower than this amount. Depending on the market and the property, a seller may agree to offer a buyer's agent commission of 3% to attract more views to a home. However, the listing commission rate varies in the industry, typically from 1 - 2.5%.
Your trusted listing agent will advise you not to lower the buyer's agent commission since you intend to bring as many offers as possible. However, you may encounter listing agents that will agree to reduce their fees right upfront. On the contrary, some agents will not lower their fees because of the services they offer.
Keep in mind that if the agents do not negotiate the commission rate, you should wonder about the negotiation they will do on your behalf. "You get what you pay," hiring the cheapest agent may result in inferior results as well.
About the author: The above Real Estate article was provided by David Khosravi, a leader in his field in Willowdale, North York, Toronto. Reach out to David via email: firstname.lastname@example.org or by phone: 416.990.2424