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  #51  
Old 2015-08-26, 12:41 PM
New Orleans New Orleans is offline
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Originally Posted by mc_ottawa View Post
Good tips. We decided to go with Grapevine again for a third time. We had success the last two times, so we expect the same success this time.

To follow-up on your comments, buying a lock box was a great lessons learnt after our first sale. It saved me many trips home during the workday, and when we aren't selling our home, we use it to lock up a spare key outside just in case...

I have found that offering the 2.5% makes or breaks things. On the first home that I sold, showings went up immediately after I offered the 2.5%.
When you say showings went up immediately after offering 2.5% what were you offering before? Were you saying "no agents" or offering 2% or something less?

Just wondering if you guys think agents would not show your home if you were offering 2%. Do they want the 2.5% or nothing?

Thoughts?
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  #52  
Old 2015-08-26, 02:14 PM
HMBTUX HMBTUX is offline
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Originally Posted by New Orleans View Post
When you say showings went up immediately after offering 2.5% what were you offering before? Were you saying "no agents" or offering 2% or something less?

Just wondering if you guys think agents would not show your home if you were offering 2%. Do they want the 2.5% or nothing?

Thoughts?
You'll notice some private sellers offer 1.5% or 2%. In speaking to people and realtors, I would say don't go below 2%. Even at 2% you'll miss out on some showings since the buyer's agent wants to make as much as possible, but I think most of them will still bring their buyers @ 2%. Depends who you speak to I guess
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  #53  
Old 2015-08-26, 03:06 PM
BlkStnBerk2 BlkStnBerk2 is offline
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I hear what you're saying. Just speaking from experience though I had agents constantly offering to come on at 4%, 3.5%....one guy even said he'd do it for 3%.

As for the comments about more expensive homes requiring an agent that a few people have said...I tend to disagree. If anything there is more incentive to DIY since you save more $. Also in my experience once you get into the 500k range the people you're dealing with tend to be more experienced and educated about the whole process so I actually feel more comfortable. The last place we bought ....we bought it before selling, fixed our own place up and got it sale ready, listed it, and sold in about 50 days total. Lower than the avg days on market on MLS and the person I bought from was a pleasure to deal with.
There's no incentive for buyers to do it yourself, since the sellers are the ones paying the buyer's agent's commission.

What people have said is that most people shopping for homes in that range, are using an agent. So if you're selling your home on Grapevine, the majority of agents aren't interested in showing for less than 2.5%. Most of the ones I know who are quite successful, will actually negotiate much higher, because they tend to end up doing most of the seller's legwork as far as legalities and paperwork go. . This is just what I've heard from these guys. In fact some I spoke to who I don't know personally, flat out told me they don't bother showing Grapevine homes due to the headaches in their previous experience.

Also, when you're selling an expensive place, you already have a smaller buyer's group, so why risk making it smaller to save a few thousand?

Case in point. There were a couple of homes in Blackstone with Grapevine. Monarch bungalows. They didn't sell. Then they switched to an agent, which I assume brought a bigger audience and ended up selling. These were 600k+ homes.

A few years ago when the supply was low and it was more of a buyer's market, Grapevine was awesome. But now that it's flat, higher priced homes are sitting for longer.

Don't get me wrong. I think Grapevine is a great service. I just think in our current market and economy, it's a bit riskier for those selling the more expensive homes.
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  #54  
Old 2015-08-26, 03:09 PM
BlkStnBerk2 BlkStnBerk2 is offline
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Originally Posted by New Orleans View Post
When you say showings went up immediately after offering 2.5% what were you offering before? Were you saying "no agents" or offering 2% or something less?

Just wondering if you guys think agents would not show your home if you were offering 2%. Do they want the 2.5% or nothing?

Thoughts?
2.5% is the standard across the board for buyer's agents. Some agents that you speak to who sell for you, will tell you they can cut you a break on their commission, but they have to do the 2.5% for the buyer's agent.
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  #55  
Old 2015-08-26, 03:42 PM
HMBTUX HMBTUX is offline
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There's no incentive for buyers to do it yourself, since the sellers are the ones paying the buyer's agent's commission.
That is the oldest line in the book lol. Of course there is incentive to DIY. If you are buying from a private seller they can offer you a better price since they don’t have to pay commission (in theory 2.5% lower). If you are buying from someone with an agent the agent’s eyes will light up when they see the potential “double ender” even though they won’t say that. They will act as buyer’s agent and get to keep the whole 5% as opposed to paying another agent half….. this is the grand slam for them. Once you and the seller are about 2% away from an agreement on price negotiations, you simply ask the agent to lower their cut to around 3% or so in order to bridge the gap. All but the most stubborn agent/brokerage will of course agree to this since they will still make more dealing with you than if they were to decline and deal with some other buyer who has an agent.

Anyway yes it’s a tough time to sell and if you don’t have a long time to wait hiring an agent is a good idea for many.
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  #56  
Old 2015-08-26, 06:43 PM
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mc_ottawa mc_ottawa is offline
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Originally Posted by New Orleans View Post
When you say showings went up immediately after offering 2.5% what were you offering before? Were you saying "no agents" or offering 2% or something less?

Just wondering if you guys think agents would not show your home if you were offering 2%. Do they want the 2.5% or nothing?

Thoughts?
The first time I sold using Grapevine, I was a very green home owner. It was my first home, and I really didn't know the process innately. I listed it without offering any commission, and there were a few showings. There were two identical houses for sale on the street, and they were getting significantly more showings. Once I added 2.5% on both MLS and Grapevine, I started getting a ton of showings, and my house sold within the week (first of the three houses on the street to sell).

The buying agent of the people who bought my house had shown the other two homes to them earlier, but didn't show mine. Once the commission changed, my house got 'added' to the list.

I think if it were a couple of years ago when it was a seller's market, you could get away with a smaller commission. It is very much a buyer's market these days IMHO.
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  #57  
Old 2015-08-26, 08:17 PM
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canabiz canabiz is offline
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Many agents' hands are tied by their actual agency. Most have a "floor" when it comes to commission percentages. You hire a listing agent for 2.5%, and then you still have to deal with a buyer's agent for the other 2.5%. Then you're at 5%.

Even if your listing agent offered 2%, you'd have to offer 2.5% to a buyer's agent. Now you're saving .5% over just hiring the agent outright....


Grapevine is a great tool for people who are in no hurry to sell, or people selling their homes for less than market value. This is my opinion. Most serious buyers that are looking at homes in the high 500's and 600+ range, and shopping with an agent.

The market is saturated and flat right now...So if you can wait a long time for a sale, or don't mind selling for lower than comparable homes, Grapevine is definitely the way to go to save a load of cash. If you want to sell for top dollar, and don't have a long time to wait (bought new home before selling your own), an agent is definitely the way to go.
Berk, I don't think you necessarily need an agent if you want to sell for top dollar. You do, however, need to do your due diligence and if that means inviting a few agents in for them to do a (free) market evaluation then knock yourself out. An agent is not going to help you bring in more $, if the house is not priced properly. Quite the contrary, you may take home less after the commissions, but you guys have already beaten this horse to death so I won't rehash any further.

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Originally Posted by New Orleans View Post
When you say showings went up immediately after offering 2.5% what were you offering before? Were you saying "no agents" or offering 2% or something less?

Just wondering if you guys think agents would not show your home if you were offering 2%. Do they want the 2.5% or nothing?

Thoughts?
I think the smart way to go about this is to put commissions as *Negotiable* or something generic along that line. Why shoot yourself in the foot and let the agents with potential buyers walk away over 0.5% or whatever the case maybe? Let them bring what they got and we can start talking.
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  #58  
Old 2015-08-27, 08:17 AM
BlkStnDude BlkStnDude is offline
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I think the smart way to go about this is to put commissions as *Negotiable* or something generic along that line. Why shoot yourself in the foot and let the agents with potential buyers walk away over 0.5% or whatever the case maybe? Let them bring what they got and we can start talking.
Oh if only this were possible. Unfortunately listing through the MLS and on Realtor.ca with Grapevine or another "mere posting" service means you have to offer a minimum of 1.5% to a buyers agent. Frankly most agents will just skim/filter out any listings under 2% and the really busy agents (i.e. with actual buyers) only look at 2.5% and above.

You can say all you want in a FSBO listing that the commission is "negotiable" but once you put a percent commission on MLS/Realtor.ca there is no negotiating that down with a buyer's agent. However, nothing is stopping you from crunching the numbers on any offers and taking into consideration what your Net will be after commission is deducted and negotiating the price accordingly. But in a buyers market don't expect miracles.
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  #59  
Old 2015-08-27, 09:29 AM
BlkStnBerk2 BlkStnBerk2 is offline
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Oh if only this were possible. Unfortunately listing through the MLS and on Realtor.ca with Grapevine or another "mere posting" service means you have to offer a minimum of 1.5% to a buyers agent. Frankly most agents will just skim/filter out any listings under 2% and the really busy agents (i.e. with actual buyers) only look at 2.5% and above.

You can say all you want in a FSBO listing that the commission is "negotiable" but once you put a percent commission on MLS/Realtor.ca there is no negotiating that down with a buyer's agent. However, nothing is stopping you from crunching the numbers on any offers and taking into consideration what your Net will be after commission is deducted and negotiating the price accordingly. But in a buyers market don't expect miracles.
Well said and good points.
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