🏠 Canadian Real Estate Price Fixing CONSPIRACY Lawsuit, 2024 Canadian Real Estate Market
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- เผยแพร่เมื่อ 1 มิ.ย. 2024
- A major settlement agreement has just been reached in the states which could have a HUGE impact on organized Canadian Real Estate and how commission agreements are made. This is still in its early stages but but changes are coming as soon as July down south and are well underway in Canada. Watch this video to learn more about how it will affect real estate, buyers agents and commission. Of course I share the most recent real estate national data and statistics just released from CREA. Enjoy!
Links/references:
www.nar.realtor/newsroom/nar-...
www.crea.ca/media-hub/news/cr...
realestatemagazine.ca/crea-in...
The real estate lawyer charge flat fee, usually less than 2k for every transaction. They went to the law school and still charge 2k. What real estate agents do worth way less than that. Let's do a flat fee of 2k for both seller and buyer agent
100% agree
100% agree! Real estate agents shouldn’t make more than a real estate lawyer!
Pretty sick that this grift has lasted this long and enriched so many for very little work.
Hopefully some long overdue changes are on the horizon.
Yep total of 1% in the uk.
The technology company Homey does exactly that, flat rate agent fees.
I am a realtor in BC. I agree with Jon on all his points. During the insanity of 2021-2022, I heard a story of a buyer who wrote an offer on a home. A second offer came in shortly after. The amount of the competing offer(s) is never disclosed, so it is all a guessing game. The first buyer raised his bid by a huge amount and ended up getting the house. I later found out that this buyer, who I did not work with, could have gotten the house for $80,000 less than what he bid if he had known the other offer. $80,000!!!! And that is just one instance. There were tens of thousands of instances.
Absolute no need for buyers agent. Just like buying used cars - I don't walk into a dealership with my own agent.
bingo....i have bought and sold 7 homes on my own....they are a waste of skin....most lie daily
There should be buyer agents for car purchases though 😂
@@milhouse8166Hope this was sarcasm. Otherwise a complete fail
@@ryaniam22 Agreed.
@@boogyjuggy that's very impressive -- can i buy you lunch to learn more? Sincerely
I'll be selling my home privately. 5% is just too much money to give. I've sold 3 properties in my lifetime and the money I have up I could have really used right now. A shake up is needed. I have nothing againts people being paid for their services, but come on, $750K sale thats almost 40K gone. Commissions should have gone down with the average home price going up.
I personally found all three houses that I’ve bought and the only reason a realtor was needed is because you’re not allowed to go look at a house without them, which is ridiculous and a big waste of time. I’m sure some people need buyer agents, but a lot of people don’t so this change would be welcomed by many of us. There should also be improved options for people who want to sell a house themselves, because again many people are quite capable of doing so.
My "buyer's agent" was strong-arming me to pay more than my original offer to purchase. That's not in my best interests is it?
Lol imagine going to a car dealership with an agent or you're not allowed 🚫 😆
Not sure where you live. But Husband and myself looked at 6 different homes without an agent. They asked we said nope we are on output own not wasting anyone’s times until we are sure. No issues at all.
@@belle190 how did you get into the house? I’m not talking about open houses.
Security is an issue these days, who is the people wanting to see your home. Are they buyers OR robbers.
It never made any sense that someone can go to "school" for 3 months and make that much money for showing a few houses.
Engineers and scientists with PHDs dont even make as much as a lot of these realtors.
My real estate agent has an engineering degree. He said selling homes is less work and makes way more.
Takes a lot longer than 3 months and costs money too. And if you take the AVERAGE realtor salary, you'd see they don't really make that much on average.
@@milhouse8166yeah, costs a whopping 6k to get a license in couple months/year
realtor afents are so overpaid.
What I was thinking that in that 2.5% buyers fee, it should cover closing costs. I cant swallow the fact that a realtor sells lets say three 1 mil houses in one year and pockets 75K commission. after all dues and taxes that is still 50K cash. That is teachers yearly salary.
let that sink in.
Not true
Fact is that these people who went to school for 3 months sold on average less than 1 property for the whole year of 2023. Those who make a lot from ‘showing a few houses’ are minorities in this market. Not suggesting the service is anywhere worth the fees, just facts.
No buyers agent needed in reality. They just open the door for you. Buyers have a real estate lawyer that will do a lot of hard lifting.
You can't even go and see homes without an agent, as a buyer, so it's necessary to have an agent as a buyer. Nobody will book a showing for you if you don't have an agent.
@@MM-qv5lf That's the problem then, the realtors fix the rules of the game in their favor. Most the showings I've been to I know more about the property than the agents...their whole purpose is to open the combi lock that contained the house keys... and somehow if I buy they make money lol
@@MM-qv5lfnot anymore.
100% agree! Real estate agents shouldn’t make more than a real estate lawyer! What a sham!
100000%. The lawyer does all the work
Next time hire a lawyer and you can billed by the hour. 😜
@@JeffSSartor you seriously think all the work is paperwork 🤦🤦🤦 how old are you
Realtors are unnecessary thieves. There needs to be laws forcing all bids to be public knowledge
Yeah, literally it’s a free money for less work. Most of them are ruthless and making the buyer to overpay. Seller and buyer agent work hand in hand (behind the scene), which is unethical.
Biggest crooks next to Lawyers, Judges, Insurance Companies!!!
@@workoutathomewithdumbbell-7389You are 💯 correct , also it's almost monopoly when it comes to commission ,you really need to grind them down.
Indeed.
We moved from BC, realtor got 20,000. Bought a house in Alberta paid cash...realtor got 4000. It's ridiculous what they're paid in bc. Plus encouraging over paying to get a higher commission.
It bugged me when I had to pay commission to the buyer's broker. To me it should be the buyer's expense when the are employing a realtor to assist them in the purchase.
Absolutely insane and hilarious that a buyer's agent should make $10-15k or more on a sale. Calculate that in $/hr. Now keep in mind these people need no education, despite calling themselves "professionals."
4 months at night school and a open book multiple choice test and you too can be a real estate professional. Any one that puts these guys in the same bucket as a lawyer or a pediatrician needs to be flogged.
John on the other hand may actually qualify. Maybe.
45,000 people left the business in the past year, I wonder why?
What's more insane is that as the buyer, you cannot get into a house without your own agent. Sooooo we put our agent to the test - through the wringer, and the agent show us over 60 properties in a span of 2 years. Since the sellers' agents also pull of scams in the form of photoshopped or intentionally inaccurate photos, we were really ticked buyers, felt like 50+ properties were a total waste of time, gas and effort because in person the properties were nothing like the photos. Our agent is one of the few who perhaps deserves his commission, LOL, also for the fact that we ultimately bought a farm, which is a little more complicated than a regular residence and we refused to waste money on advice from an accountant when RE agents claim they "know" everything about sales of all sorts of properties. Since it was the agents' claim and his agency's claim, we made him sweat it all out. We were not easy clients. But yeah, some clients jump at the first house they see and their agent makes a bundle within an hour. INSANE.
@@jeffotoole4509your info on length of course is as solid as your opinion
Eliminate success fees and instead pay agents a retainer like a lawyer plus billable hours.
That will reduces fees as agents won't have to price in Expired contracts and waste of time with tire kickers.
It will also reduce the waste involved in showing houses to people not serious.
Also will dump all waste of time showings on listing agents, because those agents will have no recourse for buyers who use them to open a door ans thrn use their own buyer agent to draft offers.
This could be quite lucrative for professional Realtors who can leverage listing agents effectively.
Maybe listing agents will charge a flat $250 to open a door for any buyer inquiry... now that would reduce tire kickers lol.
Lots of good can come from this.
Given the significant number of individuals who bought homes at inflated prices despite low loan rates, I foresee an impending housing crisis due to their indebtedness. Should housing prices further decline and individuals become unable to sustain their properties due to financial constraints, foreclosures may become inevitable, leaving them with no equity to recover. This scenario is particularly concerning amidst the looming threat of widespread job losses and escalating living costs.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
If the PCs are elected in the next election and Pierre P. decides to put a halt or moratorimum on ALL immigration due to the housing affordability crisis. Expect that real estate prices could easily drop 30-50% in GTA and Vancouver. When there is a reduction in prices, its called price discovery, this is the market restoring itself to normal prices that are tethered to the median income of the people that actually live in the area where the house are sold. I don't forsee canadian incomes for the average worker to ever go up at the same level as the housing prices.
Immigration done with low skilled workers with what the Liberals have been doing since 2018 has actually reduced the per capita GDP meaning people's standard of living have been declining.
🤔🤔🤔
@@danialwiren2403 You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
It was run by ‘’Mayra Femia Hetrick’’ , who i learned about and got in touch with thanks to a CNBC interview. Since then, it has served as the point of entry and departure for the games we have emphasized. A search on the internet can be done if tracking is necessary.
The last chart was the best. House prices vs income, inflation adjusted. We all feel it but thank you for illustrating it so clearly.
Let’s get this straight. If I’m buying a home I want to pay as little as possible. If I pay my mechanic $107 an hour which I do and I am more than happy to what should a buyer agent be paid?? If we use a typical 750k home how much should you pay a buyer agent to buy that house? Does $107 sound fair I think it does. So for a 750k home the way it is today at 2.5% that equates to the buyer agent working 164 hours on my buy. Roughly around full time 4 full weeks at $107 per hour. I have not bought or sold a house anytime lately but can anyone out there believe that a realtor is working 4 full weeks on your file? Thats why this is so eventful. This also rings true for a seller as well. I wonder why the real estate boards have such big advertising and lobbyists. Hummmm I wonder
Excellent points! CREA are nothing more than a lobby group.
How many active working hours does realtor do to close a deal. Can someone who actually do this for living chip in?
5? 10? heck lets make it 40 hrs, so a 5 full days of doing whatever the f, even at a $150 an hour thats 6k.
And no frkn way thats what they spend.
Having a buying agent is having two agents wanting and pushing you to buy the house regardless your opinion. Both are looking for their commission, their interest not yours.
Would love to hear to your take on Canada buying $30B of their own Canadian Mortgage Bonds to prop up mortgage interest! Sounds like a super duper plan...
The greatest bailout in history. What folks might not understand immediately is that the gov will ultimately own your debt and basically own you. This is reminiscent of Communism in Eastern Europe. The government came and took whatever it deemed equivalent to your debt. I get a bad feeling this is all heading towards Agenda 2030 - You will own nothing and be happy. Anyone with a debt will be targeted, whether it be a leased car, mortgage, TV on payback... best advice is to clear your debts ASAP.
That's the entire point of the market is to enhance liquidity
I'd like to hear Jon's take on this too.
Sounds like doubling down that ends poorly for Canadians.
This is the end for buyer's agents. I foresee half of the 70K real estate agents in the GTA will need to disappear of find a different line of work, as the pie is going to get a lot smaller.
I don't see any buyers willing to pay big money to buyer's agents. The mode of payment may need to change for buyer's agents. They will likely need to charge by the hour, as they are no longer going to get a pot of gold, by bringing a buyer. So, no more $36K for bringing a buyer for a $1.2M house, that can be sold in 2 weeks or less.
THIS IS THE END FOR GET RICH REAL ESTATE BUYER'S AGENTS THAT DON'T BRING ANY VALUE. THERE WILL ALWAYS BE A NEED FOR GOOD LISTING AGENTS THAT KNOW HOW TO SELL!!!!!
🤔🤔🤔🤔
Hold your horses . it hasn't happened in Canada yet
@@priuss6109hold your uber permit...it is going to happen sooner than you think
My "buyer's agent" was strong-arming me to pay more than my original offer to purchase. That's not in my best interests is it?
Why the need for listing agents? Can't you list your house for a flat fee as well then? What's the difference? Get some pictures/video taken and post the property online.
No need for any realtors! I don't need my bank or a financial planner to help with my finances. I educated myself and manage it all, in the past 3 years my returns have been more than double what my certified financial planner was doing for me. I feel that same about realtors. Educated people can look an comps in the area, negotiate price and hire the right people for the home inspections and to right up an offer. A realtor brings NOTHING to the table buying or selling and they should all be phased out permanently.
I dislike that as just a private citizen in Canada I can’t see what houses sell for. With Zillow in the USA anyone can track what houses sell for. You can compare prices per square foot etc.
Housesigma has it for BC Alberta Ontario. Honestdoor for Manitoba
canada transparency is lower than third world countries 😂😂😂
Thank you Mr. Flynn for all the good information you give us every week.
My "buyer's agent" was strong-arming me to pay more than my original offer to purchase. That's not in my best interests is it?
In many countries only the seller uses a realtor to show the house, take pictures, stage, publicize, investigate to set prices, look into the background of the buyer, basically use their expertise to save the seller all of that work and advise them, they only charge a 2-3% fee but do a lot, it makes no sense to me to have a buyer's realtor's comission.
Nobody knows your property better than you do!! Sell it yourself!!
Keep em coming Jon!
Thank you for your honest points!
Thank you for being transparent Jon and making vids to educate us, we appreciate you very much.
RE agents should make hourly wages based on their education and expereince.
If you have a degree in business or economics you are worth more vs a non degree licenced agent.
The average Canadian makes $26/ hour.
RE agents should make the same
Base fee is best. Why should a realtor earn a percentage of your home? They do a job and should get paid accordingly- not a percentage. Also buyers have to pay lawyers, land transfer tax, moving costs, home inspections, mortgage fees, etc.. No wonder our generation of young buyers are unable to afford their own home.
This generation is unable to afford because of the incompetence of the government. They've printed too much money which has caused serious inflation. They've also increased immigration to numbers which aren't feasible and have put a serious strain on the housing market. Closing costs are pittance in comparison.
Listed my home with a RE agent and sold in less than 8 hours with multiple offers. RE agent only listed on MLS and made a fortune off us doing NOTHING. Not right at all. Anyone can be a RE agent with little knowledge. It's got to change, not right.
Watching all ads to support u. Carry on dude.
Awesome, appreciate the support
It is insane to use a percentage based compensation at all. We allow percentage based compensation for chicken wings and pizza... And housing. It is the most expensive thing to buy, amounting to taking a cut of many people's entire savings. Especially in a bubble.
Why should the seller pay a buyer agent, it's stupid.
Why should there even be any agents at all anymore! I don't need financial advisors or my bank to manage my money, which is arguably more important than a home purchase. Educated people could easily look at comps in the same area and negotiate a price, then hire the accredited people to assist with drawing up an offer/etc. All agents should be phased out.
When I lived in far north Ontario most people didn't use realtors at all. It's only when we moved down south that we were told we needed a realtor to buy a house.
With so many agents and REALTORS in Canada commissions should be ROCK BOTTOM. That they aren’t is proof positive that a price fixing cabal exists!
So there wasn't a housing shortage it was all a bunch of investors speculators wrecking housing inventory?
Yep, I've been saying this for a couple of years. I saw them all buying up the inventory in my area and renting out
I@jonflynn
I've seen this for BC from China ppl who are also investors. I feel this is a lot more domestic problem. There's a TH-cam channel called The Looney hour. Who brought a guest from Bloomberg and he does stock trades based off sentiment LOL. He said halfway through the podcast that the US wealth is on the stock market so it's not meant to fail. Where he said in Canada it's all in the housing market. I know myself personally my landlord is in the 70s and he's invested in five properties. I know that's probably the investment strategy a lot of the elderly of his age have done is bought. I would like to see a report that outlines that demographic seen how many actual houses they bought in. Does the average is 1.5 and that's just using against all spectrums of ages when they should probably focus on the boomers. There was an article recently of two investors who just went belly up they had like 514 mortgages they all just went belly up. Alot fraudulent stuff happening. I can only hope for 40% correction. I doubt it will go 20%.
Great breakdown brother, keep up the solid videos.
I supported this real estate agents deserve nothing more then 1% and a possible tip at current home prices
Think of it like a service industry if I like what you did for me I add a 1% tip bringing my agent up to 2%
The buyer can decide what they want to tip their agent
Simple as that
I am not a realtor or in the business. Just own my house in BC. Percentage fees is the issue. Prices and commission got out of whack. Same with our property purchase transfer tax, which is also percentage. Change it to fee for service and have a schedule ,just like dentists. That's allowed .
Excellent news for us. We must use European model. Not need for buyer agent. Sometimes the buyer agent play with the client.
Dual Agency is permitted in Alberta Canada, but not permitted in BC since 2018. Each province is different. Thanks for the discussion.
One of the major problems with the real estate is the insane commission costs
Great video, thank you!
My pleasure!
I lived in North America for decades and i never knew there's such a thing as a buyer's agent, i only knew of a sellers agent usually representing self or a brokerage 😆
People are being scammed in canada
Great video!
If CREA says we're watching closely that means we'll follow suit. 😅 Kind of seems deliberate to discourage agents 😢
In that graph, average home prices in January 2024 was just over $400k. That seems incorrect.
Calgary realtor I’m dealing with wants 7% & 3%, which is BS. still doesn’t have a buyer for our home
It is the right approach
The requirement that I can only buy a house using someone who drives a Hummer with their name painted on it is simply ridiculous.
In California,I have sold 3 houses FSBO, directly to my buyers, and one house in Vancouver through a 1.5% agent/ broker. Its been easy, no problems.
You can buy without a buyer agent and negotiate the price down by the buyer commission fees.
Nope, if the buyer doesn't have an agent, the listing agent gets all the commission. I know!
@@suslamunteonly an idiot would pay full commission in that situation!! They negotiate a commission!!
Great content
I found I was able to buy by myself without a buying agent just fine. There may be some good realtors out there, but I haven’t found any.
I have a question related to asking price. It seems many peaple are list homes at a low price to generate a bidding war. I feel this csould be ended
Yeah it should be illegal. Smart buyers don't fall for that trap ! They just want to screw the new comers....
Why more and more rules? It's supposed to be a free market. See the house, choose how much you're willing to pay and this is your max bit. Why people always like to be protected from everything? If you're old enough to buy a house, you're old enough to make your own choice.
So buyers now will have to pony up extra closing costs that won't be added to the mortgage 100%. An extra 7500$ for a 300k house roughly needed cash in liquid lol. My broker said the bank won't add that to mortgage. What do you think jon?
I watch this channel for the usually frank commentary and cogent analysis around broad economics and real estate pricing. The discussion around changes in real estate representation models & realtor compensation - is notably lacking in any commentary around the potential effect on real estate pricing. Most commentary suggests that selling prices will be lower. Any thoughts?
Yep I forecast lower prices either starting by the end of this year or 2025
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from AILEEN.
what are your thoughts if any on future deflation now?
What are the 2 percent Realty in Canada an separate real estate agency?
Two of three my last purchases were handshake with seller deals with basics sent to our respective lawyers. For sale by owner, and correct me if I'm wrong can now be listed on MLS for a fee? What mls fee/% is I dont know. I don't begrudge agents and the work they put into a sale/purchase but at todays prices you know its too much when I see many driving some very high end cars/suvs around town.
this is good news for the sellers. We get to save our bucks on commission.
Here in Windsor,Ontario the agent selling my house received 6% while the buying agent received 2.5% which I find too high and to top it off I have to pay the GST on his commission.(2023)
Total BS for the education required of these agents.
If our government is involved you can be sure both seller and buyer will be screwed.
I wouldn't bother using a buying agent. The only real reason we need an agent at all is for the paperwork and even then, people have bought AND sold houses without agents at all.
So Jon you said before prices are going to drop. When? With 5% mortgage rate in BC people are buying over asking. I can imagine what will happen when rates will drop to 3%
They will be dropping rates to 3% because the market is crashing. Without the crash no rate cuts.
If Canada starts heavily cutting rates it means the economy is in very bad shape. Rates don’t get cut for no reason.
There will be NO rate cut until the Russia - Ukraine conflict comes to a peaceful settlement and apparently, things are moving in the opposite direction on Europe's geopolitical map.
We are far off that point, the government and the Bank of Canada are monitoring the situation in Europe, and will not give in to the pressure from economists, bankers, and the real estate industry.
Even if there were one or two rate cuts, it won't take long for massive inflation to make a comeback and push the BoC to hike the rates again to a higher level than the current 5% and that would be the turning point.
Uncertainty, instability, and consumer nonconfidence will impact the economy and start to melt down and fall apart.
Warning, any premature rate cut at this point would lead to MASSIVE inflation and massive rate hikes.
1970's inflation which dragged on to the 1980 is the best example.
Canada may need Paul Volker to come in and clean up the mess once again.
'Rate cuts' 'rate hikes' the song of the decieved who still believes that making interest of loans is perfectly justifiable.
Always remember Yeshua reigns and He paid the most ultimate debt
Doesn't the selling agent also split their commission with the broker that they work for?
How can a private citizen in Canada (Manitoba) find home sale prices in there area? Reason I ask is I see this as the biggest barrier to buyers representing themselves
In Canada, we will continue supply side management.
Nice thumbnail image
I do think buyer agents can be helpful, they may know more history about the area and property, things to watch out for. Just like people trying to be their own lawyer or mechanic, if it's not your full time job, there's a higher chance you'll miss something/make a mistake!
good point thanks
You will start to have buyer agents hiding good listings (with low - no commission) from their buyer clients.
The buyer’s Realtor commission can be added to the price and financed in the mortgage.
wow, the wage drop is drastic...
I’m a member of NAR through being CIPS and SRES. 418 million nar should of let it go to court. Basically they pleaded guilty. No? Your opinion…
I always found it strange that a lawyer makes $1500-$2000 to do some actual work while a real estate agent does little or nothing and makes 10 to 20 times what the lawyer makes.
Selling agents are essentially buying agents, too 😂. With more agents vying for fewer transactions, there'll likely be a downward spiral in rates. As compensation decreases, so may the quality of service. It's intriguing that buyer's agents often invest the most effort per transaction and engage more closely with both parties. Considering this, they should ideally receive the highest compensation among all involved parties. In the end, we'll see what happens. Canada, especially BC have many disclosures regarding commission, privacy and fiduciary duties so I'm not sure if the lawsuit holds the same weight. We'll see....
My "buyer's agent" was strong-arming me to pay more than my original offer to purchase. That's not in my best interests is it?
@althunder4269, that's your perspective. Everyone has grievances about someone's actions. The challenge lies in not having the full context behind those actions. We only know that you're dissatisfied. The role of a buyer's agent extends far beyond simply showing properties. In certain cases, a buyer's agent might work tirelessly for months without any compensation until the transaction is successfully completed. How many services provide zero upfront costs and payment only upon completion of the entire process? This service allows for extensive problem-solving, making calls, organizing buyer tours, negotiating offers, advising clients, ensuring accurate paperwork, coordinating inspections, confirming the removal of conditions, conducting pre-closing follow-ups, and verifying that any deficiencies are addressed by the seller.
@@nickjohnston3882None of that is my problem. When I make an offer I don't want my agent to strong-arm me into a higher offer. I want them to present the offer as it stands. That is the ethical thing to do.
They're both scammers 😂
Buyer agents do a lot more work than the seller agents. Buyers are the ones paying thr money so technically the buyers are paying for everything
You have good point , yes buyer brings money to the table, but it has nothing to do with their agent, In fact lots of times the buyer's agent will try to drive the price up.
If that will lower the cost… yes
most likely
If I were buying, I wouldn't mind paying my buyer's agent myself rather than relying on the seller's agent to split their commission, even if it adds to the cost of the purchase. I believe a good realtor adds value and they should be paid fairly. Also, I don't think it makes sense that it should be based on the price of the home because then, wouldn't the buyer's agent just try to get a higher price rather than a lower price? I'm not experienced in real estate at all... this is just what seems to make sense to me???
At 2.5% for a buyer’s agent if the buyers agent was thinking I’m going to encourage/push my buyer to pay more so I can get more commission that’s super sleazy. 2.5% on an extra $10,000 is $250.00. An extra $100,000 at 2.5% is $2,500. I absolutely agree if that’s the motive of a buyer’s agent to waste $100k of a buyer’s money to make an extra $2,500 than there absolutely is a problem.
That is looking at it from pushing a buyer to pay more to get more.
Pushing to pay more to make the total commission is still super sleazy.
Helping people on what is most often the biggest purchase(s) of a persons life and being well compensated for it is something I believe is very valuable. Here’s an example I love. I was working with buyers when the market in Ontario was on a down turn. It was quick but it happened. The buyer’s were used to hearing everything is a bidding war and they should pay asking or over asking. The house was listed at $630k knowing the local market and what was going on I suggested that paying full price was well over market value.
They didn’t want to lose it but trusted me and offered over $30k under list and we got the house. In this case if they had paid me a flat fee of $5k it would have saved them about $30k. There’s good and bad in every industry and the good can help save/make you money and the bad can do the opposite.
I would be happy with a system that paid me for all the time I put into helping people even if it’s helping people to come to the realization that they aren’t ready or willing to buy a house. I have been a realtor for 13 years. I love helping people buy and sell and if the pay structure changes I’m all for it. Researching properties, neighborhoods, builders, building reliable trustworthy networks of people, trades etc. I think a lot more goes into helping people buy and sell than most people think. Doing all that and having people decide they don’t want to move after all is a major out of pocket expense that Realtors have to take as part of the job.
Could be good for everyone. We’ll have to see how things go.
Government of Canada charges to much tax when you buy house or condo as much 30% same as gas to much tax .
Flat rate is better and more information on MLS
3k to 5 k is enough no buyer agent
Not true the USA are so different and everything is so much cheaper over there.
I don’t like cocky , show off real estate agents ,agents that are undercover investors and sabotage your property for their own self interest but other than that ,you do need realtors in this game just as much as you need lawyers or other professionals if they stay within their job boundaries.
Both seller and buyer's agents don't represent anyone, but their own interests. They bogh make money from the same deal. So both work together to convince clients to make the deal. But why we need two sales persons for one product? 😂
As a real estate investor, I know first hand that you do not need a selling agent nor a buyers agent to buy or sell property. We just closed another deal where the buyer seems to think they need an agent therefore costing us 25K for nothing. A total waste of money. We could have settled with the buyer easily and the lawyers do all the rest. This is all you need to do a deal. A good real estate lawyer. Don't let the agents TV ads brainwash you into thinking you need an agent. For convenience, we have a flat rate broker to sell our properties. This is much more fair. A regular real estate commission, the agent who does all the work gets very little of the commission. It's the fat cats on top of the brokerage that gets most of it. So we are glad to see this legal process take place and we will be watching this closely.
Wages adjusted for inflation... and that doesn't include the tax increase!!
In this age of technology, AI, Marketplace, matching models ...who needs realtors? Lets get away with the realtors. They are anyway not serving any meaningful purpose.
Even more than RE agents, we need to do away with brokerages, which take 30%+ of the fees. We are paying them for what value added? Basically, to market to us and lobby against us.
Why do we need realtors in todays world!?!? Its the same thing as the banks and financial advisors. Educated people could easily negotiate a price based on what has sold around the area/etc. Price per square foot, hire a lawyer to write up an offer, and hire an accredited inspector to make sure the home checks out. Same thing with investing these days, everyone is on all the apps and figuring it out for THEMSELVES instead of letting someone take percents of their money for doing nothing.
Nothing new every commodity in Canada has some degree of price fixing.
Property, Food, Clothing, Shoes, Vehicles, just walk around any Mall its the same stores selling the same goods at the same prices.
Seller will be buyer after selling
1% is a fair value to pay commission
As home prices rise compasation should drop
It not right that a person makes
$20,000 on a 500,000 house
That just not right
😂
Agents need commissions to survive
The seller needs to pay
Want a dumb down version. What will be the impact? More transparency?
Problem solved. Your listing(seller) agent is the one hunting for buyers. Match the buyers with the sellers, collect 2%-3% fees from the seller.
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160k RE agents in Canada. That's 0.8% of all working people in the country!
I'm selling right now but do appreciate the Buyer Agent's help. When I purchased a few years ago my buyer's agent provided information that would have been difficult to get in a pinch such as offer, legal and closing. I don't think the system in this respect is broken.
I am not against Real Estate Agents but they charge a lot more than what they actually do. For example, a lawyer who do everything at the backend get a lot lesser what these agents make and even though Lawyer has studied a lot more than these agents. I mean things would make sense on the basis of hardwork which someone has put in for year to become what they are.
Good! Algorithmic price-fixing of rents next! All the parasites needlessly inflating rents and driving tenants into poverty are in for a rude awakening.