Vancouver's Real Estate Market

[Harvey Specter]

Originally Posted by hud 91gt

It is virtual showings from now on. I suspect major subject to’s to include in person showing.

What’s the going rate for selling commission these days? Last two realtors say 7% on first 100, and 2.5 or 3 on the remaining.

Same, it's basically the standard commission. Some realtors will give you a rebate, gift card, etc...

[hud 91gt]

2.5 or 3?

[Bonka]

7/2.5

[ws6ta]

YOU can offer your SELLING AGENT or the BUYER'S AGENT any split of commission you would like.

Don't let a realtor tell you the commission is 7/2.5

The commission is whatever you'd like the commission to be and the split is something you can also decide.

As a seller's agent you can not actively hunt out buyer's for your property. As a matter of fact if you do have a buyer on a property you are listing and have worked with them in the past or know them somehow it is a conflict of interest and you should be giving up your listing! So really what is the SELLING AGENT really doing?

Typically the Selling Agent will tell their client they want the industry standard 7/2.5 and offer the BUYER'S AGENT 3.22 on the first 100k and 1.15% on the remaining. You can still have your selling agent offer the buying agent the "normal" 3.22/1.15 and give your selling agent a flat 1% or 0.5% or whatever else you think they deserve.

Getting pictures done of a house with floor plans, along with listing it on MLS, title search etc is all a under $1000 situation.

[Sw0op]

Originally Posted by ws6ta

YOU can offer your SELLING AGENT or the BUYER'S AGENT any split of commission you would like.

Don't let a realtor tell you the commission is 7/2.5 The commission is whatever you'd like the commission to be and the split is something you can also decide.

As a seller's agent you can not actively hunt out buyer's for your property. As a matter of fact if you do have a buyer on a property you are listing and have worked with them in the past or know them somehow it is a conflict of interest and you should be giving up your listing! So really what is the SELLING AGENT really doing?

Typically the Selling Agent will tell their client they want the industry standard 7/2.5 and offer the BUYER'S AGENT 3.22 on the first 100k and 1.15% on the remaining. You can still have your selling agent offer the buying agent the "normal" 3.22/1.15 and give your selling agent a flat 1% or 0.5% or whatever else you think they deserve.

Getting pictures done of a house with floor plans, along with listing it on MLS, title search etc is all a under $1000 situation.

this...if you guys are settling for standard commission with no other perks he/she better be doing a top notch crazy ass job

[Slifer]

Fuck using an agent. It's a ripoff. Sell it yourself.

[ws6ta]

Originally Posted by Slifer

Fuck using an agent. It's a ripoff. Sell it yourself.

You could try this but it's usually more beneficial for you to use a Realtor. A realtor will push the buyer to purchase since he or she probably needs that cheque to pay off their bills and is tired of being a chauffer to the clients in their car lol. They will also prequalify so you don't end up wasting your time or have a bunch of freaks go through your house with who knows what as an agenda. (Scope out your house posing as a buyer, come back and rob the place?)

Also realtor's are not allowed to have a bias based on commission but if you don't offer the BUYER'S AGENT the typical commission you will have a lot less showings. So what you really want to do is offer the buyer's agent the standard 3.22/1.15 and negotiate down you selling agents fee, especially if you will be purchasing again using your selling agent as they will be picking up some more commission at that point. There are a lot of realtors out there and they constantly bombard their buyer's with listings. If they see a listing with a 0.5% commission and another one with a 3.22/1.15 which do you think they will be more inclined to email to their client? Or even offer an incentive, for example, 5k bonus for buyer's agent if sold by a certain date or for a certain price. The options are endless.

[6thGear.]

Originally Posted by Harvey Specter

I believe some sellers are also telling realtors there's a small window to unload their properties before prices drop so they're in panic mode and don't give a crap about the lock down. Idiotic.

MLS has also removed the open house feature on listings and they're advising realtors not to do showings.

The unit next to me surprisingly actually had a private showing today

[Alpine]

Private viewings are definitely happening. I was going to view a property but canceled because I found out that my agent HAD to be there and I did not want to put her at risk. I was told that people are putting in offers with subject to viewing so there is definitely demand out there (and total inventory is dropping like flies over last week which does NOT help).

[Digitalis]

[6793026]

Van Sun just wrote..
"are you going to do showing?"
"MLS states it's not safe and we should refrain"
"If you don't do it, I'm going to get another realtor who will".

............. it's tough times right now.

It's March 31...... I already know 5 businesses closing down cause the can't make rent.

[hud 91gt]

We prettied our place up to sell. Decided to pull the plug. I asked the realtor about video showings. He seemed very cautious about the whole situation in general. In the end “so I think we should set up times during the day for showings.” I was like “whaat?? Lol” I only want those seriously interested in my house.

We’re going to go down with the ship. I honestly think it’s a pretty good time to sell with such low inventory and people are still out there trying to buy. I’d say some are almost panicking. We just love our reno’d too much, and I don’t know where I’d put all my garage stuff for the time being. Lol

[JDMStyo]

Originally Posted by Sw0op

this...if you guys are settling for standard commission with no other perks he/she better be doing a top notch crazy ass job

True. But I have to say going to strong deal realtors is worthwhile. For our own units I get friends to sell it and handle inbounds myself as that's why I got a license myself.

If you end up getting a better offer and with advice of the knowledge of past deals in area/building and even private buyers waiting for units, the price/time is well worth it.

2.5% split and $7K base split buyer/seller is about $17K and totals $37K up to $1M.
1/ $500K listing $1K commission and $8K to buyer agent. Gets minimal ads/listing/calling effort from listing agent or even open house.
Get $490K offer due to inexperience and no negotiating etc for quick deal.
Seller nets $480K - $1K - $8K+GST = $470K

2/ $500K listing $9K full listing or 1-2K rebate from realtor, no buyer agent (saves $8K).
Seller nets $500K - $9K+GST = $490K.
Note - if this was an investment unit, this is also an expense you can write off against your gains (hopefully some).

Paying 1% or $1k/deal guys you get bare minimum listing and no potential buyer network. There are even FSBO (for sale by owner) type realtors who basically just help you list and just handle some inbound calls.

Slower markets now and limited private showing but prices haven't really dropped too much yet means more negotiating room IMO. Always compare rates and decide for yourself what's fair. Nothing set in stone.

[blkgsr]

what are you guys seeing for 5 year fixed rates now?

also with the BoC rates so low now are most thinking that variable is the way to go considering the BoC probably won't be raising rates for some time

[KayC]

Seeing 2.69% for 5 year fixed and 1.75% for variable

[Slifer]

Originally Posted by KayC

Seeing 2.69% for 5 year fixed and 1.75% for variable

Where did you get 1.75% variable?

[Ch28]

I saw 2.46% for 5 year fixed earlier tonight.

[JDMStyo]

Pretty good markets lately for buyers as we forecasted few months back for our clients. Assignments are where it's at now to get bargains as it's either high interest rate 7-10% short term lending to close deals.

I'm negotiating one on Cambie corridor now $850K for 1000ft brand new AC lowrise building 2BR 2Bath + parking. normal market this would've presold for $1.2-1.3M range or about $1200/f.

[blkgsr]

where are you able to find these deals?

also got another offer from MCAP for renewing my mortgage with then

- standard 5 year fixed, same 2.49%
- special 5 year fixed of 2.39% with a few rules. 1) can't sell to a family member for less that marked (ok would never happen anyways) 2) can't pay off the property before term maturity (would need to win the lottery for that to happen so not worried) 3) can't refinance if the home is rented. not this might the only restriction i could be concerned about

[Harvey Specter]

Originally Posted by JDMStyo

Pretty good markets lately for buyers as we forecasted few months back for our clients. Assignments are where it's at now to get bargains as it's either high interest rate 7-10% short term lending to close deals.

I'm negotiating one on Cambie corridor now $850K for 1000ft brand new AC lowrise building 2BR 2Bath + parking. normal market this would've presold for $1.2-1.3M range or about $1200/f.

I'm in the market, PM a list of what's available in Van/Burnaby.

[JDMStyo]

Harv I think I have you on Whatapp from years ago. Will do.

[SSM_DC5]

Mayor Kennedy was on the news showing graphs of people who weren't paying mortgage and various other breakdowns. Anyone know if they're posted online somewhere? I can't find them, but want to review them.

[Gerbs]

I wonder how long the average retail investor could afford to cover a mortgage due to a vacancy in their investment condo. I feel like most retail investors don't even have that possibility in mind since the rental market is so hot.

[JDMDreams]

^^ theoretically they should be able to cover it for a while if they qualified for the mortgage on it. Unless they lost their job due to covid then that's another story

[eclipseman]

Originally Posted by SSM_DC5

Mayor Kennedy was on the news showing graphs of people who weren't paying mortgage and various other breakdowns. Anyone know if they're posted online somewhere? I can't find them, but want to review them.

Found a replay on his twitter:

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