Hey everyone!
Real estate joke,
"I love listing homes with finished basements. They're always my best cellars."
Another one,
"Did you hear about the guy that bought a two-storey home? He got one story before he bought it and another story after."
Alright, enough of that.
Last month I gave you some thoughts on selling your home by owner, and we wondered why it seldom works out.
Ultimately, It falls apart with the buyers. They don't want to buy your home. It's easier to get a Realtor and buy something on MLS.
Realtors are free when you buy a home; we get paid by the seller of the home you buy.
If you get me for free, there is little (or no) motivation to visit a for sale by owner and try to negotiate a deal on your own. Especially true if you are a first-time buyer, single, a new Canadian or a senior.
Unless buyers were willing to pay a fee for the service, seller's commissions won't change.
But that would be difficult because buyers rarely have the money. They just saved for a down payment, and most can't come out-of-pocket another 4-5k to pay a Realtor.
So the fee gets deferred to when you sell. When you do, you'll offer a portion of your commission to the buyer's Realtor, and voila, you just paid the buyer's fee for them. Just like somebody did for you when you bought your house :)
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