Ok. You've read the headlines....back from 1952.
The fact is that you have ALWAYS have had the option to sell privately, deliver your baby at home and fix your own car.
The reason most people would opt to hire a professional to handle a six figure transaction is that the value EXCEEDS the cost involved. Also, being fully aware of the risks involved in dealing with a fraud buyer or seller alone can make a 5% cost worth 10X that much!
The proof of this is the sheer number of multiple transactions I have done for clients over the last decade.
Now here is the point of this blog....
Some of you in Toronto seem to think that having a realtor post a $1 fee to a cooperating agent (the agent who may have been working with a buyer for months before they end up at your door) is good business.
Here is why its NOT. When a professional realtor works with a buyer, we are required to present a Buyer Agency Agreement (by law) at the earliest possible time. For me, its discussed at every 1st showing and signed at every 2nd showing and on.
On this agreement, the buyer agrees that I (and most realtors) are entitled to receive 2.5% + HST OR a fixed amount for entering into this agreement and helping them find a space. It may take a week OR it can take 6 months.
In the listings where the seller has decided to negotiate with their selling agent, that information remains between seller and agent. In the listings where an amount of $1.00 is listed for cooperating brokers, it is NOW going to be factored into the cost of buying (something that most buyers are NOT fond of).
Remarkably, many of these listings are not listed so much less that it would sense for that buyer to pursue.
The end result is the buyer will likely go with a more traditional purchase where the seller offers 2.5% to any cooperating broker.
IF YOU ARE SELLING PRIVATELY, DO NOT PENALIZE ANYONE BESIDE YOURSELF AND THE AGENT THAT YOU END UP WITH.
PS My only other comment for a private seller involves the importance of hiring someone that can defend the compensation they demand. You will find out quickly if they are willing to give their money away....yours is next!!