December 2011

Punishing the Wrong Consumer

Posted on Dec 16, 2011 in Susan Rochefort

I read an article today titled "Is it Time to Pop the Hood on Real Estate" posted on www.propertywire.ca. It discussed the controversy over commission amounts and the public's perception with regards to those commissions. It asked the question of whether or not consumers would understand the business if they could have a look from the inside out.

I...

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* Compared to a typical rate of 6% on the first $100,000 and 3% on the balance of the sale price, not applicable for agent or relocation referrals.

* * $1,500 cash-back on a property that sells over $300,000, and $1,000 for a property that sells between $200,000 and $299,999. Cash-back is not offered on properties under $200,000. Commission paid by seller must be 3% on the first $100,000 and 1.5% on the balance of the sale price. Not applicable for agent or relocation referrals. May be reduced or not applicable on for-sale-by-owner properties. ***$4,000 flat fee commission only applicable on properties listed up to $600,000. 1% listing commission applicable on properties over $600,000.