Over the coming weeks and months you’ll be hearing more about the Competition Bureau VS CREA. As it stands right now, a seller cannot just list their property on MLS® without the listing agent being involved throughout the process (It cannot be a “mere listing”) Eventually, if the Bureau gets their way this possibility will become available and allow agents to post only a listing to the MLS® without representation for a fee.
With some FSBO sites like ComFree and Property Guys costing $695-$1495+ for their ‘full-service’ packages, it makes you wonder what will happen to their market share if sellers can post their property on MLS® instead for similar costs.
There’s no need to wait until the Competition Bureau and CREA hammer out a deal. Get the benefits of MLS® for a competitive price now!
List your home on MLS® for $995.00 (plus tax) and have full representation, as well as ”Seller’s Rights Reserved” included in your contract (more on this below) I’ve streamlined the process to cut non-essential services that I believe just add “perceived value” but do not actually help sell the property. Really, the MLS® is the most powerful marketing tool out there which is why it’s so coveted. Add to the fact that there are over 5300 agents working with buyers looking to purchase, and you can easily see why Realtor listings produce results.
Q: What will the $995.00+ tax include?
- A comprehensive market analysis
- Professional signage installed
- Realtor Lockbox installed (so Buyer’s Agents can show your property)
- Listed on MLS® with detailed description and up to 20 photos
- Listed on the Point2 NLS network, Google Base, Facebook, Kijiji, Craigslist, FindCalgary.com and this blog.
- Property Measurements
- 10 Feature Sheets to place at the home so buyers can read all your homes specifications. You will also be provided with a PDF file if you’d like to print more
- Schedule and confirm showings
- Ongoing monitoring of properties being listed and sold in your area
- Show prospective buyers your property
- Present and negotiate all contracts
- Supervise closing day procedures, releasing keys to buyers only when your lawyer has confirmed that they have received the money owed to you.
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Q: Do I have to buy through you to list for $995.00?
A: No, it’s a stand alone service. But I would be happy to help you buy.
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Q: How much would the total cost to sell be?
A: It depends on how your property is sold. The listing fee is $995.00+ tax and is due at the time of signing the listing and is non-refundable. While commissions are completely negotiable with each agent, in order to use this $995.00 listing service, I require a Buyer’s Agents Fee of 3.5% on the first $100k, and 1.5% on the Balance of Sale Price to be offered for remuneration. (You can still sell the property yourself and save on the Buyer’s Agents Fee – more on this further below)
A common real estate transaction:
Using a $400,000 sale price and a 7%/3% fee as an example, the total commissions payable would be: $16,000 + tax.
Example 1. - Using my listing service + Buyer Agent
Using a $400,000 sale price, the cost would be $995 + 3.5%/1.5%, total commission payable: $8995 + tax
A savings of over $7000!
Example 2. - Using my listing service + Selling it yourself
Using a $400,000 sale price, the cost would be $995+ tax.
A savings of over $15,000!
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Q: Why do I have to pay the $995 listing fee upfront? Why not pay when it sells?
A: Not every house that is listed sells. Agents can spend hundreds or thousands of dollars marketing a property and it still might not sell. Sellers that do sell are almost “penalized” by paying high commissions to make up for the properties that don’t.
Bear in mind, PropertyGuys, WeList, and ComFree charge the listing fee upfront as well – and they don’t have a licensed agent or the power of MLS® working for you.
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Q: Will you have Open Houses?
A: No Open Houses will be held. In my opinion, that is one the “perceived value” activities I mentioned above. Properties are rarely ever sold during an Open House. They are designed for agents to find new prospective clients as they come to view. Most of the time open houses are attended by curious neighbours, people that just happen to be driving by, and others looking for decor ideas.
This will save you inconvenience, as only seriously interested buyers will be shown your property as they normally would schedule an appointment to view the home. However, you are more than welcome to host any Open Houses yourself.
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Q: Do I have to handle showings myself, or will you be showing buyers my home?
A: This is a full-service listing less Open Houses and other marketing money wasters. I will definitely be showing your property to all prospective buyers that contact me, just like any other “regular” listing.
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Q: You say I can be listed on MLS® and still try to sell my home myself?
A: Yes, it’s called Seller’s Right Reserved (SRR) With SRR you are free to try to sell the property yourself while the home is listed on MLS®. Advertise, tell your friends, etc. Even if you are already on WeList or another FSBO site, you can still use my Calgary Listing Service to reach the greater market share that the MLS® offers. While you still need to cooperate with Buyer Agents and their buyers, you are free to try to sell your home yourself. Best of both worlds.
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Q: I’m already listed with WeList/ComFree/Property Guys and want to keep my sign on the lawn and the online listing. Can I?
A: Of course – SRR! It’s completely up to you (or maybe your Condo Bylaws) whether you want to have a Realtor sign installed, or if you just want to keep displaying your own FSBO sign. The FSBO online listing must state that the property is also listed with Mike Fotiou, First Place Realty, but people can still just contact you directly.
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Q: Will my MLS® listing look different to other Realtors or buyers because I only paid $995?
A: Not at all! It will look exactly the same as every other listing.
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Q: I’ve heard discount sellers were “frowned” upon by other agents.
A: Realtors can only see what remuneration is being offered to them if they bring a buyer. This is why, although commissions are completely negotiable, for me to list it at $995 I would like to offer the Buyer Agent 3.5%/1.5%. I will be cutting the fees from the listing side only, and directly into your pocket.
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Q: How can you afford to list for only $995?
A: Low overhead is key. My brokerage doesn’t have a traditional office so there aren’t costly monthly expenses or franchise fees to pay. (There are transaction fees, of course) Most of my marketing is also online based using a network of different websites. That means I’m not paying $200 a pop to have my face on a bus bench every month, or paying for expensive ad space in newspapers. Online is where the buyers are, and that’s where most of my marketing is focused.
Referrals are vital to this business. I will put just as much effort into selling your home as every other listing. I’m not going to jeopardize my reputation to make $995.
I believe Buyer’s Agents tend to do more work in a transaction which is why I think they should be offered the higher commission amount. They’re the ones showing homes, writing up the offers, attending the home inspection, etc. When selling a home, it’s you – the homeowner – that’s inconvenienced the most; having to prepare the home for showings and having to leave hours at a time.
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Q: So this is a discount service?
A: Only in terms of cost – not in the quality and service provided. Save for not having Open Houses, which many agents don’t have anyways, this is a full service listing — for less!
One more point – the DOM is dropping as SFH inventory has dropped below 3000. Many homes are going C/S in the first week. List for less.
To Expediate Service, Please Have the Following Ready:
- Your most recent Mortgage and HELOC statement to show there is enough equity in the property to cover all the costs associated with selling (Lawyer fees, mortgage penalty payouts, Realtor fees, etc)
- Please make sure your RPR (Real Property Report) is up-to-date and reflects the current state of the property (All fences, decks, garages, etc shown) and has city compliance.
- Please have a copy of all permits (basement development, etc) If you have any development without permits, this will need to be disclosed.
- Your most recent utilities bill (Heat, electrical, water) Many prospective buyers ask what they should expect to pay if they purchase your home.
- Your most recent Property Tax Bill, HOA fees
- Condominium owners – please have all the condo documents ready. If needed, please contact your condo management company to get the most recent documents (Reserve fund, Bylaws, etc)
This trial run will be limited to just 3 properties at a time in Calgary & Chestermere (no rural properties). I reserve the right to accept or refuse a listing. This blog post is not intended to solicit anyone already under contract with another agent.
For those of you that have sold previously – any comments or suggestions to make this trial successful would be appreciated.
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If you’re ready to sell, contact me today!
Mike Fotiou
Associate Broker, CCS, ABR
First Place Realty
tel. 403.554.2284
email: mike@findcalgary.com
