TOO GOOD TO BE TRUE?

By: Chad McMahon

TOO GOOD TO BE TRUE?

Tags: Real Estate, Commissions, Chad McMahon, Oakville, Toronto, Mississauga, Burlington, Explanations, Understanding

When will they learn?

 It’s almost a tale as old as time. When it sounds too good to be true, then it likely is…. well isn’t it? Even though as human beings we have that little voice in our heads that says that maybe we actually were this lucky enough to find this deal and no one else did. It just fell in our lap and how fortunate for us that no one else discovered this deal in an age where all information is at our fingertips.

One thing I have always hated about the real estate profession is the self-glorification that comes with the job. I get it, you have to show people you’re good at what you do, you are always working and above all else, that you’re worth it! You get it done and you make and save people money. 

The only other thing I also don’t care for is the competitiveness in this industry. Everyone and their uncle are vying for your business and what can you believe nowadays? When a shiny new business appears and starts to say they are revolutionizing how this industry works the many professionals in my profession just wait for them to go through the motions and they will disappear eventually only to have another company dust off the gauntlet and try again.

 I wanted to explain something to you, as I’m not allowed a real retort due to the competition bureau’s rules. A new company bashes us publically but we can’t really retaliate in the slightest.
 
So out comes Purplebricks (aka Comfree – remember them?) coming out with new ads with their catchy slogan of “saving yourself from Commisery” Get everything you’d expect to get from a real estate agent – except paying the commission.
 
I hear some of the newer agents in my office talking like they should just give up their licenses with this company and their competition coming out, which prompted me to dig a little further as I told them not to really worry and that PB will be a distant memory in a year or two max.
 
I decided that I was going to call PB for the experience after I saw a fellow Realtor in the Durham area post that she did the same thing and asked similar questions.
So I called and asked how they plan on saving everyone all these “thousands and thousands of dollars”.
 
So here’s the breakdown for you:
 
Me: “So how do you do it, where would we start?
Answer: For a small flat fee of $799 + GST we’ll send a realtor to list your home and provide you with some pictures.
 
Will those pictures include any videography to showcase the great features in my house and my amazing backyard oasis, similar to what my neighbor had done when he sold his place with his agent?” – Answer: Sorry sir, no it doesn’t include that!
 
What about an open house? Can I choose to have those done on my listing? If so what do you do for them? Do you have handouts? Or market my home?
Answer: We provide one open house sign to you and you’ll get a lockbox for your front door for $399 + GST, but we don’t do any marketing handouts.
 
Very well, then I assume I at least get to choose the agent that comes to my home to do this?
Answer: We actually will send you the first agent that’s available.
 
Does your fee include any kind of advertising on Social Media?
Answer: No unfortunately it doesn’t.
 
Is there any assistance in staging my house?” 
Answer: Ummm.. (a confused delay) No?
 
So the realtor you’re sending to my home is the one I’ll be talking with directly during the listing period of my home? They can answer all my questions?
Answer: Actually no, we would need you to call PB during our hours of operation and speak to someone there.

"Would they know how everything went during my open house so I get feedback?"
Answer: Um not really, but we can answer any other questions you may have.
 
Who helps negotiate for me when an offer comes in, so I know I’m getting the most money for my home?
Answer: Well actually for $1500 + GST we can offer some help with that but typically there’s no help.
 
Well what if my house doesn’t sell? Do I get some of this money back or am I fully reimbursed?
Answer: No sorry you will not be reimbursed on this investment.
 
Lastly, I see in your fine print here, that I’ll need to pay remuneration?” Can you tell me what remuneration is please, I haven’t heard this word before?"
Answer: Sir it’s commission…
 
Me: “Oh so I will pay commission. Okay case in point, thanks for the explanation
 
So you’re paying $3000 upfront for no representation, no help, no guidance or experience. You get to work two jobs now as well. You get to let strangers into your home on your downtime and try to sell it to them yourself. Don’t forget that you also get to pay the commission to the buyer side now too! Yay you get to pay for this experience!
 
Tip: If you don’t offer the Buying side of your transaction the going rate (2.5% of sale price) they will likely try to take and convince their buyers to buy another property. Your home will sit on the market longer, thus you are inconvenienced longer and this will start to affect your offer prices that may start to come in.
 
If you have someone representing you as a Seller that can’t even negotiate that they’re worth their commission and just give it away, how hard to you think they will fight for you on the sale price of your home? 
 
Just so you know, Realtors work all the time, we pay desk fees, we pay brokerage and board fees and we never know when our next paycheque will come in. The brokerage takes 30% of that 2.5% from the sale, the Government takes another 30%, which leaves 40% for me to live and run my business. I love my job but many don’t have any idea what a true professional agent has to go through.
 
As these “new models” come and go it will always come back to needing someone to negotiate on your behalf and getting your home ready to sell for top dollar and fast. Just remember that you ALWAYS get what you pay for! 
 
Hope this clarification helps you avoid the real “Commisery”

Best Regards,
Chad

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