What is your current situation in the real estate market?

[James]

Just wondering what your current situation is in this real estate market. In this crazy Toronto market, what are your future plans with regards to your primary residence?

 

[Admiral Beez]

Moved out of my rental basement apartment on the Danforth and bought our 3 floor + finished basement semi in Cabbagetown in 1998. We since reno'd and made this our perfect house, and am enjoying the gentification and redevelopment of Regent Park and the surrounding area. Thus, we have no interest in the property ladder and will thus keep and live in this house for the rest of our lives. That said, we have been looking at a summer/weekend place in Prince Edward County.

 

[James]

Moved out of my rental basement apartment on the Danforth and bought our 3 floor + finished basement semi in Cabbagetown in 1998. We since reno'd and made this our perfect house, and am enjoying the gentification and redevelopment of Regent Park and the surrounding area. Thus, we have no interest in the property ladder and will thus keep and live in this house for the rest of our lives. That said, we have been looking at a summer/weekend place in Prince Edward County.

That sounds like a great plan. Hopefully you've set aside some funds for a sailboat too. If you bought in 1998, you're sitting pretty comfortably in Cabbagetown.

So far in the poll it seems like most people are staying put (60%) which is not surprising. It's still interesting to see 25%-35% are looking to buy. For those in a rental or rent/mortgage-free situation, it's definitely not a bad time given the market conditions. The only downside is that there will be less inventory on the market to choose from.

 

[Admiral Beez]

If you bought in 1998, you're sitting pretty comfortably in Cabbagetown.

Perhaps, if you're looking at re-sale value, but I'm never selling. Where we benefit is that in 1998 the neighbourhood was affordable, with houses like mine going for under $300K. Back in 1998 I was a 27 year old international sales mgr, so I was very middle class, living in a middle to lower class area. Nowadays if I was in the same position there's no way I could afford to buy here. I think I'm one of the "poorest" people on my block

 

[LordWanker]

If you bought in 1998, you're sitting pretty comfortably in Cabbagetown.

In agreement here until one gets the Property Assessment Notice from MPAC.

 

[James]

In agreement here until one gets the Property Assessment Notice from MPAC.

While I can't disagree with this, I would also have no issues paying slightly more in taxes for a property in a neighborhood that has evolved into a gentrified and sought-after area during my time of ownership.

 

[Finn]

I am selling my house in the city and going to rent either a work/live hard loft, or duplex/house perhaps. Not even sure what part of the city yet although I like the Beach. One thing I do know, I'm interviewing real estate agents in a couple months and listing with the one who will work hard to sell fast and accept a 2.5% commission. I know people who have listed for that commission in my neighbourhood recently so I know it is possible. What are others who are selling doing here?

 

[cdr108]

I am selling my house in the city and going to rent either a work/live hard loft, or duplex/house perhaps. Not even sure what part of the city yet although I like the Beach. One thing I do know, I'm interviewing real estate agents in a couple months and listing with the one who will work hard to sell fast and accept a 2.5% commission. I know people who have listed for that commission in my neighbourhood recently so I know it is possible. What are others who are selling doing here?

do you mean 2.5% commission combined for seller and buyer's agent ?!? that would be half of the going rate !

if you find one, give me his/her name as i am looking to sell in the spring and rent dt.
i have a friend who's willing to rent a bedroom in his 2-bed apt so hopefully that would still be available if needed.

 

[James]

I am selling my house in the city and going to rent either a work/live hard loft, or duplex/house perhaps. Not even sure what part of the city yet although I like the Beach. One thing I do know, I'm interviewing real estate agents in a couple months and listing with the one who will work hard to sell fast and accept a 2.5% commission. I know people who have listed for that commission in my neighbourhood recently so I know it is possible. What are others who are selling doing here?

I can forsee detached homes converted to legal duplexes or houses with a legal basement rental unit to be a bigger and bigger draw this upcoming year. With detached house prices continuing to climb in the core, these detached homes are a great way into those neighborhoods. You can routinely find these types of homes midtown. From a rental perspective, these homes are also a great alternative to renting an apartment in a high-rise apartment complex and typically will be less expensive.

With regards to the commissions, I'm hoping 2.5% commissions is the total commissions, i.e. split between your selling agent and the buying agent. It'll be up to your agent to negotiate the buyer's agent's commissions since most buying agents expect 2.5% as standard but it's definitely possible.

 

[cdr108]

i was just talking to this lady this afternoon and she & husband recently sold their home privately.
however, they did do some research and found r/e agents willing to list for 2.5% combined as a back-up plan.

 

[Finn]

Yes I think more and more agents are willing to accept 2.5% total (splitting with buying agent). I negotiate contracts for a living and I once worked in a real estate office (back in college days) so I could do a private sale confidently with research but I do want if possible to have the widest possible audience for my listing so that means listing with an agent. Also, it's going to be mad packing up 25 years and selling things off, finding a new place, etc. I don't need to host open houses on top of that!

The other option might be to offer an agent X% for a final sale price that falls within a certain range and X% if the final sale price is above the asking price. One thing that concerns me is the agreement with the agent - I figure if I give them 30 days to actively promote and sell my home, that should be enough. Work it hard and fast is my theory. No reason in spring to not be able to sell as most homes in my area sell within a week or two. If they can't generate good foot traffic, a good open house that brings offers, I should be allowed legally to move on to an agent that will do so.

 

[rbt]

Yes I think more and more agents are willing to accept 2.5% total (splitting with buying agent).

Maybe a selling agent is but what incentive does an agent with a genuine buyer have to reduce their commission?

You might get 3%, but 2.5% of that is still going to the buyer agent. All the buyer agent needs to do is remind the buyer that they're responsible for any commission the seller isn't willing to cover; and that there are dozens of other similar properties available which don't have that requirement.

Trying to cut the buyer agent commission is basically a guarantee the property won't sell unless it's really unique, high demand, or a low enough price to get an investor who represents themselves.

 

[drewp]

If you are not cooperating at 2.5% or at least close to that you will have a harder time attracting other agents to your property. Most buyers are under a contract, well at least mine are at 2.5%. If you are splitting that commission between the buyers/sellers agent then you are offering only 1.25%. I would advise you to' post a mere listing or a flat fee brokerage which should cost you few hundred if not more, and offer a 2.5% cooperating commission. This way your listing will be advertised on MLS and attract most agents.

Let's say my buyer who is under contract wants to see your place, and find out they have to pay 1.25%, most of the time they don't want to see it because they don't want to pay, or we negotiate 2.5% on my side, which would turn into a 3.75% commission out of your pocket.

 

[Finn]

If say, my listing agent accepts 2.5% total, and the commission on the sale overall is $15,000. Are you saying that $7,500 isn't enough for a buyer's agent to pick up a phone, make an appointment or attend the open house with their client, and present an offer?

Perhaps focusing on the amount rather than the percentage of commission should be considered. I'm all for paying people for work well done and I have no personal gripe with real estate agents, but an agent would have to convince me that his/her work is worth any more than 2.5% out of my pocket.

 

[cdr108]

If you are not cooperating at 2.5% or at least close to that you will have a harder time attracting other agents to your property. Most buyers are under a contract, well at least mine are at 2.5%. If you are splitting that commission between the buyers/sellers agent then you are offering only 1.25%. I would advise you to' post a mere listing or a flat fee brokerage which should cost you few hundred if not more, and offer a 2.5% cooperating commission. This way your listing will be advertised on MLS and attract most agents.

Let's say my buyer who is under contract wants to see your place, and find out they have to pay 1.25%, most of the time they don't want to see it because they don't want to pay, or we negotiate 2.5% on my side, which would turn into a 3.75% commission out of your pocket.

well that sounds like agents don't have their client's best interest in mind, but only looking after their pocket book