What the heck is going on?
This is one of the Craziest Markets I have come across in my 27+ years in the Real Estate Industry!
I represented a Buyer in a Bidding War in York Region where the Final Sale was $1 MILLION DOLLARS OVER LIST PRICE! Yes, you read that correctly, and, it was not from my Buyer.
With Low inventory of Homes and not enough supply to meet Buyer demand, Potential Buyers are having to bid very aggressively on available properties in order to secure the Sale. This is driving up the House Prices at record rates and speeds.
Homes are often bought with less than 1 day on the Market. Homes are being bought without Home Inspections. Buyers do not want to wait until Offer day and are putting in Bully Offers – Over List Price, with No Conditions and Cheque in hand. Talk about Bidding Wars!
A random person said this to me after finding out I’m a Realtor … “It must be great being a Realtor right now making all that money in commissions.” Let’s just look at that statement a little more realistically.
For every home that is bought by a Buyer, there are many Buyers who don’t get the home, and all those Buyers’ Agents didn’t get a paycheque.
Buyer Agents are working harder than ever before, because for every house the Potential Buyer does not get, the Agent does not get compensated for their Time, Effort, Energy, Gas and Money spent on helping the Buyer.
Agents are 100% on Commission and rely on Selling Homes to feed their Families, Pay their Mortgage, Bills, Car Payments, Children’s Schooling. They also have to pay for Advertising, Marketing, Courses and Fees. Realtors do not get a Pension, Bonuses or Compensation Packages, nor do they do not get Sick Pay or Vacation Pay. Everything they pay for is out of pocket before they get paid, IF they get paid.
I have done over 10 Offers for my Potential Buyers that have not worked out. 3 Buyers decided to stay put, 2 to renovate their existing home, 4 to put on additions and 1 decided not to buy. That was over a 3-4 month period and guess what – no paycheque for me for 3-4 months, and I no longer have those Active Buyers.
There are now over 55,000 Realtors on the TREB Board and only a few are making money right now.
Still think your Buyer Realtor’s commission is too much, break down what they made with all of the expenses they have incurred while serving you, and divide that by the time it took to sell you a home (if you bought a home). You will be surprised to see it’s not that much.
Please be Loyal to your Buyer Agent, as they do everything for you for FREE. Their services are No Charge to you the Buyer. Refer others to them that could benefit from their services.
Thinking of Making a Move?