Saturday, October 9, 2010

The flaw with selling your house on the cheap...

Ever wanted to sell your house but didn’t want to pay a real estate commission?

Ever longed to see your home on the Multiple Listing Service — a starting point for about 90% of Canadian real estate sales — but didn’t want an agent’s help?

Soon, you’ll likely be able to do just that. The Canadian Real Estate Association (CREA) has reached a tentative agreement with the federal Competition Bureau to allow sellers to hire an agent for one part of the process only — the MLS listing. It’ll likely cost you a few hundred dollars instead of thousands.

You’d have to do the rest of the work yourself — stuff like setting the price, organizing appointments for potential buyers, running open houses and getting the deal closed. But it’s your house. Who knows it better than you do?

It’s certainly tempting to do it yourself when the average house price in Canada is $350,000 ($427,000 in Toronto) and the usual 5% real estate commission tops $17,000.

Instead, if CREA members approve on Oct. 24, you could pay an agent a flat fee to put your listing on MLS and then say goodbye. Most potential buyers today find properties by going straight to on the Internet.

But you might want to rethink DIY. Just because you can doesn’t mean you should.

To rework an old saying, a homeowner who acts as his own agent has a fool for a client.

Source: CONNIE WOODCOCK, Toronto Sun
Last Updated: October 9, 2010 6:42pm

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