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Is your real estate agent about to sell you out?

The Multiple Listing Service® is a system that real estate brokerages use to share information with each other about properties that are for sale. It provides us with opportunities to quickly share details about our listings with all local agents who participate and it also provides us with a large inventory of homes that we can introduce our buyer clients to.


One of the characteristics of an MLS® listing is an “offer of compensation.” The listing brokerage agrees to share the negotiated commission with any other brokerage that might bring a buyer who agrees to purchase the property. That offer of compensation is published with the listing data on the member based MLS® system.  In most cases, the compensation offered gets lower as the price of the home goes up. Most commonly, we’ll see something like what you see below.


3% on the first $100,000, 2% on the second $100,000 and 1% on the balance of the sale price.


Recently, I noticed an MLS listing priced at $399,900 with the following compensation offer.


0% on the first $350,000, 25% on the next $50,000 and 3% on the balance of the sale price.


If you were about to make an offer on this house would you want to know that your agent could be earning nearly two times the commission available on most listings in this price range? Would you want to know that your agent would earn an extra $250 for every additional $1,000 you agreed to pay?


Should you be entitled to full disclosure on this extraordinary and unusual compensation offer?


I think most buyers would want to know and I’m also of the opinion that they’d be entitled to know. Don’t be afraid to ask your buyer’s agent how he or she is paid and instruct them to advise you if you’re about to make an offer on a property that has any selling incentives or extraordinary compensation offers available on it. Better yet, understand that you’re really paying the feeand agree up front on how much it will be.


I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.


Real estate geeks can follow our daily updates on Twitter @norm_fisher.


Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.


Norm Fisher
Royal LePage Vidorra

Norm Fisher, Author of the TeamFisher Saskatoon Real Estate Blog

About Norm

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.Less...

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.

Norm is known for his passion for technology and can most often be found exploring and experimenting with the next big thing in real estate marketing. He was the first Saskatoon real estate agent to promote a home online and has been an early adopter of new technologies ever since. “Everything about this business has changed over the past 20 years, and it will happen again in the next ten. An open mind and a curious attitude are all that’s needed to continue to find new ways to serve our clients by delivering a faster, smoother, worry-free transaction,” says Norm.

In his spare time, Norm enjoys Crossfit and cycling, some years accumulating over 2,000 kilometres on the road. He’s a strong supporter of the Royal LePage Shelter Foundation and enjoys raising funds by joining fun, fitness-related initiatives like the Grouse Grind for Shelter. In 2015, he trekked the Peruvian Andes to Machu Picchu. In 2017 he walked the southern highlands of Iceland across mountains, sand, snow, ice, lava fields and forest for seven days. Collectively those initiatives raised over a million dollars for Canadian women's shelters.
 

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The Saskatoon Region Association of REALTORS® (SRAR) IDX Reciprocity listings are displayed in accordance with SRAR's MLS® Data Access Agreement and are copyright of the Saskatoon Region Association of REALTORS®.
The above information is from sources deemed reliable but should not be relied upon without independent verification. The information presented here is for general interest only, no guarantees apply.
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