If you're someone looking to sell a property in the Greater Edmonton area and wondering how you can save on real estate agent commissions, there's a good chance you might have discovered there are two real options for you. You can either sell your home yourself, also know as Sale By Owner or FSBO, OR you can list your home with a full service, low commission real estate brokerage.
Today I'm here to explain the difference between these two types of real estate brokerages, and so you can understand what we at Black Sheep Realty may be able to offer you over the other guys.
We'll preface this quick article with two things. For one, we are a full service, low commission brokerage. SO we are perhaps a bit biased to the advantages of what our services can do for you.
Second, we'll probably be the first you hear admit that it is possible to sell your home yourself. However, this involves a significant amount of "rolling up your sleeves" as the seller and from my experience sellers typically find the process more overwhelming than anything, and often do not see as much success with the FSBO model as you may be led to believe. You can also represent yourself in court, renovate your bathroom yourself with only YouTube videos, and pull your own teeth as well, in theory.
Everything from showings, to negotiations, contracts, paperwork, closing, and conveyancing will be your responsibility. In my experience, Selling By Owner really only works particularly well for those who are EXTREMELY well versed in the real estate transaction process, or have worked/work in the industry directly (ie; builders, flippers, investors, etc).
Without further ado, here are the 5 key differences between selling your home by owner, and selling your home with a Full Service, Low Commission agent or brokerage.
Contact us for a free home valuation!
Without getting too much into "how the sausage is made", it's important to mention that both the types of companies we're talking about today are both Real Estate Brokerages.
At the fundamental level, they will be vaguely similar companies and licensed by the same boards and regulatory bodies. The main difference comes down to what types of various real estate services they offer and the amounts that they charge.
The difference between Black Sheep Realty and a sell by owner brokerage is that we are a Full Service agency where we are still your agent and represent you the seller, and more importantly work with you throughout the process and in your best interests.
When you buy a “sell by owner package” from another company, you are just buying a listing off of that company, and they do not represent you.
Technically speaking, a sell by owner package is actually called a “mere posting” contract or a “contract for posting without representation” - key word there is WITHOUT - meaning that with a mere posting you are only represented in a limited capacity by that brokerage.
With our company, you are not showing your home yourself. We schedule all showings for you, and have systems in place to get feedback and follow up with any of those potential viewings.
Buyers get the comfort of a private viewing to truly view the home with their agent.
Most importantly you get the convenience of showing with a keysafe provided, this means you don’t have to adjust your schedule to allow viewings and just have to get out and let the would-be buyers take in your home!
We are a truly full service brokerage, meaning we are there from the beginning to the end of the transaction and assisting you throughout.
Conversely, with a "mere posting" listing, you are simply purchasing a listing from them. Meaning once your home is listed on the market, you’re for the most part on your own and representing yourself.
With us we provide a comprehensive, start-to-finish, listing package. This means we're there for the initial consultation, pricing of the home, getting ready to list, preparing the listing, marketing, arranging photos and organic social media content, showings, feedback, offers, negotiations, conditions, closing, conveyancing, and possession day and transfer of keys to the next owner of your property.
One way where we are actually the same as traditional agents; we are paid at closing from the proceeds of sale. Meaning you only pay commissions when your home actually sells.
Conversely, most FSBO companies will have an upfront charge. Essentially the success of their business model is based on getting as many listings as possible and charging that upfront fee, as where our company’s success is based on actually selling your home.
(While we're on the topic, we should mention there are no upfront charges or fees to list with us!)
To me one of the biggest differences is the personalized service we provide. You don’t have to call any 1-800 numbers to get ahold of someone.
If you call us, you get ahold of the agent who is working for you. Real Estate is a very "on the go" business and you need to be able to reach us on our cell phones, plain and simple.
We are boots on the ground, local agents who work in the area actually helping clients buy and sell homes.
Conversely, typically a "sell by owner" company will have departments that work almost entirely from an office and may not have as much front end experience dealing with the public in terms of real estate.
So there you have it… we hope these 5 key points help you better understand the different options you have when it comes to listing your home, and what you can expect working with a FSBO company or a Full Service, Low Commission company.
If you're wondering what your home may be worth in the current market, or if you have questions about the home selling process, please contact us for a Free Home Valuation!
At Black Sheep, our philosophy is simple; No BS. Do what works to sell a home and charge home sellers a fee model that makes sense.
Our goal is straightforward; to help you sell your property, have a smooth and positive selling experience, and help you net more from the sale of your property.
We strive to be just what the name implies; the Black Sheep of the industry. Those who go against the grain, stand out from the crowd, and are juuust a little different from the rest, all with the end goal of pushing the real estate business in a positive direction.
Contact
780-993-8036 (call or text)
info@blacksheeprealty.ca
#1106, 10226 104 Street NW
Edmonton AB
T5J 1B8
Please send conveyancing and invoices to:
info@blacksheeprealty.ca
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Information Courtesy of Black Sheep Realty. This website is not intended to solicit buyers or sellers already under contract with another brokerage.
REALTOR® , MLS® , and REALTOR.ca are property of the Canadian Real Estate Association. Information deemed reliable but not guaranteed.
"Commission savings" are based on comparing our commissions to a commission of 7% on the first $100,000 and 3% on the balance. "Saving thousands on commissions" is based on comparing our 1% listing fee to a commission of 3.5% on the first $100k and 1.5% of the remaining balance of the sale price + GST. These numbers are used as an example based on their prevalence in the market. Fees are in no way fixed and all commissions are negotiable.
Commissions are negotiable in the province of Alberta. We refer to "traditional agents" and "traditional fees" to describe the 7/3 and 3.5/1.5 fees outlined above, which is a common fee model in the markets in which we operate, but does not in any way insinuate or assume that this is the fee model charged by any given other brokerages.
All commissions are subject to a minimum fee. In Edmonton & surrounding area, we charge 1% of the sale price + GST, or for homes with a list price under $400,000, we charge a flat fee of $4000 + GST on the listing agent side. Our packages are only for Black Sheep Realty as the listing brokerage and does not include cooperating commission to be paid to the buyer's agent.
Trademarks are owned or controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA (REALTOR®) and/or the quality of services they provide (MLS®).
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Sell from 1% Listing Side Commission.
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