The changes in the Real Estate industry are causing home buyers and sellers to ask many questions. The following is a list of our most asked questions. If your question is not answered here, please email Lonne for more information. 

 

Can I still choose the full-commission option with Custom Choice Realty? If so, what is the difference between a full-commission option with Custom Choice Realty and full commission with other realtors?

Yes, you can definitely choose a full-commission option! I have an extremely competitive pricing model for this option as well, and am sure I can save you money.

How do I know which is the best choice for me?

You need to decide if you have the time and desire to be truly engaged in the process. If you want to own some, most, or even all of the process, then fee-for-service may be a perfect fit for you.

Why do I need my property put onto a Realtors' Listing Systems (i.e. MLS)?

To get the word out !  85% of home buyers get their information from Realtors who use these systems as their sole source for information.  Listing on the official listing systems (MLS & WLS) will bring qualified buyers to you as soon as possible.

Considering your different business model, is there any difference between your insurance coverage and that of other realtors?

No, there is no difference. As a licensed broker and realtor, I have the exact same insurance coverage as other realtors.

Why is this model available now, when, for years, I didn’t think I could do this?

You have, in fact, been able to do this in some places in Canada before now. Unfortunately, realtors have been generally reluctant to let that be known. However, the recent pressure applied by the Competition Bureau has resulted in two very promising things:

  • It has changed the rules of realtors across the country in favour of the consumer.
  • It has resulted in significant press coverage that has helped to educate the consumers.

These are both good things.

What does fee-for-service really mean?

  • Fee-for-service is a standard business model where services are unbundled and paid for separately.
  • Two important distinctions between a fee-for-service listing and a full-commission (or full service) listing should be noted:
    • The fee-for-service (or flat-fee) realtor is usually acting in a limited capacity on behalf of the seller.
    • Compensation is generally paid up front to the realtor for the contracted services, as opposed to a commission paid at closing based on the sale price of the property. The purpose of fee-for service MLS is to reduce the overall cost for the seller when selling real estate.

What is the biggest advantage of fee-for-service?

A significant advantage to paying a flat fee-for-service is that if you find your own buyer, without the use of a buyer’s agent, then the buyer’s agent commission is eliminated. Therefore, you (the seller) do not owe a buyer’s agent commission. This is a huge savings for you.

What is a potential disadvantage of fee-for-service?

  • A potential disadvantage of using a flat fee-for-service listing service is that you may need to represent yourself through the negotiation process to sell your home. However, you can avoid this by signing up for our Negotiation Navigator product.
  • Flat Fee may not be the best choice for sellers who have moved away from the area where their home is located. While it happens successfully from time to time, it can be difficult and frustrating for a home owner to negotiate a long-distance contract and smoothly navigate to a closing. But for Custom Choice Realty customers, there are addition services offered that mitigate these potential risks !

Sellers should realize that fee-for-service models are not a panacea for problems or issues they may have previously experienced in trying to sell their home. No real estate agent - limited or full service - can guarantee a property owner's home will sell at the desired price and terms.