3 ms·
This is one of these cases where I don't see why they collect a % fee except because they could, and they all do. There's typically very little that they do di
by charles_f 3y ago
This is one of these cases where I don't see why they collect a % fee except because they could, and they all do.
There's typically very little that they do differently for a more expensive house than for a small condo. Everything is listed on their central system, which serves as an indefferentiated marketing platform - and also informs them pretty well on the state of the market. If they do any staging, repairs, cleaning, it's usually a subcontract that you get charged for.
It's a pretty linear job (not even judging if it's complex or not), so why do they charge a proportional - and typically large - fee? I think that it is one of these psychological caveats where you're already talking about amounts that exceed your day to day understanding, in a stressful context. You only really see that one digit percentage fee, that you can't really negotiate anyway. And the actual amount is displayed in context to the real price tag, so it's looking small in comparison.
The worst consequence, beyond just the relative unfairness of that practice, is the detriment it creates. In Canada (at least where I leave) the commission is split between the agent of both sellers and buyers. Since it's a portion of the selling price, everyone (apart from the buyers themselves) is financially incentivized to maximize the price.