Ask a Realtor anything

[mcgsxr]

Curious if anyone knows what 4210 Bianca Forest Drive closed for? Was listed for 1.4M and sold in days.

[davepratt]

Curious if anyone knows what 4210 Bianca Forest Drive closed for? Was listed for 1.4M and sold in days.

Sold for $1,415,000

[luv2kruz]

Agreed the asking price isn't that important. But it used to be. Back in the day it was the seller's ideal price and gave potential buyers a good idea of where to make a bid. I always bought or sold my three houses near that asking price. But at some point during the madness agents decided pricing way below asking might make for a better strategy. Create bidding wars. They were right. My daughter sold her condo at the asking price but won a bidding war against six others for her current house. My son sold his condo above asking and bought his town for below. What's my point? I like the old days. More was known.

Dave, correct me if I am wrong, but asking price is not totally unimportant. If you read your seller's representation agreement, if your agent brings you an offer at or above your asking price and for some reason you reject it, the agreed upon commission is payable, even if you don't sell.

As you mention, a low asking price has also been used to create bidding frenzies in the past and the agent involved has used this as a marketing ploy where they claim the house was sold X+++% above asking, implying that it was somehow related to their outstanding services.

[nomullies]

Dave, correct me if I am wrong, but asking price is not totally unimportant. If you read your seller's representation agreement, if your agent brings you an offer at or above your asking price and for some reason you reject it, the agreed upon commission is payable, even if you don't sell.

As you mention, a low asking price has also been used to create bidding frenzies in the past and the agent involved has used this as a marketing ploy where they claim the house was sold X+++% above asking, implying that it was somehow related to their outstanding services.

I too would love to hear the answer to this.

[davepratt]

Dave, correct me if I am wrong, but asking price is not totally unimportant. If you read your seller's representation agreement, if your agent brings you an offer at or above your asking price and for some reason you reject it, the agreed upon commission is payable, even if you don't sell.

As you mention, a low asking price has also been used to create bidding frenzies in the past and the agent involved has used this as a marketing ploy where they claim the house was sold X+++% above asking, implying that it was somehow related to their outstanding services.

No commission is payable as the offer must be accepted by the seller. This situation happens quite often when a seller lists low to create a bidding war. They get an offer over asking but not enough over asking so they reject. it.

[bogey5]

No commission is payable as the offer must be accepted by the seller. This situation happens quite often when a seller lists low to create a bidding war. They get an offer over asking but not enough over asking so they reject. it.

Umm yeah.

House a block over listed for $1.00 a while ago. Seller was not going to pay commission if somebody offered $1.25. They did accept something like $1.4m or $1,399.999.00 over asking.

[luv2kruz]

No commission is payable as the offer must be accepted by the seller. This situation happens quite often when a seller lists low to create a bidding war. They get an offer over asking but not enough over asking so they reject. it.

Then the wording of the agreement must state "upon completed transaction" or "closed transaction" where the listing price is artificially low to create a bidding war in order to avoid the issue. The current wording in the OREA form states "for any valid offer". I was previously warned about this wording on the representation agreement in this regard. The particular broker in the link I've attached also seems to think that commission is payable upon a full price offer without condition, therefore the listing price has some consequence. Do you agree with this?


https://ontariorealestatesource.com/...l-price-offer/

The following Toronto star article also shows cases where the commission was payable even if the transaction doesn't close and the offer was not accepted by the seller.

https://www.thestar.com/life/homes/a...agreement.html

[davepratt]

Then the wording of the agreement must state "upon completed transaction" or "closed transaction" where the listing price is artificially low to create a bidding war in order to avoid the issue. The current wording in the OREA form states "for any valid offer". I was previously warned about this wording on the representation agreement in this regard. The particular broker in the link I've attached also seems to think that commission is payable upon a full price offer without condition, therefore the listing price has some consequence. Do you agree with this?

https://ontariorealestatesource.com/is-commission-payable-for-a-full-price-offer/

I don't agree. The clause continues with " Or such other terms and conditions as the seller may accept" In other words price is only one deciding factor.

[luv2kruz]

I don't agree. The clause continues with " Or such other terms and conditions as the seller may accept" In other words price is only one deciding factor.

What about the Toronto Star article and the case mentioned therein?

And here's another article that talks about cases that went either way. The key point from the article is that the specific wording of the BRA or SRA is key and that it is not a given that commission is only payable upon an accepted offer or closed transaction. So again, depending on the wording of those agreements, the listing price is not irrelevant.

https://www.zoocasa.com/blog/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission/

[davepratt]

What about the Toronto Star article and the case mentioned therein?

I don't want to get into a pissing match but I can assure you that doesn't happen to my knowledge. What about a full price offer that doesn't have the required closing date? That means it's not an acceptable offer and there's many other terms beyond price that could make an offer unacceptable. If you have a specific situation, you should consult with your lawyer.

[luv2kruz]

I don't want to get into a pissing match but I can assure you that doesn't happen to my knowledge. What about a full price offer that doesn't have the required closing date? That means it's not an acceptable offer and there's many other terms beyond price that could make an offer unacceptable. If you have a specific situation, you should consult with your lawyer.

Dave, not trying to get into a pissing match. I was just supporting my response that listing price is not irrelevant, as someone mentioned earlier. There have been many examples where commissions were deemed payable to the agent when they presented a full price offer, without conditions, and met all other requirements outlined in the listing. It did not require acceptance by the seller and was governed by the specific wording in the BRA/SRA. So people simply need to be aware to carefully read and understand the BRA/SRA they may be asked to sign and pay specific attention to the wording, as not all agreements are the same. If you are unsure about the wording, see a lawyer before you sign, not after you transact.

[hookminor]

Is it possible to get the list price and the final selling price for 70 Killaloe Crescent in Georgetown, Ontario?
Thank you.

[davepratt]

Is it possible to get the list price and the final selling price for 70 Killaloe Crescent in Georgetown, Ontario?
Thank you.

Listed at $1,099,000. No sold price posted yet.

[hookminor]

Listed at $1,099,000. No sold price posted yet.

Thank you. I believe that the sale just occurred yesterday. Would it be too much trouble to maybe have a look again tomorrow or Monday, or would you prefer that I enter a new entry as a reminder at a later date?

[davepratt]

Thank you. I believe that the sale just occurred yesterday. Would it be too much trouble to maybe have a look again tomorrow or Monday, or would you prefer that I enter a new entry as a reminder at a later date?

I'll check tomorrow.