Vancouver owner Horst Weckwert believes in honest pay for honest work.
Unfortunately for local realtors, Weckwert doesn’t think the sale of his Kitsilano teardown is worth a commission of $ 67,000 – thousands more than the average Canadian salary.
“In this hot market on the west side, most agents sell their homes in seven days,” Weckwert told CTV News. “I think this is totally outrageous, so I decided to list it myself.”
Weckwert bought his house, located near 16th Avenue and MacDonald Street, for $ 300,000 a quarter of a century ago. He now hopes to sell it for $ 2.4 million on his own.
However, saving money on real estate agent fees wasn’t easy. Weckwert posted his house on Craigslist weeks ago, but has yet to receive any offers to buy.
“I don’t have to sell, so I have the luxury of time,” he added.
Weckwert said a real estate agent quoted him the price of $ 67,000, but that’s a slightly higher commission than most fees.
Most commissions represent seven percent of the first $ 100,000 of a home sale and 2.5 percent on the remainder. Using this formula, a $ 1 million house would net a commission of $ 29,500 and a $ 2.4 million house would net $ 64,500.
Homes are also selling faster than they have in 11 years, only staying on the market for an average of 22 days in Vancouver. Coupled with skyrocketing prices, it takes less time for realtors to make a lot more money.
PNJ Property Group real estate investor Pawan Johar said he sold several homes this year and decided to hire a discount brokerage to save money.
“At the end of the day, in this market, homes almost sell on their own,” Johar said.
That brokerage house is OneFlatFee.ca, which promises to advertise homes on the multiple listing service while reducing client commissions to thousands of dollars.
“You save around 50% in commissions,” said Mayur Arora, who started the business six years ago.
While discount brokerage firms remain a niche in the real estate market, Arora said that while Canada looks like the United States, he expects that to change soon.
“It will be the next most important thing,” he said.
With reporting by Mi-Jung Lee of CTV Vancouver