Expert: Derek Hamilton - 3/27/2010

Question
QUESTION: Hello, I just have a quick question.  My house will be going up on the market on April 08 2010. We have agents that are friends of our selling the house. Can I sell our house privately up until the 08 of April or am I bound to the contract. eg. If you knock on the door and offer us what we are asking? We are just trying to get out of paying commission.

Glenn and Tiziana

ANSWER: Hi,
You can sell your home privately prior to the 8th of April.After the contract date you need to go through the Real Estate Co.

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QUESTION: Thank you. What happens if we do sell? Am I obligated to compensate the agents for their efforts to date? Ads and marketing materials?

Glenn and Tiziana

Answer
Hi Glenn,
If you want to sell your home privately then try it? (not recommended)Decide now if your going to go through a Real Estate Company or not. Don't do a little of both.
Let the professionals handle this. A Real Estate Agent can have your property on M.L.S.Have Ads in the Newspapers, Colour Feature Sheets, Internet, Agents Open Houses,Public Open Houses,Organize showings for qualified Buyers that work with Real Estate Agents. You will only pay Commission if you're happy with the price you receive regardless of the amount. When trying to sell Privately the Un-qualified Buyers know you are saving the Commission and will offer much less.If at all. Buyers work with Real Estate Agents for free. Why would they bother dealing with For Sale By Owner? In many cases in Toronto we're experiencing bidding wars and Sellers are getting thousands of dollars over the list price that covers the commission. The Commission is split 4 ways. Two Real Estate Companies and two Real Estate Agents.
My advise. Leave this to your Real Estate Agent !!
Good Luck.
Derek