The Hintze Team Blog

By Candice Choi
Associated Press
August 10, 2008

A study released Monday by Consumer Reports found 71 percent of sellers who negotiated for lower commissions with their brokers were successful. But only 46 percent of sellers surveyed tried.

Those who paid commissions of 3 percent were just as satisfied with their broker's performance as those who paid 6 percent, the study found.

Sellers were most likely to get lower fees from independent and Re/Max brokers, said Mark Kotkin, director of survey research at Consumer Reports.

"But they will all negotiate. Just ask for it," he said. "It's like buying a car. A lot of people think (the price) is set, but it's not."

Independent brokers may be more likely to negotiate fees since they keep their entire commission, while those who work for other brokers typically split commissions with the broker in exchange for marketing and office support.

About half of home sellers surveyed paid less than 6 percent in commission. The study will be in Consumer Reports' September issue. The issue includes tips on which home improvements offer the biggest payoff. (Hint: What's on the outside really does matter.)

The study found no significant gap in services for those who paid lower commissions. For example, 81 percent who paid 3 percent or less said the agent gave a competitive market analysis of their home, compared with 87 percent of people who paid 6 percent or more.

Mike Wright, managing broker at Prudential Georgia Realty, said a seller has a much better chance of negotiating a lower commission when the house is in good condition and priced aggressively.

Such houses sell faster, meaning the agent has to spend less money on marketing the home.

"If I could sell a house in two weeks rather than six months, I'd be more willing to negotiate," Wright said.

When looking for an agent, Consumer Reports suggests asking around for recommendations and interviewing multiple candidates.

Agents should clearly explain how they plan to market your home and handle open houses and newspaper and Internet advertising.

Among five major real estate companies, Re/Max agents agreed to lower commissions most often when asked, at 77 percent. That was compared with 64 percent for Coldwell Banker agents.

"Real estate commissions are determined between the sellers and their agents, but the best advice I can give home sellers is that it is far more important to focus on an agent's performance," said Alex Perriello, president and chief executive of Realogy Franchise Group, parent of Coldwell Banker and Century 21 Real Estate.

Most respondents to the Consumer Reports study said they found service from the larger real estate chains and independent brokers to be "very satisfying."

The survey was based on 9,141 responses to a questionnaire about selling or trying to sell homes from 2004 to 2007. Despite the shift in the housing market in that time span, Kotkin said there was no significant difference in the outcomes by year.

Provided By: News Canada



(NC)-Echoing the trend observed in Canadian cities this year, the country's recreational property market is returning to a more normal state, with price increases moderating when compared to the frenetic pace experienced in 2007. In almost all of the nation's summer hotspots, prices have continued to rise in 2008, but at a considerably slower rate than in the previous year.

This moderating trend bodes well for cottage seekers - particularly the young professionals who make up the single largest group of those planning or considering a cottage purchase (19%), according to the 2008 Royal LePage Recreational Property Report.

"The fact that an increasing number of young people are joining more mature adults in the quest for a recreational retreat comes as no surprise. Today's young adults are increasingly savvy when it comes to investments," said Phil Soper, president and chief executive, Royal LePage Real Estate Services.

The survey showed that Canadians overwhelmingly see the benefit of owning real estate - be it a primary residence or a cottage. Nearly two-thirds (61%) of cottage owners and those who plan on buying a recreational property feel that buying a cottage is a better long-term investment than buying stocks, bonds or mutual funds.

Among cottage owners, and those who plan to buy a cottage, 11 per cent spent or will spend more on their vacation property, than on their primary residence; 35 per cent plan to spend between $50,000 and $150,000.

For those looking for luxury, Kelowna's Okanagan Valley, the Muskokas, and Nova Scotia's South Shore, boast properties that command price tags upwards of $1.5 million. And, for the more modest shopper, affordable abodes in areas including Parry Sound and Sudbury can be acquired for approximately $300,000. Hidden gems for under $100,000 can be found in Kingston and Haliburton Highlands in Ontario, and throughout much of Atlantic Canada.

KATHERINE LAIDLAW

From Friday's Globe and Mail

July 25, 2008 at 12:00 AM EDT

For those who are unfamiliar with it, Parry Sound may conjure up the image of a sprinkling of cottages along Georgian Bay. In fact, it's a long-thriving town that's currently experiencing a major boom, according to Perry Harris, president of the local Chamber of Commence.

With a population that goes from about 18,000 in the winter to about 60,000 in the summer, the town and its surrounding area are "diverse," Mr. Harris says. It offers a range of professional, business and recreational opportunities for everyone from young parents to retirees.

The boom is being fuelled mostly by urbanites who are relocating there. They may already have a cottage in the area, he adds, also noting that some may start a small business or seek employment in the town.

The increasing development of the area, which is about 225 kilometres north of Toronto, is attracting more young people, Mr. Harris explains, and changing the plus-50 demographic that has been predominant.

"We have new stores coming in. Home Depot is coming in; Starbucks is coming in," he says. "We have a Lick's restaurant opening up. That's a nice nod to the town.

"We're just a hidden gem up here."