Just about every (potential) home seller in Greater Victoria will ask this very question at some time or in some form or another to us or any other real estate agent that they may be considering.
The answer is, off course, not as simple as just an exact amount or even a simple equation to figure out the answer to the question of ; “ how much does it cost to sell a home in Victoria BC”.
Let’s start with the context of the question: How Much Does It Cost To Sell A Home in Victoria BC?
When we as agents receive this question the context is mostly about our Commissions, Fees, costs and charges.
However there are a number of other costs and expenses that should be considered as well. We refer to these as costs selling costs and they include for example:
- Legal fees
- Moving costs
- Adjustment for annual property Taxes
- Transfer Fees
- Mortgage discharge and or transfer fees
- Mortgage pre-payment charges
- Your utility, cable, phone, water and garbage companies may have some fees and charges as well
- there are likely a few more like storage, insurance, repairs, hotels, etc.
However for the purpose of this article I want to focus on strictly on the real estate costs to sell your Victoria Home.
Before I get into the details, let me begin to say that Real Estate Fees are negotiable and the examples used are just that… examples, although the numbers used for my Services are accurate and we will stand by them. (I would not want to state or imply that real estate fees are in any way fixed or stipulated).
I am going to take a slightly different approach to the Calculation of Fees for a moment, by beginning with the results of a survey of 100 real estate professionals and their answers to a number of specific real estate related questions.
The questions are all related to the key real estate services provided by agents, the approximate time it took and how important these tasks were in the successful sale of properties. So let’s have a look at the questions and answers.
|Assisting with the Preparation and Staging the Property for Sale||
|Property Research, Pricing and Marketing Plan||
|Actual Marketing, Promotions, Showings, Open||
|Locate and Pre Qualify The Buyer||
|Draft, create and Negotiate The Contract||
|Troubleshooting, Complete the Transaction||
|Totals||83 hrs.||7 average|
Remember these are the answers as provided by 100 agents in a survey conducted a few years ago, and I would argue that these time estimates are relatively consistent with my own estimates…
Granted when a number of home sellers were asked the same questions their combined estimate in the amount of time their agents spend was substantially lower with approx. 54 hours.
We know that in Greater Victoria The Median Price for a Single Family Home is approx. $ 482,300 as at December 2013.
Getting back to our Main Question: How Much Does It Cost To Sell A Home in Victoria BC?
Based on the Agents Estimate of the amount of time it takes to sell a Home….. let me reverse the question to you, In the Form of a Multiple choice type question:
How Much Do You Think it Should Cost to Sell A Home in Victoria BC?
- A. Is $ 210.00 per hour appropriate compensation for the services, risks and results?
- B. Is $ 100.00 per hour appropriate compensation for the services, risks and results?
- C. Is $ 83.00 per hour appropriate compensation for the services, risks and results?
- D. All the compensation is too High.
- E. All the compensation is too Low.
If You Picked “A” as the acceptable compensation, you would agree with, the majority of the traditional agents in Greater Victoria as they are in the case of this property ($482,300) looking to be compensated at or near $ 210.00 per hour. This is based on most common offered commission structure of 6% over the first $ 100,000 of the sale price and 3% over the balance of the sale price for a total of approx. $ 17,469.00 before GST.
If However You Picked “C” as the acceptable compensation you would have selected the cost to you when you select Peter Pfann at One Percent Realty in Victoria BC, for a total of $ 6,900 plus GST to sell that same home in Victoria for a saving before taxes of $ 10,569.
By the way, if you feel all Real Estate Fees are to Low, we need to talk, as I have a few charities that want to talk to you.
Conversely if you feel all real estate fees are too High, Please remember, Like most Agents we only get paid when the property sells, and locally that means that all of the expenses invested in many of the listings that remain unsold will not be recovered at all.
Over the Years I have trained and coached hundreds of agents, so maybe you want to join our industry, I would love to teach you everything I know.
You may also like to request our 200+ point checklist of all the activities and events that take place in the average real estate transaction, you might be surprised about the amount of responsibility and risk real estate professionals are exposed to.
If You would Like to Know what You Home is Worth and How much You could Save, Please connect with us at our Confidential 24 Hour Property Value Report Page.
Don’t forget to ask about ourFree Buyer Cash Offer when You Buy Your Next Victoria Home With Peter Pfann.
I hope I have answered the question about: “How Much Does It Cost To Sell A Home in Victoria BC?” to your satisfaction.
We are looking forward in assisting you or anyone you know with any Greater Victoria Real Estate questions you may have.