BEWARE of 2% REALTY
If you're thinking of selling your house, do yourself a favour and stay away from 2% Realty or at the very least pay the entire buyer's commission. The 2% commission rates may seem desirable but offer no incentive for realtors to sell your home. 9 times out of 10, it not your realtor that finds a buyer for your home, so this means it is up to other realtors to bring interested clients in, and with 2% Realty, this is unlikely to happen. Why? Because of how it is split, 1% goes to your realtor and the other 1% to the buying agent, meaning that other realtors only gain a 1% commission incentive for selling your house versus the 3.5% with other houses. This decreases your chances of having showings, getting offers and ultimately selling your home. There is an option (which I later found out) to offer the full commission for the buying agent, which still results in a cheaper rate than the standard 7%. However, this won't matter if they cannot get people in the door and offer valuable advice to get your house 'sellable!
MY EXPERIENCE WITH 2% REALTY
Unfortunately, three months into the pandemic, I had to put my house up for sale. Although, of course, this was not ideal based on the buyers' market, I knew it would be tough to get back what I paid for it, so I needed to find a cost-effective way to sell the house. Enter 2% Reality. The decision to hire 2% Realty came after meeting with 3 other real estate companies and a glowing recommendation from a family friend.
In the beginning, it was pleasant, and the agent was confident they could sell the house. I asked many questions about what needed to be done to get the house 'sellable', and the response was to declutter and clean. So, away I went, decluttering and cleaning, 2 weeks later photos were taken, a price chosen and the house was on the market... fantastic I could breathe!! But then came the waiting and waiting, week after week with no showings! What was going on... the house had been on the market for 2 and half weeks and nothing?
Fast forward, after 60 days on the market, only 3 showings, no offers and 2 price reductions... SOMETHING WASN'T RIGHT, other houses in the area were selling. In fact, of the 7 comparables, there were only 3 left (so it wasn't that things were slow like my agent said). The feedback from the 3 showings was all positive, coming back as, love the house, but the layout upstairs is awkward with too much space. Weird, I know, who has a problem with too much space...
I started doing a bit of research. I looked up tips for selling your home, which was useful and compared the house; things looked good, and if there had been any significant issues, my agent would have told me (right), so all clear. Why the lack of showings?
I continued with more research and asked some friends and acquaintances (who'd never been to the house to have a look), hoping they would provide insight from a first-time perspective. It turns out... that the house didn't check off all the tips on the list. I also discovered important information about how commission rates were distributed (the full breakdown of the 2% resulting in only a 1% commission incentive for the buying agent).
Another part of my disappointment with 2% Realty was the lack of communication and laziness. Understand this is based on my experience with one agent (others may be great). It was incredibly tough to get ahold of the agent. Often not hearing back for 2 to 3 days, only to hear they have been so busy... busy doing what? I don't know because they certainly weren't busy getting me showings! It took a week and a half to get the initial agreement signed because they didn't actually listen to what we talked about in that first meeting, and many adjustments had to be made before it could be signed. This should have been a red flag right there! They also had no idea what the other houses in the area were selling for; it was not until I asked that I was provided with the information (3 days later). So, they were clearly not paying attention to the market in my area.
I cancelled the agreement with 2% Realty, thought things were done, but it took over another 2 weeks for it to be removed from the market, and there was no word when I'd get my key back or the sign taken down, but this was not surprising since the communication was poor all the way through the 2 months.
All I could do was hope that another real estate company was up for the challenge since the house's history had 2 price reductions and little to no showings in 60 days! So, I caution you, do your research! I thought I had, but it wasn't enough! read more