Leading financial advisor says Cdns can retire earlier by reducing
Excessive real estate fees hurt Canadians' personal finances, new
national survey finds
TORONTO, May 12 /CNW/ - When it comes to selling a home, the majority of
Canadians believe that paying too much in real estate commissions hurts
their personal net worth, according to a new survey of over 730
Canadian home owners released by PropertyGuys.com.
The new findings show Canadians are thinking more carefully about their
home as a financial asset and are scrutinizing the costs associated
with selling it.
"Canadian consumers are doing the math and seeing that high-fee
commissions don't make good financial sense," said Ken LeBlanc,
president and CEO of PropertyGuys.com. "Canadian home sellers are
realizing that every dollar they keep can be re-invested in their next
home. That's value that keeps growing, making us the envy of our
American counterparts, many of whom are in a negative equity position
on their homes."
The survey of Canadian home owners conducted by Harris/Decima found
62 per cent agree that paying a five per cent commission hurts their
personal net worth;
86 per cent believe it's more important how much money is left once all
the fees and commissions are paid on the sale of the home than the
actual selling price; and,
82 per cent of Canadians are interested in learning more about selling
their home for a flat fee rather than a commission.
"People need to think long and hard before agreeing to take five per
cent off the top of what is likely their largest financial asset," says
Warren Mackenzie, president and CEO of Weigh House Investor Services.
"If you keep $16,000 in equity on a home when you're 35 and put it into
an RRSP, the savings could be worth over $100,000 by the time you
retire. It just makes financial sense to cut transaction costs on any
investments whenever possible."
This is the first Spring real estate season since a recent settlement
between the national association representing real estate agents and
the Competition Bureau clarified that mere postings on a Boards MLS
Systems are acceptable.
Canadian home sellers have more options than ever before. The days of
having to pay a 5 per cent real estate commission or the equivalent of
$18,000 on a home with an average selling price of $375,000 are gone.
That amount reinvested in an RRSP, for example, could triple to more
than $76,000 in 20 years.
"Pricey real estate agents have a vested interest in convincing people
that selling their home is really hard," said Walter Melanson, Director
of Partnerships at PropertyGuys.com. "However, it's a lot easier to
sell a home than many people think, especially with the right
The Harris/Decima survey of 1,002 Canadians was conducted between March
31st and April 3rd, 2011. It is considered accurate to within +/-3.6
per cent, 19 times out of 20.
PropertyGuys.com is Canada's largest and fastest growing private sale
franchise network. It has has 106 locally-owned franchise locations to
assist home buyers in more than 600 communities across Canada.
PropertyGuys.com is a proud member of the Canadian franchise
Association. It is a recipient of Canada's top franchise honour, the
Award of Excellence, for several years running.
For further information:
416-690-5777 x163 (o)
Director of Partnerships,
1-866-666-9744 ext 103