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Realtor helping town sell lots

Posted on January 17, 2019 by Vauxhall Advance

By Cole Parkinson
Vauxhall Advance

With Vauxhall council looking to unload a few lots within the town, administration has started looking into the possibility of using a realtor to help them in the process.

As town council set the lot prices at $40,000 plus GST during a meeting in September, administration started doing some digging into what hiring a realtor would look like for their serviced lots.

“I called a company, I just grabbed one out of the phonebook, so I picked Royal LePage and had a member come up to discuss. They said they would charge four per cent of a fee to sell the lot and if another realtor sold it with them, they would share two per cent each. I received a cold call from the real estate centre and I asked for them to submit an offer and they have the same system so I assume that is standard. I took a real estate course in the late 80s and it used to be seven per cent, so four per cent is not a bad number,” said CAO Cris Burns during council’s regular meeting held on Dec. 17. “If council is comfortable with four per cent we can sign an agreement or pick a name or have them bid on it.”

The town gained 19 serviced lots with the completion of the 4th Street subdivision project and they were estimated to be 18.8 metres wide by 39.65 metres long.

Administration had also estimated costs for lots in Grassy Lake to be around $56,700, Nobelford at $55,398 and Taber at $107,450.

While council did have discussions of raising the cost to higher than $40,000, they eventually settled at that price point with the hopes of selling them quicker.

“I did have some conversations with some real estate agents and they were suggesting (the lots) should be listed at $45,000 or $50,000,” said Coun. Ray Coad.

As far as the four per cent fee, council expressed their opinions that was a fair price.

“I can’t see anybody willing to work for less than four per cent, at that point you aren’t making much money. I think that is a reasonable fee,” said Deputy Mayor Richard Phillips.

With administration’s estimation that there would be little variation between fees to sell the lots, council didn’t have any suggestions on which company would be best to pursue.

“I don’t think it is going to matter who we go with,” added Coad. “The important thing is to get it on MLS (multiple listing service) and get it out there.”
A motion was made for administration to sign a contract with a realtor for 90 days with administration having the option to renew without having to come back to council and was approved unanimously.

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