There is often a lot of confusion around the commission subject. There is typically a fee that buyers and sellers pay in Toronto, with 5% being evenly split between the buyer's real estate agent and the seller's agent. The amount of commission you wish to pay your REALTOR® is always open for discussion.
The average commission REALTORS® charge in Toronto is 5% of the final sale price of the home. That will be split evenly between the listing real estate agent and the buyer's agent with both receiving 2.5%, though they may have an agreement with their brokerage to split that percentage again.
Examples of what you may owe your agent:
|FINAL SALE PRICE OF HOME||5% OF FINAL SALE PRICE||TOTAL EACH AGENT WILL RECEIVE|
There are a lot of services included in the commission you're paying your REALTOR®, particularly how they market your home to attract potential buyers. Not only do they set up open houses, handle the negotiating and all the paperwork, but they are also the ones making your home look its absolute best to show its full potential. This includes:
- Bringing in a stager
- Having professional photography done
- Shooting videos/virtual tours of your home
- Uploading that content to socal media platforms - Facebook, Twitter, Instagram, YouTube, etc.
- Listing your home on multiple listing sites and their personal website
- Listing on print - newspapers, magazines, flyers, buses, etc.
Paying a lower commission may seem nice, but at 1% commission, your REALTOR® may not be able to afford these services and your home may sit on the market longer because it's not reaching wide audiences.
Real estate agents know not everyone will want to pay full commission. Many customers may be on a tight budget and want to save wherever they can and that's okay. But remember, when you pay your agent less, they cannot offer you all the services they'd normally provide. So, when you bring up the subject with agents as you're interviewing different ones to find who you want to work with, ask them what services may not be included. If you're okay with not staging your home, tell them that.
Fivewalls' Helpful Tips:
- If your home is more expensive, or if you plan on using the same agent to buy and sell, they may be more willing to negotiate their commission rate.
- If the agent explains to you why they don't want to lower their commission, it's not because they want to make as much money on the sale as possible. They truly want to be able to use all their services for you to the best of their ability.
- Full-service real estate agents have more time for you and aren't working with as many clients as 1% commission agents, which means they will have more time for meetings, open houses, and answering any of your questions or concerns.