In Ottawa, the typical real estate commission rate is 5% of the final sale price of your home.
Real Estate Agent Commissions In Ottawa
In Ottawa, the typical commission rate real estate agents charge is 5%. That will then be split in half (2.5% each) to your listing agent and the buyer’s agent. Depending on their agreement with their brokerage (unless they run their own firm) that 2.5% will likely be split again. It could be split evenly, or your agent may receive more, or less, than their brokerage. The higher your home is priced, the more likely they may be willing to negotiate on their rate.
Examples:
If your home sells for $550,000, 5% is $27,500. Both the listing agency and buyer’s agency will receive $13,750.
If your home sells for $800,000, 5% is $40,000. Both the listing agency and the buyer’s agency will receive $20,000.
If their agreement with their brokerage is a 50/50 split, your agent will be paid 1.25% of the final sale price. So they could only end up receiving either $6,875, or $10,000 for their services.
What Services Are Involved?
Having a full-service REALTOR® really is in your best interest. You truly get what you pay for when it comes to how your home is marketed. When you negotiate commission with your agent, they should be honest with you about what services they may not be able to provide if they lower their rate for you. When you are paying full-service, you are paying for things like:
- Having your home marketed on various platforms (Facebook, your agent’s website, multiple listing services, magazine or newspaper ads, etc.)
- Marketing materials
- Photography and staging professionals
Do not be embarrassed about bringing the commission. Your REALTOR® is used to it and knows you may be on a tight budget. Especially when you also have to budget for things like:
- A home inspection
- Renovations or upgrades
- Contractors
- Lawyer fees
- Closing costs
- Plumbers or electricians
Your REALTOR® should be able to connect you with professionals on their contact list, should you require anyone.
Do I Have To Pay My Real Estate Agent No Matter What?
No. If your real estate agent is not successful in closing a deal, you do not have to pay them. However, many contracts have a clause where you would still owe your agents payment if you end up selling to someone who your agent brought forward when your property was listed. This is done so that sellers don't just cancel the listing and sell privately to a buyer that was introduced when the home was on the market.
What Is The Average Time A Home Stays On The Market In Ottawa?
In Ottawa, the current median value of a home is sitting at $401,000 and may spend around 47 days on the market, which is actually 21 days shorter than last year at this time. But, there are certain factors that need to be considered, especially the location of your home, the current state of your home, and ultimately, who your REALTOR® is. Hiring a local expert is important to helping you determine how to get your home ready to sell, to help teach you about the market and when a good time to sell is, and what you should list it for.
Do I Have To Pay My Real Estate Agent When Buying A House?
When you are using an agent to buy a house, you are not paying them out of pocket. Their commission rate will be included in the listing agreement.
Understanding the market is very important when it comes to selling your home. Selling is a hard decision and one that will be easier when you have a professional real estate agent to guide you through the process and help market your home. Commission is always negotiable, but remember you get what you pay for. Discuss with your agent what services will not be included if they lower their charge.
Disclaimer: rates and prices subject to change.
Reach out to our Fivewalls Certified Agents in Ottawa here:
Agent Name: Kristy W. | View Agent Profile>>
Serving Area: Ottawa
"Kristy builds her business on honesty, communication, and trust, ensuring that each client feels excited and secure in their investment decisions."
Agent Name: Ryan J. | View Agent Profile>>
Serving Area: Ottawa
"Together we will assess your situation and create a game plan to tackle your real estate needs head on!"
Agent Name: Eduardo A. | View Agent Profile>>
Serving Area: Ottawa
"I focus on long-term relationships with my clients rather than making a single transaction. Many of my clients that I have served in the past I now consider my friends."
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