Each individual REALTOR® sets their own commission rate, below is an example of how the Commission works. Don’t be fooled by some deceptive ads that state “Commission as low As 1.5%”, They in a lot cases do not include the amount offered to the Co-Operating Broker, so before signing with any REALTOR®, consider what your total costs will actually be and what services you are going to be provided with. All commissions, including mine are negotiable.
How Selling Commission Works
There are two sides to a real estate transaction, the Listing and the Buying, here is a look at how they both work.
- BUYER BROKER (Co-Operating Broker),Also known as the selling broker. In most cases the buyer broker is the one who brings the buyer (offer). Offering 2.5% or more is recommended to ensure the most amount of showing of your home/condo. This amount can be less, but is not advised. Paid to the Listing Broker and then in turn paid to the Co-Operating broker.
- LISTING Sales Representative (My Commission), – Covers all services involved in the marketing of your home/condo as outlined on this site. Paid to the Listing Broker. This amount is negotiated at the time of listing and includes the amount offered for the Buyer Broker.
- YOUR ACTUAL COST, – Actual amount of commission you will pay is the Listing amount plus the Buyer amount plus HST (only on commission) of the final selling price of your home.
- HOW TO SAVE ON COMMISSION – All fees in a real estate transaction can be negotiated. I offer a better rate to you as a seller if you also agree to use my service to buy your next property. I also offer a reduction in fee if I bring the buyer customer.
Buyer Commission (Representing the Buyer only)
- MLS Listing – As a buyer, use of my service is included in the purchase price of the property, I am paid the percentage offered in the MLS listing, and is paid by the seller.
- FOR SALE BY OWNER – Occasionally there are For Sale By Owner properties on the MLS that you would need to pay my fee out of pocket, but you will be notified prior to visiting the property of this so you can make an informed decision if you want to see the property, plus in many cases with For Sale By Owner, they are willing to pay the Buyer REALTOR® fee, they just choose to be unrepresented on the listing side.
- Do you have a condo to rent? I can help you get your tenant, Commission for a rental listing is 1 Month Rent plus HST, This covers the marketing and services involved in getting you a tenant. From the Listing commission, 1/2 is offered to any co-operating broker who brings a tenant.
- Are you Looking to Lease or Rent a condo? You do not have to pay my fee out of your own pocket, I am compensated 1/2 month of the lease price by the landlord. Sometimes the amount offered by the landlord is less than 1/2 a month. In these rare occurrence, you would need to pay the difference and you will be informed long before seeing the actually unit.
Steven Campbell, Sales Representative
Forest Hill Real Estate Inc., Brokerage