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What is the Standard Commission Rate for selling a home?

Anna, Toronto

 

Hi Anna,

The politically correct way for me to answer the question is that there is no "standard commission rate" as all rates for real estate services are negotiable.  However, as a seller, you typically wouldn't want to list your property and offer less to the cooperating broker that brings in the buyer than what the majority of listings do.  For example, if most listings offer 2.5% and your listing offers 2.0%, it may disadvantage your home from being shown and subsequently sold -- you can argue that it's discrimiation on the Buyer Agent's part, but thats the way the cookie crumbles unfortunately... agents are in the business to make money.

Now on the listing side... well, most listings on the Toronto MLS typically offer 2.5% to the co-operating Buyer broker.  Given that the Listing Agent does all of the advertising, marketing, admin and basically incurs all the costs of selling your home (sometimes with no guarantee that it will actually sell)... isn't it just fair that they make at least what the Buyer broker does if not more? 

Long story short, commissions are negotiable.... and when choosing a listing agent, keep in mind... if the agent can't even negotiate their own commission with you the seller, how well do you think they'll be able to negotiate on the price and terms for your home?

My thoughts exactly.

Jo =)

Posted on Friday, November 17, 2006 at 01:29AM by Registered CommenterJoanna in | Comments1 Comment

Reader Comments (1)

Wake up Toronto agents. In Vancouver the general listing and selling price is 7% on the first $100,000. and 2.5% on the ballance.You also get 1/4 % discount if the listing agent has the buyer as well. This includes large adds every 1-2 weeks,house meaurement and layout,Mls, glossy handouts.
The agents I has met here do very well, my agent just bought a new mercedes,lives in a 2 million dollar view house and current is travelling in Europe for 3 weeks.Why are Toronto agents so expensive? are they just too content as they are overpaid? The cost of living here is just as high as Toronto.I sold my house for $1,235,000, commision is $35,750, vs Toronto to 5% $56,750. This is compounded by higher GST being paid. WOW
November 30, 2009 | Unregistered Commenterandrew Demetriou

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