There are 2 sides to real estate commission, the listing side and the buying side. A typical listing in the GTA is 5% total commission, 2.5% listing commission and 2.5% buying commission. Not all Realtors charge the same.
As a discount Realtor I get questions all the time, here are some of my most frequently asked questions from sellers:
Will My Listing Appear On MLS?
Absolutely! Not only will your listing appear on MLS it will be distributed through all internet portals through IDX and DDF giving you maximum exposure.
Other Agents Charge 2.5% To List A Home, Do You Really Only Charge 0.5%?
Yes, I only charge 0.5%+$950 for homes $900,000 and over. For homes under $900,000 I charge a flat rate of $4,500+$950 or $5,450. My business is based on volume. With the rise in home prices, the structure of the listing commission at One Percent Realty works for me. My strategy of getting more listings rather than getting more money per listing actually works in my clients favor. I am constantly working and on top of market changes as they happen, I understand documentation and can make sure everything is done correctly.
Are There Any Upfront Fees For Listing?
Not at all, I don't require upfront fees. All the tools I require are part of my membership with The Toronto Regional Real Estate Board. Professional photography is included in my service. There is no expense to you until your home is sold.
I'm Worried Offering 0.5% Commission To A Buying Agent Will Hurt My Sale, What Do You Recommend?
This is by far my most frequently asked question. Honestly, I do have my clients offer more commission to a buying agent. This is from years of experience and understanding there is a balance between money spent and money saved. The goal is putting the most money in your pocket. We can have an open discussion and you can decide what is best for you. You will still save thousands on listing commission even offering more commission to a buying agent.
What Happens When We Offer More Commission To A Cooperating Brokerage And The Buyer Comes To You Directly? Do We Still Have To Pay The Higher Amount?
Great question! No, If the buyer comes to me directly then the commission structure falls back to One Percent Realty's standard commission structure. This means that for homes $900,000 and over the Coop commission falls back to 0.5%, for homes under $900,000 the Coop commission falls back to the flat rate of $4,500.
What Other Costs Can I Expect?
You will have to hire a lawyer to complete the transaction and will have the cost of moving. There are other possible fees however they are your choice. For example, home inspection, staging, repairs and other jobs that may be required. I have professionals I work with and we can discuss what is best for your sale.
Are There Any Additional Expense's You Actually Recommend?
Depending on market conditions I often make the following 2 recommendations. I recommend pre-sale home inspections to freehold sellers, I find the $500 expense comes back in thousands. I also recommend condo sellers order their status certificate so we don't see that condition on offer day. (This typically is only for hotter markets where we have an offer date)
Do I Really Need To Clean Up?
A well presented home will always fetch a better audience and price. Put yourself in the buyers shoes, you want to wow them as much as possible don't you? Cleaning up and proper presentation could be the difference between multiple offers and top price, and 1 or no offers.
Do I Have To Pay If My Home Doesn't Sell?
Quite simply no, you only pay if your home sells
Are Open Houses Necessary?
Honestly with the technology available today they are not. Serious buyers make appointments for homes that interest them. A recorded appointment gives me a point of contact with their agent to follow up. My brokerage uses the most modern scheduling system that allows me to contact every agent that has been in your home for important matters such as instructions and pre-emptive offers.