If I want to sell my Toronto home, how much would be the standard real estate commission?
That’s the questions you might have asked yourself when you decide to market your property or sell it.
Other questions that might come to your mind are usually, how can I sell my house or condo? Or how much cost is involved in selling my property? Or how much is the real estate commission in Toronto?
Answer to those questions is not a one size fits all. It all depends on the type of property, location and many more. Below here we’ll go through the Range of commission you should expect in Toronto, and why!
Let’s start from the basics. As a seller you can have the option to sell your Toronto property yourself, or ask a toronto real estate agent to help you selling your Toronto property. Sellers, mostly, choose to use a Toronto REALTORⒸ when it comes to sell one of their biggest assets. However that involves agent fees or commission, which we’re gonna talk about ir down below this article.
There are several reasons why a seller chooses to sell his/her property with a real estate agent, I’ve covered it in another article called :
What does a real estate agent do for sellers and buyers?
But the most important reason is that a real estate agent buys and sells properties maybe tens of times in a year, whereas an average consumer in their entire life, sells an average of 4 properties.
Other than that, in a nutshell, a real estate professional can help you with:
Evaluating your home’s price and doing the CMA
Setting the Pricing Strategy
Setting the Marketing strategy
Preparing the home for sale
Setting the strategy and managing the offer presentation
Following up to make sure you are gonna have a smooth transition and buyer closes the purchase successfully.
Typical Real Estate Commission in Toronto
In Toronto, or in Canada in general each real estate transaction has 2 sides:
First one is the Listing side, It’s called the Listing agent.
Second is the co-operating side, It’s called Co-Op agent, also known as Buyer Brokerage.
The typical commission for each side varies depending on Geographic locations, the amount of service provided and so forth, and is not always the same, literally not one size fits all. In order for you to have an idea, in Toronto, the real estate commission is usually fluctuates around 2.5% for the co-op agent and 2.5% for the listing side and marketing more or less.
Now here is the catch, the next question that you might want to ask is, how much service do you get for the amount of commission. Like everything else, the commissions are negotiable, but it depends on the asset type, the marketing strategy, and the services that the Listing agent provides to you.
As mentioned before, there are 2 real estate sides involved in the sale ( Unless it’s a multiple representation which will be explained below this article). A commission or fee for service is paid from the proceedings of the sale. That means you have zero cost upfront in that regard and the sales representative and real estate broker takes on the marketing costs ( depending on your agreement ). In multiple representation, there is a way for you to pay less commission as well, which I have explained it in the last part of this article.
Each real estate brokerage has a sales representative or broker working on their behalf. The commission is typically split between brokerages, and then between the Brokerage and the respective REALTORsⒸ. Now the real estate agent has to pay all the marketing expenses, as well as other business costs and taxes.
The below image is for information purposes only and the percentages may vary depending on the market and or brokerages and their policies.
No comments:
Post a Comment