Who pays the real estate agent's commission?
In most cases, the seller is responsible for paying the commissions, not the buyer. In Ontario, commission is normally 5% of the sale price, with half going to the listing agent and half to the buyer’s agent. If you are the buyer, using a reputable real estate agent will cost you nothing. If you are selling your home, you will be responsible for paying the entire commission price.
Although typically real estate agents working in the GTA charge 2.5% of the sale price, this is not always the case. Different real estate agents charge different percentages and the amount could be based on experience and knowledge. Still, the commission is negotiable, but remember that you get what you pay for. As a buyer, this probably doesn’t make any difference as you are not paying the commission. If you are in a bidding war than it is not a bad idea to offer to pay some or all of the real estate agent commissions. This will help your offer stand out amongst the rest.
As a seller, you want to be sure that your realtor is the best person possible to sell your home. Choose someone that knows the neighbourhood well and its dynamics, and make sure that they work for a reputable company, like Alan Newton Real Estate. Buyers should also choose an agent that knows the area they hope to live in, as they will often know about properties before they even hit the public market.
Mark has been dedicated to finding the right home for his clients for over 30 years. Take advantage of his wealth of experience! Learn more.