How Much Commission Should seller offer to an Agent
If you’re considering selling via MerePosting, you might want to learn how it works first. Selling a home traditionally involves the following steps:
When you hire an agent to sell your property, you agree to pay him or her a commission of 5% of the sale price. This amount is subject to HST.
These commissions are normally shared with Agents who bring in buyers and complete transactions. Normally 2.5% of the Listing Agent’s commission is kept by the Listing Brokerage, and 2.5% is paid to the Buyer’s Real Estate Agent. In a Mere Posting, the Selling Agents commission is left to an agreement between the Seller and the Selling Agent.
Every Seller must understand that with sufficient exposure on Realtor.ca could attract prospective buyers to contact the Sellers directly for a successful sale thereby freeing the Sellers the Selling Agents portion of the Commissions as well.
Listing a basic Mere Posting with Toronto Real Estate Realty is a flat price of $600 only. However, it is suggested that a Seller look at all the options available to ensure he gets best representation and support to get best value for his property.
Paying a competitive commission to the Buyers Agent combined with MLS exposure on realtor.ca can bring you direct buyers. Professional Photographs and Virtual Tours can help enhance your success.
So what is the best commission to offer a buyer’s agent?
Despite your temptation to offer a lower commission rate than what we recommend, this will only make it more difficult for you to sell, since buyers’ agents regularly screen listings according to commission rates. Agents may not show your house if the Selling Commission is simply too low. To get the best value for your property, you must have as many people view it as possible based on terms that matter to you. Clearly, the more exposure your property receives, the better the offer price will be. A real estate agent who works with buyers wants to be compensated fairly in the real estate market. This higher chance of a sale can be enhanced by offering competitive commissions.
Our Experience and Suggestions:
From our 30+ years of real estate marketing & sales experience, we recommend a buyer’s agent receive a Commission of between 2.5% and 3% of the Selling Price. Our Brokerage experience comes from the sale of hundreds of homes. Commissions play an important role in introducing buyers to properties.