Real estate commissions?
- Thread starter Indiana
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Most full service brokerages are 5.25 - 5.5% with 2.25 to 2.5 going to the buyer agent.
There are some that’ll do 1% plus fees or you can do it yourself but no agent will bring clients to a 1% listing and you’ll just end up with agents calling you to list your house if you hang a For Sale by Owner sign.
Full disclosure, I own a brokerage. Let the haters hate. Bring it on
There are some that’ll do 1% plus fees or you can do it yourself but no agent will bring clients to a 1% listing and you’ll just end up with agents calling you to list your house if you hang a For Sale by Owner sign.
Full disclosure, I own a brokerage. Let the haters hate. Bring it on
Last agent I spoke to offered me 3.5%. I say if you knew an agent who did it for less, call him back and see if what he says. I don’t see why I should pay more as housing prices have fallen, so I’m getting less overall.
It’s a crappy business. Agents need to make more commission off serious buyers and sellers in order to make up for flakes that waste their time.
Why would I want to pay higher commission so the agent can drive some Karen around looking at houses with no intention of buying?
I don’t see any solution, it’s just the way it is.
Why would I want to pay higher commission so the agent can drive some Karen around looking at houses with no intention of buying?
I don’t see any solution, it’s just the way it is.
I learned the hard way a few years ago that because the seller’s agent splits the commission with the buyer’s agent, an agent who offers a seemingly low commission % to sell your home is not going to try very hard to find a buyer whom the agent does not also represent. (The house sold after six months to a buyer the agent also represented. I later learned that there had been formal offers from buyers with different agents that my agent had never told me about.)
Ok. You’re part of the problem.Most full service brokerages are 5.25 - 5.5% with 2.25 to 2.5 going to the buyer agent.
There are some that’ll do 1% plus fees or you can do it yourself but no agent will bring clients to a 1% listing and you’ll just end up with agents calling you to list your house if you hang a For Sale by Owner sign.
Full disclosure, I own a brokerage. Let the haters hate. Bring it on
Yes, even on a 3.5% commission deal, it’s the selling agent who will take the 1% and give the 2.5% to the agent who brings the buyer.
Out of the listing agent’s cut, he has to pay for brochures, pictures, videos, website, staging, etc. A 1% agent will likely cut corners or a pay as you go agent will pass these costs to the seller.
It is illegal for your agent not to tell you about all the offers on your property, but also tough to enforce so some slime ball agents will do this and hope they don’t get reported to OREA. If you actually have proof, I would raise it to OREA and have them start an investigation. Corroborating evidence from a buyer agent who presented a written offer is probably the only way to prove it. It can’t be like an agent saying “my client will likely pay in the xxx ballpark, what do you think your seller will say to that” sort of thing.
Sounds like your agent double ended the deal at your expense.
My agent who has been with me for years now always charges me 4.5% on selling. I know I could widdle her down for less because all my buys are through her but why would I do that? She does cover the staging and all the marketing and most importantly for me, she has always been straightforward and honest so why would I deprive her of her pay?
Submit a complaint to RECO and have that agent's license revoked. What he/she did is illegal.
I want to open an agency, can you find a place for me? I refuse to pay any commissions... instead the girls will give you a mind-blowing BBBJ every single day for the term of the lease.Full disclosure, I own a brokerage. Let the haters hate. Bring it on
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I wish I was making 1% of every deal my agents do.
But you are right, most agents do not make any money.
Consider this. Each agent pays roughly 3K annually to a combination of TREB or whichever board they belong, RECO, OREA and CREA. Then some pay their brokerage a deal transaction fee, or a desk fee and there’s the fee that goes to the franchise they are part of such as Royal LePage, Century 21, Remax, etc, then there’s a split of the commission with the brokerage which can range from 30% to 5% of their commission. The successful agents are in a position to negotiate a lower split and perhaps have some of their fees absorbed by the brokerage.
“Most” agents do less than 1 deal a year in the GTA. On a 1m house, 2.5% would be 25k commission.
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If that's the truth, doesn't sound like the agents are really trying to get the best deal done for the buyers/sellers, but really just trying to get most profit for themselves and their peer on the other side of the fence. Fuck the buyer and seller, it's really all about the realtors.Most full service brokerages are 5.25 - 5.5% with 2.25 to 2.5 going to the buyer agent.
There are some that’ll do 1% plus fees or you can do it yourself but no agent will bring clients to a 1% listing and you’ll just end up with agents calling you to list your house if you hang a For Sale by Owner sign.
Full disclosure, I own a brokerage. Let the haters hate. Bring it on
With house prices at around $1M, the selling agent would rake in $25,000, maybe $20,000 after expenses. If they sell five houses per year, that's over $100,000. With real estate booming, wouldn't that be feasible? Seems like an easy way to make money to me. Just sell five houses per year, less than one every two months.
found this:
seems like they have to pay their brokers a hefty commission
How many transactions did the average Toronto Realtor do in 2017? - REM (realestatemagazine.ca)
seems like they have to pay their brokers a hefty commission
How many transactions did the average Toronto Realtor do in 2017? - REM (realestatemagazine.ca)
Good article that sums it up nicely although the number of agents is low as it only includes TREB. If you include the other boards around the GTA, like Mississauga, Brampton, Hamilton, Peel, etc, there are closer to 90k agents all trying to eat from the same pie.
From what I’m seeing in the current market, the earning numbers in the article are high, so a lot of starving agents out there right now.
The thing to note is the ones who are doing one deal or less are likely part timers, ie they have regular jobs or an alternate source of income and do this on the side. Some people only get their license so they can avoid paying the commission when they are buying/selling their own investment real estate so these skew the numbers a bit.
Why don't you blow his dick yourself? You won't have to pay anyone.
