Listing Secrets

Commission Rates are Negotiable

The price of a home usually includes a commission as part of the sale price. The specific rate is not fixed and can be negotiated with your Real Estate Sale Representative. Keep in mind, this commission is usually split between the listing and buying (co-operating) brokerages, typically 50% / 50%.

Commission Cutting

Services that advertize low commission such as 1% usually include the only listing portion in the advertisement but often require an addition amount to be paid to the buying brokerage (if applicable). You can choose to offer less to the buying agent (e.g. 1% vs 2.5%), but keep in mind that the buyer would need to pay any difference between what you offer and what the buyer signed he would pay which could be a disadvantage to the “attractiveness” of your home from a buyer/agent point of view. Make sure you know the pros/cons related to the commission you pay.

As with any type of service, there are varying levels of service. Most include services such as putting your home on the local real estate boards MLS system, a yard sign and offer and contract negotiations. Other value added services include professional photographs, marketing materials, virtual tours, advertising, other website promotion, experience, quality service (client attention), following-up with buyer showing, constant updates, warranties, buyer incentives, cleaning services, staging and many other options depending on the agent.

Remember, “you get what you pay for”, a short term gain could equal a long term pain, make sure you know your options.

Sign now, reduce later

Make sure you thoroughly investigate you home value related to you competition. The price you get for your home is based on “Market Value”. Market value is affected by:

- Supply and demand (market conditions)
- Seller motivation (need vs. want to sell)
- Seasonality (lower demand in Winter)
- Mortgage rates
- Condition of property
- Location, location, location (neighbourhood standards)

If you expect a significantly higher price or overvalued than the market value, the agent may agree knowing they will ask you to reduce the price in order to get you to sign a listing agreement. Reducing the price may be inevitable if the property doesn’t sell in a certain time period, but it shouldn’t be the plan from the start. Be open minded and don’t assume a higher listing price is “better”.

Selling + Buying incentives

Some commissions can offer reduced rate if you sell AND buy though a specific brokerage or salesperson or use specific mortgage lender which many limit the home selection or mortgage rate available to you through this package. You may also receive a reduced commission is you are a repeat customer. There are many options, so ask your realtor and know the “fine print” before you make your choice.