When buying or selling a property in Ontario, one important aspect to consider is the common real estate commission.
Real estate commissions are the fees paid to real estate agents for their services in facilitating the buying or selling process.
Real estate commission is calculated based on a percentage of the property’s selling price.
The 5% fee is reflected on the listing agreement and collected by the listing agent. Eventually, it gets split between the listing agent and the co-op agent after the successful sale of any real estate property in Ontario.
For example, if your real estate broker or agent assisted you in selling your home for $750K you have to pay $37,500 (plus applicable taxes).
In Ontario, real estate brokerages set their commission fees.
While they can be negotiable, the amount heavily depends on the brokerage model. Some brokerages provide full real estate services and tend to charge more.
Some only provide essential services (MLS listing, photos, signage) and might cost you less.
Keep in mind that real estate agents in Ontario only get paid upon successful sales.
Tip: If you find a realtor with low real estate fees, but your home does not get sold it does not matter how much he charged.
The rule of thumb. The less real estate commission you pay the fewer services you get and the more unpredictable the results become.
Real estate commission in Ontario is paid by the seller when the real estate transaction closes.
A real estate lawyer will charge the seller commission based on the listing agreement between a realtor and the property seller.
Your lawyer will create a trust ledger that shows the price paid, subtracting any associated closing costs to determine the seller's total earnings from the sale.
Yes, you can. At our brokerage we believe in values.