Why is money always such a tricky topic? Because you work hard for it and you want to ensure that you’re getting results for those dollars. It’s always tempting to get a bargain, but with real estate, like many other professional services (lawyer, accountant, etc.), you usually get what you pay for. If you want a discounted real estate commission when buying and selling, you’re likely going to get the service to match. Investing in the right support can help squeeze every ounce of equity out of your home. It can also help negotiate a favourable deal or save you from costly mistakes.
People are often curious who pays the real estate commission. Typically the sellers in the Toronto and GTA market are responsible for both the buyer agent and listing agent. This means that if you are a buyer, your agent’s commission will likely be covered by the sellers of the home you purchase. Although it’s not common, there are some sellers who elect not to offer any or only offer partial. This means you as the buyer could be responsible for your agent’s commission. Be wary of an agent who is hesitant to show you a listing because they’re putting their commission above your needs.
If you’re a seller, it’s important to consider how offering a discounted buyer commission can affect your property value. An agent is required to inform their clients of all the viable options. However, you often see less enthusiasm with discounted or no commission. The fewer buyers coming to your listing, the less likely you’ll maximize the sale price. Your listing agent’s commission will also often include various services as a part of the package. The details can vary, but usually with a full service approach this consists of custom marketing materials, photography, home inspection, professional cleaning, and staging, etc. You deserve and should expect a high quality package as part of your agent’s fee. For more details on what full service entails, click here.
It’s important as a buyer or seller that you work with someone who provides exceptional service, effectively negotiates, and consistently brings value to the table. If your agent is able to negotiate an incredible deal or go the extra mile to prepare your home to wow buyers, you’ll be gaining more than you saved on a discounted commission. And remember: “If you think hiring a professional is expensive, wait till you hire an amateur.” – Red Adair
