Real Estate Commission Rates Analyzed


GTA has been the most active real estate market in Canada in recent years. Naturally hot market has drawn many to become real estate agents. Some work full time while others sell real estate in their spare time or after hour.

I remember a guy in my class when I was taking real estate course about 12 years ago, his motivation in obtaining his license was to keep his job but do this part time. I specifically recall him stating that even if he does one deal in a year it is a good bonus for him.

Obviously not everyone who holds a real estate license is a good Realtor. Here are few things that sets good realtors apart from the not so good.

A good Realtor is:

  • Knowledgeable
  • Experienced
  • Market savvy
  • Available
  • Resourceful
  • Trustworthy
  • Networked
  • Reliable
  • Sincere
  • Loyal
  • Fair

By looking at a short list above, how many of these do you think a part timer can fulfill? No many I would say…
When you sell your home which is the biggest investment of your life or when you are buying a house or a condo, will you truly intrust the process to an incompetent, unreliable and inexperienced agent?

Then there is the other category of agents who simply buys business. What I mean by buying business is that they spend hundreds of thousands of Dollars every year to have their photos posted on huge billboards. When interviewing a prospective home sellers usually these realtors use the biggest tool they have in their arsenal and that is ” I have a big market exposure and spend hundreds of thousands in advertising”.

Yes, advertising is good but what do they advertise? Their own photo and that smile….and whose money do they spend on those big buck ads? YOURS!!!!!
So, when they list your home for sale they want top Dollar, full commission…
And what do you get in return for that huge commission?

1. The file will be assigned to junior agent or secretary.
2. When you call, you get an assistant on the phone.
3. When buyers call, same thing. They speak to a new agent or a secretary.
4. Your file is handled by an agent who can’t make it on his own in the real estate market and has to join
a team.
5. All other shortfalls that you can think of that comes with volume business model.

 

Then there is the other agent who is a full-time Realtor
Who is competent
Who takes care of every sale on his own
Who talks to buyer and seller in person
Whose business depend on happy and satisfied clients because most of his business come from repeat clients and referrals
Also who charges a reasonable commission

You need to do your homework and find that ideal real estate agent. When you find one and have had great experience buying or selling your home, try to hold on to your agent. Service of competent and trust worthy Realtor is invaluable.