Real Estate Commissions

One of the first questions a client asks REALTORS® is about commissions and how the rates are set. There are no steadfast rules on what a REALTOR® will charge to list a property. Every property and every situation is different, and many factors must be taken into consideration.

A home in the city, if well priced and in a high traffic area, may not require as much media advertising as a more rural property might need. The MLS® System and lawn signage, as well as agent interaction, may be sufficient to market such a property. A more rural property will need formal promotion for people to know it is there.

If a property has special qualities that call for extra promotion, or if the property has a target market that will require unique advertising, this can also affect the commission percentage. It is the listing agent’s responsibility to cover any advertising expenses on a property. If a property is incorrectly priced, in a remote area, or has other deciding factors that would make it a challenge to sell, that can translate into months of advertising expenses.

Another important part of the equation is the how the commission is applied. As a listing agent, it is the REALTOR®’s responsibility to get news about your property to as many people in the real estate industry as possible. The more interest that is generated about your property, the quicker the sale. When a property is listed by one company on the MLS® System, the brokerage will offer a percentage of the selling commission to the Buyer’s Brokerage. Although some agents list properties at reduced commissions, if the commission split is too low some of those properties may risk not receiving adequate attention from other agents.

Then there are the services a REALTOR® provides. Knowledge of recent sales in the area, advice on how to prepare your home for sale, staging tips, expert negotiating skills when an offer is received, and contact with qualified professionals related to the home sale process. To learn more about what a REALTOR® can do for you visit www.howrealtorshelp.ca.

As you can see, a lot of information comes into play when deciding on a commission rate. The lowest commission may not always be your best option. What you really need to consider when listing a property for sale is – what exactly do you want for your money. If you are looking for maximum advertising and exposure to allow for a quick sale at top price, by hiring a knowledgeable REALTOR®, at the right commission rate to get the job done, your opportunity to realize your goals is greatly increased.

Please direct any specific questions or comments, including any topics you would like to see covered herein, to reporter@district2news.com. You will be sure to receive sage advice and accurate information.
  LYNNE COOPER has been a REALTOR® since 2003.
Lynne works for FIRST IMPRESSIONS REAL ESTATE INC.,
1496 Bedford Highway, Suite 102, Bedford, NS  B4A 1B4