In Toronto, typically 5% of the final sale price of the home is split evenly (2.5% each) between the listing agent and buyer’s agent.
Real Estate Agent Commissions In Toronto
Real estate agent commissions are never written in stone. If you are not comfortable paying your agent 5% commission, speak to them about it. They are used to having the conversation with their clients and will not be upset you asked. They may even be willing to lower their commission rate a bit, but it could mean losing some services.
Your agent will not get the full 5%. That will be split 50/50 between your agent and the buyer’s agent. Depending on their agreement with their brokerage, that 2.5% may be split in half again.
If your home sells for $550,000, 5% is $27,500. Your agent and the buyer’s agent will both receive $13,750.
If your home sells for $850,000, 5% is $42,500. Your agent and the buyer’s agent will both receive $21,250.
Again, depending on their agreement with their brokerage, they are most likely not receiving that full amount themselves.
Do Real Estate Agents Get Paid No Matter What?
No, if your agent is not successful in closing the deal, they do not get paid.
What Services Are Involved?
If you are paying your agent the full commission, the services they provide could be endless. Not only are they marketing your home on as many platforms as possible, but they are also helping your home to look its best to appeal to buyers. Technology has really helped improve how homes are listed:
- REALTORS® website
- Other listing services
They can also connect you with professionals like:
- Contractors, should you wish to renovate before selling
- Home inspectors
- And more
They will always discuss with you their strategy and what platforms you are comfortable with. But remember, the more your house is seen, the more potential buyers will want to come to the open house and make an offer! And if you used professional stagers and photographers to help show your home’s full potential, the offers you receive could end up being over asking price, all thanks to the hard work of your REALTOR®.
What Is The Average Time A Home Stays On The Market In Toronto?
Depending on where you are selling in Toronto, your home could be on the market anywhere from 20 – 26 days. Different times of the year can greatly affect how long your home is on the market for too. During the winter, the cold weather could affect open houses, whereas during the spring, you could come across a bidding war. Your REALTOR® will help you decide when the best time to sell is.
Do I Have To Pay My Real Estate Agent When Buying A House?
Technically you are not paying them directly. Their commission fee is included in the listing agreement.
Selling your home can be a tough decision, but with the help from a professional REALTOR®, it can make the task much easier. The reason you are paying them a fair commission rate is because they are a local expert who can determine how to market your home accordingly, depending on the area and time of the year. Typically, the commission is 5% of the final sale price and split evenly between the buyer’s agent and listing agent, but if you wish to negotiate, let your agent know. But remember, you get what you pay for, especially when it comes to your agent’s services.
Disclaimer: rates and prices subject to change.
Reach out to our top agents in Toronto here:
Agent Name: Gavin C. | View Agent Profile>>
Serving Area: Oakville, Toronto, York
"With over 15 years of experience in the GTA, I know the market well and know what makes a home sell in each neighbourhood."
Agent Name: Jennifer R. | View Agent Profile>>
Serving Area: Markham, North York, Richmond Hill, Scarborough, Toronto, Vaughan, York
"I will always act in your best interests and make sure to thoroughly explain each step of the process. You will always be kept informed, and with a positive attitude too!"
Agent Name: Claude B. | View Agent Profile>>
Serving Area: Durham, North York, Scarborough, Toronto
"I teach real estate courses through the University of Toronto and also have a strong reputation in the commercial real estate industry, which means I will always have answers to your questions."