How does my Realtor get paid?
Real estate agents in Ontario are paid by commission, usually a set percentage of the selling price of a home, paid upon the successful completion of the sale. When a Realtor works with a Seller and lists a home they take on the risk – they only get compensated for their time and out-of-pocket expenses (photography, websites, colour brochures, signs, ads in the newspaper or online) if the home sells. If a home doesn’t sell, the REALTOR doesn’t get paid.
The amount of commission to be paid upon a successful completion of sale, and how the commission will be divided, will be in the contract you sign with your Realtor. Be sure to review it with your Realtor before you sign the contract.
Who pays a Realtor’s commission?
Normally the Seller pays the commission.
Does my Realtor keep the whole amount of the commission paid?
Normally real estate commissions are paid by the Seller to the Listing Brokerage. The listing Brokerage then splits the total commission with the Buyer’s Realtor, at at previously agreed upon rate. The Parker Team in general charges 4-6% (+ HST) on the selling price of a property, with 2.5 – 3% (+ HST) of this amount going to the Realtor who represented the Seller.
Real estate commission is contingent on a home selling – if a home is listed for sale and doesn’t sell, no commission is paid.
Who does the Seller pay the commission to, and when?
In Ontario, real estate commissions are paid directly to the Listing Brokerage your Realtor is associated with – not the individual Realtor you are working with. A REALTOR should never ask you to pay them directly.
Commission is paid upon a successful closing, once the funds have been received by the Seller’s lawyer and the transfer of property has been completed. Generally the seller’s real estate lawyer subtracts the amount of commission owed from the money received from the Buyer on closing, and pays the listing brokerage directly. Once received, the listing brokerage pays the listing agent and the buyer’s agent.
Is there a standard commission rate?
No! It is illegal in Ontario for REALTORS or brokerages to work together to set or fix commissions.
In Ontario HST must be paid on real estate commission.
Does The Parker Team charge any additional expenses?
The Parker Team provides full marketing for your property at no charge. We will often cover an initial staging consultation to help your property show at its best (and acheive the highest dollar), and then review the benefits of staging with you based on the needs of your property. The Parker Team works with local stagers and can recommend one to you. Keep in mind nothing is ever free. If staging is “included” consider what other aspect of the sale has been comprimised to provide it & verify the commission rate charged is not higher.
Why The Parker Team?
When you list with The Parker Team, you will always speak with your Realtor directly. Yes we have people working behind the scenes to assist us, but you will NEVER be handed off to them – You will always speak with your Realtor direct! At The Parker Team, we believe that being available to our Seller’s is key, you can call, text or email us at anytime and we will be there for you.
I want to achieve the highest value for my property, what motivates my Realtor to achieve this?
When commission is set as a percentage of the sales price, an agent is motivated to sell a home for as much money as possible. Keep in mind the higher the sale price, the more money your Realtor makes. Furthermore, Realtors who are serious about their profession know that their reputation is crucial to their long term success. They want their Sellers to recommended to them to friends and family for a job very well done. For most top Realtors, that’s the best kind of motivation of all.
Interested in Listing Your Muskoka Property?
The Parker Team provides a comprehensive and custom Marketing Plan for every property listed. Call us today for a free property evaluation, and to find out how we will market your property.