11 Oct Do All Real Estate Agents Charge the Same Fee?

Asking whether all real estate agents charge the same fee is like asking if Rolex and Timex are made the same way. Every Realtor is different and offers a wide variety of differing services and skill sets. Therefore real estate fees and commissions vary to a large degree.

In the province of Ontario, it is against the law for a Realtor to price fix. This gives the home seller the ability to discuss and negotiate the fee.

Real estate commissions are all over the map and so are the services the real estate agent can offer. Homeowners are encouraged to clarify what services are included in the real estate commission.

All home sellers should budget accordingly for their home sale. Real estate expenses such as lawyer fees and moving costs should also be considered. Your real estate broker should be able to share estimations with you.

If you think your home is tax deductible or has tax deductions, it’s best to speak to an accountant beforehand.

Hidden Traps of Realtor Advertising

Some real estate teams claim to have big advertising budgets and to do a lot of marketing. And many of them do. However, does their form of advertising benefit you, the home seller?

Often, the marketing budget is spent on advertising the Realtor so that they can get new business and sell other houses.

When selecting a Realtor make sure to study their real estate advertising and marketing habits. Does an advertisement claim their number one in a given the old or are they spending the marketing dollars on text that relates to drawing a buyer to your home?

Real estate agents make money off of developing leads. In turn, they take the lead and sell a home to another buyer. It’s important that your home is being marketed and targeted to the appropriate audience that is going to bring you the best price for your home.

Beware of agents that charge a flat fee for service. That could allude to the fact that they are not investing in the process. On the other hand, agents who charge a high fee but only advertise themselves with the hopes of getting a real estate lead, do not necessarily help you.

Agents that charge a low fee and insist on doing open houses may have a hidden agenda. You don’t want your house to become a store for that agent to pick up buyers that are not qualified to buy your home.

Why Do Real Estate Costs Differ Amongst Brokers?

Similar to the Rolex/Timex comparison, there are a lot of differentiators amongst real estate professionals. Like the old saying goes, you often get what you pay for.

Simply put, if you hire a full-time, full-service broker, you can expect many extra services that a low fee-for-service agent just cannot offer.

Like everyone in business, Realtors have expenses, such as home staging services to professional home improvement costs. Real estate marketing and advertising make up a large part of expenses.

As a home seller, if your goal is to maximize the price of a sale in the least amount of time, one needs to expose the home to the greatest number of qualified buyers. How do you do that? You need an agent who invests in the process.

Banks charge interest rates on mortgages so they can make a profit. Realtors charge a commission to cover their expenses and to make a profit. A profit for their ability to negotiate and for their tenure in the industry brings experience to the homeowner.

How Much Does It Cost to Sell a Home?

This answer usually lies in the quality of service a real estate agent is offering to the home seller. There are many moving parts and expenses to getting a home sold that a real estate brokerage takes on.

Generally speaking, a Realtor with a big advertising budget can increase the chances of getting a home in front of more qualified buyers.

What Costs Should a Home Seller Expect Beyond a Commission

Every home is different and therefore will have varying expenses including home staging and painting before going to the MLS or Realtor.ca. Some home sellers should consider having their home inspected prior to listing. This avoids any surprises later and can be done by a home inspector.

Property taxes should be brought up to date to avoid headaches on closing. Capital costs such as home renovations should be thoroughly talked through with a local Realtor and stacked up against other homes for sale in the area.

Repairs and maintenance are just parts of owning a home and a good seller’s agent will be able to distinguish between what should be improved and what is not necessary.

Sometimes in the commission rate the Realtor will play a hand in organizing and paying for minor repairs. If you’re going to sell your house, it’s often with the minor repairs.

Keep in mind real estate expenses such as lawyer fees and moving expenses. If you’re moving down the street versus across the country, costs can vary dramatically.

Most lawyers include in their fee ledger land transfer tax and title insurance. Make sure to get a breakdown from your lawyer ahead of time. Some sellers will need it for tax returns or income tax purposes.

If you have been receiving rental income from your home, you might consider speaking to your accountant. Also, if you buy and sell frequently, CRA may deem the net proceeds from your sale as income.

Advice in a Nutshell

• Not all Realtors are the same and neither are their fees
• Real estate fees and commissions are negotiable
• You generally get what you pay for
• It takes money to make money so if selling for a high price is important, make sure to choose an agent with a large marketing budget