How much do real estate agents charge? When it comes to the price you pay any realtor you work with, keep in mind it is all results driven. If they don’t sell your home, you don’t pay. Typically, it’s the seller paying the commission out to the buyer’s and his (or her) own agent. So, if you’re buying, this can be instructive (check out this article revealing what a real estate agent can do for you if you’re buying), I don’t want to go into all the details. However, if you’re buying you basically get a free agent to do all the heavy lifting for you, and if you’re selling, you pay for the result of getting your home sold.
I digress, back to the main point, what do realtors charge and how do you avoid getting ripped off. Well, there is not an easy,” fixed” answer to this question as agents are not supposed to say there is a ‘’standard’’ real estate commission to follow Canada’s Competition Act but, there are some prices you may be likely to hear if you’re in British Columbia more times than not. The one I’ve heard often is 7% on the first $100k and 3% on everything above that, plus tax. Although what you’re paying may seem like a significant amount if that’s what the numbers are for you, it may help to add that your agent likely won’t get to keep all that. Usually, the buyer’s agent ends up splitting the commission with the agent 50-50 and immediately after the brokerage takes its cut which is often 50% of that number as well leaving a realtor with a fraction of what was paid out.
As for what you should pay your realtor depends entirely on what’s being paid out in your area and whether you believe they can get you the result you are looking for. Also, make sure to have a meeting with your realtor to get an understanding of all the services they’re providing and the value they’re bringing to the table regarding the services they offer. It usually includes some (or all) of these: MLS Listing, sign on the property, advertising, floor plans, photographs, appraisals, inspections and loads more. The number of services varies on the information available, the type of home being sold and what the owner ultimately wants.
Now, earlier I mentioned that there is no real standard commission number, however, I did mention some that I’d had heard. With that in mind, it’s good to know your agent can negotiate commissions. How much room does he (or she) have to negotiate commissions? See, this depends on a few factors like 1) the brokerage as the realtor is assigned to work for it and your ‘’real contract’’ is tied with them 2) The price of your home 3) Whether there’s a double-deal ex. your selling and then immediately buying 4) Whether it’s an exclusive deal. Usually, the amount of commission will be discussed and agreed to in writing at the time of the listing.
In my opinion, the verdict remains the same, when it comes to working with a realtor, you often end up getting what you pay for, the best you can find who are going to make buying or selling your home a breeze aren’t likely to be the cheapest. After all, very rarely is quality cheap. Just make sure you know the result you want and are working with someone who you like and understands that, for more tips on how to choose the right realtor, check out the article in the link. Or, for more info on what real estate agents can do for you, check out this page: http://www.surreyrealtor.org/fleetwood-realtor/