What Can I Expect when Selling My Home?
Understanding Real Estate Agent Commissions and Fees
Selling a home can be a complex process, and one of the biggest concerns for home sellers is the commission charged by a realtor.
While it may seem like a significant expense, it’s important to understand the value and benefits that come with hiring a good real estate agent.
Real Estate Agent Commission Overview
The commission is the most standard fee that you will likely have to pay when selling your property. In Canada, real estate commissions may vary by province, with the standard rate in Ontario ranging from 4-6% of the sale price. It’s worth noting that although the commission may be split between the seller’s agent and the buyer’s agent, the full amount is typically paid by the seller.
While it’s natural to focus on the price of the commission, it’s crucial to consider the value and benefits that come with hiring a real estate agent. Here are the services that a real estate agent should provides:
- Top priority and attention to your property: A real estate agent should be dedicated to marketing and selling your property, giving it the attention it deserves.
- Negotiating the highest selling price: A skilled agent will work on your behalf to obtain the highest possible price for your property during negotiations.
- Regular communication and follow-up: A good agent will keep you updated throughout the selling process, ensuring you’re aware of all leads and any important developments.
- Recommendations for increasing property value: Real estate agents can offer valuable advice on how to enhance the appeal and marketability of your property, potentially leading to a higher sale price.
Well-established agents have a thorough knowledge of the industry and extensive connections, giving them an advantage in securing the right price for your home.
Other Real Estate Agent Fees
In addition to the commission, there may be other fees associated with selling your home. One common fee is advertising and marketing. This typically ranges from 0.5-1% of your property’s value. While this may seem like a significant expense, it can often yield substantial returns.
Marketing fees may include:
- Signage
- Brochures or flyers
- Internet advertising
- Newspaper advertising
- Real estate magazine ads
It’s advisable to choose a real estate agent who understands how to market online listings. Realtor.ca sees millions of people browse real estate listings, increasing the chances of finding potential buyers.
Ultimately, the decision to invest in advertising and marketing is up to you as the seller. Speak to your agent and discuss the best options to help you make an informed decision.
Negotiating Real Estate Agent Commissions
While choosing the lowest commission and fees may save you a few thousand dollars, it’s important to consider the potential consequences.
To ensure the best outcome, we recommend gathering input from at least three real estate agents in your local area. By comparing their commission rates and discussing their advertising strategies, you can determine which agent is the most skilled and suitable for your needs.
Consider how the agent makes you feel. Are they confident, and business oriented, pleasant, down to earth and caring? or do they make you feel uncomfortable with hard sell tactics and pressured conversation?
At the end of the day the choice is yours, but you should feel comfortable and confident with whomever you decide on. You will be working with them closely for a period of time.
If you have any additional questions or need further assistance, please feel free to speak with us.
Factors Involved in Your Home’s Value
| Location | Location, location, location! This is one of the most important determinants of a home’s value. You can get an idea of what your home value may be by looking at comparable/similar houses in your area. |
|---|---|
| Property Type | In North America, detached, semi-detached, link and townhouses are popular. Condominiums are attractive, also, based on size, and amenities available with the building or complex. |
| Size | The size of your home plays a big role in your home’s value. Be sure to differentiate between livable space and other structures like garages, unfinished basements, or balconies. |
| Age and Condition | Older homes can sometimes have lower valuations based on needed repair and maintenance costs. |
| Upgrades and Renovations | Remodelling, and new appliances can significantly increase the value of your home. You can check the estimated payback and appeal of a project using the NAR 2019 report on remodelling. |
| Interest Rates | Lower interest rates can help buyers afford more for their money depending on the market. You can find the best mortgage rates in Canada on WOWA.ca. |
| Local Market Activity | Your neighbourhood prices will follow trends in your regional housing market. Let us sit down with you and discuss the best course of action! |
Free Home Evaluation
Get a free instant home value estimate with the WOWA Home Value Estimator! Backed by a state-of-the-art algorithm and hundreds of thousands of data points, they provide a market price estimate for more than 90% of residential properties in Canada.
Buyer Quick Tips
- Be sure to confirm the registration of your real estate professional by using the real estate professional search feature on RECO’s website. In Ontario, in order to trade in real estate, brokers and salespersons must be registered under REBBA 2002.
- Remember to read everything before you sign and ask questions if the information is not clear. Agreements are legally binding contracts, so it’s important you understand the terms and conditions. It may be helpful to include someone you trust during the negotiation process to translate unfamiliar documents for you.
- Ask your family or friends about their real estate experiences and if they would recommend a particular real estate professional to you.
What Obligations Are Owed To Clients By A Salesperson Or A Brokerage?
GENERAL OBLIGATIONS OWED TO CLIENTS
- Exercise care and skill: have the requisite knowledge and skills; provide complete and accurate information; recommend relevant experts, where applicable.
- Negotiate favourable terms: advance the client’s interests by assisting in negotiations; draft favourable terms and conditions for agreements arising from the negotiations.
- Maintain confidentiality: maintain confidentiality regarding all matters (e.g., client’s personal information, client’s motivation for buying/selling, the amount to be paid or accepted during negotiations).
- Disclose information: disclose information pertinent to the client (e.g., actual or potential conflicts of interest); disclose matters relating to the transaction.
- Ensure honesty: demonstrate honesty of intent in all dealings.
- Act in person: perform duties personally, unless otherwise instructed.
- Obey instructions: obey the client’s instruction, unless it’s not lawful (e.g., the client asks you to create a misleading advertisement regarding the property).
- Perform mandate: perform the mandate as set out in the representation agreement; act only within specified authorities; seek clarification if you are uncertain about said authorities.
FIDUCIARY OBLIGATIONS OWED TO CLIENTS
- Maintain utmost loyalty: the client’s interests come first, best achieved in single representation (i.e., you represent the interest of only one party to a transaction).
- Avoid conflicts of interest: be aware of situations that may lead to conflicts of interest, such as:
- Representing two or more clients at the same time (multiple representation)
- Acquiring the client’s property
- Selling your own property to the client
- Disclose conflicts: disclose any personal or third-party interests that do or might conflict with the client’s interests; disclose the exact nature and extent of the conflict(s), in writing and signed by the client.
- Not make secret profit: do not make a profit at the client’s expense (e.g., providing improper advice, accepting payment from another party without the client’s knowledge and written consent).
- Not misuse confidential information: do not use confidential information (e.g., confidential details about the client, the property, and/or the transaction) for your own interests, to harm the client, or to interfere with the client’s endeavours.
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