Are Real Estate Agents Commission Negotiable?
Tags: real estate agent, commission costs, real estate market, newmarket real estate, toronto real estate, newmarket real estate agent, newmarket homes for sale, gta homes for sale
The answer is yes, but. You can always ask for a lower commission fee but there is no guarantee that the agent will be willing. This is especially true depending on when you decide to ask. Do not ask to re-negotiate commission after signing a contract because you are more likely to receive a hard “no.”
If you are thinking of working with a real estate agent to buy or sell a home, there’s a good chance you’ve heard about the commission. The standard real estate commission is usually somewhere between 5-6% of the home’s selling price, but this can be negotiated prior to signing your contract.
When you sign the contract, you are agreeing to the agent representing you for a certain fee in return. It is unfair to the realtor to then turn around and ask to renegotiate when you are halfway through the process.
Before you ask you should know exactly where a real estate agent commission goes. It’s a common misconception that your real estate agent will walk away with their full commission. The video below breaks down the details of the commission. We encourage you to watch before you ask.
Before signing the contract sit down with those helping you make the decision and create a list of questions to ask upfront. Ask about negotiating the commission fee if you feel it is too high. But remember that they might say “no”. You will then need to decide if you would rather look for a new agent or just pay the full commission. At the end of the day, your real estate agent is here to help you and make sure you walk away with the best deal possible.
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Coldwell Banker The Real Estate Centre, Brokerage
249 Avenue Road • Newmarket, ON L3Y 1N8