What am I paying realtor fees for when buying a home? This is probably the most commonly asked question most realtors get. So let’s dissect fees a little so you understand what you are paying for once you sell your home.
When you are buying a home there are no costs. Its 100% paid by the seller. The seller has to pay the listing agent, then the listing agents’ brokerage pays half to the buyers’ agents’ brokerage. Normally, it is about a 55/45 split in favour of the listing agent, but it varies depending on the listing.
Can you go without using a realtor and save yourself the fees when buying a home? Even if you’re a savvy property investor or a contractor and you have knowledge of the home buying process, what to look for, what’s a good deal/bad deal, it is always a good idea to involve a realtor. A realtor can offer a variety of things but most importantly he/she provides peace of mind. Peace of mind in getting a second pair of eyes on all the documentation you are signing and over the whole process.
For sellers there is no industry set commission charged by a Realtor. All Realtors are able to set their own real estate fees structure and these are usually arrived at following in-depth discussions with the Seller(s). Any discussions around “set” or “agreed to” pricing structures are considered price fixing and come under the jurisdiction of the Competion Bureau and are illegal. However, the most common real estate fee structure on the Lower Mainland of British Columbia is 7% on the first $100,000 and 2.5% on the remaining balance, calculated on the final selling price (plus any applicable taxes and subject to the aforementioned discussions between the parties to the contract) . Again, keep in mind about half of that is shared with the buyers agent. Included in this price are a variety of services such as performing open houses, listing and promoting the property, reaching out to their network and a whole host of other services such as:
- Verifying measurements
- Photographing property
- Implementing my No BS Marketing program
- Negotiating for you to receive the highest sale price
- Providing a monthly showing activity report
- Alerting all local REALTORS (R)
- Arranging MLS (R) and Office Realtor (R) Tours
To learn more about the services I can offer you, get in touch and we can tailor your fees for your particular needs.