Real Estate

2.5% versus 2.25% buying agent commission

  • Last Updated:
  • Apr 27th, 2017 8:57 am
[OP]
Member
Mar 29, 2006
397 posts
13 upvotes
Toronto

2.5% versus 2.25% buying agent commission

Offering 2.5% versus 2.25% buying agent commission. Just wondering as a rough esitmate, does anyone know what % of listings are offering 2.5% versus 2.25% buying agent commission? Thanks so much.
10 replies
Member
Apr 27, 2014
372 posts
128 upvotes
Mississauga, ON
Can't give you the breakdown but given hindsight in the current market I would have gone 3.0% instead of 2.25%.
[OP]
Member
Mar 29, 2006
397 posts
13 upvotes
Toronto
expatflame wrote: Can't give you the breakdown but given hindsight in the current market I would have gone 3.0% instead of 2.25%.
When you mention the "current market". How would you describe the current market? Thanks so much.
Member
Apr 27, 2014
372 posts
128 upvotes
Mississauga, ON
By current I mean what is happening in GTA over the last number of years where the going rate for total commission (assumption you are buying+selling with your agent) is around 3%. Plenty of offers to give full service listing for free if you buy with them. I chose to split commission as 0.75/2.25 but looking back I would split that 0/3.
Deal Addict
Nov 13, 2013
2897 posts
1607 upvotes
Ottawa
expatflame wrote: By current I mean what is happening in GTA over the last number of years where the going rate for total commission (assumption you are buying+selling with your agent) is around 3%. Plenty of offers to give full service listing for free if you buy with them. I chose to split commission as 0.75/2.25 but looking back I would split that 0/3.
I didn't know that was a thing. I'm intrigued. But why 0/3 why not 0/2.5?
Member
Apr 27, 2014
372 posts
128 upvotes
Mississauga, ON
fogetmylogin wrote: I didn't know that was a thing. I'm intrigued. But why 0/3 why not 0/2.5?
Having the 0/3 likely drives bids high enough to net you more than 0/2.5 and the listing agent will be more willing to go this route as the house will sell itself even easier than normal.
Newbie
Aug 17, 2015
59 posts
14 upvotes
Toronto, ON
after this foreign buyer tax that was implemented, and increase in listings I would stick with 2.5%, alot of these houses put up for sale are not having the the same amount of bids as 2 weeks back.

With these house prices and increase in listings, I think you should leave it at 2.5 in this market (as in these few weeks or month).

If property is hard to sell,agents offer 3% mostly seen with newly built houses, flips basically anything with high profit for the seller and harder to sell.
Deal Addict
Oct 29, 2010
4321 posts
670 upvotes
I actually checked that 2.25 vs 2.5 and found out it's about 10% of the listings went with 2.25 and not 2.5.
I asked my agent to give me all the listings available in my area, so he gave me a list of about 50 listings and there were maybe 5 that went with 2.25 and not 2.5. That convinced me to stick with 2.5%.
Deal Addict
Mar 12, 2008
1635 posts
189 upvotes
Toronto
I don't understand why you would be offering a HIGHER % in a hot market. realtors are already making more money as its a % based commission... not to mention the job is easier with more people bidding./ emailed listings.

The realtor only has to show up for showings and making the offer..
Deal Fanatic
Mar 27, 2004
5957 posts
3845 upvotes
Toronto
I am in Cornell in Markham, there are currently 50 listings, 12 are listed at 2.5% or more, the rest are 2.25% or less.
Full-time Realtor
Deal Addict
Oct 29, 2010
4321 posts
670 upvotes
redzone wrote: I don't understand why you would be offering a HIGHER % in a hot market. realtors are already making more money as its a % based commission... not to mention the job is easier with more people bidding./ emailed listings.

The realtor only has to show up for showings and making the offer..
Some agents will move mountains to push their clients towards a listing with higher commission.

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