How much does a Realtor cost you in Toronto? It depends on whether you are buying or selling.
If you’re buying, a Realtor’s services don’t cost you a dime. Yay!
If you’re selling, the commission paid to Realtors in Toronto is typically 5% of the purchase price.
So say I sell your $500,000 house. That must mean I earn $25,000 and drive off in my Mercedes to my giant mansion where my monkey butler feeds me grapes after a long day, right? I wish.
For starters, I only take home $12,500. That’s because that 5% is shared between the listing agent (me, in this case) and the buyer’s agent. (Someone has to pay them for their hard work bringing you a buyer!)
Also out of my half:
- Brokerage splits and fees: $3,750
- Advertising/marketing costs (lifestyle movie, professional photography, staging consult, feature sheets, mailings, online advertising, champagne and treats for open houses): $3,000 – $3,500
- Operating expenses (Realtor licenses/fees, car/gas/parking): $1,000
- Taxes: $3,250
Which leaves a net income of about $6,000.
Let me guess. Right now you’re thinking, “Um, Karyn, that’s still a heck of a lot of money. Maybe I’ll call one of those low-commission Realtors like I saw on the back of the bus…”
You’ve heard the saying, “You get what you pay for,” right? If you’re a seller my 2.5% gets you almost round-the-clock access to my knowledge and understanding of the market. It gets you my list of referrals, hours upon hours on your behalf spent managing vendors and getting your house ready for sale, comfort and support to you through an often stressful time, legal and strategic support from my brokerage, expensive marketing of your property (well above what the average Realtor spends), ‘sweet-but-hard-ass’ negotiation during offer time and the guarantee that your property will sell for top dollar**. (I’ve also been known to ‘throw in’ Saturday afternoon cleaning of your cupboards, babysitting, moving and alcohol purchase for client sanity as part of it all too!) Furthermore that 2.5% assures ethical and legal accountability to you and the assurance that I will be providing you with the highest standards of representation through every step of the buying and selling process.
I understand that when you sell your home, your goal is to bring in the most cash possible. Having to fork over thousands of dollars to a Realtor can be annoying. I get it. Selling on your own is always an option, but just like any DIY project, you might find that it ends up costing you more money and time than you otherwise would have gotten with a professional in the first place.
More questions for the Realtor you’re thinking about to sell your home? Contact me any time: firstname.lastname@example.org
**comparing it to comparable solds