How much commission should I offer?

Answer:

There are no 'set' industry commission rates - commission rates are negotiable.

Having said that, common commission rates for home re-sales in Ontario are 5%, in Alberta 6% for the first $100,000 and 3% on the balance, and in BC 7% for the first $100,000 and 2.5% on the balance of the selling price.

In order to help sell a home, agents typically offer half of the common commission described above to other agents to find a buyer for a home. This offer of commission is made through your local board's MLS® system and is referred to as either the "selling commssion" or "co-op commission".

myrealty.ca allows you to specify the amount of commission myrealty.ca offers to other agents. This amount is in addition to our 0.5% commission.

myrealty.ca clients typically follow one of four strategies:
1. Offer $1 and rely on your asking price and REALTOR.ca exposure to sell your home.
2. Offer less than the common amount of selling commission and negotiate if an agent wants more money to sell your home.
3. Offer the common amount of selling commission.
4. Offer a "bonus" amount of commission so that agents have more motivation to sell your home.

When deciding on the amount of selling commission you are going to offer formally through your local board's MLS® system, please bear in mind that myrealty.ca has a policy of not allowing the amount of selling commission offered to be reduced unless an agent brings you an offer for less than your full asking price and agrees to a commission reduction in writing to make the sale. Please see Can I change my selling commission?.

The amount of selling commission you offer will affect the time it takes to sell and the amount of money you receive.

If the amount of selling commission you offer is not competitive with other homes for sale in your area, agents will have less incentive to sell your home. This can result in a longer selling time.

To see the selling commission offered and paid by other myrealty.ca clients, please see Selling or Co-operating Broker Commissions - Paid and Offered.