How much should you pay in commission fees when selling a home?
A breakdown of costs when selling a home or condo in the GTA
Photography and virtual tours
Unpaid property taxes
Above list should pretty much cover all your cost for selling a home. These are typical fees and charges a home owner incurs when selling a property in Ontario.
The biggest expense obviously is the Realtor fees or commission charges. Commission fees are usually calculated as a percentage of the final sale price. Commission rates average about 5% in Toronto.
When you sign a listing contract with your agent you promise to pay a 5% fee from the proceeds of the sale. Your lawyer will calculate the final amount payble to the real estate company and will cut a cheque upon successful completion of the sale transaction.
After paying any due property tax, mortgage balance to lender and deducting lawyer fees your lawyer will write you a cheque for the remainder of the funds.
The 5% commission or whatever that number might be is then split between your real estate agent and the agent who brought the buyer. Typically buyer agent gets 2.5% in Toronto market. If your agent charged you a total of 4%, for example, he/she gets to keep 1.5% and buyer agent gets the remaining 2.5% fee.
Will post a new blog explaining the other costs including staging costs in detail.