Hey guys,

I'm moving back to Toronto so right now, I'm debating whether to go through a real estate agent or comfree.

There are pros and cons for both venues...what I'm not sure is IF I do go with a Real estate agent, what is the commision percentage they are expected to take more or less and how does it work?

For example, if a realtor sells my condo for $275,000 and there commission for eg. is 6%, do they make $16,500 in commissions, thus leaving wtih me roughly $260K?

Thanks for your help...I'm a first time seller .

 

Usually 6% on the first 100k and 1.5 to 3% on the balance.

So 275k might work out to this:

100k * 6% = $6,000
175k * 3% = $5,250

$11,250

 

And that commission is likely split between the two realtors, ie. your listing agent, and then the buyer's realtor (if they have one, and they usually do).

Comfree charges what $600 nowadays? You won't pay any commissions unless you come to an agreement with a buyer's realtor. That's the big pro. The cons are that you end up doing all the legwork of showing the place, and you would also have to write up your own purchase contract. Not a big deal, as Comfree supplies their own form, but there are certain things in contracts that sometimes don't look so tidy. Then again, I've seen plenty of contracts written up by realtors that leave much to be desired.

And don't forget you'll need a lawyer to do the transaction! Hint - give me a call!

 

Using a realtor is usually a good idea anyway... they'll make sure everything goes smoothly. If you find them a buyer privately they'll half their commissions anyway (this is what I did when I sold my house back in 05... I found the buyer and only paid 50% of the commissions).

 

Couple other pros of using a realtor. Using a realtor gets the property onto the MLS system. If things get crazy like last summer, you could sell the place in a day with multiple offers over listing price. I think the realtors helped to drive up the cost of buying because of the bidding wars, but that's business. Good for sellers though - but then you end up paying more in commissions too.

There are some places on Comfree that are obviously underpriced, but you won't find that on MLS - the realtor will help setting up a healthy listing price that's in tune with the market.

 

If you can tie your own shoes, you can sell your own house.

 

I second that! I personally would go thru the hassels of listing, showing and contract documents then paying someone 10g's to do it for me. You may not get the exposure as you would with MLS but the market is still strong.

Plus 10g's is like a supercharger and a half!

 

Thanks everyone for you responses!
Saaboteur, I'll look you up once my place is sold.

 

If you're not in a rush to sell then sure, list is privately. You can always hope for the best.

I tried mine privately back in 05 for about 3 months with no action.... decided just to get a realtor and get it done.

 

Don't forget that realtor commissions are GST applicable as well. With the cost of real estate these days, taxes add up very quickly!

Asif