What commission do Real Estate Agents charge in Ottawa?

What commission do Real Estate Agents charge in Ottawa?
Find out what you homes worth
Updated August 2022

Most full-service real estate teams charge 5% to 6% commission, occasionally with an upfront marketing fee.

However real estate commissions are not fixed and vary widely from real estate salesperson to broker and brokerage to brokerage. You can find posting services as low as $199 to put your home on the Multiple Listing Service®, there are discounted service brokers and agents that will charge you 4%, 3.5% and even 3% but understanding the how’s and why’s of commission is just as important as finding the lowest price.

Understanding Real Estate Commissions

When selling your home a percentage of the sales price goes to pay the brokers involved in the transaction. You will select the commission you are willing to pay at the same time as when you choose your listing price as part of the same contract to list your home for sale.

The salesperson or brokerage typically covers all the cost of marketing your home for sale, some even pay for the staging consultation and professional photographers. Some higher-end home marketing plans are enhanced by seller-funded marketing, but the listing agent will be clear about this before you sign the paperwork.

The Beauty of the MLS® is it was designed to create this spirit of cooperation between agents. A savvy buyer will sign a Buyer Representation Agreement with their REALTOR®, often guaranteeing them a commission of 2.5% (this does vary as well). In cases where an MLS® listing is offering less than 2.5% to the Buyer will either make up the deficiency out of their own pocket or the REALTOR® may forgive the excess with the permission of their broker.

So in the cases of 4%, 3.5% or even 3% commissions either the selling agent or the buying agent is taking a smaller cut, either from their monthly paycheck or their operating budget.

Some discount brokerages will charge a lower cut on their end while still offering a full cut to the buyer’s agent so as not to stigmatize the listing. By running a tight ship, bulk marketing or hefting a lot of staff hours themselves they can operate on smaller margins. Some believe the buyer’s agent will split the reduction and simply offer 2% or 1.5% to them.

With the recent change in MLS® rules and the new model has sprung up which will list a home for sale on the MLS® system for a flat fee and then allow the sellers to take full responsibility for the preparation, marketing, showing, negotiation and arrangement of the sale. In this model, if a buyer agent is involved it remains up to them to negotiate and contract their payment from the sellers directly.

Studies have shown that real estate agents have 167 tasks involved in selling a home, so any reduction in commission is simply a question of who is better suited to handle these tasks.

Hope this helps you understand real estate a little better.
As always if you have any real estate questions ask them below, or contact us directly at 613-788-2113.

One response to “What commission do Real Estate Agents charge in Ottawa?

  1. Pingback: Pay Your Buyer Agent Directly & Save Thousands when Buying a Home | Home Team Blog·

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