What are Common REALTOR® Fees in Edmonton?
Realtor Fees are 7% on the first $100,000 and 3% on the balance. This is split between the buyer’s realtor and the seller’s realtor but the total fee is taken out of the sales price – so the seller is technically paying the total fee.
7% on the first $100,000 and 3% on the balance for a $350,000 home, which is the average sale price in Edmonton, is $14,500. This is a massive amount of money to spend on fees. If you also add your lawyer that’s a significant cost! You may also need to order an RPR. Is there anyway to reduce this fee? If you do reduce that fee I.E with a discount brokerage or Purple Bricks style sale solution will it reduce your chance of selling? Or even worse the sale price of your home? This post will review how to lower your realtor fees without affecting the quality of the services you are provided.
Keep Buyers REALTOR® Fees at 3.5% and 1.5%
Always offer the Buyers REALTOR® full fees! This is relatively important for one simple reason. Buyers REALTORS® are not always going to show your listing if they don’t think the commissions are worth their effort. As I write this in early 2020 the Edmonton Real Estate market is way down; REALTORS® have plenty of options for their buyers which means they may be selective in finding deals that only offer full fees. There may be buyers out there actively looking for exactly what you have to offer, if their REALTOR® chooses to hide your listing from them because you’re not offering full buyers side fees this may really affect the chance you can sell your house!
Negotiate Properly with Your REALTOR®
How do you properly negotiate with your REALTOR®? Firstly, ask your REALTOR® to tell you exactly what he or she will be doing for you if you pay them full fees. REALTORS® will likely do these things at full fees: Several Open houses, Professional pictures, additional listing information material, For Sale Sign on the Property, additional online marketing and advertising on their website. Take a look at what I offer at my full fees listing service or you can see all my different fees on my listing services page.
You should also make sure they have at least a year of experience in the industry, as well as dig into their background a little bit. It’s important to know that who you’re dealing with has a track record of success as a REALTOR®, sometimes beyond the additional listing perks I mentioned above.
Based on their level of experience and the value add they’re proposing then ask them what would change if they were to list your home at a discounted commission rate. Personally, I am happy to provide similar levels of services at 3.5% and 1% on my commission. This is a discount that results in around 1000 to $2000 in savings. I suspect many REALTORS® will feel the same way! If you want to go lower than 3.5% and 1% ask them what sorts of aspects of the service, you will be missing out on. For some REALTORS® this may mean they take the picture themselves, no open houses or owner operated open houses, and no additional marketing material. Then it is up to you to decide if the reduction in commission is worth the reduction in REALTORS® effort! If you ask in this way, some REALTORS® are willing to offer Purple Bricks style commissions if all you want is a simple listing. I offer a Purple Bricks style listing service as well!
This is the fairest most honest way to negotiate REALTOR® fees with your REALTOR® in a way that will not reduce your likelihood of getting high quality service!