What are Normal Realtor Commissions 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 $100K and 3% on the balance for a $450K home, the average sale price in Edmonton, is $17,500. $17,500 Is a lot of money! Your lawyer fees will cost another $1300 and you may need to order an RPR.
Can You Reduce Commissions without hurting your chance of selling?
There are services offered on MLS that may make it harder for you to sell your house. These Realtors or companies will not offer the buyer’s agent their 50% cut of the 7% & 3% commission. To guarantee every serious buyer sees your home you need to offer the buyers Realtor full fees! This is important for one simple reason; Buyers realtors may not show your home if they don’t think the commissions are sufficient. As I write this in early 2022 the Edmonton Real Estate market is way up; realtors have fewer options for their buyers. 2022’s unique market may be a rare moment when offering low commissions won’t effect your chance to sell! Normally though, there may be buyers out there actively looking for exactly what you have to offer, if their realtor chooses not to show your listing this will affect your ability to sell.
So How do you Save On Commissions?
You need to negotiate with your realtor on their 50% of the listing commission. Ask your realtor to tell you exactly what he or she will be doing for you if you pay them full fees. Realtors will 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 level here or you can see all my different fees on my compare the listing services page. Secondly, before negotiating with your Realtor, ask about their year of experience in the industry. Many times a veteran Realtor can justify their commission due to their years of experience and connections. That being said, it requires both a mix of experience and marketing to properly sell a home!
You now know your agents experience and marketing plan; now ask them what would change if they were to list your home at a discounted commission. Personally, I am happy to provide a lower level of service for a smaller commission. This is a discount that results in around $2000 to $3000 in savings. For most realtors this discount will mean 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 realtor effort!
If you have any questions please contact me!
