How Traditional REALTOR® Commissions Work
Traditional REALTORS® get paid based on the selling price of the home. The commission is usually calculated as 7% on the first $100,000 and 3% on the balance. On a home of $450,000 this works out to be $17,500 (plus GST)! That total is then split between the buyer’s agent and the seller’s agent.
At SellerInvite, we think that is a lot of money to spend on a typical home sale. If that same home was listed with our Professional Plus package (and an agreed 1% to the buyers agent) the total fees payable at closing would only be $8599. That is a savings of nearly $9,000!
Are Commissions Regulated or Fixed?
No. In fact, what many home sellers don’t know is that this commission is negotiable. There’s no set standard, rate or predetermined dollar amount that must be charged by a real estate agent.
How do SellerInvite Fees Work?
Its important to note that in a real estate transaction, the home seller pays for BOTH Agents fees – your own agent who is selling your home, and the agent that represents the buyer.
When clients choose SellerInvite as their selling agent, they choose a selling package that best suits their needs. For the buyer agent, they offer a commission or negotiated fee. We have broken this down in more detail below:
Options for the Seller Agent (SellerInvite)
Our By-Owner package offers the independent seller access to the MLS System® for only $599 +GST. That’s it, no other fees are owing to us. This package offers the greatest savings for a seller (compared to 7%/3%), in exchange for the seller taking on the majority of the work during the listing.
On a home of $450,000 this works out to $599 (and an agreed 1% to the buyers agent), or $5,099.
The By-Owner Plus package is a perfect blend of full service from our office and the savings of the By-Owner package. Our listing agent will visit your home, provide you with a full market evaluation of your property, take professional pictures of your property, and our office will create your MLS® listing. From that point, you take care of the listing. It’s a great way to save as there are no further fees payable to our company at closing. Just great savings for you, the seller.
On a home of $450,000 this works out to $999 (and an agreed 1% to the buyers agent), or $5,499.
Professional Plus, $1599 (plus closing fees or a low commission option)
The Professional Plus package offers all the services that you’d expect from a traditional REALTOR® but also provides the seller with significant savings over the 7%/3% model. The $1599+GST fee is paid up front prior to listing. Unlike the other packages, our office manages the entire process through to closing. With that there is a fee payable at closing to our company. This fee is based on the sale price of your home and increases as the sale price of the property increases in $100,000 increments.
On a home of $450,000 this works out to $8599 ($1599 Package, $2500 closing fees, plus an agreed 1% ($4500) to the buyer agent). Compare this with traditional commissions where it would cost $17,500.
If you choose our low commission option, no money is paid up front. Your closing fee becomes $9599 ($1599 Package, $3500 closing fee, plus an agreed 1% ($4500) to the buyer agent).
SellerInvite’s Premium Package is for homes for sale where you the seller will expect a very high level of personal service. You will work with a team of successful professionals who know what it takes to sell your home at the highest dollar and who are dedicated to providing industry leading marketing.
Options for the Buyer Agent (The REALTOR® representing your buyer)
While our flat fee packages cover the work SellerInvite does, they don’t compensate the buyer’s agent. We strongly recommend offering an incentive to buyer’s agents, and what you offer buying agents is up to you. Compensating the buyer’s agent can take the form of a fixed dollar value, a percentage, or negotiable. Prior to going to market we recommend meeting with one of our listing agents who can make recommendations for incentives, based on what other homes are offering in your area and other factors. As a general rule of thumb, we recommend a minimum of 1% of the sale price or $3,500, whichever is greater.
GST applies to all fees.