By: Matt Busch

The commission question

Tags: for sale, real estate, commission questions, commission, real estate commissions, negotiating real estate commissions

We Have Real Estate Goals, So do you...When we collaborate, amazing things will happen. Like ensuring you net the most amount of money, in a seamless transition! See our sellers net proceeds spreadsheet

The Commission Question 
Sometimes the commission question comes up as the very first thing people want to discuss. We know that this consumer has decided that the commission is the most important issue. It’s clear that these consumer’s assumption is that “all Realtors provide the exact service but for different fees”. That assumption is very wrong.

“The bitterness of poor quality remains long after the sweetness of low price is forgotten.” - Benjamin Franklin


“You think its expensive to hire a professional? Wait until you dont… “
"There will always be someone willing to work for you for cheaper, you deserve the best though."
- Matt Busch


Each agent develops a style with services that they include when selling property. Knowing this, the first question I am surprised that a consumer does not ask is “What services will be included in the commission that I will be paying?” Each successful Realtor I know, has developed their own technique that they use to accomplish results.


Before the discussion begins please realize that the listing agent, who collects the commission from the Seller, usually offers half of that commission to the Buyer’s agent. That agent needs to be out in the marketplace daily, viewing listings, guiding and presenting successful offers for their clients. Please note that no commission gets paid to either until the property closes. Not many business models exist where all the work has to be completed before any money changes hands.


Hopefully you can see the value added services that we provide, remember that each of us bring a different set of services to the table and those services may be offered to the consumer for different commission rates. My suggestion when shopping for a Realtor would be to ask them to list the services that they provide when listing a property.


When you know what is involved, then it is up to you to decide whether the value is there to commit to that Realtor. If not, you have over almost 50,000 other options in the GTA.


“A good Realtor is worth their weight in gold” - another happy client

Remember we get paid  $0.00  Until we get the results you expect

***We, as individual business professionals invest our own money into your listing***  It’s not funded by Royal LePage 


Real Estate is the only industry that is structured this way. We do not get paid until you get paid. 

-We NEED to ensure your success. 

-All costs are covered by us

-Who you choose matters.

It’s does cost money to hire a professional, what happens when you don't?



Where Does the Commission Go?

The commission paid on a real estate transaction is usually a percentage of the purchase price.

Traditionally, commission is paid by the Vendor to the Listing Broker. Any Cooperating agents involved in the transaction are paid through the Listing Broker. Each Broker then “splits” the commission with the agent according to their contract.


I cannot speak for what other Realtors provide, I suggest a service fee of 5-6%, where 2.5% goes to the Co-­operating Broker and the other portion to us, (2.5-3.5%) that amount does vary upon the services required/ requested. For us, these are negotiable terms. Remember all of our full-service options? Refer back to our Marketing Plan document, or our website


Remember, you are paying an agent who has NO representation with you. He is working for his buying clients best interest. Who do you want in your corner?!

It is because I know that you can see the value of the services and options provided in order to net you the most amount of money for your home, that I share this with you. We like to have our future clients think critically about one of life’s biggest decisions. 

The other agent who is willing to reduce their commissions: 

  1. If they are willing to discount themselves, and their families livelihoods, do you think they will discount your home to “just get it sold”?
  2. Is this a team or individual. Will you get to speak to that person when they are needed most?
  3. Is that person/ team just looking for more inventory? Are they buying market share with a discounted commission just to have a sign on your lawn?
  4. If you lost $35,000-50,000 in negotiations, but you saved $15,000-20,000 would you be disappointed?
  5. Will the reduced rate cause cut corners on service and care?
  6. Think of the discount agent like a used car dealer. He’s got lot’s of inventory and lot’s to choose from, they really don’t care which one you pick, just as long as they get a few deals a month. 
  7. Are your best interests really at heart? Remember the CBC investigative report into Realtor’s conduct? View Here
  8. Are they a friend? Have you ever had to fire a friend for underperforming? Trust us it's very uncomfortable

If you truly believe that any agent can do the same job, and your home will sell for the same price regardless of whom you choose to represent one of life’s biggest investments, I would be glad to recommend a number of discount brokers whom would represent your interests/ property.

Also see our detailed marketing plan for what’s included in our Marketing plan, which as agreed I would do for you at 5% and if I were to double end (find the buyer) 4%. These amounts are subject to HST

Work through the net proceeds sheet as provided here:

Still need more convincing? Use our tool to help guide your decision

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