Dear David,
We have our eye on an out-of-town property that we think would suit us well. We are close to putting our house on the market and have spoken to a few agents, each of whom charge different fees. Is this normal, and if home values are driven by market demand, will we get the same results no matter who sells our home? – UNSURE
DEAR UNSURE: Great question, and yes, it’s totally normal to see different fee structures between real estate agents. Commission rates in Ontario are not fixed or regulated, they’re negotiable. Because agents offer vastly different service packages, marketing strategies, and support levels, there are different fees to match.
Will you get the same results no matter who sells your home? Not necessarily. While any licensed agent can list your home on the MLS (Multiple Listing Service), their overall industry experience, reputation, negotiation skills, marketing approach, network, local knowledge and level of service can make a significant difference. Keep these things in mind when you compare fees, as a slightly higher commission could pay off with a much stronger sale price. Like most things in life, we get what we pay for. A study by the National Association of Realtors (NAR) found that in 2023, the average home sold by an agent demanded a 14.5 percent higher price than homes that were “for sale by owner”. When it comes to service, this statistic represents both ends of the spectrum: it’s like comparing tent camping to staying at the Fairmont.
A skillful agent will be able to share exactly why they do what they do. Don’t be afraid to ask questions about their track record in our area. Also consider what they bring to the table when preparing your home for market. Will they bring in a professional stager and photographer? Will these services be at their expense, or yours? How and where will your home be marketed, and will reach out-of-town buyers effectively? Also ask the agent about their network. A strong circle of inspectors, stagers, mortgage brokers and service providers can speed up the sales process and help your agent troubleshoot any issues that may arise.
Lastly, establish expectations for your working relationship. Ask the agent about their communication style and how quickly they respond to calls, texts or emails. Do they work in real estate on a full time basis? Will they be your main contact, or will they be passing you off to someone else? Every seller or buyer should check their agent’s resume, and their LinkedIn profile is the first place to start.
PRO TIP: When it comes to the sale of your home, there are no second chances. Professional fees should be dictated by service and performance, and just like parachuting, you’ll never regret hiring the most qualified person to pack your chute. #Advice #AskDavid #TheNegotiator
David is a top-selling Broker in Kitchener-Waterloo Region. He works personally with you when selling or buying your home. Moving? Get it right. Ask David today! Call or text 519-577-1212.