Posted by: Nick Fundytus
We recently sold our old house and bought a new one. We used an agent and during closing I noticed we were charged a $299 fee that went to her brokerage. For some reason that fee really ticked me off. Our agent made over $20K from our sales, I am unclear why this wasn’t included in her commission.
Is this a standard thing these days? We’re getting ready to list my mom’s condo and have a few agents lined up to see it this weekend. Can we negotiate the broker fee out if there is one or am I just being petty?
In short, you can likely negotiate that fee out, especially as you’re interviewing a few agents (and have a few options).
In my province (but it’s likely similar in many places), there’s no “standard” commission or broker fees that’s set by law or by the bodies governing Real Estate. In fact, our bylaws expressly forbid telling a client that a certain commission is “standard” or “required.” That said, each broker/Realtor is typically able to set the amounts and fees that they charge, and it’s up to the client to decide whether they see enough value in that Realtor to hire them at that rate.
Generally, brokerages fall under three categories:
There’s no right or wrong brokerage to hire, only the one that suits your requirements best. As a homeowner, it’s useful to know the models so that you know what options and what leverage you have when negotiating out fees from your own listing.
Source: I’m a Realtor in Ottawa, Ontario.