When selling a home with a broker, 99% of the time your sales costs will be based on the final sold price and commission which has been outline in the original contract signed between yourself and the broker. This commission can range anywhere from 3% - 7%. It's your job to work with your broker to agree on terms and get the best deal which you are both happy with.
Before you sell your home there might also be other small costs required if you need to get a Certificate of Title or complete other improvements to ensure the home is looking attractive and is market ready for potential buyers. Both of these will add to your final cost to get your home sold.
- Example 1: You are selling your condo for $300,000 and negotiate a commission of 5%. In this very basic example you will end up paying $15,000 in a final commission. Generally this will mean a portion goes to your broker with the other portion going to the collaborating broker who found the buyer.
- Example 2: You are selling your condo for $300,000 and negotiate a 5% commission or 3% commission if your broker can find a buyer within their network to purchase the property. An active broker could have many people lining up ready for your home so it sells faster and you end up only paying $9,000 in commission.
- Example 3: Same situation as in example 2, but this time your broker cuts his own commission to make the deal work. This is very common practice and happens often when there is a difference in price which the buyer and seller cannot come to an agreement on. In this case, you might only end up paying $5000 commission as your broker has sliced a few thousand off his own to make the deal go through.
If you do business with the same broker over many years, it can make it much easier to negotiate a better commission split and other terms when buying, investing, re-selling and flipping properties.
Thinking of selling and want to know how much it will cost to sell your home ? Contact us today with the details about your property. Regardless if you choose to sell with us or not, we will provide you with a free Comparative Market Analysis (CMA) to find out the true value of your home.