Charter Articles

Understanding Real Estate Commissions in Toronto: A Cost-Saving Alternative
 

A typical real estate commission in Toronto is usually 5% of the final sale price, divided equally between the seller's and buyer's agents at 2.5% each. Nevertheless, these commissions can be bargained. For example, a higher commission may be paid to the buyer’s agent, such as 3%, by the seller to attract more buyers while their own agent’s commission remains at 2%.

Real estate commissions are not directly paid by buyers, but they are included in the purchase price, meaning buyers indirectly contribute toward their cost. Additionally, HST must be paid on top of the commission.

In 2021, the average commission rates in the Greater Toronto Area ranged from 1% to 2.5% for sellers' agents and from 2% to 3% for buyers’ agents. In a competitive market, where greater commission means better listing visibility, higher commissions are often offered to buyers' agents.

                                           Charter Residential: A Cost-Efficient Alternative
 

Charter Residential is revolutionizing the real estate experience with a significantly reduced commission structure. Unlike the traditional 5% commission model, we now charge only 2% of the final sale price, and we offer a unique benefit to buyers by providing a 1% discount on the purchase price. This innovative approach delivers substantial savings for both sellers and buyers.

How It Works

For Sellers:

Reduced Commission: Sellers only pay a 2% commission, significantly lower than the traditional 5%. This translates to substantial savings, allowing sellers to keep more of their sale proceeds.
Attractive Listings: By offering a 1% discount to buyers, your property becomes more attractive in the market, potentially leading to quicker sales and higher offers.

For Buyers:

Direct Discount: Buyers receive a 1% discount on the purchase price of their home. This direct saving can make a significant difference, potentially lowering the mortgage burden and making homeownership more attainable.
Increased Purchasing Power: The savings from the 1% discount can increase buyers' purchasing power, allowing them to afford homes that were previously out of reach.
Benefits for Sellers
Lower Costs

By reducing the commission to 2%, sellers can save thousands of dollars on the sale of their property. For example, on a $1,000,000 home, the commission under the traditional model would be $50,000, while with Charter Residential, it would be only $20,000. This $30,000 saving is a significant benefit to sellers.

Enhanced Marketability

Offering a 1% discount to buyers makes your listing stand out in the market. This can attract more potential buyers, increasing the chances of a quick sale and possibly receiving higher offers, as buyers perceive greater value.

                                                                  Benefits for Buyers
 

Immediate Savings

The 1% discount directly reduces the purchase price of the home. For a $1,000,000 property, this translates to a $10,000 saving. This immediate discount can help buyers with their down payment, closing costs, or other expenses related to purchasing a home.

Affordable Home Ownership

The savings from the 1% discount can make home ownership more accessible, especially in a high-demand market like Toronto. Buyers can leverage this discount to stretch their budget further, making it easier to find a home that meets their needs.

Why Choose Charter Residential?
 

Competitive Edge

Our innovative commission structure sets us apart in the real estate market. By offering substantial savings to both sellers and buyers, we attract a broader range of clients and stimulate market activity. This competitive edge ensures that your property gets the attention it deserves.

High-Quality Service

Despite the reduced commission, Charter Residential is committed to providing exceptional service. Our experienced agents are dedicated to helping you find buyers for your houses.