Wade Kovacic • Local Sales Representative

Low 1% Listing Commissions Explained

Let me show you what a 1% listing commission really means.
Wade Temp

The Traditional REALTOR Costs When Selling Your Home

When you sell your home, there are typically two agents involved:

01. The "Listing Agent", who sells the home.

02. The "Buying Agent", who represents whoever actually buys the home.

Each agent usually receives 2.5% of the final selling price, so the total you will pay in agent commissions is 5% (2 X 2.5%).

If your Toronto home sells for $900,00.00, for example, you would pay $45,000.00 in total commissions.

The two agents involved would then split that total commission and receive $22,500.00 each.

Here is how it normally works:

Toronto Home Being Sold

Home For Sale

The "Listing Agent" appraises the home, assesses it against similar neighbourhood sales and sets a market price.

The selling price is adjustable and can be raised or lowered.

5% of the final sale price will be divided by the "Listing" & "Buying" agents.

Toronto Home Sellers

Home Sellers

This couple is selling their Toronto home and have hired a "Listing Agent" to help them with everything involved.

Traditional Listing Agent In Toronto

Listing Agent

"Listing Agents" represent the home sellers and take care of legal things, listings, home showings and negotiate to sell the home for the highest possible price.

"Listing Agents" traditionally receive 2.5% of a home's final sale price.

Traditional Buying Agent In Toronto

Buying Agent

"Buying Agents" represent the home buyers and take care of legal things, finding homes to view and negotiate to buy the home for the lowest possible price.

"Buying Agents" traditionally receive 2.5% of a home's final sale price.

Toronto Home Sellers

Home Buyers

This couple wants to buy a house in Toronto and have hired a "Buying Agent" to help them with everything.

One Per Cent Low Listing Commission Definition

But, If You Were To Sell Your Home With A Low Commission Listing Agent Instead...

Both agents - the "Listing" and "Buying" agents - work independently of one another and the "Buying Agent" still receives 2.5% of the final selling price.

If you hire Wade as your "Listing Agent", his listing fee will be reduced to just 1% (instead of 2.5%).

And this is where you save 1.5%.

In the above example (using the $900,000 Toronto home), this would save the home sellers $13,500.00 in listing fees.

This is how it will work with Wade involved:

Toronto Home Being Sold

Home For Sale

The "Listing Agent" appraises the home,  assesses it against similar neighbourhood sales and sets a market price.

The selling price is adjustable and can be raised or lowered.

3.5% of the final sale price - instead of 5% - will now be divided by the "Listing" & "Buying" agents.

Toronto Home Sellers

Home Sellers

This couple is selling their Toronto home and have hired a "Listing Agent" to help them with everything involved.

1 Per Cent Real Estate Listing Agent In Toronto

Wade Kovacic

As the "Listing Agent", Wade will provide the  sellers with all (or more) of the same services and negotiate the highest selling price for the home (often over asking).

Wade receives 1% of the final sale price and saves the sellers thousands.

Traditional Buying Agent In Toronto

Buying Agent

"Buying Agents" represent the home buyers and take care of legal things, finding homes to view and negotiate to buy the home for the lowest possible price.

"Buying Agents" traditionally receive 2.5% of a home's final sale price.

Toronto Home Sellers

Home Buyers

This couple wants to buy a house in Toronto and have hired a "Buying Agent" to help them with everything.

“Low 1% Commission” refers to what you will be paying to the “Listing Agent” and  saves you 1.5% of the home’s final selling price.

And You’ll Still Get All Of My Brand-Name Services!
Just because you pay less in commission fees doesn’t mean you’ll receive inferior services:
Why Pay More In Agent Fees If You Don’t Have To?