Understanding the real estate broker commission and why it can be high

Are you hesitant about engaging in business with a real estate broker due to concerns about the commission rate? As Joliette-based realtors, we aim to provide a clearer understanding of the factors influencing this commission and, more importantly, assure you of the value and security of your investment.

Remax realtor commission rates

A Remax real estate agent typically earns a commission percentage ranging from 4% to 5%. In exceptional situations, such as a low sale price, it might reach up to 10%. The commission decreases as the property price increases.

What exactly does this commission cover, and is it genuinely justified?

Why is the real estate broker commission so high?

Guillaume Tremblay of Courtier Immobilier Lanaudière tells you more about an agent’s commission. The video is in French but you can activate the english subtitles thanks to the automatic translation. 🙂

The foundation of trust

Selling a home bears a resemblance to investing in stocks. The greater the trust people place in a stock, the more they’re inclined to invest. Consider Tesla’s stock, which is currently at a high value, not necessarily reflective of its intrinsic worth. Yet, people continue to invest because of their belief and confidence in it.

Similarly, when dealing with a cooperating broker, you may initially find the broker’s commission to be on the higher side. Indeed, it does signify a cost, but it’s important to note that it’s the buyer who ultimately covers this commission. Allow us to elaborate.

Ensuring buyer’s confidence thanks to a real estate broker

The guidance provided by a listing broker instills confidence. Opting for a broker-backed sale offers a secure and quality assurance for the buyer. This assurance is substantial enough that the buyer is willing to contribute to cover the associated commission. This underscores why attempting to sell without a real estate broker might not be the most advisable course of action.

Your real estate broker’s role is to facilitate a secure and contented offer, ultimately maximizing your returns. An appeased buyer is more inclined to contribute more, emphasizing that the investment in your broker yields significant returns during the sale.

Uncertainty surrounding the broker’s commission

The broker is not remunerated like a conventional professional. A lawyer, a renovator or a medical professional will still be paid, regardless of the outcome. But the broker’s commission is paid only when the transaction takes place.

And yet, the real estate agent works hard to ensure that his client’s project is completed. A listing broker will multiply tasks to achieve this, like:

  • Produce photos and videos of the property;
  • Putting ads online and making use of their network;
  • Handle lots of documentation;
  • Realize property evaluations;
  • Make themselves available for all visits (this is the hallmark of a good real estate broker!).

With Guillaume Tremblay’s Remax team, contracts can be terminated at any time. We’re the only ones in the region to do this. This reassures the seller, because the goal is to represent him, and if the relationship of trust is broken and the seller is forced to continue, it’s counterproductive. What’s more, it provides the motivation to do quality work and keep you satisfied! But a cash inflow then becomes even more uncertain.

In need of a real estate agent in the Lanaudiere region?

We eagerly anticipate the opportunity to collaborate with you on your real estate project. Feel free to reach out if you require further information.

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