QUOTE (investmart @ Dec 11 2007, 08:59 PM) Hello and thank you everyone who replied. The idea is simply coming from Don Campbell`s book who mentioned, if I recall correctly, he is gladly paying the successful real estate agent/s in his team around 3.5% commision. (meaning adding 1% to what he gets from the seller I`m assuming). So I`m a little surprised to read the responses against the idea as Don is a super genius when it comes to investing in real estate (well, that`s my conclusion after reading his amazing book real estate investing in Canada). Thanks again.
I believe that, in Ontario, the real estate commission is 5% of the purchase price, which is split 50/50 between the seller`s agent and the buyer`s agent i.e. 2.5% each.
But in other provinces such as Alberta, the real estate commission (fully negotiable) is 7% on the 1st $100,000 of the purchase price and 3% on the balance, split between seller`s agent and buyer`s agent. I think that that may be where the 3.5% figure is coming from.
Right now, with the market being a buyer`s market here in Edmonton, we`re seeing the sellers offering 4% and 5% on the 1st $100,000 of purchase price to the buyer`s agent, as an incentive for buyer`s realtors to show the properties, or a $2000 bonus to the commission if an offer removed conditions before Xmas for instance. Motivated sellers...hmm...good time to buy.