How much commission are Realtors paid?
The commissions are paid by the vendor directly but of course the money comes from the selling price. There is no set amount but at this time in the Toronto area a common commission split is a total of 5% of the selling price, 2.5% for the listing agent and 2.5% for the buying agent. To ensure more advertising or better service, an owner sometimes chooses to offer more, which acts as an added incentive for agents to show your property, and provides a larger amount for the seller agent to advertise with. An agent will sometimes discount the commission if expenses are reduced. If for example an agent sells a home and buys a new home for a client then expenses are reduced. Agents who significantly discount commissions run the risk of not having enough resources to pay for marketing and advertising expenses.
