Cosmo Kramer

Commission based work, regardless of industry cannot be compared to people that get salaries or an hourly wage. People that earn commission work countless hours without compensation. They don't get a paycheck every Friday, have retirement pension, benefits etc. Average yearly income for a Realtor in Canada is $50k. The industry is very top heavy in regulation, with RECO, OREA, local real estate boards and brokerage owners all getting a piece of the pie.

However, a good agent will pay for his or her commission and more for a buyer or seller. Some home owners just look for the absolute cheapest agent they can find, but an agent that is willing to cut their own paycheck just to get your business probably won't be the best choice to fight for you in your deal.

Turbodan

"The industry is very top heavy in regulation, with RECO, OREA, local real estate boards and brokerage owners all getting a piece of the pie. "
This is not true, they take less than 5%. And the real estate regulators are the biggest joke of any industry. Almost never do realtors get in trouble even when they have acted very badly.

Cosmo Kramer

Where are you getting 5% from? Brokerages alone get way more then that, usually around 25%. 5% for regulators I can see, and I agree their enforcement sucks. Many broker of records let their agents do what they want with no training or guidance. I'm all for hefty penalties for agents AND brokerages that violate. It would be a non issue where I work.

user 723923490

The flat commission on a real estate deal is generally 5%. From that, Buying agent, selling agent and brokers get their cut. Others on this forum with more knowledge can elaborate.

Bleifuss

Any real estate agent working at a brokerage (Remax, Royal LePage, etc) has a commission split agreement with said brokerage. This split varies based on whether the agent pays desk fees or what volume of sales they expect to do. Generally the split ends up being something like 85-15 or 90-10.

I think agents do make far too much for what they do. While I can agree that some go far and beyond, the majority are overpaid chaperones and paper pushers.

myw

that can be said re employees in almost any industry. there are always good and bad apples.

Bleifuss

Yes, but in other industries the bad ones don't make 6-figure salaries and eventually get fired.

Turbodan

why the hate?

I know of a couple real estate brokers and last I checked they bring home 95% of their commissions.

myw

i could argue that with what i have seen in both the public+private sector, but that a debate for another time

personally i have no issue re how much a successful realtor earns, i figure good for them!

JimV8

I became a licensed RE agent in Ontario in 1977 and worked my butt off in the first few years to carve out a living. Along the way somebody offered me a steady job and that was the end of my career in RE. Luck plays a big role in the success of a RE agent but along with that goes a 24/7 call out. As far as price goes it really is a simple proposition, willing buyer/willing seller without duress. It is the ultimate in free market enterprise. As far as commissions, those are negotiable and recently when our house was sold the split between selling and listing agent commission was purposely calculated to entice salespeople to promote and show our property. As noted earlier I had experience in the business and understand the role of greed in that marketplace.

Muskoka

I really struggle to see the value a real-estate agent provides, if data was public. If we had a better idea of what other houses sold for, houses could be bought and sold via websites (like cars) in an efficient manner. People could hire lawyers for the paperwork (if needed), or could consult with experts if they wanted.

In that hypothetical world, I can't imagine anyone volunteering to spend 5% to have someone help sell their house. For that reason, I think it's a dying industry, which is why Zoocasa and the like will be so important in the future.

creaturecat

the CBC marketplace "sting operation" indicated that 60% of the realtors were crooked as a snake's back.
more like 80% in BC, i would suggest.

Scotty2H

The industry is ripe for disruption.

ronnie993tt

Excellent point and that is the main problem. TREB has been doing battle - not sure if it has been resolved? - with the Competition Bureau for years accused of monopoly practices.

ggrace

You do know that Zoocasa failed and was purchased by a traditional real estate broker, right?