Currently, the vast majority of real estate sales are handled by full service agents who charge commissions ranging from 3-6% of the selling price. But now, Canadians can hire a realtor to simply list their property on MLS (Multiple Listing Service) for a flat fee of a few hundred dollars.
Obviously, going this route can save money. However, there are advantages and disadvantages to consider.
Flat Fee Advantages
You still get an MLS listing while saving tens of thousands of dollars!
You retain control of the entire transaction.
If you sell to a buyer who doesn’t have a Realtor, you pay no commission.
You can often cancel the listing at any time.
Well suited to experienced sellers who can invest a lot of time.
Flat Fee Disadvantages
There’s always the worry that you can be held accountable down the road for laws and regulations that were overlooked e.g., calculating the right property size, disclosure of issues with the property for sale
You have to determine a marketable selling price.
You may have to photograph and measure your property for the MLS listing and put up your own sign.
If you sell to a buyer with a Realtor, you’ll probably have to pay a commission of a few thousand dollars.
There’s the worry that you may overlook some law or regulation.
Chances are, unless you’re a good marketer, your home will take longer to sell.
Of course, you can always consider both worlds by choosing a realtor who offers flat fee MLS listings, as well as additional services. Your trusted mortgage advisor, can often recommend a local real estate professional who be right for you.