STEP 2 Our Fee For Service
Where the commission dollar goes. When most people buy or sell a house they know they pay a commission and it always appears to be a large amount. What most people don’t know is how that commission is distributed. Most people either don’t know or assume that it all goes to the real estate sales representative. This couldn’t be farther from the truth. The real estate sales representative gets a very small portion of the total commission. Below is a simple chart that shows how our commission is most frequently divided. First and foremost the largest chunk goes to the brokerage who represents the buyer. This is as much as 50%, which is then split between the buyer’s sales representative and his or her brokerage. Then another chunk goes to the brokerage of the listing sales representative. The remainder goes to the listing sales representative who then must pay for advertising, open houses, flyers, brochures, signs, websites, board membership, annual licensing fees, insurance and many other, often small things, but all of which add up to a lot and leave 15% or less as the actual take home “Pay” for the real estate sales representative. Option 1 : Selling but NOT Buying - 5% total with 2.5% to each Option 2 : Selling AND Buying - 4.5% total with 2% to Pinder & 2.5% to the buyer's agent Option 3 : If Pinder Singh represents the Buyer also - 4%
PINDER SINGH | ROYAL LEPAGE MEADOWTOWNE REALTY t 416.357.4999 | e pinder@pindersingh.com
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