Commission Rates Explained

What are commission rates and how are they paid out?

Commission rates usually vary between 5% and 10% and depend on many factors such as whether the property is a home or land listing, location, etc. HST is added to the commission because you are purchasing a service from the realtor and the government needs to collect their share. Here is an example of how the 6% is dispersed.

On a $100,000 selling price the commission is 6% of $100,000 or $6000 (+ HST).

In this example: Bob Jones is working for Remax and listed a $100,000 home. Michele Smith is working for Exit Realty and her client bought the home.

$6000:

25% to the selling company (Exit Realty)	$1500
25% to the selling realtor (Michele Smith)	$1500
25% to the listing company (Remax)	$1500
25% to the listing realtor (Bob Jones)	$1500

This is an example of how some commissions may be dispersed. Other realtors may work on a higher percentage and receive more than 25% of the total commission (depends on what company they are working for and their volume of sales).