A secret about Real Estate commission…

want to know a real estate secret?

want to know a real estate secret?You’ve seen brokerages advertising lower commission, or offering commission rebates to buyers? Some brokerages advertise numbers that appear to be lower but are they, and if so, are they offering the same value?

Why, if some brokerages offer lower fees, doesn’t every single seller hire them? There is a secret behind real estate commission that most people don’t know. And sellers that blindly hire a random Realtor® or a company because it is “cheaper” could be making a mistake.

Commission isn’t a number set and enforced by a group of commission police like some people think. It’s a price that a Realtor® and a home seller agree on for the Realtor® to market and sell the property at it’s best price. Commission is negotiable, it always has been and always will be.

The reason you hear small brokerages advertising certain prices is because they offer a specific services for a set price, with everyone at that brokerage offering the same services. This makes you think they are offering a low price and everyone else isn’t… You’re definitely not comparing apples to apples assuming what one brokerage offers for “X” amount of dollars is the same as another Realtor®. And it’s shortsighted to imagine they are offering lower prices and the same service without comparing services directly. The reason national / international brokerages don’t advertise specific prices, discounts or fee promotions is because their Realtors® may all offer different services. If they were to advertise a specific price everyone under that brand would have to follow it and provide identical services.

There is a good chance your Realtor® offers more value than a cheaper brokerage. Be careful when you fall for ‘low price’ advertising, you might save a little money on commission but you might be leaving behind a lot of money on your sale.

Should some Realtors® be less expensive than others? Yes, some do less. And others provide creative and effective ways to make your home more desirable and place it in front of more potential buyers.

Is it possible one Realtor® might get a higher price for the sale of your home? Yes! Will that be the Realtor® or real estate company offering the lowest commission? Probably not!

What sellers must also understand is, for the same price as a discount commission company you can hire a full service agent / Realtor®. Take the price and services the discount advertiser offers and ask your Realtor® what they can do – you’ll be surprised ;-).


Blake King with Century 21 Advantage in Red Deer Alberta always has time and is happy discuss commission specifics and how they can vary. Call (403) 350-7672 or email hello@blakeking.ca anytime for more information.

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About the Author

Blake King
Having lived in Red Deer my entire life and having experience in many avenues of real estate I offer enormous value to my clients.