Breaking down how conventional real estate commissions work
In Canada, competition law states that there can be no set commission rates, however there are typical commission structures in place and these vary by province.
Below are the typical commission rates in the markets that Bōde operates:
Taking Alberta as one example, the typical commission charged by a listing real estate agent is 7% on the first $100K and 3% on the remainder.
The fee is usually split 50/50 between the listing agent and the buying agent – meaning 3.5% on this first $100K and 1.5% on the remainder for each agent.
On a $650,000 home, that would work out to $23,500 in commissions.
How does the commission structure work with Bōde?
Bōde’s listing fee is always just 1% of the sale price up to a ceiling of $10K and is only paid upon sale of your home. This fee is completely inclusive, with no hidden extra costs. It includes getting on realtor.ca, the Bōde home site, Zillow and 1000+ other listing pages, paid digital advertising of the listing, professional photos and measurements, and use of the Bōde platform that provides access to transparent data, selling tools, updated insights on your listing, industry standard contracts, and an expert team to help you achieve your goals.
The buy side fee is determined by the seller. This is discussed in further detail in the next question answered below. This amount can range from a typical commission amount to no commission at all when selling to a buyer without agent representation.
Homeowners save significantly in commissions when they choose to sell their home using Bōde:
- When selling to a buyer with representation, Bōde sellers save an average of $8,000
- When selling to a self-represented buyer, a seller may stand to save considerably more. If you list with Bōde, you are 13X times more likely to sell to a self-represented buyer
Check out our commission savings calculator here
Selecting the buy side commission to offer when listing with Bōde
During the create your listing flow with Bōde, sellers will be asked to select how much commission to offer to those agents representing buyers. While there is no requirement to offer a commission, most sellers understand that offering a commission will help attract the largest market of buyers – including those buyers working with an agent and those working without.
When selecting a commission to offer, our sellers are in full control and may choose from one of the following three options:
- The provincial typical commission
- A Flat Rate – the seller is asked to fill in how much to offer the buyer’s agent as a flat rate amount (ex. $2000)
- Custom Rate – the seller will be asked to select a custom percentage offering on the first $100K and another percentage on the balance of the final sale price
Listing with Bōde gives you the unique access to the best of both worlds. If you offer a commission to buyers agents, you’d only pay it if they bring the successful buyer. We are also advertising your home to bring self represented buyers where you pay zero commission. This way you get access to the biggest possible pool of buyers and get as many offers as possible.
Should I be worried about buyers' agents not showing my home?
Bōde listings have had almost 3000 showing requests from agents in the past year.
If sellers are offering a reasonable commission, there is no reason why agents would avoid showing their property to potential buyers. When sellers offer no commission, there is a chance that agents will be less incentivized to show their home. Unfortunately, this practice of steering is not ethical but does occur.
If you elect to offer zero commission, please keep in mind that a buyer’s agent may reach out to negotiate a cooperating commission.
Please don’t hesitate to reach out to our team at email@example.com for any questions about how commissions work. We are happy to help!
Want to Buy or Sell Your Home Without an Agent?
Welcome to Bōde
Bōde has created a marketplace to allow you to get transparent home data, set your price, and list your home on MLS (and 30+ more sites). We will advertise your home and walk you through the whole sale process for 1% up to a max of $10K, only when the home sells.
Looking to buy? Bōde allows users to purchase any home listed on MLS in Alberta – at completely no charge.
With your free Bōde account, you don’t need an agent – you are completely in charge of your home sale or purchase and get to keep more of the money you invested in your home!
Get started at bode.ca