Why giving up our Commission to the Buyer

Thanks to the internet, flat-fee real estate commissions have now become quite popular. The reason is simple. Before sites such as Realtor.ca, Zillow, Homefinder, or Points2Homes were stablished, buyers had to rely on real estate agents alone. They would tell you what was available, the homes’ prices for sale, and even provide a comparable market analysis to help you find the right home.

Today, you can do all of that while surfing the web. You can find homes online, call the Brokerage office, have the listing agent return your call, and either visit the open house or book the appointment yourself. This means that buyer agents are doing less work because you are finding the property yourself.

However, as real estate prices in the greater Toronto area have doubled over the past decade, the same applies to the commissions that real estate agents are making. A typical Buyer agent will earn $25,000 for a home that sells for $1 million. That is why our company now uses a flat fee system instead of the traditional flexible commission rates for these savvy-buyers.

Our company offers 100% Buyer Commission Cash-back to Buyers. This means that we charge a flat fee of $5,000 while providing 100% Virtual Real Estate services. Our flat-fee offers definite advantages for buyers who want to do their own shopping for available homes.

Under the traditional real estate purchase transactions, the agent spends considerably more time compared to our flat fee structure’s. We are spending much less time on each buying transaction, and therefore, we want you to be significantly compensated for all your efforts in finding your home. This means more money for the buyer to pay for things like:

– Appraisals

– Inspections

– Lending & Broker Mortgage Fees (if applicable)

– Provincial Land Transfer Tax

– Toronto Land Transfer Tax (if applicable)

– Legal, Lawyer Disbursement Fees, Title Insurance, and more

With the 2.5% cash-back on the home selling price that we offer, buyer can use that money to pay for such expenses. After all, if you have done the work in finding the home online, you deserve to have the funds directed at paying for the necessary fees for the closing of your home. And, since the co-operating agents do not do as much as they once did, we believe it is time for a change.

At the Toronto Real Estate Centre, we provide complete virtual Real Estate Services for the small upfront fee of $5,000. This means that the 2.5% purchase price of the property stays in your wallet. Since our business model is to sell in volume, we do not need massive, lucrative commissions from each sale. Instead, we earn our money by charging less but selling more properties. That means you keep this money for you.

We do not spend our time searching for properties, booking showing appointments, or synchronizing showing times with buyers. This means we do not pick up buyers to take them to showing homes, then driving them back to their residences. With the buyer doing the work, we will not keep the commission for what we do not do, we pass it entirely to the buyers.

What Toronto Real Estate Centre does is to process the complete virtual buying services, prepare the offer, communicate to the buyer, his real estate lawyer, and listing agent promptly. We use our knowledge and services to improve the home buying experience and saving thousands of dollars for the buyer.

We are doing the right thing in service and significance.

Please refer to our “Buyer Promotion” article for more details.