REALTOR® commission

Why Low Commissions Can Be Negative for Home Sellers in Edmonton

Selling a home is a significant financial and emotional undertaking and one of the first things you must do as a home seller is decide which Edmonton REALTOR® you want to work with. The commission rate offered to your agent becomes essential in the home-selling process. While low commissions may initially seem tempting to save money, it’s important to be aware of their potential drawbacks. Low commissions can influence the quality of service a REALTOR® provides, which we will explore in the rest of this article.

Reduced incentive for REALTORS®.

Low commissions can reduce the incentive for Edmonton REALTORS® to invest their time and effort into selling a property. Real estate professionals generally earn a percentage of the sale price as their commission. When this percentage is lower, their potential earnings decrease. As a result, a REALTOR® may prioritize listings that offer higher commissions, as these promise more significant financial compensation for their efforts. Hence, home sellers in Edmonton with low-commission agreements might find their property receives less attention and enthusiasm from their agent, potentially impacting the overall commitment to securing the best possible outcome for the seller.

Marketing resources can be limited.


When commissions are reduced, Edmonton REALTORS® may have a smaller budget, potentially resulting in less effective marketing strategies. This limitation can translate to fewer potential buyers being exposed to the property, leading to longer days on the market and possibly lower sale prices. Home sellers in Edmonton should know that a robust marketing campaign is crucial in attracting the right buyers and maximizing the property’s value. They should discuss marketing plans and strategies with their Edmonton REALTOR® to ensure their goals are met despite the lower commission rate.

REALTORS® might be less motivated to negotiate.

Negotiating offers is one of the most critical parts of a real estate deal. When an Edmonton REALTORS® potential earnings are reduced due to a low commission, they may be less inclined to invest the time and effort to be aggressive and strategic in their negotiations; in this case, you might end up with less favourable terms because the real estate professional is less motivated to push for the best possible outcome. Home sellers in Edmonton should interview many agents and carefully consider how low-commission agreements could negatively affect the sale of their home.

Quality of service.

Selling a home is a complex process that contains many moving parts. Edmonton REALTORS® earn commission as a reward for their services, including pricing strategies, marketing, coordinating showings, handling paperwork and documents, negotiating offers, etc. When an Edmonton REALTORS® commission is reduced, they may be less inclined to deliver the same level of service or give as much time and attention to the seller’s needs. Sellers might experience less effective communication, delayed responses, or a reduced commitment to guiding them throughout the intricate steps of a real estate transaction.

Realty Unleashed

Edmonton REALTOR®

All of our services are included in our brokerage fee of 7% of the first $100,000 and 3% of the remaining balance of the sale price. Half of this fee is offered to the brokerage of the licensed Edmonton REALTOR® representing the buyer. If you are looking for a real estate professional who will stage your home for free and offer you more valuable services, please fill out the form below, and someone from our team will get back to you soon.

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