Why should someone selling a Condo for 250K pay the same as someone selling a property costing 500K?

Does selling a property that is 500k vs 250k justify a big commission increase? Is there an additional set amount of workload required due to the difference in price?

^ very legit question.

Does a lamborghini mechanic versus a honda mechanic justify different salary based on the brand of car they service? I say yes, and easily people can say "cause they have to invest more to get the certifications and training" I respect that.

Is there an additional set amount of workload required due to the difference in price? Technically, not really. A car is just a car.

Look at car washes, why should I pay more for a car wash from Honda versus a Lambo. a car is just a car. Why should i pay for to wash super cars.

I've sold $50 Nokia 3390 phone at kiosks, I've sold high end million dollar software, I've sold servers which was 600k list price, I've seen realtors who is trying to sell me 70 million dollars worth of land right now. Commission is always based on % of business I bring in, never a flat rate.

So yeah, "it's just a stupid norm". My question is then, what WOULD justify YOU to pay for value (= bigger commission).

Washing supercars vs washing a honda has a different set of workload. Supercars need to be taken care of more delicate and carefully. Selling a property 250k vs 500k has abt the same workload as selling a 250k home on street A vs. Selling another 250k home on street B. Youre just describing a different properties with different attributes. Doesnt take significantly different work.

^ Agree, I think the argument would make more sense if you were comparing Chip Wilson's 50 million dollar mansion to a 250K apartment, obviously a lot more work as the market for a home like that is tiny and global as opposed to regional. I can't see much difference work wise for the Realtor selling a 250K home or a 500K home.

It's not about the commission amount, rather the motivation. If you are a seller of course you would want your agent working for you to get the highest value for your property.

If it's a flat fee, what's to prevent an agent from just giving into the first offer and not working to get you a better offer? With commission there's an incentive for them to negotiate back instead of making the easy sale.

I love how this turned in to a debate regarding commission. Lmao. Poor OP.. You guys are a bit mis-informed. Everything looks easy when you brush the surface, but when you actually go and do something it becomes much more difficult. Market your property as you wish, pay whatever you think is fair, just don't complain when things don't turn out the way you thought they would. It is honestly completely your choice.

That's the beauty of a free market. In this case, just find a very competent Realtor who is willing to sacrifice their commission.

Just like any profession, people will criticize other professions as being overpaid <insert any profession here>. At the end of the end of the day, if someone is paying for such service/solution, someone out there is willing to consciously pay big money because they think it's worth it.

Yay. Someone who gets it.

Been in the business since 2006 and I get major hate because of what I do. But to each their own opinion (and I take no offense if there are members here who don't believe in the use of an agent) and I'll just touchbase on the original OP's question. What's it like to be an agent. Here's my experience so far:

Life sucked for the first 3-4 years or so. I despised what I did and I think at the time I only did it because my dad was one of the first Asian agents in the business (and well respected) working with some of the biggest developers in the city and from what it looked like, it looked like fast/easy money. Wrong. (His experience is really another story in itself, but to make a long story short..I barely saw my dad as a child/teen because he hustled so hard. I respect and love my dad so much and I am so thankful to have him as my mentor)


For the first 2 years I luckily had a salary from a developer that I was working for. However, I really wasted my time not paying attention on sales techniques, and building a network for myself because I ended up being let go when the market crashed in 08. So then I had to figure out what to do and I decide to get my license and work as my dad's assistant.

I spent thousands on my license, desk fees, classes etc but I rarely got a listing on my own because I was lazy and told myself that clients would come to me. I sucked, and it didn't help with my confidence. Plus, I was going up against agents who had years of experience and a huge network behind them. Money became tight as I had to pay a desk fee every month ($200+) and other real estate board fees. And with no real money coming in, I felt like a complete loser that I had to constantly depend on my dad and his business partner with their success. They say the turn over of an agent is on average 2 years because a lot realize they can't keep up with the demands of fees/bills when no income is coming in. Realistically, a new agent that could sell 5-6 homes within a year is actually not bad if they have little to no experience. I know so many that had to take up a second job to stay afloat. If you don't hustle, it ain't going to work.

In 09/10 that's when I really turned my life around and took more initiative with actually learning about the appreciation of this business (what makes real estate work, what's the market like, what makes buying/selling a home rewarding?), doing showings, open houses, and just networking with the people around me as well the pros in the business. This business is TOUGH and with the competition some agents can be real nasty because they don't want you to beat them out (with a client etc), but there are some that are really eager and supportive to you growing as an agent. There are a lot of assholes out there but there are also a lot of genuine people who want to have a relationship with you because one day you guys might have to work on a deal together and etc.

I really took that time to learn from my dad and his business partner because I realized if I didn't spend this time wisely, I wasn't going to make it even if I did have a loved one showing me the ropes. I spent 4 years working with my dad and learning the ins and outs of being an agent and what real estate entails. It wasn't easy and by far probably the hardest years of my professional life trying to make a name for myself and not just "my dad's" daughter. But it paid off because last April I started working for a great developer and I've been selling one of Vancouver's largest presale communities ever since. I no longer work with my dad and to finally be able to get noticed as a professional in the industry and actually being able to fulfill someone's goal to own a home (whether it is a first time home buyer, downsizer, a parent who wants to provide a space for their kids etc) is like no other feeling. I know this sounds soooo cheesey and all that, but many who started out as clients now see me as a friend and someone who they can trust. I get calls from little grandma's/moms/dads/ sometimes just to chat about the market or to even just to see how I'm doing.

I think to become an agent, you really need to ask yourself are you able to not get paid for months at a time but still work like a dog? Will you have obligations that require steady income? Is this an impulse idea? Will you actually like to stay in the business for the long haul? Do you just want to be an agent because you think it'll be easy money? Are you a people person? Do you enjoy helping people buy/sell their first home/childhood home? Can you handle the pressure of asshole clients? Do you even LOVE real estate as a whole?

I often get customers walking through my site and asking me how I like my job and if I think they should change their careers cause they have manager-type experience in retail or something sales-y. I ask them what is it that they like about real estate that makes them want to change careers? And 99% of them say money. Obviously, money is an integral part of this business but you actually have to love it too.

Sorry for the long post. I love what I do, and I could go on about how much I love it. But again, I completely understand why there are people who dislike what we do but just know, there are those who do have your best interest at heart. Not all of us is out to only get your money.

So OP (and any others thinking about joining the business), if this is really what interests you..then go for it. I wish you all the best of luck and who knows..maybe we'll work on a deal together one of these days ;)


PS. Forgot to mention, language is an asset. I speak fluent Cantonese and I'm finally brushing up on my Mandarin after years of avoiding it as a child. I should have listened to my mom. Like really. You just gotta do what you gotta do to make yourself stand out from the rest.

^ i almost had a tear in my eye. ahhahah. bravo for stepping up and sharing.

Probably worthy of another thread and being all serious, has it been tough being a superwoman. I'm asking this because my gf also works in a developer. With all the networking, realtor dinners and working 12 hr days for 10 days during launch is great for her career, her work life balance is taking a huge hit.

I do not know how others are able to maintain a family let alone make that transition
to have a family. It's not uncommon to see a lot of failed marriages ...

Nice summary Crayon, pretty much hit the nail on the head. Great contribution.

Thanks everyone for the support!

To answer your question, YES. My work life+personal life clashes in more ways than ever but luckily I have a partner who understands my job can be demanding and that I often work long hours (and sometimes out of the blue). I'm also very fortunate that he understands my want to make an even larger presence of myself in this business. People actually joke all the time that being an agent is perfect for women because it gives their men much needed "man-space," and if you're a woman dating/marrying a male agent....good luck. LOL.

Right now I'm in launch mode and I pretty much will be working 7 days a week starting September 15th until....the unforeseeable future. It's just the nature of the business with realtor events, meetings with our developers/sales team/marketing etc, sales training for the upcoming launch, public events, city events etc etc. With my site, we open everyday (including Fridays) and we are one of the only developments that do.

I often go into work even on my days off, and even if I do get a "day-off" it's usually spent chatting on the phone with buyers/agents or taking private lessons with my Chinese tutor. On top of that, I do follow ups with emails every night before I go to bed. The past 1.5 years I've barely did any resale because I've been so busy with my project alone.

Another thing that can be a downfall is travelling. I've been trying to get away on a real holiday with my guy for the past year or so and trying to find the right time is really hard. The best times really should be around this time to November or around February to May, but these are probably the WORST months for me to leave because the market is usually the most busy. And when I can leave, it can get quite busy for my guy because he's in construction project management and the warmer months is when his industry goes at it the hardest. So trying to find a balance on certain things can be quite difficult.

My days can get really long and sometimes it just really sucks to not be able to see my guy, especially if I'm having a sucky day or just missing him in general. But like I mentioned in the previous post, I love what I do. With any other career, it takes a lot of hard work to really be successful in both their work life and personal life. It's just trying to find that balance between the two of you. Keep a discussion going, go on dates, cherish the moments you do have together, and most importantly, remind them of the good job they're doing (even if you have no clue what their day is like etc). Sometimes this job (or any job) can burn us out REAL quick, and a simple "I'm proud of you," or "you're doing such a good job," is the best thing we can hear all day. Especially if we're dealing with soul suckers. LOL.

very VERY true. it's easy to let yourself be blinded by negativity and forget that a shit day is only "shit" for as long as you hold onto said "shit". take some time to pat yourselves on the back once in a while people! :victory:

(not an agent myself, just a fellow rat racer)

Well, I am Tom and recently moved in Toronto from NYC due to my job transfer presently looking for an affordable apartment in Toronto. If someone can suggest me some trust-able agents who can provide an apartment rapidly as well as in negotiate value then please leave your massage.

Hello Tom I have suggestion for you i am Latin American but last 3 years i am living in Toronto I bought an apartment in m city last year and i must say in this case i estimate myself so fortunate when i met them I bought a condo in m city this condos situated in Mississauga with beautiful luxurious interior as well as near of market and prices of this condos are so affordable as a foreigner I can understand your trust issue but I have a good experiences with m city condo agent you can check out here. M City Condos By Ted Rogers Communications Company

Friend is a real estate agent and the part where you don't have a steady income is true. She works full time but sometimes she wouldn't have any sales for months. But I think she is doing decent so far. Decent not great. It can be tough seeing no money coming in but you have to pay bills every month. Is not something I would like. I like a steady income every month.

Is not for everyone you have to be very out going, smart, able to pick up small details, great at connections.