With the 2017/18 fiscal year, the commission rate for Realtor assistance for those selling via the Federal Government national Integrated Relocation Program (IRP) dropped to 3.7% from the previous 4.1%. (it had been 5% on the contract before that-so Realtor % comp has dropped 26% over the last decade or so)
Fortunately, this coincided with a strong year in sales in the Ottawa market, so the impact may not have been as significant as it might have been.
So what’s the issue?
The potential concern with the new rate of 3.7% is that by splitting this amount (which is the norm) with 1.85% going to the listing agent and 1.85% going to the buyer representative and broker-is that buyer agents and brokers may favour properties that pay the more usual 2.5% commission.
Put another way: would you prefer the job that pays you $7,400 or the one that pays you $10,000 for the same amount/duration of work? This is the difference on buyer agent commission on a $400,000 property their buyer purchases under the IRP at 1.85% vs our program which pays 2.5% or $10,000.
If you believe Realtors are coin operated:
If you believe that buyer representatives may favour a property which pays a higher commission to them….then we have a plan for you! Our “enhanced” IRP program follows the national agreement with a 3.7% commission but we pay out 2.5% to the buyer representative and their brokerage, so all those buyer agents are not getting “short changed” if their buyer purchases the IRP listed property that pays only 1.85%.
Great insurance, regardless!
Even if you believe that most buyer agents would not discriminate against a property with a lower payday, with our program it doesn’t matter and you don’t have to worry! Since speed of sale is critical for those posting out of Ottawa, our program helps ensure that your property is well represented and fully supported by typical buyer representative compensation.
Same great service levels:
We do not cut back on services, either-as our IRP sellers get our full service MLS® listing program and is of course consistent with and we are registered under Brookfield Relocation.
If you are planning ahead to a sale in 2018, please give us a call and we would be happy to discuss your plans and provide an up to date market evaluation and prep suggestions on your property.
Gord McCormick, Broker of Record
Senior Member, Ottawa Real Estate Board
Dawn Davey, Broker
Oasis Realty Brokerage 613-435-4692
A lower commission brokerage, 11th year in business!