Before comparing brokerage proposals, compare services and total costs. Ask for a written explanation of what is included and what could be extra.
Key takeaways
- Remuneration is negotiated and recorded in the contract.
- The purchase brokerage contract sets out your commitment.
Clarify the agreement
Remuneration is negotiated and recorded in the contract. It can be a percentage, a flat fee or another arrangement. It is taxable. No single percentage applies to all brokers.
Buying: who pays what?
The purchase brokerage contract sets out your commitment. Before making an offer, ask what remuneration your broker expects and how sharing with the seller’s broker affects your own payment.
Questions to ask before signing
| Topic | Question to ask |
|---|---|
| Services | Which deliverables, follow-ups and marketing channels are included? |
| Calculation | What calculation basis, taxes and expenses apply? |
| Sharing | What amount is offered to the collaborating broker? |
| Commitment | When is remuneration earned and payable under the contract? |
| Contract ending | Which clauses apply to termination or a later sale? |
Selling: compare net proceeds
To plan your budget, subtract mortgage debt, brokerage charges including taxes and other selling expenses from the expected price. Ask your lender for an estimate of any penalty.
Is a lower fee enough to decide?
Also compare file preparation, presentation quality, buyer follow-up and access to your broker. Ask for concrete commitments rather than a promised sale price.