In our still depressed economy, sellers unloading real estate, whether it be central Toronto real estate or real estate here in Modesto, California, are looking to save a few bucks. The most obvious place to start is with the hefty fees charged by real estate agents for their services. However, before you definitely decide against using an agent to help sell your home, read this run down on agent fees.

As you may or may not know, the real estate agent's commission always comes out of the seller's profits. This includes not just the commission for the seller's agent but also for the buyer's agent. Therefore if you're looking at Brantford homes for sale you can get a real estate agent's assistance without worrying about paying the fees. What this also means is that even if you forgo realtor assistance as a seller, you also have to reject any buyer that makes an offer through an agent or you'll end up paying that agent's fee. This could cut you off from a lot of buyers.

Each agent decides how much their commission is going to be, so there's no set percentage laid down in stone. Typically the total commission you'll end up paying on your home sale will be around 5% (i.e. if your unit at Liberty Village Condos sells for $100,000, you'll be giving up $5,000 of it to agents). In this economy most realtors recognize they can't hope to get much more than that, but commissions in areas with thriving markets may be 6% or higher.

Since rates are so variable, you can sometimes use this to your advantage by negotiating down the commission of an agent desperate to list your Ajax house for sale. This is common practice for expensive homes where the commission would be astronomical if it had to be paid in full. Other agents, in order to remain competitive, will work for a flat fee. This is something you need to discuss with the agent when you interview him or her.

So where does that 5% go? It doesn't go right into your agent's pocket. First this 5% is split equally between the seller's agency and the buyer's agency. Then each agency must set aside a certain amount for office expenses (heat, lights, rent, paying administrative assistants, etc.), and pay their franchising fees (if the office is affiliated with a large company like ReMax or Coldwell Banker). Then the remaining amount is divvied up among everyone in the office who did work on the case (for instance, one agent may list, the other show houses, another negotiate). Agents and their families survive off of these commissions on homes for sale in Mississauga, since they generally don't get salaries.