Discount brokerages in the GTA account for 5% of the GTA real estate market share. Many companies each year enter as discount brokerages but fail within the first 3 years. Why do they fail? Generally discount brokerages, can’t survive because of financial and revenue limitations. As well, when the market loses heat they can not compete with a full brokerage. Yes commission is lowering, it is a trend. In the early 1900’s real estate commission used to be 10%, last decade it was 6% and now it is 5% on average. But remember when an agent is offering to list your home for less there must be something he/she is cutting in order to offer such a service. Most discount brokerages I believe can not survive in the long run there are some that are thriving but generally the real estate business is already really competitive.
Joey Khan, GREATER TORONTO AREA (GTA) REALTOR®
Specializing in Residential and Investment Real Estate
Re/Max Realty Specialists Inc., Brokerage
Office: (905)-858-3434 ext. 1186
Direct: (416) 918-2912
or visit: http://www.toronto-homes-guide.com/
Or Toll Free 1-800-263-3434