Realtor Commission Rates

There was a time long ago when REALTOR commission rates were determined by the local real estate board or association.
However, that changed a few years back. Independent real estate brokerages now set their own REALTOR commission which they charge their clients. Having said this, many brokerages permit their sales people to choose their own real estate agent fees. They often insist, however, that their agents offer the cooperating brokerages, who represent buyers, a competitive real estate commission. In Ontario, a popular rate for the buyer brokerage is 2.5% plus applicable HST. This is determined by the seller and their REALTOR®, in compliance with the sales rep's brokerage policy, on an individual basis during client consultation.
Currently, in Ontario at least, with the change in market conditions from a strong seller's market to a more balanced market, we're beginning to see higher REALTOR commission being offered occasionally to buyer agents in order to attract attention.
Different brokerages may have different real estate commission policies, so a home owner certainly has various options from which to choose.

A Word to the Wise

The old adage, 'you get what you pay for', often holds true in this situation. A full service REALTOR® will usually provide full service in return. And a discount or flat fee brokerage usually provides a discounted minimal service. When deciding about realtor fees, think about ...

Incentive

The greater incentive you offer your REALTOR®, the greater chance your property will sell, not only because of the potential higher financial reward, but because they'll likely invest more of their own resources into the marketing of your property.

Bottom line?

Realtor commission is negotiable. But remember that your REALTOR® may decline to accept the listing of your property if they feel the compensation is insufficient relative to the risk involved. REALTORS® work on spec, that is if (and it's often a big if) the property sells, they'll be rewarded for their efforts and risk, and compensated for their out of pocket expenses.
I also ask you to consider that in many areas, the vast majority of REALTORS® sell fewer than five or six properties annually. Fewer and fewer agents are generating an increasing number of the real estate sales. So, unless your REALTOR® is a top producer, they may not be able to afford to discount their fee.