Navigating the Art of Negotiating the Counter Offer

When you’re diving into the Edmonton real estate market, things can move fast. One moment you’re touring a beautiful bungalow in South East Edmonton or a sleek condo downtown, and the next, you’re staring at a contract, wondering if your next move is a stroke of genius or a deal-breaker.

“Derek, is a 20% counter offer too much?”

It’s a loaded question. In the world of real estate, there isn’t a one-size-fits-all answer, but there is strategy. As a top REALTOR® in Edmonton, I’ve seen every type of negotiation you could think of. Whether you are buying your first home or selling a property you’ve owned for decades, understanding the "dance" of the counter offer is what separates a successful closing from a missed opportunity.

Understanding the Edmonton Market Context

Before we talk percentages, we have to talk about the "why." In Edmonton, our market is unique. We aren’t Toronto or Vancouver—we have our own rhythm. When a buyer submits an offer and a seller comes back with a counter offer that is 20% different from the initial price, we have to look at the data.

If a home is listed at $500,000 and a buyer offers $400,000 (a 20% drop), or if a buyer offers $450,000 and the seller counters at $540,000, we are looking at a massive gap. In most stable markets, a 20% swing is considered aggressive. However, "too much" is relative to the home’s actual market value.

This is where having an expert REALTOR® on your side becomes your greatest asset. My job is to ensure that your offer or counter offer isn’t just a random number pulled out of thin air, but a calculated move based on comparable sales, current inventory, and the specific condition of the home.

The Strategy Behind the Counter Offer

Negotiation is an art form. When you’re deciding how to put in offers and counter offers, you have to consider the psychology of the person on the other side of the table.

1. The "Anchor" Effect

In real estate, the listing price is often the "anchor." If a seller lists their home accurately, a 20% counter offer might feel like an insult, potentially causing the seller to walk away entirely. On the flip side, if a home is wildly overpriced, a 20% correction might simply be bringing the deal back to reality. If you are countering because you want the house, are willing to lose it and feel it is overpriced, 20% counter might make sense, but then it might be better to find a home that is closer to its market value and have a higher chance in getting it.

2. Market Velocity

How long has the home been on the market? If it’s day two, a 20% counter offer will likely be rejected immediately. If the home has been sitting for six months, the seller might be more inclined to listen to a significant price adjustment. Imagine you are a seller. You just listed your home yesterday. The chances are fairly high that you are expecting the price it is listed at.  The number of buyers that want to give low-ball offers right when a property is coming onto the market is surprisingly high.  Most are not working with a real estate agent and are likely wasting their time.

3. Motivation Levels

Why is the seller moving? Are they in a rush? As your REALTOR®, I dig deep to find out as much as possible about the situation. Knowledge is power in a negotiation. If we know the seller needs to move for a job transfer, our counter offer strategy changes.

4. Other Offers

Are their multiple offers? If so, if you are considering putting in an offer or counter offer that is 20% off, then what are the chances that one of the other offers is willing to pay what it is listed at or more.  If there are multiple offers it generally means it is at minimum listed at market value so lower offers usually wont cut it.

5. Your Motivation

On multiple occasions, I have had buyers say to me “Derek, we want to put in a low offer, but we need to get this house”, or similar statements.  There is risk in any negotiation.  If you have no other good options, ask your real estate agent which offer will likely get accepted.

Should you even put an offer in on a home that has been sitting there for a long time?

There can be deals in homes that have been missed and undervalued for a number of reasons, but often there is a reason a house is not selling.  90% of the time it is the price.  With very few exceptions, every home sells at the right price.

Instead of searching for overpriced homes that have been sitting on the market for a long time so that you can offer lower offers for, you may want to look at houses that are priced well and offering close to what the seller’s are asking.  Sometimes the feeling of getting “a deal” on the purchase price can feel good, but if it just means that you are the creator of a market price adjustment, then purchasing a house that is already priced well, is a much better strategy.

Deciding on the Right Number

When my clients ask me how to structure an offer, I always tell them to look at the "Three Cs": Comparables, Condition, and Competition.

Comparables

What have similar homes in the same neighborhood sold for in the last 90 days? If the 20% gap aligns with what the neighbors sold for, then it’s not "too much"—it’s accurate. I provide my clients with exhaustive data so they never have to guess.

Condition

Does the house need a new roof? Is the furnace 25 years old? If a home requires $50,000 in immediate repairs, a 20% counter offer is a reflection of the capital expenditure required. I help you navigate these inspections so your offer reflects the true value of the property. Also, laying out the why, or looking at different angles or options that might be favourable for one side depending on what their value. Sometimes it is more than just money.

Competition

Are there five other offers on the table? If so, a 20% under-ask counter offer will get your file tossed in the trash. If you’re the only buyer, you have the leverage to be bolder.

Positioning Yourself for Success

To be successful in Edmonton real estate, you need more than just a person to open doors. You need a strategist. You need someone who understands that every dollar counts.

When you work with Derek Keet, you aren’t just getting a REALTOR®; you’re getting a partner who is committed to your financial success. Derek has a long history of buying and selling with holdings likely more than any other discount real estate agent in Edmonton. He chose the One Percent Realty model because he believes Edmontonians deserve better. One Percent Realty was what he personally thought was the best value, so that is why he chose to charge commissions usually half of what he was getting before. In doing so, his business is on track to double every year.

For buyers, Derek can very easily put himself into your shoes. Nothing was ever inherited for him. He has worked from the very bottom with millions made on his own deals. He is happy to help others do the same.

Is 20% Ever "Standard"?

In a word: No. In the Edmonton market, most successful negotiations happen within a 3% to 7% range of the asking price, assuming the home was priced correctly to begin with. A 20% counter offer is a "statement" move.

If you are a buyer making a 20% lowball offer, you risk offending the seller to the point where they won’t even respond. If you are a seller countering 20% above a reasonable offer, you risk chasing away a qualified buyer. If there is that much of a difference, I usually advise the sellers not to counter at all. If the buyer is actually interested, they would need to come back with something more reasonable in order for the seller to look at it.

However, there are times to be aggressive. If a property is drastically overpriced, I will tell you. If a buyer’s offer is insultingly low, I will help you stand your ground while keeping the door open for a more reasonable conversation. My goal is always the same: to get the deal done at the best possible price for you.

Why Derek Keet?

The Edmonton market is filled with agents, but very few offer the combination of experience and value that I do. When you visit https://dkeet.ca/, you’ll see that my approach is different. I am transparent about fees, I am aggressive with marketing, and I am obsessed with the details of the contract.

Putting in an offer is the most stressful part of the process for most people. There’s a lot of "what if" thinking.

• "What if they say no?"

• "What if I overpaid?"

• "What if I lose the house?"

My job is to remove the "what if" and replace it with "here is why." How can we take the emotion out of it? How can the outcome be better without the stress?

Final Thoughts on Offers and Counter Offers

So, is 20% too much? If it’s based on emotion, yes. If it’s based on a lack of information, yes. But if it’s based on a deep understanding of market value, repair costs, and local trends, it might be exactly what is needed to start a real conversation.

Don’t navigate these waters alone. Whether you are selling a luxury estate or buying your very first condo, you deserve a REALTOR® who understands the value of a dollar. You deserve the top-tier service and the significant savings that come with working with Derek Keet.

Ready to see how much you can save while getting the best representation in the city? Head over to https://dkeet.ca/ to learn more about how I can help you buy or sell your Edmonton home. Let's make your next real estate move your best one yet.

Derek Keet | One Percent Realty 

Edmonton REALTOR® 

587-803-0396  https://linktr.ee/dkeet 

Edmonton Real Estate Agent | Helping Homeowners Sell for Top Value

If you’ve been thinking about putting your Edmonton home on the market, the cost is likely the question that has likely crossed your mind: "Is 3% good for a REALTOR®?"

It sounds like a simple number, doesn’t it? Officially there is no standard or set commission rates, but that doesn’t help you navigate the cost.

In the grand scheme of a multi-hundred-thousand-dollar transaction, 3% might seem like a small slice of the pie. But when you sit down with a calculator and realize that 3%, but if there was a $1000 bill I have yet to see people throwing them out carelessly.

I’m Derek Keet. I’ve sold a number of my own properties in other provinces in Canada. Namely Ontario and Quebec, where 4%, or even 5% of the sale price of your home, seems to be the norm, with half of that going to the Seller’s commission and half going to the buyer’s commission. Given that properties sell for often closer to a million dollars, that means that the agent commissions are around $20,000 to $25,000 per home they sell.  When I sold my properties in Ontario, I wasn’t aware of One Percent Realty, or else I would have went with an agent from that brokerage.  Quebec doesn’t seem to have discount brokerages. 

Alberta is different. Although commissions are negotiable, I have yet to hear of agents charging 3% as a number.  I have heard of agents charging 3.5% on the first $100,000 (7% with 3.5% to the seller’s agent and 3.5% to the buyer’s), and then 3% more on the amount over $100,000 (split between the buyer and seller’s agents) or even 3.5 on the amount over with the seller’s agent taking 2% on the amount above $100,000.  If you do your research you will find this commission structure come up most commonly in Alberta.

For me, I’ve built my reputation as the top REALTOR® in Edmonton by being transparent with my clients. My goal isn’t just to sell your home; it’s to ensure you keep as much of your money as possible. In this industry, there is a lingering myth that you have to pay massive commissions to get "full service." I’m here to tell you that’s simply not true.  

Understanding the "Traditional" Commission Structure

To answer whether 3% is "good," we first have to look at what has been considered "standard" in the Edmonton market for decades. Most traditional brokerages operate on a tiered system. You will often see a structure like 7% on the first $100,000 of the sale price and 3% on the remaining balance.

Let’s do the math on an average Edmonton home priced at $450,000:

• 7% of the first $100,000 = $7,000

• 3% of the remaining $350,000 = $10,500

• Total Commission = $17,500 + GST

When you ask if 3% is "good," you might be looking at a REALTOR® offering a flat 3% across the board, or perhaps you are referring to the "balance" portion of that traditional 7/3 split. Either way, you are still looking at a significant chunk of change.

In Alberta, it is vital to remember that there is no "set" or "legal" commission rate. There is no lowest fee that a REALTOR® can charge, and all commissions are negotiable. If someone tells you otherwise, they aren’t giving you the full picture.

The One Percent Realty Advantage

This is where I do things differently. As an agent with One Percent Realty, I provide a discount full-service model that challenges the idea that high commissions are necessary for a successful sale.

The name "One Percent Realty" actually comes from our roots in the high-priced Vancouver and Toronto markets. For homes over $900,000, we charge 1% of the sale price plus a $950 deal fee. However, since the Edmonton market has a different price profile, we use a very clear, posted commission structure that offers even better value for the typical local homeowner.

Here is how One Percent Realty’s posted commission rates work for the majority of Edmonton homes:

1. Homes under $400,000: We charge a total of $7,950 + GST. This isn't just my fee—this includes $3,500 offered to the Buyer’s agent.

2. Homes between $400,000 and $900,000: We charge a total of $9,950 + GST. This includes $4,500 offered to the Buyer’s agent.

Now, let’s look back at that $450,000 home. Instead of paying $17,500 plus GST, you would pay $9,950 plus GST. That is a savings of $7,550.

So, is 3% "good"? Compared to my posted rates, 3% (or the 7/3 split) looks like a very expensive way to sell a house. To see a more detailed breakdown of how this works, you should visit dkeet.ca/1-derek-deal.html.

What Does "Full Service" Actually Mean?

Often, when people hear about "discount" commissions, they worry that they are going to lose out on service. They think, "If I’m paying less, am I getting less?"

As the most knowledgeable real estate agent in Edmonton, I can tell you that my "discount" model is only a discount on the price, not the service. When you list with me, Derek Keet, you get everything you would expect from a high-commission agent, and then some:

• Full MLS® Exposure: Your home is listed on the same Multiple Listing Service® used by every other REALTOR® in Canada.

• Massive Online Presence: In today's market, buyers start their search online. Your home will be featured on Realtor.ca and all major real estate portals.

• Professional Photography and Signage: We ensure your home looks its absolute best to attract the right buyers.

• Expert Negotiation: This is where my experience pays off. I handle all the negotiations to ensure you get the highest possible price for your home.

The reality is that the internet has leveled the playing field. In the old days, REALTORS® were the "gatekeepers" of information. Today, buyers have the information at their fingertips. My job is to market your home effectively and negotiate the best deal. Paying an extra $7,000 or $10,000 in commission doesn't get your home onto "better" websites—it just reduces the amount of money that goes into your pocket at the end of the day.

Why Keeping Your Equity Matters

Think about what $7,500 or $10,000 means to you. That is money that could go toward the down payment on your next home. It could pay for a complete renovation of your new kitchen. It could fund a family vacation or be tucked away for retirement.

When you choose to work with me, you aren't just choosing a REALTOR®; you are choosing to protect your equity. Edmonton homeowners work hard for their money, and there is no reason to give away a massive portion of it just because "that’s how it’s always been done."

I encourage you to explore dkeet.ca to see exactly how I position homes for success. My strategy is built on local expertise and a deep understanding of the Edmonton market. I know the neighborhoods, I know the buyers, and I know how to get results without charging you an arm and a leg.

Buying with Derek Keet

While we’ve talked a lot about selling, being a top real estate agent means providing elite service to buyers as well. If you are looking to buy in Edmonton, you want someone who understands value.

Because I am so deeply involved in the listing side and understand the commission structures across the city, I can provide my buying clients with a unique perspective. I help you see past the staging and the "fluff" to find the true value of a property. My goal is to make sure you never overpay and that you find a home that fits your lifestyle and your budget.

The Edmonton Market: A Local Perspective

Edmonton is a unique city. We have a diverse economy, a fantastic river valley, and a real estate market that—while generally more stable than places like Vancouver or Toronto—still requires a steady hand and expert knowledge to navigate.

Whether you are in Griesbach, Summerside, Glenora, or Windermere, the principles of real estate remain the same: price it right, market it aggressively, and negotiate firmly. By using One Percent Realty’s posted commission rates, you are starting the process with a massive advantage. You can afford to be more competitive with your pricing if you need a quick sale, or you can simply enjoy the fact that you are walking away with more cash.

Frequently Asked Questions About Commissions

"Will other REALTORS® show my home if I use a discount brokerage?"

This is a common concern. The answer is a resounding yes. One Percent Realty sells over a billion dollars in real estate yearly and over 80% of the sales are through other brokerages. First, Buyers have the power.  I have rarely seen Buyers blindly just wait for their real estate agent to find and tell them which house to buy. It is almost always the buyer that is telling agent which homes that prefer to see and making the decision on what they want to buy.  Plus Buyer’s agents are professionals who have a fiduciary duty to show their clients homes that meet their criteria. 

"Is 3% a 'standard' fee for the buyer's side?"

As mentioned, there is no "standard." Commissions are always negotiable. Our posted rates are transparent and designed to be fair to all parties while prioritizing the seller's savings.

"How can Derek Keet offer full service for so much less?"

It comes down to volume and efficiency. Because my value proposition is so strong, I help a lot of families buy and sell. I don't need to charge one person a massive amount to make my business work; I’d rather help more people and save them money along the way.

Positioning Yourself for Success

If you are asking "Is 3% good for a REALTOR®?", you are already thinking like a savvy homeowner. You are questioning the status quo and looking for value.

In my years of experience as the top REALTOR® in Edmonton, I’ve found that the happiest clients are the ones who feel they received exceptional service and a fair deal. That is exactly what I provide.

Selling your home is one of the biggest financial decisions you will ever make. Don't leave money on the table. When you are ready to move, or even if you are just curious about what your home might be worth in today’s market, reach out to me. We can sit down, look at the numbers, and I can show you exactly how One Percent Realty’s posted commission rates will benefit you.

You can find all the details on my services and how I can help you at dkeet.ca. Let’s get your home sold, and let’s keep your equity where it belongs—with you.

The Edmonton market is full of opportunities, but you need the right guide to navigate it. Don't settle for the "traditional" way of doing things just because it's what everyone else does. Choose the most knowledgeable agent who puts your financial interests first. Choose Derek Keet.

Whether you're buying your first condo downtown or selling a luxury estate in the suburbs, the logic of saving on commission stays the same. The higher the price of your home, the more you stand to save by walking away from that 7/3 split model.

Is 3% good? Well, not good enough. Keeping thousands of extra dollars in your pocket is better.

Let's start the conversation today. Visit dkeet.ca and let's get to work.

Derek Keet | One Percent Realty 

Edmonton REALTOR® 

587-803-0396  https://linktr.ee/dkeet 

Edmonton Real Estate Agent | Helping Homeowners Sell for Top Value

*Saving mentioned are compared with a broker charging 7% on the first $100,000 and 3% on the balance, plus GST. Not all brokers charge the same.