What a realtor actually costs

The single most important thing to understand: real estate commission in Ontario is negotiable, and there is no standard, fixed or required rate. Anyone who tells you a particular percentage is “the standard” is telling you their rate, not a rule.

How the structure works

On a typical residential resale:

• The seller and their brokerage agree a total commission in the listing agreement. It can be a percentage, a flat fee, or a combination. It is whatever the two parties agree.
• That agreement usually specifies an amount the listing brokerage will offer to a cooperating brokerage that brings the buyer.
• Commission is paid out of the sale proceeds on closing, so a seller doesn't write a cheque up front — it comes off the top.
• HST applies to commission. Factor it in; people routinely forget.
• The agent doesn't keep it all. It goes to the brokerage first and is then split under whatever arrangement that agent has, out of which they pay their own marketing, fees and expenses.

Why I'm not printing a number

Two honest reasons. First, because publishing “the going rate” would be misleading — rates genuinely vary between agents, brokerages and properties, and presenting any figure as standard works against your ability to negotiate. Second, because what the right number is for your sale depends on the property, the price, the amount of work involved and what's included.

Ask me and I'll tell you exactly what I charge for your specific property, in writing, before you commit to anything. Ask every agent you interview to do the same.

What should be included — ask, don't assume

Two quotes at the same percentage can be very different products. Get the list in writing:

• Professional photography, and whether that includes floor plans, video or drone
• Staging — consultation only, or actual furniture, and who pays
• Print marketing, and what specifically
• Paid online advertising, and on what platforms with what budget
• Open houses, and how many
• Who actually attends your showings and negotiates — the agent you're hiring, or someone else on their team
• Pre-list cleaning or handyman work
• What happens if it doesn't sell — term length, and can you cancel

The trap worth naming

Some agents win listings by quoting the highest price rather than the most realistic one. It works, because sellers understandably like the biggest number. What follows is a listing that sits, then a price reduction, then a sale at or below what a realistic price would have achieved — only now with weeks of market time attached, which itself costs you.

In the most recent Peel Village period, three of the listings had reductions averaging around 6.5%. That is what this looks like in practice.

The cheapest agent and the one who quotes the highest price are different mistakes with the same ending. Ask for the reasoning, not the number.

On going cheaper, fairly

Discount and flat-fee services exist and they are legitimate options. For some sellers — a straightforward property, a confident owner, a strong market — they work perfectly well. Just understand precisely what you are and aren't getting, and be honest about how much of the work lands back on you. It's a real trade-off, not a trick.

General information about how commission is structured in Ontario, not advice about your transaction. Every listing agreement is a contract — read it, and take independent advice if anything is unclear.

Last checked August 2026.