If you’re selling a house in Toronto or the Greater Toronto Area, one of the first questions you’re probably going to ask a Realtor is: “What’s your commission?”
Fair question.
But after more than 12 years selling real estate, I’ve learned that the better question is: “What am I actually getting for that commission?”
Because Toronto real estate has changed.
The days when you could put a For Sale sign on the lawn, upload 15 photos to MLS, sit back and wait for 20 offers are largely behind us. In today’s market, sellers have more competition, buyers have more choices, properties can take longer to sell, and Realtors actually have to market and sell again.
What a concept.
And that’s why I think homeowners need to understand what Toronto Realtors charge, what you’re actually paying for, and what questions you should ask before signing a listing agreement.
So, What Do Realtors Charge in Toronto?
Let’s start with the question everyone wants answered.
From what I commonly see across Toronto and the GTA, total commission structures can often fall somewhere around 3.5% to 5% plus HST, depending on the agent, brokerage, property, location and services being provided.
That is not a mandatory rate. There is no government-set “Toronto Realtor commission.” Real estate commissions are negotiable.
In a typical structure I encounter, approximately 1% to 2.5% may be allocated to the listing side, while approximately 2% to 2.5% may be offered toward the cooperating brokerage representing the buyer.
But even within the GTA, I’ve noticed considerable differences.
In Brampton, for example, I’ve seen many listing-side arrangements around 0.5% to 1.5%, with approximately 2% to 2.5% offered on the cooperating side. I’ve even seen agents and brokerages advertising flat listing fees of $500 or $999.
In Markham and other parts of York Region, I commonly see listing-side commissions around 1% to 2%, with approximately 2% to 2.5% offered on the cooperating side.
Again, none of these numbers are rules. They’re simply examples of commission structures I’ve encountered in the marketplace.
Commission is negotiable, and in my opinion it should depend heavily on what the Realtor is actually providing.
A 1% Listing Agent and a 2% Listing Agent May Be Selling Two Completely Different Services
People love comparing percentages.
“That Realtor will list my house for 1%.”
Okay. What’s included?
That’s where the conversation gets interesting.
Professional real estate photography itself can vary enormously. One agent may provide basic photos. Another may arrange high-resolution photography, twilight photography, aerial drone photography, drone video, a professional video tour, 2D floor plans, a Matterport 3D virtual tour, virtual staging and a dedicated property website.
Then comes marketing.
Some agents upload the property to MLS and call it a marketing campaign.
Others may run paid advertising across Facebook, Instagram, TikTok or YouTube, create professional social-media reels, collaborate with high-traffic real estate accounts, purchase featured exposure, pitch interesting properties to online publications, or arrange other advertising campaigns.
I’ve seen Realtors get extremely creative.
I’ve seen elaborate open houses with food and drinks. I’ve seen agents bring in food trucks and ice cream trucks. I’ve seen properties marketed through major social-media pages and local publications.
Is every house going to need an ice cream truck parked outside?
Obviously not.
But the point is that selling real estate in a difficult market requires creativity.
If your entire marketing strategy is sticking a sign on the lawn and praying to the real estate gods, we have a problem.
Sellers Are More Educated Than Ever
Another major change in Toronto real estate is the amount of information available directly to consumers.
Platforms such as HouseSigma, Listing.ca, Zolo and Property.ca give consumers access to an enormous amount of real estate information.
And that’s a good thing.
Some sellers study their neighbourhood every single day. They know what listed yesterday, what sold last week, what terminated, what reduced its price and what has been sitting for 90 days.
I’ve met consumers who know their micro-market better than some licensed agents.
That’s not an insult. That’s reality.
It also means Realtors have to provide more value than simply having access to information.
The value should come from interpretation, experience, negotiation, marketing, strategy, problem solving and knowing how to actually get a transaction completed.
Having a Real Estate Licence Doesn’t Automatically Make Someone Good at Selling Real Estate
This is probably where I get myself in trouble.
There are tens of thousands of real estate registrants operating across the Toronto market, and the level of experience varies dramatically.
A licence allows someone to practise real estate. It doesn’t automatically make them an experienced salesperson, negotiator or marketer.
During the pandemic real estate boom, the business looked incredibly easy from the outside.
List house.
Get 30 offers.
Sell $300,000 over asking.
Post “SOLD OVER ASKING” on Instagram.
Congratulations, you’re apparently a marketing genius.
Then the market changed.
When buyers suddenly had choices and properties stopped selling themselves, the difference between experienced full-time agents and inexperienced agents became much more noticeable.
This is why sellers should ask agents about actual experience, recent transactions, marketing strategies and how they intend to handle the listing if it doesn’t sell immediately.
What Happens If Your Listing Agent Also Brings the Buyer?
This is something every seller should discuss before signing.
If circumstances arise where the listing brokerage is also involved on the buyer side of the transaction, understand exactly how compensation will work and what representation arrangement is legally permitted.
Don’t wait until an offer arrives to ask.
Personally, I believe there are circumstances where a reduced overall commission can be reasonable if the listing side is also involved in bringing the buyer.
Context matters.
If an agent has spent years developing a buyer relationship and that existing client happens to purchase the agent’s listing, that’s one situation.
If somebody clicks “Contact Agent” online after seeing the listing and becomes a buyer lead because of the property itself, I think it’s perfectly reasonable for the seller and brokerage to have already discussed whether a different commission structure applies.
Not everything in this business needs to be about squeezing every possible dollar out of a transaction.
Relationships matter too.
Sometimes giving a client a break today is worth considerably more than maximizing one commission cheque.
Real Estate Is a Relationship Business
One thing I’ve always found strange is how many buyers and sellers never use their previous Realtor again.
That should concern the industry.
If someone trusted you with a million-dollar purchase and three years later they don’t even remember your name, something went wrong.
A lot of agents disappear after closing.
Commission paid. Deal closed. Next.
That’s never been how I look at the business.
A significant part of my business originally came through internet leads from real estate platforms. Over time, however, I noticed more business coming from repeat clients, friends, family members and referrals.
The reason is simple: the relationship shouldn’t end when the transaction closes.
I still answer calls from past clients about renovations, contractors, household problems and property decisions years after I’ve been paid.
Sometimes I’ll recommend a contractor. Sometimes I’ll look at renovation plans. Sometimes someone wants my opinion about whether they should spend $50,000 renovating something that I think they’ll never get $50,000 back from.
And I’ll tell them.
That’s probably one of the reasons I enjoy real estate. I genuinely like renovation, construction and design. I’ve always enjoyed seeing a property that looks terrible transformed into something great.
My REW real estate profile also discusses that interest in design and renovation and my approach to helping clients understand what can be done with a property.
There’s no commission cheque for helping somebody five years after closing.
That’s okay.
Sometimes being useful is enough.
And strangely enough, when you treat people properly without expecting immediate compensation, they tend to remember you.
Please Clean Your Own House
While we’re discussing “value-added Realtor services,” I’ve seen agents offer everything from complimentary cleaning to moving expenses, lawyer fees, painting and minor home improvements.
Some of those programs can be valuable.
But I need to say something about complimentary house cleaning.
Sellers, please clean your house.
I’m your Realtor. I will market it, negotiate it, strategize with you and help you get it sold.
But if you’re asking whether I’m personally arranging to clean six months of dishes out of your kitchen as part of my commission package, we may need to establish some boundaries.
Your home should be your sanctuary, not a crime scene.
Hire a cleaner. They’re worth every dollar.
I’ll handle the real estate.
Don’t Forget About HST
Another thing sellers sometimes overlook is HST.
Real estate commissions are generally subject to HST in Ontario.
So if you’re comparing commission structures, make sure you’re comparing the actual cost including tax.
Everyone hates paying tax.
Unfortunately, Uncle Sam wants his share.
And by Uncle Sam, I mean CRA.
Not Sam Kamra.
Please don’t send me their bill.
How Long Are You “Married” to Your Realtor?
Before signing a listing agreement, look carefully at the contract term.
Think of hiring a Realtor like dating.
You don’t need to get married on the first date.
If an agent wants a very long listing agreement, ask why.
What happens after 30 days without an offer?
What changes after 60?
What happens after 90?
Is the pricing strategy adjusted? Does the marketing change? Are new photos being considered? Is buyer feedback being analyzed?
Or does everyone just stare at the MLS listing and hope something magical happens?
I believe agents should constantly be evaluating what’s working and what isn’t.
Technology changes. Marketing changes. Consumer behaviour changes.
Experience matters, but experience without adaptation can become complacency.
I’ve met agents who have been in this business for decades and still market properties as though Facebook was just invented.
You can’t stop learning.
I Won’t Tell You What You Want to Hear
This is probably the biggest thing a potential client should know about working with me.
I’m not going to tell you your house is worth $2 million because you want to hear $2 million.
If I believe it’s worth $1.7 million, I’m going to tell you $1.7 million.
Could another agent tell you $2 million just to get the listing signed?
Of course.
Then 30 days later comes the conversation:
“Maybe we should reduce the price.”
Amazing. Who could have predicted this?
I’d rather lose the listing upfront by being honest than gain the listing by telling someone what they want to hear and disappoint them later.
You don’t hire a professional to agree with everything you say.
You hire a professional because they’re supposed to know something you don’t.
Clients don’t need babysitting. They need information, strategy and an agent willing to have uncomfortable conversations when necessary.
You don’t have to agree with every opinion I give you.
But I’m going to tell you what I believe you need to hear, not what I think will make you sign the contract.
The Cheapest Realtor Isn’t Always the Cheapest Option
There’s an old real estate line that goes something like:
“If an agent can’t negotiate their own commission, how are they going to negotiate the price of your house?”
I’ve always found that line cheesy.
Some agents can defend their commission like they’re arguing before the Supreme Court and still couldn’t sell sunscreen in July.
Being unwilling to negotiate your own fee doesn’t automatically make you a brilliant negotiator.
The real question is value.
What are you charging?
What are you providing?
What’s your experience?
What’s your strategy?
What happens when things go wrong?
How accessible are you?
How are you marketing the property?
How are you protecting my interests?
That’s what sellers should be evaluating.
My Approach to Commission Is Pretty Simple
I’m fortunate to be at a stage in my career where whether I charge a client my full commission or agree to a reasonable discount isn’t going to materially change my life.
I care much more about making the deal work, building a long-term relationship and having that client call me again years later.
My public profiles identify me as a Sales Representative with RE/MAX Millennium Real Estate, and my Listing.ca real estate profile provides more information about my work in the Greater Toronto Area.
But there’s a difference between being flexible and being taken advantage of.
If I offer you a finger, don’t try taking my arm.
Be fair with me and I’ll be fair with you.
If you’re looking exclusively for the absolute cheapest person with a real estate licence, there will always be somebody willing to charge less.
There are a lot of Realtors in Toronto.
Your Uber driver might even be one.
Just don’t be surprised if you order a ride to your next showing and your competing listing agent is driving the car.
What Sellers Should Understand Before Signing
At the end of the day, Toronto Realtor commissions are negotiable.
The percentage alone doesn’t tell you whether you’re getting a good deal.
Understand the listing-side compensation. Understand any amount being offered toward cooperating brokerage compensation. Ask what happens if the listing side becomes involved with the buyer. Ask whether staging is included. Ask exactly what photography you’re getting. Ask about video, drone, floor plans, Matterport, virtual staging and advertising.
Ask about the marketing strategy.
Ask what happens when the house doesn’t sell.
Ask how long the agreement lasts.
And most importantly, ask yourself whether the person sitting across from you is someone you trust to tell you the truth when the truth isn’t what you want to hear.
Because selling a home isn’t about finding someone who agrees with you.
It’s about finding someone capable of getting you from “For Sale” to “Sold.”
Commission is important.
But the cheapest commission means absolutely nothing if poor pricing, weak marketing, bad negotiation or inexperienced representation costs you considerably more on the transaction.
So negotiate your commission. Ask questions. Compare Realtors. Hold your agent accountable.
Just remember that good representation has value.
And if you want an agent who will tell you exactly what he thinks — occasionally more directly than you wanted to hear — you already know who to call.
Sam Kamra is a Toronto and Greater Toronto Area real estate Sales Representative with RE/MAX Millennium Real Estate. He has worked in real estate since 2014 and focuses on residential real estate throughout Toronto and surrounding GTA markets.