What's standard, what's negotiable, and what you're actually paying for
Real estate commission is often the largest single cost of selling a home in Canada — and most sellers don't realize it's negotiable. Here's how to have the conversation and what to watch for.
Total commission has traditionally been 3.5%–5% of the sale price, split between the listing brokerage and the buyer's brokerage, with the seller paying both. On an $850,000 home at 4%, that's $34,000 — typically the largest line item after the mortgage payout. Following Canadian real estate industry changes in late 2024, buyer agent compensation structures are now disclosed differently in some markets — ask your listing agent to explain the current structure in your area.
A full-service listing agent provides: a comparative market analysis and pricing strategy, professional photography and virtual tour, MLS listing and digital marketing, open houses and private showings, offer review and negotiation expertise, and coordination with your lawyer through closing. In a competitive market with a motivated seller, a skilled agent can net you significantly more than their commission costs — the question is always total net proceeds, not commission percentage.
Interview three agents before signing anything. Ask each one: what is your total commission, what does it include, how much goes to the buyer's agent, and what specifically will you do differently to market my home? Some agents reduce their side for repeat clients, luxury properties (where percentage translates to large dollar amounts), or if you're also buying with them. Discount brokerages offer 1%–1.5% for listing only — appropriate for sellers who are experienced and need less support.
Don't offer a below-market buyer's agent commission — it reduces motivation for buyer agents to show your property, which reduces buyer traffic. Don't choose an agent on the lowest commission alone — a better agent who prices and markets correctly typically nets more money even at a higher commission rate. Always get the full commission structure in writing in the listing agreement before signing.
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Read All ReviewsThese guides are written for Canadian buyers, sellers, renters, and landlords and are kept current for 2026. They are for informational purposes only — not legal, tax, or financial advice. Rules vary by province; confirm details with your lawyer, accountant, or licensed real estate professional before making decisions.