What is a Fair Commission for a Real Estate Agent?

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Agent Interview Scorecard

A Fair Hiring Process Guide
The Three Interview Rule

Why this matters: Sellers don't lose money because they chose the wrong percentage; they lose because they chose via a low-information process (a single pitch or friend's referral).

Interview at least three agents to spot: inflated language, missing deliverables, and vague strategies. Use this sheet to score each candidate.

1) Pricing Strategy
2) Marketing & Prep (Translation Layer)
3) Negotiation & Communication
4) Validation (The Safety Step)
DISCLAIMER: This document is a hiring guide and negotiation tool only. It is NOT a binding Listing Agreement. All fees, services, and duties are subject to a signed Listing Agreement compliant with applicable provincial real estate regulations. Information provided here is for discussion purposes and does not constitute legal or financial advice.

Seller Scope Sheet

Comprehensive Service & Fee Transparency
Property & Constraints
1) Fee Structure
2) Scope Clarity (Included vs Coordinated vs Reimbursed)
Item
Included
Coordinated
Reimbursed
Notes / Budget
Photography + Editing
Floor Plan
Video / Reels
3D Tour (Matterport)
Staging Consult
Staging Furniture
Cleaning
Declutter / Junk Removal
Minor Repairs
Paid Ads Budget
Signage / Print
to
3) Listing Plan & Pricing
4) Marketing Plan
5) Showings Management
6) Offers & Negotiation
7-9) Transaction, Accountability & Duties
10) Summary & Rubric
TOTAL SCORE:   / 45
DISCLAIMER: This document is a scope of work estimate and negotiation tool only. It is NOT a binding Listing Agreement or Agreement of Purchase and Sale. All fees, services, and duties are subject to a signed Listing Agreement compliant with applicable provincial real estate regulations. Information provided here is for discussion purposes and does not constitute legal or financial advice.

“Fair” is a feeling… until you put a definition on it

Most sellers use “fair” to mean some mix of:

  • Reasonable (not inflated)
  • Proportionate (the fee makes sense for the work and risk)
  • Even-handed (you’re not being taken advantage of)
  • Comparable (it lines up with what similar sellers pay)

The catch is that commission isn’t like a posted price tag. It’s a negotiated term inside a contract. RECO’s (provincial regulator for real estate agents and brokerages in Ontario) wording is blunt: you and the brokerage decide the amount, and it can be a percentage, a flat amount, or a combination. Furthermore, the rule that commissions are negotiable and not fixed by law is consistent across all of Canada’s provinces and territories, as mandated by the federal Competition Act

So “fair” in Canadian real estate isn’t one number. It’s a framework for deciding whether the fee matches the value, the plan, and the accountability you’re getting.

Why "Fair Commission" Gets Confusing

Real estate pricing is rarely apples-to-apples. Here is why the math is harder than it looks.

🏷️ 1) Service Labels Aren't Regulated

Full Service Discount Low Commission Luxury Premier Concierge

These are marketing categories, not legal ones.

Two agents can use the same label and deliver very different work.

📊 2) Your Fee Pays for a Chain

Many sellers picture commission as "payment to the agent." In reality, the gross commission funds a whole chain:

  • The Brokerage Split: e.g., desk fees, supervision, insurance.
  • Operating Costs: e.g., photos, staging consults, admin.
  • Marketing Spend: Which varies wildly.
  • Risk & Time: Carried before a sale closes.

The "Luxury Trick" Sellers Should Understand

Value-based selling through language. Many experienced listing agents are trained to sell outcomes, not tasks.

Task Language (The Checklist)

“We’ll clean and stage the home.”

Outcome Language (The Strategy)

“We’ll prepare the home for photos and showings so it presents consistently online and in-person.”

Why You Should Care (As a Seller)

Language is often used to justify a massive premium over discount realtor fees—even when the underlying compliance and MLS exposure are identical. When a seller hears: “We’ll dress up the home for client visitations...” they need to read between the lines:

  • Is there an actual scope upgrade? (e.g., More rooms staged, movers, paid media?)
  • Or is it the same staging consult... described like a movie trailer?

The "Translation" Questions

Use these questions to expose real value without being confrontational.

“What does that include, exactly?”

Ask for a list of deliverables (photos, video, floor plans, staging, signage, paid ads, open houses).

“Who pays for it—and what’s the budget?”

“Included” can mean “coordinated,” not “paid for.”

“What changes if it doesn't sell in X days?”

This is where you learn whether the plan has depth or just a launch moment.

“What do you do personally vs. outsourced?”

Outsourcing isn’t bad; vague outsourcing is.

“Can you show me a recent listing example?”

You’re not judging taste. You’re verifying process (before/afters and marketing schedules).

🚩 A Quick Red-Flag Filter

Be cautious when you hear certainty language like:

  • “This will get you top dollar”
  • “We’ll definitely create a bidding war”
  • “This always works”
Note: In Canada, commission is negotiable and outcomes aren’t guaranteed. Even regulators emphasize the fee is a contract term—not a promised result.

A practical definition of “fair commission” for Canadian sellers

A commission is “fair” when all four of these are true:

1) The number is within a normal realtor commission range for your province/market and property type.

Not because “normal” is morally right—because it’s a useful starting reference.

2) The scope is clear enough that you can compare agents apples-to-apples

“Full service” is meaningless unless you know what’s included.

3) The plan matches your listing’s complexity

A downtown condo and a rural acreage don’t require the same approach.

4) The accountability is real

Who is responsible for what, by when, and what happens if you’re unhappy?

Commonly cited “typical” commissions across Canada

There is no single standard (and price-fixing is not allowed). What you’ll see below are commonly cited norms in major consumer guides and calculators—useful as reference points, not rules.

Typical Commission Patterns

Residential Resale by Province

Province Typical Structure Notes
Ontario Often cited 3.5%–5% total, with 5% commonly referenced; buyer side is often described as ~2.5% in many examples. RECO emphasizes the amount is negotiated and set out in the agreement.
British Columbia Often cited tiered schedules by region/city (e.g., Greater Vancouver, Fraser Valley, Victoria, Kelowna). BCFSA examples show traditional structures like 7% on first $100k + 2.5% on the remainder.
Alberta Commonly cited 7% on the first $100k + 3% on the balance (combined). Often described as split between listing/buyer sides, but splits are negotiated.
Saskatchewan Commonly cited 6% on first $100k + 4% on next $100k + 2% on balance (and sometimes alternate tier formats are referenced). Treat as a commonly quoted structure, not universal.
Manitoba Commonly cited Winnipeg range ~4%–5% total (with higher occasionally referenced). Market and price point can influence what gets negotiated.
Québec Commonly cited ~5% typical, often described as 3%–6% range, with many accepting ~4%–5% in practice. OACIQ is clear remuneration is not regulated by law and is negotiated.
New Brunswick Often cited ~5%–6% typical in consumer guidance. FCNB states buyers/sellers’ agents often split a typical 5–6% paid by seller.
Nova Scotia Often cited ~5% typical, with other percentage/tier examples used in regulator education. NSREC provides examples of how remuneration can be calculated (including 5% and tiered examples).
Prince Edward Island Often cited ~5% typical, range 5%–6%. PEI guidance examples often mention buyer-side offer being shown in the MLS listing (varies by listing).
Newfoundland & Labrador Often cited ~5% typical, range 3%–5%. Again: negotiable; deal structure matters.
No provinces found matching your search.

One more “fairness” detail many sellers miss: tax

Commission is typically subject to GST/HST (and it varies by province), so when you’re estimating your true selling costs, it’s also worth factoring in the tax on real estate commission.

“Fair” Doesn’t Always Mean “Traditional”

This is where the conversation gets real, because the market now has more choice than “pay the classic rate or go FSBO.”

1

Low-commission and discount models

These can be fair when the scope is still adequate and clearly stated. Typical formats you’ll see:

Full-Service Percentage
The agent provides the complete traditional service package (e.g., may include staging) but charges a discounted total percentage rate (e.g., 3.5% where listing agent is 1% and buyer agent is 2.5%) compared to the standard market rate of 5%.
Full-Service Flat Fee
The agent provides the complete service package but charges a single, fixed dollar amount (e.g., $5,000 or $9,000) instead of a percentage, regardless of the home’s final sale price.
Custom / Agent-Specific Models
These are highly flexible structures determined by an individual agent’s specific business model or comfort level. Common examples include:
Tiered by Price: The agent agrees to lower their percentage for higher-priced homes (e.g., 2.5% for homes under $500k vs. 1% for homes over $1M).
Reduced Listing-Side (Limited Service): The agent charges a lower percentage (e.g., 1% or less) specifically for a "lite" package that covers essentials like MLS access but excludes labor-intensive tasks like staging or open houses but still handles all the paperwork.
What to verify:
  • What’s included (e.g., staging, open houses, negotiation support, offer strategy)
  • Whether marketing costs are included or billed separately.
  • Whether the model has strong backend support (compliance, paperwork, negotiation availability).
2

Limited service / “mere posting” / flat-fee MLS entry

This can be fair for experienced sellers who are comfortable taking on:

  • negotiation
  • buyer screening and showing logistics
  • disclosure management
  • offer/counteroffer handling (often with legal counsel)
Fairness test: if you’re paying less, are you truly willing and able to do more (or pay other professionals to do it)?
3

FSBO

Can be fair if you’re realistic about:

  • time and availability
  • pricing and buyer psychology
  • paperwork, disclosures, and risk management
Also: many FSBO sellers still pay a buyer-side commission to attract represented buyers—so the cost doesn’t always drop to zero.

The part sellers rarely talk about: buyer-side commission and “steering” risk

Sellers sometimes lower the buyer-side offer to save money and assume it has no impact. Sometimes it doesn’t. Sometimes it does.

Ontario’s regulator has specifically discussed concerns about steering based on commission, and encourages clarity in agreements around remuneration and how obligations change if a seller offers less than what a buyer has agreed to pay their brokerage.

You don’t need to treat this as fear-based. Just treat it as a practical market factor:

  • In many markets, represented buyers are the majority.
  • The buyer-side offer is one of several incentives influencing how quickly your listing gets attention (alongside price, condition, showing availability, and marketing).

A “fair” strategy is usually:

  • keep the buyer-side offer competitive for your local market, and
  • focus your negotiation on the listing side scope and accountability.

How to compare commissions fairly: the “apples-to-apples grid”

When you interview agents, don’t ask only “What’s your rate?” Ask for a one-page scope sheet that includes:

📦 Deliverables (what you get)
  • Photography (how many photos? pro editing?)
  • Video / reels (included or optional?)
  • Floor plans (included or extra?)
  • Pre-list prep plan (written timeline?)
  • Staging (consult vs full staging; who pays?)
  • Open house plan (how many? who hosts?)
  • Paid ads budget (how much? who pays?)
  • Showing management (availability, feedback loop)
  • Offer strategy (offer night vs anytime; pre-emptive handling)
  • Negotiation support (who negotiates, and how responsive?)
🛡️ Controls (how you’ll be protected)
  • How pricing will be decided (comps + strategy, not vibes)
  • Documentation and disclosure approach
  • Who handles condition issues and buyer requests
  • What happens if you want to adjust strategy
  • Termination clauses and listing holdover clauses (read carefully)
This is also where you’ll spot value-based language that’s “real” versus decorative:
Real

“We provide a written prep timeline + vendor coordination + photo production schedule.”

Decorative

“We elevate your home’s story to buyers” (without any concrete plan).

What “fair commission” may look like in real life

Well, bottom line in my opinion is that a fair commission in Canada is rarely about chasing the lowest number or automatically paying the highest “premium” pitch.

It’s about matching:

  • the fee
  • the scope
  • the market realities
  • the accountability

And if you want one sentence to keep you grounded during interviews, make it this:

“I’m happy to pay a fair fee — once I understand exactly what I’m getting, what you’re paying for, and what you’ll do if the plan needs to change.”

Editorial Disclaimer & Legal Notice
Editorial Note: This content is an educational overview of the Canadian real estate market and does not reflect the specific service models, packages, or fee structures offered by PropertyMesh. Disclaimer: This article is for general education only. Commission structures vary by province, city, property type, brokerage, and service level. Real estate commissions are negotiated and must be set out in a written agreement; nothing here is legal, tax, or financial advice. When determining real estate commission in Ontario, RECO is explicit that the fee is decided by you and the brokerage and is not fixed or approved by RECO, government, boards, or associations. In Québec, OACIQ similarly notes remuneration is not regulated by law and is negotiated.