How to Negotiate a Real Estate Agent Commission in Canada

Can you negotiate a realtor commission?

In short, absolutely.

While commissions are often seen as fixed, they are negotiable in many cases. Understanding how to approach commission negotiations can help you save money while ensuring you receive quality service from your real estate agent.

In Canada, there is no government-mandated or standard rate for real estate commissions; setting a fixed rate is a violation of the federal Competition Act. This means the rate is always a matter of negotiation between you and your agent.

In this guide, we will help you understand the different commission structures, regional variations in Canada, and strategies for negotiating a fair deal.

So let’s dive-in:

Real Estate Commission Differences by Province

Real estate commission rates vary by province and territory in Canada. As there is no government-mandated, market norms typically influence what agents charge.

Here’s an overview of average commission structures in different regions:

  • Ontario: Commissions typically range from 4% to 5% of the total sale price, most commonly split 50/50 between the listing and buyer’s agent (e.g., 2.5% each). Flat-fee models are also common in competitive urban markets.
  • British Columbia: The most common structure is a tiered commission (e.g., 7% on the first $100,000 of the sale price, and 2.5% on the remainder). This total fee is then split between the agents.
  • Alberta: Often uses a tiered structure (e.g., 7% on the first $100,000 and 3% on the remainder).
  • Manitoba: More commonly uses a flat rate, typically around 5% of the total price, often split evenly.
  • Quebec: The total rate often ranges from 4% to 5%, frequently split evenly between the listing and buyer's agents.
  • Atlantic Canada: The average commission is often 5% to 6%.
  • Saskatchewan: Frequently uses a declining scale (e.g., 6% on the first $100,000, 4% on the next, and 2% thereafter), though a flat rate is also used.

Although these are common commission structures, and you as a (seller) can always discuss and negotiate terms with your agent.

Different Types of Real Estate Commissions

Now, there are some pre-existing different types of real estate commission structures that exist and knowing them is key to negotiation:

Traditional Percentage-Based Commission

  • This is the most common model, where agents charge a percentage of the home’s selling price.
  • Typical commission rates range from 4% to 6% (Depending on Province and Cities), split between the listing and buyer’s agent.
  • Sellers can always negotiate this rate, and it is not dependent on any conditions.

1% Commission Model

  • Some brokerages specialize in a 1% commission structure for listing services.
  • This model usually covers listing and marketing services, but sellers may still need to offer 2% to 2.5% to the buyer’s agent to attract offers.
  • Since the rate is already reduced, there may be no room for further negotiation. Learn more about how 1% Commission work.

 Flat Fee Commission

  • Some agents charge a fixed amount rather than a percentage of the sale price.
  • Flat fees vary by brokerage and can be lower than traditional commissions.
  • This structure works well for sellers looking for a predictable cost. Learn more about how flat-fee commissions work.

When You Have the Most Leverage

Not every situation allows for easy negotiation, but there are key times when sellers may have more leverage. It is crucial to negotiate the real estate commission and have it clearly documented in the Listing Agreement before you sign it. This discussion should happen right after you have interviewed agents.

  • High-Value Properties: Agents may agree to a lower percentage for luxury homes, as the total dollar value of the commission will still be significant.
  • Strong Seller’s Market: If demand is high and homes are selling quickly with little marketing effort, agents may be more willing to reduce their rates on the listing side.
  • Multiple Transactions: If a seller is buying and selling with the same agent (a “buy-sell package”), they have strong leverage to negotiate a reduced rate on one or both of the deals.

Strategies for Negotiating a Better Commission Rate

  1. Do Your Research: Before entering negotiations, compare commission rates from multiple agents in your area. Look at what services different commission structures offer and assess their value.
  2. Be Upfront About Your Expectations: Clearly outline what services you expect from the agent and what you are willing to pay. Ask whether they are open to flexibility based on the level of service provided or the final sale price.
  3. Offer the Market Standard for the Buyer’s Agent Commission: To attract as many buyers as possible, it is generally recommended to offer the going market rate (co-operating commission) for the buyer’s agent. Reducing this rate too much may deter buyer agents from showing the property to their clients.
  4. Find a Full-Service Discount Brokerage: Some brokerages offer the same full-service experience but at a lower listing commission rate in Canada. Instead of sacrificing services, you can look for brokerages that provide cost-effective solutions without cutting corners.

Final Thoughts

Negotiating a commission when selling real estate in Canada requires an understanding of typical commission rates, market conditions, and the services offered. As we have established that all real estate commissions are negotiable, you as a seller must balance cost savings and ensure that you receive the expertise needed for a successful sale.

By researching options and using effective negotiation strategies, you can maximize your return while minimizing costs as a homeowner.

Good Luck!

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Faiza Ahmed (Broker)

As the founder of PropertyMesh, Faiza Ahmed is dedicated to making real estate more transparent and cost-effective. While she actively challenges the high-commission model to help sellers keep more of their equity, her core passion is empowering all clients — buyers and sellers alike — to make informed decisions in an ever-evolving market.

Faiza is a licensed real estate broker registered with the Real Estate Council of Ontario (RECO Registration #4791581) and an active member of the Toronto Regional Real Estate Board (TRREB).