by 
Picture this: you sell your Toronto home for $1 million. The offer’s signed, champagne’s popped — and then you watch $50,000 vanish into commission fees. Painful, right?
Now here’s the twist: while many sellers assume 5% is carved in stone, Reddit threads are overflowing with stories of people paying far less — and with plenty of others venting about why they think the whole system is broken. Some brag about getting total commission down to 3.25%. Others call anything over 5% “a scam.” And more than a few ask: “How does an agent justify $26K for one deal?”
Let’s cut through the noise, blend the facts with what people are really saying online, and figure out how commissions in Toronto actually work.
The Basics: What You’re Supposed to Pay
A commission is the fee you pay for professional help buying or selling a home. In Toronto, the “traditional” rate is about 5%, usually split evenly between the listing agent (2.5%) and the buyer’s agent (2.5%).
It’s a sharp reminder: big percentages mean really big dollar signs in a city where the average home price floats near $1M.
Myth vs. Reality: Are Commissions Fixed?
As one commenter put it bluntly:
“6.5%? lol. Paying that is just ridiculous.” source
Curious about how flat-fee and 1% models actually work in Toronto? I from PropertyMesh have outlined the step-by-step process in our guide to working with a discount realtor.
Why People Get Mad: The Sticker Shock
Here’s where emotions flare online: the sheer size of the bill.
- A seller ranted: “How does a realtor justify earning $26,000 on a home sale??”
- Another flat-out called it a cartel, saying: “If you’re doing a public sale at 5%, you’re getting ripped off.”
- A frustrated buyer chimed in: “Their commission is a percentage of the sale price. Why would they ever fight for me to get a discount?”
These aren’t isolated takes. Thread after thread shows sellers and buyers balking at how commissions scale with price, regardless of how much actual work is involved.
What You’re Actually Paying For
Here’s the thing: not all commissions buy you the same level of service. Some agents use higher rates to cover:
- Professional staging
- Photography and videography
- Marketing campaigns
- Home inspections or cleaning
Others, as Reddit users complain, just toss your listing on MLS, plant a lawn sign, and wait.
One user summed it up:
“For 5%, I expect staging, cleaning, and marketing. For 1%, I expect an MLS upload and not much else. At least be clear about what I’m paying for.”
The takeaway: commission isn’t just about percentage — it’s about value for money.
The Rise of Flat-Fee and Discount Models
Toronto has seen a sharp rise in alternative brokerage models.
One Redditor claimed to have saved $35K by going with a flat-fee service, while another celebrated a $9K cashback cheque after buying.
These stories matter because they show a shift: sellers and buyers aren’t just asking “What’s the rate?” anymore — they’re asking “What do I get for it?”
Should You Sell Without an Agent?
Some sellers wonder: Why not just skip the commission entirely?
It’s possible — “For Sale By Owner” (FSBO) does exist. But it comes with risk. Without professional representation, you’ll handle pricing, marketing, paperwork, negotiations, and legal compliance yourself. In Toronto’s market, where bidding wars and legal conditions can get messy, that’s a tall order.
One FSBO experimenter confessed:
“I thought I’d save money, but buyer agents basically froze me out. It was way more stressful than I expected.”
So yes, you can go it alone — but most people either regret it or end up hiring a discounted agent after a rocky attempt.
How to Negotiate Without Feeling Awkward
Negotiating commission doesn’t have to feel slimy. Here are strategies Toronto sellers swear by:
Buyer vs. Seller: Who Really Pays?
On paper, commissions come out of the seller’s pocket. But buyers feel the sting too, since those fees are baked into home prices.
Some buyer agents are even fighting back with rebates, returning part of their commission to sweeten the deal. On Reddit, one buyer bragged:
“Got 1% back from my agent after buying. Covered closing costs and then some.”
This shifting dynamic is one reason people predict the old 5% model may not survive forever.
Legal & Ethical Guardrails
For all the debate, there are rules in place:
Knowing these safeguards can give you more confidence walking into negotiations.
The Future of Commissions
Real estate commissions in Toronto are no longer just a line item — they’re a battleground. On one side, traditionalists defend 5% as fair compensation for marketing, expertise, and risk. On the other, an increasingly loud chorus of sellers and buyers — especially on Reddit — argue that the system is outdated, overpriced, and ripe for disruption.
The truth lies somewhere in between. For some, paying 5% feels worth it when an experienced agent pulls in an extra $50K above expectations. For others, a lean 3.5% deal with fewer frills is all they need.
The key? Don’t accept “standard.” Interview multiple agents, ask hard questions, and compare models. Whether you choose traditional, discount, or flat-fee, the important thing is that you know what you’re paying — and that it actually feels worth it.
Because in Toronto, where every percentage point can equal thousands of dollars, your commission decision isn’t just about math. It’s about taking control of one of the biggest financial moves of your life.