Real Estate Commission Rates and the Truth

This page explains residential real estate commission rates in the GTA, covering the differences between the listing and selling brokerage commissions, the total commission, and whether rates are negotiable. We’ll also explore how commission rates can impact your sale price.

Real estate commissions in the GTA are typically a percentage of the sale price, ranging from 0% to around 5%, with the most common being between 2% and 3%. The total commission is usually split between the listing and selling brokers, with the selling broker typically receiving 2% to 2.5%. These rates can vary and are negotiable, so it’s important to research your options when selecting a listing agent.

Be cautious of ads claiming “2.5% commission” or “1% commission,” as these often refer only to the listing side. The selling commission also needs to be considered in the overall cost. Some listings, known as “mere postings,” may offer minimal selling commissions or a flat fee, leaving you to negotiate with the selling agent directly. Make sure to understand these terms fully.

Commission rates can vary widely in the GTA, and while 2.5% is common, they are always negotiable. Some companies offer discounted rates while claiming full service—be sure to read the fine print and ask for details in writing before signing a listing agreement. Do your research to ensure the level of service matches the rate.

.  Are Commissions Negotiable?  Click here to find out.

Our philosophy in real estate and for any transaction in general is this:

“The long-term pain of receiving poor service and selling your home for a lower price than it should have originally sold for, will last much longer than the short-term gain of a small savings in the commission rate.”  Think about it.

All My Marketing, Experience and Internet Exposure for 2.5%, read our marketing package

Are Commissions Negotiable?

In the GTA and Mississauga, real estate commissions are typically a percentage of the sale price for full MLS services, ranging from 0% to 6% or more. While commissions vary, they are negotiable and can be lower than 5%, depending on the services required.

When listing your property, we can discuss the total commission based on the services you need. Note that other RE/MAX Franchisees and Sales Associates across Canada may offer different rates and services.

Discounted Commissions

Some agents offer discounted commissions, but lower rates may sometimes mean reduced service levels—though not always. Some companies in Mississauga offer full-service real estate at discounted rates, while others may offer varying levels of service for a lower fee.

Be cautious with reduced commission ads, as they may require you to buy your next home through the same agent or broker, buy one of their listings, or take out a mortgage with their recommended lender to qualify for the discount. Always read the fine print carefully.

Sometimes, ads claiming a “2.5% commission” refer only to one half of the total commission, meaning no actual discount. Always verify the terms in writing.

This content is copyrighted by mississauga4sale.com for exclusive use by us and our clients. Other agents may not use this information. Misrepresenting oneself as a member of the public or impersonating someone else is a violation of our code of ethics.

Conclusion

When considering a lower commission offer, carefully assess what you may be sacrificing. Often, not all details are clear in the advertisement, so it’s essential to dig deeper and get the full picture.

The most important factor in selling your home is the brokerage and the agent representing it, so be sure to research thoroughly. Some marketing services may be omitted, so ask yourself if the savings are worth it. Always do your due diligence before signing an MLS listing agreement.

Ask plenty of questions before committing. If you have any concerns or need clarification on commission rates, feel free to contact us.

If you come across misleading advertisements, you can file a complaint with RECO (Real Estate Council of Ontario). They take public complaints seriously and ensure they are addressed. Visit the RECO website to learn more.

On this website, you’ll find information on 2.5% commission rates in Mississauga by Mississauga4sale.com, along with details on listings, virtual tours, and tips for buying or selling in Mississauga, Oakville, and Toronto.

Whether you are buying or selling
We PROMISE to be Professional, Reliable & Enthusiastic!
Lindsay Schenk Broker
(905) 828-3434

The Truth about real estate commission

This is an All Canadian Website!

or you may be ready for an over the internet evaluation

Mississauga MLS Real Estate Properties & MLS.CA Homes for Sale  | All Pages all maintained by info@mississauga4sale.com Copyright © Lindsay Schenk Broker, RE/MAX Realty Specialists Inc., Brokerage, Mississauga, Ontario, Canada L5M 7A1 (905) 828-3434  First created – Tuesday, July 16th, 1996 at 3:48:41 PM – Last update of this page: Fri, 11 Oct 2024 05:14:32 +0000 At this Mississauga, (Erin Mills, Churchill Meadows, Sawmill Valley, Credit Mills and or Meadowvale ) Ontario, Canada Real Estate Property Internet web site you will find relevant information to help you and your family.

| Complimentary & Quick Over The Internet Home Evaluation |