A one percent agent is a real estate professional who charges only 1% commission (plus applicable sales taxes) to sell your home. In competitive markets like the Greater Toronto Area Housing Market, many agents offer lower commissions to set themselves apart from their competition. On a $500,000 home in Ontario, you could save more than $7,500 with a 1% agent. While some regions including BC, AB, and SK may not offer one percent real estate agents, WOWA.ca helps you find experienced agents with the lowest commissions in your area.
* Savings based on a discounted commission rate of 1% compared to a commission rate of 2.5%. Not available in BC, AB, and SK. Results are shown for illustrative purposes only.
Seller or listing agent commissions in Ontario are usually 2.5% of the total selling price of a property. This makes up half of the standard 5% real estate agent commission, which is then split between buyer and seller agents. Agents in major centres like Toronto and Ottawa may be willing to lower their commissions as home prices in these markets are higher. Some buyer agents also offer a cashback rebate when you buy a home with them. You can search for real estate agents by commission in Ontario above.Find out more about real estate commissions in Ontario
Seller or listing agent commissions in BC are usually set on a graduated scale and vary from region to region. Seller agents in Vancouver typically charge 3.875% on the first $100,000 of a property and 1.3375% on the remaining total. In comparison, seller agents in Victoria usually charge 3% on the first $100,000 of a property's price and 1.5% on the remaining total. You can search for search for real estate agents by commission in BC above.Find out more about real estate commissions in BC
Seller or listing agent commissions in Alberta are usually set at 3.5% for the first $100,000 of a property's selling price and 1.5% of the remaining balance. This is half of the total commission - the other half goes to the buyer agent. Commissions may vary, however, especially outside of major centres like Calgary and Edmonton. You can search for real estate agents by commission in Alberta above.Find out more about real estate commissions in Alberta
Real estate commissions in Saskatchewan are usually based on one of two calculations:
You can search for real estate agents by commission in Saskatchewan above.Find out more about real estate commissions in Saskatchewan
Real estate commissions in Manitoba are typically between 4-5% of a property’s selling price. Typically, the total real estate commission in Manitoba is split equally between the buyer and seller agents. This means that if the combined commission is 5%, then the buyer agent will receive a 2.5% commission and the seller agent will receive a 2.5% commission.Find out more about real estate commissions in Manitoba
Real estate commissions in Quebec are typically 5% of a property’s selling price but could range from 4-5%. Approximately 20-30% of homeowners in Quebec choose to self-list their home through the for sale by owner (FSBO) route, which has resulted in the real estate commissions in Quebec decreasing over time.
With a 1% seller agent, you will be able to save on real estate commission while receiving the full range of services that your real estate agent offers.
Such services include:
How much you can save with a 1% agent depends on the typical real estate commission in your location. For example, in Ontario, the typical combined real estate commission is 5% of the sale price of your property, with 2.5% (typically fixed) going to the buyer agent and the remaining 2.5% for the seller agent. With a 1% seller agent, you will be saving 1.5% on the seller agent portion of the real estate commission.
|Savings on Real Estate Commission with a 1% Agent
|$7,500 in savings
|$11,250 in savings
|$15,000 in savings
The real estate agent commission rate that you will be charged upon closing is based on the rate that you and your agent initially agree upon when you sign the listing agreement contract to work with your real estate agent. Every seller should know that the real estate agent commission rate is negotiable.
The Canadian Real Estate Association’s Pledge of Competition was developed based on the Competition Act of Canada. It specifies that each real estate agent will determine the commission rate offered to their customers based on the services they provide. In other words, real estate agents are not allowed to engage in price-fixing (the act of colluding with other real estate agents to set high prices), but rather, each real estate agent can determine the commission rate they charge based on the range and level of services they offer.
The major brokerages in Canada that offer low real estate commission include:
For Sale by Owner, or FSBO, is when the seller of a property lists and sells their property without the services of a real estate selling agent. We recommend that you have experience with real estate transactions before considering pursuing the for sale by owner method of selling your home. As well, you should consider offering the buyer agent the standard commission in your area so that your property will be shown to prospective buyers by their agent.
Services that you can use to self-list your property include: