What is a One Percent Real Estate Agent?
A ne 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.
Commission Savings Calculator
* 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.
Real Estate Commissions
Real Estate Commission in Ontario
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
Real Estate Commissions in BC
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 real estate agents by commission in BC above.Find out more about real estate commissions in BC
Real Estate Commissions in Alberta
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 Saskwatchewan
Real estate commissions in Saskatchewan are usually based on one of two calculations:
- 6% of the first $100,000 of a property's selling price, 4% of the next $100,000, and 3% on the remaining balance
- 7% of the first $100,000 of a property's selling price and 3% of the remaining balance
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
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
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.
Real Estate Commission
How much can I save on real estate commission with a 1% agent?
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:
- Professional photography for the interior and exterior of your home
- Listing of your home on a Multiple Listing Services (MLS®) system
- Showcasing your home to prospective buyers
- Responding to inquiries about your listing
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.
How much can I save with a 1% Real Estate Agent?
|Property Price||$500K||$750K||$1M||Savings on Real Estate Commission with a 1% Agent||$7,500 in savings||$11,250 in savings||$15,000 in savings|
Real Estate Agent Commission Rate
How is the real estate agent commission rate determined?
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.
Brokerages Offering Lower Real Estate Commission
The major brokerages in Canada that offer low real estate commission include:
- One Percent Realty is a brokerage that operates in Ontario, British Columbia, Alberta, and Nova Scotia. For homes under $700K, One Percent Realty offers full-service listings at a flat rate of $7,950. Out of the $7,950, $3,500 is paid to the seller agent and $3,500 is offered to the buyer agent and a $950 administrative fee is charged. However, the seller can choose to offer the buyer agent a larger commission over the fixed $3,500. For homes with a price of $700K or greater, One Percent Realty charges a 1% commission + a $950 administrative fee.
- Point59 Realty is a brokerage that operates in Ontario. They offer full selling and listing services with a 0.59% seller agent commission. Point59 Realty gives you the option to choose what percentage commission to offer to the buyer agent. For example, if you choose to pay the buyer agent the standard 2.5% commission in Ontario, you will be paying a total of 3.09% in combined commission.
- ModernSolution Realty Inc. is a brokerage operating in Southern Ontario. Providing the full range of modern technologies to help sell your home, ModernSolution charges a 2% total commission with 1% going to the buyer agent and 1% for the seller agent.
- 2 Percent Realty is a brokerage that operates in select locations in Alberta, British Columbia, Yukon, Ontario, and Saskatchewan, as well as internationally. 2 Percent Realty offers real estate agent services for only 2% commission, with 1% going towards the seller agent and 1% for the buyer agent.
For Sale by Owner (FSBO)
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:
- For Sale by Owner Inc. is a company that works with FSBO Real Estate Inc. Brokerage. For a flat rate of $599, you will have your home listed on a Multiple Listing Service MLSⓇ System and websites such as Trovit, Mitula, Locanto, and ForSalebyOwner. Also, you will be able to share your listings to prospective buyers by email and across social media platforms such as Twitter, Facebook, and LinkedIn.
- Free2List is a website that allows you to create an account and list your home for free across many sites including Find Listings, Map Listings, International Listings, and more. You can list your home on Free2List for free unless you choose to upgrade to paid services.
- The Realty Commission charges a flat rate of $199 to list your property on an MLSⓇ System. Also, they provide templates for the paperwork involved in selling your home, such as templates for the Offer for Purchase contract and a Condition Waiver Form.
- Prelist is a website for private home sellers to list their homes for free. Although Prelist was mainly designed for private sellers, some real estate agents list properties on Prelist as well. Prelist allows you to order a lawn sign from their Vistaprint store for $25.
- PropertySold is an FSBO website that offers mortgage assistance as well as traffic analytics for your online listing. Different packages have various levels of features and options available to the user. Also, PropertySold has partnerships with brokerages, so you can contact them to request an MLSⓇ listing.
* Offer not available in all regions. 1% and other discounted commission offers may be subject to terms and conditions. Please discuss with your real estate agent before making any decisions. We try our best to find you the best agents, but we are not responsible for any losses or damages caused by the actions by any of our real estate agents.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.