Toronto Realtor Commission

How Much Are Real Estate Commission Rates in Canada?

Tuesday Mar 08th, 2022

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Real estate agents in Ontario, like many other sales professionals, get paid commission – typically a set percentage of the price of a home, paid upon the successful completion of the sale. When an agent works with a Seller and lists a home for sale, they take on the risk – they only get compensated for their time and out-of-pocket expenses if the home sells. If a home doesn't sell, the REALTOR doesn't get paid. 

 

What do Seller's Agents Offer?

During the entire selling process, the seller's agent will act on seller's best interest to sell this property at the highest possible price and at the best condition to the seller.

A seller's agent or listing agent can help you:

  • collect all the properties' information
  • list the property for sale on MLS (multiple listing services)
  • identify ways to increase the value of your home before you sell
  • Promote and give the property maximum degree of exposure
  • advertise and promote this property aggressively in social media or traditional media
  • determine an appropriate sale price
  • arrange showings and open houses
  • collect and present the offers to home seller, offering professional advice, and pros and cons of each offer.

 

What do Buyer's Agents Offer?

During the entire home buying process, the buyer's agent will act on buyer's best interest to get the property purchased at the lowest possible price.

  • A buyer's agent can help buyers during the search process:
  • understand the buyer's property search criteria
  • Determine the favorite types of property based on location, budget, and other aspects
  • Customize the search and show all the properties that fits the buyer's criteria
  • Show all the fit properties
  • Advice on each property's pros and cons given the professional evaluation on the properties

When the buyer is interested in a particular property, the buyer's agent will prepare the offer with the condition and protective clauses, to ensure that the property can be purchased at the lowest possible price.

 

Toronto Realtor Commission

 

Who is responsible for the real estate commission in Toronto and Ontario?

In Canada, both the buyer's side and seller's side of commission are paid by the seller. The buyer does not need to pay any buyer agent's commission. When a property is listed on MLS, the listing price already includes both side's commission. For example, a property is listed for 1 million dollars. That 1 million already includes both seller and buyer's agents' commission. 

On this a 2 bedroom, 2 bathroom condo apartment in North York listing that I have recently listed and sold, for example , the MLS listing will indicate that this property offers a Cooperating Brokerage Commission of 2.5%. This information is transparent and is accessible by all buyer's agent when they book this property for showing.

The listing agent's commission is agreed and indicated on the listing agreement when it's signed between a seller and the listing agent.

 

Toronto Real Estate Commission Pay

 

What is the typical real estate agent's commission in Toronto?

Depending on each city and the market, as well as the property's price, the real estate commission might vary. In the Greater Toronto Area, the most commonly seen commission amount is 4%.

Typically, the seller agent's commission vary between 1-2%, but very commonly around 1.5%.

For the buyer's agent, the commission is typically 2.5%.

The total commission that needs to be paid by the seller is 1.5+2.5 = 4%.

For the $1 Million property, the commission for both the buyer's agent and seller's agent will be 4%, or $40,000.

In Ontario, like most goods and services, real estate commission has 13% GST/HST.

So the seller will be responsible for the $40,000 commission, as well as the 13% GST on top of the $40,000.

 

Can I just find any buying or listing agent since all agents are using MLS?

As an experienced realtor, we get asked very frequently that since all property sources are centralized on the MLS, any agent will have access to the same database and all the properties. So why does it matter which agent we need? Wouldn't it be better to choose a lower commission agent?

The truth is, you get what you pay for.  Agent's performance and experience has direct impact on the type of buying and selling experience you will get.

Let's discuss how to choose the buyer's agent as well as the seller's agent.

 

How to choose the buyer's agent

Willingness to listen

When the buyer's agent searches properties for you, does he/she really listen carefully to your search criteria?  Experienced buyer's agent will not just include properties from the MLS that fits your criteria, but the agent will also include exclusive listings that are off-market in your search results.

Speed

In the hot Toronto Real Estate Market, a good agent can send you new listings in real-time.  When the listing first comes out on the market, you should be able to see the listing first hand.

The agent should also be able to accommodate showings at anytime when you, the buyer, are free, rather than waiting a couple of days before the agent can squeeze some time.

Professional Advice

A good buyer's agent can help you customize your purchase strategy, and can give you professional advice every single step along the buying process.

Buyer's Satisfaction Guarantee

With Priscilla Han Realty Team, we give you cash saving's guarantee that we will bring you the lowest possible price on any properties which the buyers' lay their eyes on.

The list can go on for very long, so when choosing a good buyer's agent, don't just consider the amount of commission, but know what type of services and results that this agent can bring to you.

The Realtor's Google Review

Google this realtor before committing to him/her. Good Realtors leave memorable experiences and results to his/her clients who would like to share the story with others. The track record is a very good demonstration on the level of service you will likely to receive as well.

Purchasing a property can be the biggest ticket purchase in your life, so you will want a good result and live in a happy home.

 

How to pick the listing agent

In a seller's market, it seems like anyone can sell the property.  

However, if the seller's agent is not experienced, very likely the agent will simply collect all your information and list on the MLS.  An experienced listing agent, on the other hand, can provide much more.

Comprehensive marketing plan

An experienced listing agent has a comprehensive marketing plan, 360° integrated marketing communication strategy and activity planned ahead.  The agent may also pay for the advertisement on social media like Facebook, Google, and more.

Toronto Real Estate WeChat Group

The agent may also have an existing database of clients who are ready to buy.

Toronto Real Estate Buyer Leads

Maximize Exposure

Often times, an experienced listing agent will hire a professional photographer and videographer, as well as arrange your property to be staged to make it more attractive.

Toronto Real Estate YouTube Fans  Toronto Real Estate Little Red Book

Good seller agents are those that can expose your property to the maximum degree. The more people come to see your property, the more offers the seller will receive.  And that translates to more likelihood of receiving a higher price offer in good condition.

Track Record and Google Reviews

Does the selling agent have a track record that shows he or she has sold many listings in the past?

If you want to find a good agent, always go check their review.

Nowadays, Google reviews are a good source.  Look at the number of past clients' review, and what their experience like being either a seller, a buyer, or maybe a tenant. Google Reviews is highly reputable because if the agent has a bad review, it is almost impossible for the agent to delete it. From reading these authentic Google reviews, you can get a sense of how this agent can work with you in a similar situation.

Toronto Real Estate Google Reviews

You can also focus on reading the negative reviews, and that will also give you some sense of the agent's service quality.

 

Buying and Selling Toronto Real Estate

Whether you are buying your first condo, or selling a single-family home, Team Priscilla Han Realty can help you.

We are proud to serve the whole Greater Toronto Area (GTA), including but not limited to Markham, Mississauga, North York, Pickering, and the City of Toronto.

We help research properties that are best tailored for home buyers, providing them with instant notification of newly available properties, access to exclusive deals that are not on the MLS.  

For property sellers, we have a database of thousands of buyers-in-wait, 20,000+ combined subscribers on YouTube and TouTiao. Our "Your Home Sold Guaranteed, or I'll Buy It" program provides seller with a worry-free selling process. Our professional staging, photography, and videography service help sellers present their property at their best and maximize exposure to potential buyers!

Reach out to us at prishanrealty@gmail.com, or call/text: 647-360-8963 for a free consultation or home evaluation. Visit our website, https://priscillahanrealty.com for more up-to-date videos, blogs, and listings.

 


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