Can I negotiate my agent’s commission?
Can you really cut your agent’s commission — and keep more cash at closing? Here’s how to do it without burning bridges.
Why this matters for Georgetown home sellers
If you’re selling a home in Georgetown, Ontario you need straight answers. Commissions are one of the biggest line items you control. A small change in commission can mean thousands in your pocket. I’m direct: commissions are negotiable — but how you negotiate matters.
This post tells you exactly how to negotiate an agent’s commission in Georgetown, ON, step-by-step. No fluff. Just a practical plan you can use today.
The simple truth: commissions are not set by law
In Ontario, real estate commission rates are not fixed. The Real Estate Council of Ontario (RECO) and provincial rules don’t set a mandatory fee. Most agents advertise typical ranges (often 4–6% combined), but those are industry norms — not laws.
That means every fee is open for discussion. An agent can agree to lower their rate, offer a flat fee, or structure performance-based pay. What they will do depends on the property, the market, and the value they bring.
Why agents usually resist lowering commission (and when they shouldn’t)
Agents resist fee cuts for three reasons:
- They believe reduced pay reduces effort. Many will spend less on marketing and negotiation when they earn less.
- Their business model depends on commission percentage to cover marketing, staff, and overhead.
- They fear setting a precedent.
But you should push back when: your home is easy to sell, agent workload is light, or you’re bringing strong buyer traffic. In Georgetown’s current market, where inventory and demand shift by neighborhood, a smart negotiation can win.
How Georgetown’s market changes the negotiation
Georgetown, ON (part of Halton Hills) is a mid-size market with pockets of high demand. Things that matter here:
- Inventory levels: When supply is tight, agents need fewer marketing dollars and may accept a lower rate to secure a straightforward listing.
- Price point: Higher-priced properties have more room to negotiate percentage, or to convert to flat/tiered fees.
- Buyer pool: Many buyers come from nearby Mississauga, Milton, and Halton Hills. If your home already attracts local buyers, selling costs drop.
Local knowledge matters. An agent who knows Georgetown’s neighborhoods — downtown Georgetown, Acton, Limehouse, Glen Williams — can price and package your home faster. That justifies either a standard commission or, occasionally, a lower one if the work is predictable.
Four commission options to propose (and when each wins)
- Percentage split (traditional)
- Typical: 4–6% of sale price split between listing and buyer’s agents.
- Use when: you want a full-service agent who will market aggressively.
- Reduced percentage
- Ask for 3%–4% total if your home is straightforward, priced to market, and in a desirable pocket.
- Use when: low marketing spend is expected.
- Flat fee
- A fixed dollar amount regardless of sale price (e.g., $6,000).
- Use when: price is predictable, home is entry-level, or you want cost certainty.
- Performance-based tiers
- Example: 2% up to list price, 1% on every $10,000 above list.
- Use when: you want to reward selling above asking and keep base costs down.
Step-by-step negotiation plan (use these exact steps)
- Get a local market snapshot
- Ask two or three Georgetown agents for a CMA (comparative market analysis). Compare days on market, list-to-sale ratios, and marketing plans.
- Ask for itemized costs
- Request a written breakdown: MLS fee, pro photos, staging, open houses, advertising. If an agent can’t itemize, they can’t justify a high percentage.
- Present alternatives
- Say: “I’m comfortable paying X% OR a flat fee of $Y with these agreed marketing services.” Put it in writing.
- Use leverage
- “I have interest from buyers” or “I’m interviewing two agents” are truthful and effective. Don’t bluff; be honest.
- Lock it in the listing agreement
- Get the fee, services, and exit terms in writing. If the agent won’t sign a clear agreement, walk.
- Keep incentives aligned
- If you cut base pay, ask for a performance bonus when the sale exceeds target price. That keeps the agent motivated.
Scripts that work — say them word-for-word
- Opening: “I like your plan. My goal is to keep commission under control. What flexibility do you have on your fee for a house in downtown Georgetown with strong interest?”
- Flat-fee proposal: “If you’ll list for a flat fee of $X and include photos and MLS, I’ll sign today.”
- Performance tier: “I’ll pay 2% to list and 1% on every $10,000 above the asking price. If you hit X days, we revisit.”
Use a calm tone. Agents expect negotiation. If an agent refuses to move after a rational conversation, they may not be the right fit.
Red flags when negotiating commission
- Vague marketing promises with a low fee. Low price + vague plan = low effort.
- Refusal to put terms in writing.
- Pressure to sign immediately without comparing agents.
If any of these appear, step back and evaluate. Saving on commission isn’t worth a disastrous sale.
How much can you realistically save in Georgetown?
Example: A $800,000 home.
- 5% commission = $40,000 total.
- Negotiate to 3.5% = $28,000 total. You keep $12,000.
- Flat fee $8,000 = you keep $32,000.
Numbers like these change your net proceeds. Even a 0.5% cut can mean thousands.
When you shouldn’t negotiate hard
- Complex properties: multi-family, estate homes, or homes requiring lots of staging and time to sell.
- Unfamiliar market: If your agent’s network and expertise are the reason the home will sell quickly.
- When an agent consistently produces higher net prices that justify their fee.
Sometimes higher fees bring better net proceeds. Don’t focus only on the sticker commission — focus on net after sale.
Local tactics Georgetown sellers can use
- Offer a reduced commission to the listing agent but standard to buyer’s agents to keep buyer traffic strong.
- Pre-market to local networks: agents with Georgetown databases reduce marketing costs.
- Consider a short guaranteed listing period. If the agent doesn’t perform in 30 days, you can reconsider fees.
How to evaluate offers beyond commission
Always compare net proceeds and service:
- Net proceeds after commission and other costs.
- Speed to close.
- Contract conditions that might lower price.
- Agent’s negotiation track record in Georgetown.
The cheapest agent isn’t always the best agent.
Closing: a practical checklist to use today
- Receive CMAs from 2–3 local agents.
- Ask for itemized marketing budgets.
- Offer alternatives: reduced %, flat fee, or tiered performance plan.
- Get everything in writing.
- Keep buyer-side commission competitive.
If you want help running this process for your Georgetown home, contact a local expert who knows the market, negotiates hard, and gets better net proceeds.
Contact: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
FAQ — Selling a home in Georgetown, Ontario
Q: Can I legally negotiate my agent’s commission in Georgetown, ON?
A: Yes. Commission rates aren’t mandated by law in Ontario. Agents set their own fees and can agree to lower rates or alternative fee structures.
Q: What is the typical commission rate in Georgetown?
A: Typical combined commissions in the region often range between 4% and 6%, but many agents accept lower rates depending on the property and services promised.
Q: Will lowering commission reduce an agent’s effort?
A: It can. Protect yourself by itemizing services and including performance incentives in the listing agreement.
Q: Should I offer a lower commission to buyer’s agents?
A: Keep buyer-side commissions competitive to attract buyers. Reducing listing-side fees can be effective while preserving buyer agent incentives.
Q: How do I compare offers from different Georgetown agents?
A: Compare net proceeds, itemized marketing plans, days-on-market projections, and local sales history. Don’t judge solely on commission percentage.
Q: What if my home needs staging or repairs?
A: Factor those costs into your net. Sometimes a higher fee that covers staging and professional photography will net you more money.
Q: How long does it take to sell a house in Georgetown?
A: It varies by price point and neighborhood. Use recent CMAs from local agents to understand current days-on-market.
Q: Can I switch agents if I’m unhappy?
A: Yes, but review the listing agreement for termination clauses and potential penalties. Negotiate a trial period in advance.
Q: Are there flat-fee MLS options in Georgetown?
A: Yes. Some services list on MLS for a flat fee. Ensure the package includes photos, MLS exposure, and buyer agent commission to stay competitive.
Q: Who enforces realtor conduct and fees in Ontario?
A: The Real Estate Council of Ontario (RECO) regulates conduct. RECO doesn’t set fees but enforces professional standards.
If you want a no-nonsense review of your expected net proceeds and a negotiation plan tailored to Georgetown’s market, email tony@sousasells.ca or call 416-477-2620. Ask for a complimentary, itemized CMA and a clear commission proposal.
