Do estate agents charge if you don’t sell?
Will you pay an estate agent if your home doesn’t sell? Read this first.
Quick answer
Most of the time: no. Real estate agents typically earn a commission only when a sale completes. But there are important exceptions. Read the fine print in your listing agreement. Know your rights. Save money.
How agent fees usually work
- Commission-based: Most agents work for a percentage of the final sale price. No sale, no commission.
- Fixed-fee services: Some agents or brokerages charge a flat fee for specific services (photos, listing on MLS, advice). These can be charged up front.
- Marketing budgets: Sellers sometimes agree to a marketing spend (staging, professional photos, ads). If you cancel the listing, you may still owe committed costs.
When you might still pay if the property doesn’t sell
- Upfront marketing or admin fees spelled out in your contract.
- Cancellation fees or early termination penalties for exclusive or sole agency contracts.
- Reimbursement for third-party costs already spent (photography, inspections, paid ads).
- Penalties if you later sell to a buyer introduced during the listing period (check the holdover clause).
Types of listing agreements to watch
- Open listing: You pay the agent who actually finds the buyer. Often no fee if no sale.
- Sole agency: One agent has the exclusive right to sell. Cancellation may trigger fees or notice periods.
- Exclusive right to sell: Agent earns commission even if you find the buyer yourself during the contract term.
Practical steps to avoid surprise charges
- Read the listing agreement before signing. Look for marketing fees, cancellation terms, and holdover periods.
- Get all promises in writing. If an agent says “no upfront fees,” make sure it’s written.
- Ask for a clear marketing budget and itemized costs.
- Negotiate a shorter listing term or a trial period.
- Keep receipts for third-party services and agree who pays if the listing ends early.
Smart questions to ask your agent
- Do I pay anything if the property doesn’t sell?
- Are there any marketing or admin fees up front?
- What happens if I cancel the listing?
- Is there a holdover period for buyers introduced during the listing?
Bottom line
In most standard situations, estate agents don’t charge a commission if your property doesn’t sell. But you can still face costs from upfront marketing, third-party vendors, or contract penalties. Don’t sign blind. Read the agreement, ask direct questions, and protect your money.
About the author: Tony Sousa is a local realtor and market expert. For a clear, no-nonsense home-selling plan and a review of your listing agreement, contact Tony: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
