Who pays realtor fees Ontario
Who REALLY pays realtor fees in Ontario? Find out who’s on the hook in Georgetown — and how to keep more cash in your pocket.
Quick answer: Who pays realtor fees in Ontario (and in Georgetown)?
In Ontario — including Georgetown, ON — realtor fees are almost always paid by the seller at closing. That payment comes from your sale proceeds and is typically split between the listing agent and the buyer’s agent. The percentage and the split are negotiable. If you’re selling a home in Georgetown, understand this upfront so you can plan, negotiate, and protect your profit.
Why this matters for Georgetown home sellers
You’re not selling a house on paper. You’re selling a financial outcome: how much cash you walk away with. Realtor fees are one of the biggest line items that reduces that cash. If you ignore how fees work in Georgetown’s market, you’ll leave money on the table.
This post cuts the noise. You’ll get clear facts, simple numbers, negotiation tactics, and a checklist to reduce fees without reducing the quality of your sale.
How realtor fees actually work in Ontario
- The fee is a commission charged by real estate agents for marketing, negotiating, and closing the sale.
- It’s normally a percentage of the final sale price and is paid at closing out of the seller’s proceeds.
- The listing brokerage pays the cooperating (buyer’s) brokerage a portion of that commission as a buyer’s agent rebate for bringing the buyer.
- Commissions are completely negotiable. There’s no fixed rate mandated by law.
In practical terms: you list your home with a listing agent and agree on a commission. When the sale closes, that commission is calculated from the sale price and distributed per your listing agreement.
Typical commission ranges in Georgetown, ON
Ontario commission structures vary. In Georgetown, sellers commonly see total commission rates between 3% and 5% of the sale price. Typical splits are:
- 2.5% listing / 2.5% buyer’s agent (a common baseline)
- 2.0% listing / 3.0% buyer’s agent (when sellers want stronger buyer-side incentives)
- Flat-fee or reduced-commission options exist for homes that are easy to sell or for sellers who accept reduced service.
Note: These are common figures, not fixed rules. Market conditions, property type, price point, and service level affect the number you’ll see.
Example math (real, usable numbers)
Sell price: $800,000
Total commission: 4% = $32,000
Split: 2% listing / 2% buyer agent = $16,000 / $16,000
You’ll pay the $32,000 from the sale proceeds at closing. That’s why negotiation matters.
Who negotiates the fees — and how to win that negotiation
You do. The seller signs the listing agreement with the listing brokerage and decides the commission. Agents expect negotiation. High-performing agents expect to justify their fee with results, not excuses.
How to negotiate and win:
- Interview multiple listing agents. Ask for their track record specifically in Georgetown and Halton Hills neighborhoods.
- Ask for a detailed breakdown of services tied to the fee. If an agent can’t explain exactly what they’ll do, they don’t deserve top commission.
- Offer a performance-based structure: lower base fee + bonus if they sell above list or within X days.
- Ask about the buyer’s agent incentive. If the listing price attracts buyers without high cooperation fees, consider lowering the buyer-side split.
- Get everything in writing in the listing agreement.
A direct approach works: say, “Show me the plan. If you deliver in 30 days or sell for X% over list, I’ll pay the full commission. Otherwise, we reduce the fee.” The best agents will accept or offer a counter-proposal.
Common myths — busted
Myth: The buyer pays their agent’s fee. Fact: In Ontario, the seller usually pays the commission, which the listing brokerage shares with the buyer’s brokerage.
Myth: Commissions are fixed by law. Fact: Commissions are negotiated and vary by property and agent.
Myth: Paying a lower commission means worse results. Fact: Lower commission can correlate to lower service — unless you hire a high-performance agent who focuses on results and efficiency.
Ways Georgetown sellers reduce fees without hurting sale price
- Price your home competitively: Overpriced homes sit. Long days on market often cost more than a slightly higher commission.
- Use a results-driven agent who compensates their reduced fee with better marketing and negotiation.
- Offer a sliding commission: higher incentive for quick sale or selling above list.
- Sell off-market to a vetted buyer network if confidentiality and speed matter — but this strategy can limit exposure and possibly sale price.
Goal: Reduce the net cost to you, not the headline commission alone.
Local market tips for Georgetown, ON sellers
- Neighborhood matters: Homes near downtown Georgetown, schools, and transit attract more buyers — use that advantage in your listing strategy.
- Timing matters: Local buying patterns change with schools and seasonal shifts. Align listing timing with buyer demand for the best price and leverage.
- High-quality visuals and targeted online ads matter more in Georgetown than a generic brochure. Buyers here research online first.
Hire an agent who knows the micro-markets in Georgetown and Halton Hills. Local knowledge converts into better offers and faster closings.
What if I want to sell without a realtor? (FSBO)
You can, but you’ll pay for the buyer’s agent if you offer cooperation on MLS — or you’ll need to find a buyer without an agent. FSBO means taking on marketing, negotiations, paperwork, and closing logistics. Many sellers end up paying a buyer’s agent fee anyway because buyers expect representation.
Real question: Can you handle the time and risk? If not, a skilled local agent will likely produce a higher net outcome even after fees.
Red flags in commission conversations
- Vague promises without a written plan.
- Pressure to sign a long exclusive listing with no performance targets.
- Agents unwilling to show comparable sales and clear marketing budgets.
If an agent dodges clear answers about how their fee produces measurable outcomes, move on.
How to evaluate ROI on realtor fees
Calculate your net proceeds with and without the agent. Example:
- Sell FSBO for $750,000 — no commission, but net sale after extra days, repairs, and negotiation mistakes may be lower.
- Sell with an expert for $800,000 — 4% commission = $32,000; net $768,000. You net $18,000 more despite paying commission.
Great agents don’t earn their fee by being friendly. They earn it by increasing your sale price, shortening time on market, and guaranteeing a clean closing.
Call this your action plan (3 steps)
- Get three listing proposals from agents focused on Georgetown and Halton Hills.
- Demand a clear marketing plan and a performance-based fee option.
- Compare net proceeds using a simple calculator (sale price minus commission and closing costs) and pick the plan that maximizes your cash at closing.
If you want an expert to handle this and maximize your net — contact the local authority who sells homes in Georgetown.
Contact: Tony Sousa — tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
FAQ — Top questions Georgetown home sellers ask
Q: Who pays realtor fees in Ontario?
A: The seller typically pays realtor fees from the sale proceeds at closing. Those fees are often split between the listing and buyer’s agents.
Q: Are realtor fees negotiable?
A: Yes. Commissions are negotiable. Ask for performance-based structures or flat-fee options.
Q: What’s a typical commission in Georgetown?
A: Commonly between 3% and 5% of the sale price. Splits vary; confirm details in your listing agreement.
Q: Can the buyer ever pay their agent?
A: Rarely in Ontario. Most transactions route the buyer’s agent fee through the listing commission paid by the seller. Buyers sometimes cover fees in private arrangements, but it’s uncommon.
Q: Will paying a higher commission get me a better price?
A: Not automatically. The right agent with a proven local record will drive higher net proceeds. Don’t pay higher fees for vague promises.
Q: Should I try FSBO to avoid fees?
A: FSBO can save commission but increases your workload and legal risk. Many sellers net less after going FSBO because of longer marketing time and negotiation mistakes.
Q: How do I verify an agent’s Georgetown experience?
A: Ask for recent comparable sales in your neighborhood, marketing examples, and client references. Verify sale prices and days on market.
Q: What should I include in the listing agreement?
A: Commission rate, duration, marketing budget, performance incentives, and a clear cancellation clause.
Selling a home in Georgetown isn’t a guessing game. Know who pays the fees, demand accountability, and choose an agent who proves they increase your net. If you want direct help that converts into cash at closing, contact Tony Sousa: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
