It's a fair question, and a bit of an awkward one for a real estate brokerage to answer. On a $685,000 Ottawa home, a typical commission can run into the tens of thousands of dollars. With listings on Realtor.ca and a phone full of photos, it's reasonable to wonder what exactly you're paying for.
So here's an honest answer. Sometimes an agent is clearly worth it, sometimes the value is less obvious, and the real answer depends on the agent, the property and your own situation. This guide lays out what commission costs in Ontario, what it covers, what the evidence says about selling on your own, and how to judge for yourself.
Please note: this article is general information, not legal or financial advice. It was prepared on October 23, 2026. Commission figures come from Ontario industry and brokerage sources, and your own rate and terms are whatever you agree in writing. Talk to a real estate lawyer if you have questions about a specific agreement.
A few basics clear up most of the confusion:
Commission isn't set by law, and it can't be fixed by agents or boards. It's negotiated between you and the brokerage. A total of about 5%, split roughly 2.5% to each side, is a common starting point, and many full-service deals land between about 4% and 5%.
Traditionally the seller pays one commission out of the sale proceeds at closing. That amount is split between the listing brokerage and the buyer's brokerage, as set out in the listing agreement.
13% HST applies to commission in Ontario, so the real cost is higher than the headline percentage. Make sure any quote tells you whether HST is included.
Here's what that looks like on Ottawa's average resale price of $685,640 in September 2026:
| Total commission | Commission | HST (13%) | Total cost to seller |
|---|---|---|---|
| 3.5% | $23,997 | $3,120 | $27,117 |
| 4% | $27,426 | $3,565 | $30,991 |
| 5% | $34,282 | $4,457 | $38,739 |
One more recent change matters. Since December 2023, Ontario's TRESA rules require buyers to sign a written buyer representation agreement before an agent shows them homes. That agreement can specify the agent's compensation and may include a top-up if the seller's offered commission is lower than agreed. Sellers decide what, if anything, to offer buyer agents.
A good agent does far more than put up a sign. Here's what a full-service sale typically involves.
Choosing a list price based on recent comparable sales and current conditions. In a balanced market, like Ottawa's right now with about 4.8 months of inventory and homes selling for around 97.5% of asking, overpricing can leave a home sitting while underpricing leaves money on the table.
Staging advice, professional photos, MLS exposure, online and social marketing, open houses and handling showings.
Handling offers, counter-offers, conditions and multiple-offer situations, and keeping emotion out of the process so you protect your price and your terms.
Agreements, disclosures, deposits, conditions and deadlines. Mistakes here can cost far more than a commission, which is why Ontario regulates how agents handle them.
Working with lawyers, inspectors, appraisers, lenders and the other side's agent from offer to closing, and keeping a deal on track when something goes wrong.
Registered agents are regulated by RECO under TRESA, with a code of ethics and professional obligations. You have a regulator to complain to if something goes wrong.
It's easy to assume an agent pockets the whole amount. In reality, the commission is shared with the buyer's brokerage, and the agent pays the brokerage's fees, marketing costs, insurance, board dues and taxes, often long before and after a sale. Many agents also spend months on clients who never end up buying or selling.
You'll hear confident claims on both sides, so here's a careful read.
In the United States, the National Association of Realtors reports that for-sale-by-owner homes sold for a median of $380,000 in 2025 compared with $435,000 for agent-assisted sales. A US academic study of 2016 to 2017 data found that successful FSBO sellers got roughly 5.5% less than comparable agent-sold homes. Many Canadian blogs cite much larger gaps, from 15% to 30%.
Much of this data is American, and much of it comes from industry sources. FSBO homes also tend to differ from agent-sold homes, and about 60% of FSBO sellers already know their buyer. There are few rigorous Canadian studies, so treat dramatic percentages with skepticism, whoever publishes them.
A fair summary: the research tends to find that homes sold without an agent sell for somewhat less, but the size of the gap is uncertain, and part of it reflects differences between the homes and the sellers. It also tends to find that most FSBO sellers still end up paying a buyer's agent commission. In Ontario, the seller decides whether to offer one, and if you offer none, fewer agents may bring buyers to your door.
So the savings are real but smaller than they look. The honest question is not "can I avoid the commission?" but "would I net more, after price, time, stress and risk?"
When an agent is usually worth it, and when you may not need oneCompetitive or complex sales. Condos with status certificates, multiple-offer situations, tenanted homes, estates, and rural properties with wells and septic systems.
First-time buyers and sellers. When you've never done it, the paperwork and negotiation are easy to get wrong.
High stakes or tight timelines. Relocations, buying and selling at the same time, or a sale with a deadline.
You don't have the time or the stomach. Showings, calls and negotiations are a real job.
You already have a buyer. A sale to a family member, neighbour or tenant is a different situation (though you still need a real estate lawyer).
You're an experienced investor. If you know your market and your paperwork, you may only need help with specific steps.
You want a middle path. Flat-fee MLS listing services, reduced-service arrangements or paying for specific tasks cost less, though you take on more of the work and the risk.
Agents vary widely. The commission is worth paying when the agent does the work above well. Here's how to test it before you sign.
A good agent shows recent comparable sales in your neighbourhood, explains their reasoning, and tells you honestly if your price expectations are unrealistic.
Photography, floor plans, MLS and online exposure, open houses, outreach. Ask what's included in the fee and what costs extra.
Ask how many homes they've sold in your area, how long they took, and how close to asking the sales closed. Ask for references or reviews from recent clients.
Will your agent personally handle showings, calls and negotiation, or will it be passed to a team or assistant? Either can work, but you should know.
Listing commission, buyer-agent commission, HST, any admin or marketing fees, and what happens if the home doesn't sell or the agreement ends. The agreement should be clear before you sign.
You can confirm that an agent and brokerage are registered with RECO, and see whether there's any discipline history.
Yes. It's always negotiable, and Ontario brokerages are required to tell you so. But a lower rate isn't automatically a better deal, so negotiate with your eyes open.
The total rate, the split between the listing and buyer sides, a reduced rate if you're buying and selling together, tiered rates tied to price, or a different mix of services.
A deeply reduced listing fee may mean less marketing or less attention. A much lower buyer-side commission may reduce how many agents bring buyers. Ask what changes at each price point.
For buyers, the question looks different. In a typical Ontario resale, the buyer doesn't write a cheque to their agent at closing, because compensation usually comes from the seller's offered commission. But under the written buyer representation agreement you now sign, you should understand exactly how your agent is paid, including any top-up you might owe if the seller offers less than agreed.
Ask before you sign: how is my agent paid, what happens if the seller offers less, and what exactly does the agent do for me? A good buyer's agent helps you find the right home, avoid costly mistakes, negotiate, and navigate conditions, inspections and financing.
How we approach it at Ali Realty GroupWe think you should know exactly what you're paying for before you commit. That means explaining the commission, what it covers and what's negotiable, in writing, before you sign anything. If you're weighing whether to list with an agent, sell privately or buy with representation, we're happy to talk it through honestly, even if the answer is that you don't need us.
Call us at 613-327-0131 or visit alirealtygroup.com. We'll walk you through the numbers on your own home or purchase.
How much is real estate commission in Ontario?
There's no set rate. Most full-service sales fall in the range of about 4% to 5% of the sale price, plus 13% HST, often split roughly evenly between the listing and buyer brokerages. It's always negotiable.
Who pays the real estate agent in Ontario, the buyer or the seller?
Traditionally the seller pays the commission from the sale proceeds, and it's divided between both sides. Under TRESA, buyers sign a representation agreement that sets out how their agent is paid, and it may include a top-up if the seller's offer is lower.
Can I negotiate real estate commission?
Yes. Commission is negotiable by law in Ontario, and brokerages must tell you so. Ask what services are included at each rate.
Do homes sell for less without a real estate agent?
Research, mostly American, tends to find that FSBO homes sell for somewhat less, but the size of the gap is uncertain, and part of it reflects differences between homes and sellers. There are few rigorous Canadian studies.
Do I still pay a buyer's agent if I sell myself?
In Ontario, the seller decides whether to offer a commission to the buyer's agent. Many private sellers do, because otherwise fewer agents may bring buyers.
Is a flat-fee or discount brokerage a good option?
It can be, especially if you're comfortable doing more of the work yourself. Compare exactly what's included, what you'd handle on your own, and what the buyer-agent commission would be.
How do I know if an agent is worth their commission?
Ask for a pricing plan backed by comparable sales, a specific marketing plan, a local track record and every fee in writing. Check their registration with RECO and talk to recent clients.
Want to talk through your own situation?
The Ali Realty Group team is happy to explain commission and your options for buying or selling in Ottawa. Call 613-327-0131 or visit alirealtygroup.com.
So, are real estate agents worth the commission? A good one often is, particularly in balanced markets like Ottawa's, where pricing, presentation and negotiation make a real difference. A mismatched or hands-off one may not be. And for some simple or private sales, you may not need a full-service agent at all.
The best protection is to ask good questions, compare what's included, and get everything in writing. From all of us at Ali Realty Group, we're always happy to earn your trust first.
