Do Home Buyers Pay Commission When Using A Real Estate Agent

Fivewalls: Do buyers pay real estate agent fees in Toronto?

Buyers, Commission, Tips & Advice
Last Updated: Dec 04, 2020

When you’re thinking about buying a house, you’ll probably often hear from people, “use a REALTOR®, it’s free!”

But is that really true? How can you use a REALTOR® to help you purchase a home and not pay for their time or services? We have broken down how real estate commission impact buyers and what you need to know when buying a home.

Real Estate Commissions In Toronto

Typically, in Toronto, the average real estate agent commission is 5% of the final sale price of the home with that being split evenly between the buying agent and the listing agent. Depending on their agreement with their brokerage, the 2.5% they receive may be split again.

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Who Is Paying The 5% Commission?

The total commission will be included in the final sale price of the house, so once you’ve determined the fair market value of your home with your agent, you can multiply the sale price by 5% to determine what amount will be paid out to the agents once the transaction has closed.


$780,000 $39,000 $19,500
$885,000 $44,250 $22,125
$990,000 $55,000 $24,750
$1.1million $55,000 $27,500

Since the commission is already included in the pricing of the home, technically the seller is picking up the tab. In some cases, sellers may not sign an agreement to pay the buyer’s fees, particularly if they are selling their home themselves. If this is the case, the buyer will be picking up their agent’s commission by still paying them a certain percentage of the sale price of the home.

What Exactly Am I Paying My Real Estate Agent For When Purchasing A Home?

realtor, real estate agent, Toronto real estate, who is paying my realtor's commission?, who is paying my agent's commission?, what is the real estate agent commission in Toronto?, average commission in Toronto, top realtors in Toronto, how does real estate agent commission work?, buying a house in Toronto, is it free to use a real estate agent when buying a house?Having a trustworthy real estate agent by your side is a great way to ensure you’re being shown all the properties that suit your needs and you’re getting it for a fair price. Your buying agent can show you properties that haven’t even hit the market yet and if you are moving to a new neighbourhood, they will be able to educate you and show you around. Once you find a home you’d like to see in person, your agent can be the one to ask all the right questions, as well as connect you with experts like home inspectors, contractors, mortgage brokers, and more. Ultimately, they are your support beam and professional confidant who will help you make the right decisions.

How Do I Find The Right Agent For Me?

The most important things to consider are honesty, how much time they will have for you, their local knowledge, their web presence, and what they are going to charge you. Typically, people will reach out to about three different agents and ask them the same questions. After comparing their answers, you should have a good feeling about who you want to work with. If not, interview more!

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When it comes to using a real estate agent to purchase a home, their services are typically paid by the seller unless otherwise stated. The average 5% commission for the buying agent and listing agent will be included in the listing price of the home. At times, finding the right home may take months and therefore having the right REALTOR® working on your behalf is really important, especially for first-time buyers who may not understand the process. Don't be afraid to ask specific questions while you interview different agents so you can find an honest, dedicated, neighbourhood expert to best serve your needs.

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