Pros and Cons of Low Commission Real Estate Agents 2025

Your home is likely your largest asset—and maximizing the net proceeds from its sale is a smart financial move. Whether you’re selling a detached home in Oakville, a downtown Toronto condo, or a rental property in Mississauga, reducing your transaction costs can make a noticeable difference.

That’s why many sellers explore using low commission real estate agents, who offer reduced fees to list your home. The promise? You save more because they take less. But like anything in real estate, the trade-offs matter.

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1. What’s the Average Real Estate Commission in Canada?

Traditionally, the total commission in Canada ranges from 4% to 5%, depending on the province, market dynamics, and the brokerage.

This fee is typically split:

• 2.5% to the listing agent

• 2.5% to the buyer’s agent

In Ontario, a $900,000 home sale at 5% commission results in $45,000 in fees, which are usually paid by the seller.

However, following recent competition tribunal actions and pressure from online brokerages, Canada’s real estate fee model is evolving. Now, sellers are looking for models that reduce costs—especially in cities like Vancouver, where home prices often exceed $1.5M.

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2. What Is a Low Commission Agent?

A low commission agent lists your property at a reduced rate—typically between 1% to 1.5% for the listing side. Some brokerages offer:

• Flat-fee packages: e.g., $5,000 regardless of sale price

• Tiered pricing based on services or sale price

• Online platforms that automate listing steps to lower agent workload

However, it’s important to understand:
hese agents only reduce their commission. The buyer’s agent commission (often 2%–2.5%) is still commonly paid by the seller to keep the property attractive to buyers.

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3. Are Low Commission Agents Reputable?

Yes—many are fully licensed Realtors operating under recognized brokerages. In Ontario, they must be registered with RECO (Real Estate Council of Ontario) and adhere to the REBBA code of conduct.

But here’s where things vary:

• Some agents reduce fees but maintain service quality

• Others operate on volume-based business models, listing dozens of homes with minimal involvement

Example: In Etobicoke, you may find 1% listing agents who only post your property on the MLS and provide a lockbox—no staging, no marketing, no open houses.

So while being licensed is mandatory, value and service vary dramatically.

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4. How Much Can You Save?

Here’s a detailed breakdown of potential savings:

Keep in mind—these are estimates. Some low commission services charge less but include fewer offerings, so the real question becomes: Does lower commission mean lower performance?

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5. What Are the Risks of Using a Low Commission Agent?

1. Minimal Service Levels

Lower commission agents often manage more clients, which can reduce personal attention. This can lead to:

• Poor communication

• Missed showing opportunities

• Lack of pricing strategy or negotiation expertise

“You get fewer calls returned, less urgency,” says Sale2Sold partner broker Sana Iqbal. “That can cost thousands if a hot buyer loses interest.”

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2. Weak Marketing Exposure

With a reduced fee, expect fewer marketing tools:

Your listing’s exposure directly affects buyer interest and final price.

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3. Risk of Undervaluing

Top agents often price homes based on in-depth local comps, market trends, and buyer demand. A low commission agent may list it too low just to close quickly.

In Scarborough, one home listed at $749,000 sold within 24 hours—later, nearby comps showed the market would have supported $799,000.

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4. Dual Agency Red Flags

If a discount agent represents both buyer and seller, conflict of interest arises. Dual agency is banned in British Columbia, and it limits how much negotiation is truly in your favour.

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5. Deal Breakdowns Due to Inexperience

Post-offer negotiation, inspection issues, or appraisal problems require skilled handling. A discount agent juggling 20+ listings may not have the time—or the training—to salvage a deal under pressure.

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6. What Other Home Selling Options Exist?

A. For Sale By Owner (FSBO)

You skip the agent altogether. You’ll need to handle:

• Pricing

• Marketing

• Showings

• Paperwork

• Negotiation

Only ~6% of Canadian home sales are FSBO, and most sell for significantly less than agent-assisted listings.

B. Flat-Fee MLS Services

These let you post your home on the MLS for a one-time fee (e.g., $500–$1,000), but you do the rest.

C. Sell to a Cash Buyer or iBuyer

Some platforms like Properly or WeBuyHomes.ca offer cash offers, ideal for speed or distressed sales, but often below market value.

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7. What Traditional Agents Offer That Low Fee Agents Might Not

In heated markets like Brampton or Vaughan, strong representation can mean the difference between one offer or multiple bids.

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8. How to Vet a Low Commission Agent

Before signing a listing agreement, do this checklist:

• Check their RECO registration

• Ask for a list of services included

• Request their past 12-month sale stats

• Confirm local market experience

• Look for reviews across Google and Realtor.ca

• Ask how they handle pricing, offers, and repairs

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9. Value Your Investment Through the End

A home is not just another asset—it’s a major contributor to your long-term financial position.

Low commission agents can work well when:

• You’re selling in a hot market

• The property is move-in ready

• You’re confident in pricing and negotiations

But in most cases, especially for first-time sellers or higher-end homes, full-service support delivers stronger outcomes—even if it costs a little more upfront.

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10. Low Commission Real Estate Agent: FAQs

Q: What is the lowest commission a real estate agent can charge in Ontario?
A: There’s no legal minimum. Some offer 1% or flat-fee models.

Q: Are 1% commission agents effective?
A: Some are—but many cut corners on marketing, negotiation, and follow-through. Check credentials and past sales.

Q: Will buyers avoid listings with low buyer’s agent commission?
A: Possibly. Some buyer agents may skip promoting your listing if their cut is lower, even if it’s not ethical.

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Final Thought

Low commission agents might save you money—but only if they also preserve your home’s value, exposure, and outcome. Before you decide, compare both the cost and the return.

If you want the confidence of a modern, tech-powered, low-cost full-service solution, Sale2Sold helps you sell smart, save money, and avoid compromise.

Get a free home valuation today and explore your selling options with Sale2Sold.