How to Save Money Selling Your Home in 2025
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How to Save Money Selling Your Home Without Sacrificing Exposure or Service
Selling a home in Canada has traditionally come with hefty real estate commissions. But in 2025, more sellers are discovering smart, cost-effective ways to reduce these expenses—without losing access to professional marketing, negotiation support, or legal expertise. If you’re planning to sell your home in cities like Toronto, Mississauga, or Vaughan, it’s entirely possible to save money while maintaining full-service support.
This guide will walk you through how to save money selling your home using proven strategies, facts from the Canadian real estate market, and a real-world case study to show exactly how it works.
Why Commission Matters
Understanding the Traditional Commission Model
In most Canadian real estate transactions, the seller pays both the listing agent and the buyer’s agent. The standard commission structure is typically 5%, split between the two agents (2.5% each). On a $1 million home, that amounts to $50,000.
With rising home prices across the GTA, this cost has become a major factor for homeowners looking to preserve equity. Fortunately, you don’t have to accept high commissions as the default.
The Rise of Full-Service, Low Commission Options in Canada
In recent years, Canadians have gained access to real estate brokerages that offer the same core services as traditional agents but charge a lower commission or fixed fee.
Realistic Data: What’s the Market Doing in 2025?
Toronto Average Home Price (Q1 2025): $1,098,000 (TRREB)
Average Selling Commission (Traditional): 5% = $54,900
Average Reduced Commission (2% Flat Fee): $21,960
By using a low commission full-service agent, homeowners in Toronto can save over $30,000—all while benefiting from professional representation.
Case Study – Selling in Mississauga with a Low Commission Agent
Client: Sarah and David Lee
Home Type: 3-Bedroom Detached
Location: Mississauga, Ontario
Sale Price: $1,075,000
Agent Type: Flat Fee Full-Service ($5,900)
Traditional Agent Scenario:
Listing + Buyer’s Agent: 5% = $53,750
Net to Seller: $1,021,250 (before other costs)
Reduced Commission Scenario:
Flat Fee Agent: $5,900 (Buyer’s agent offered 2.5%)
Total Commission: $32,775
Net to Seller: $1,042,225
Total Savings: $20,975
Despite using a lower-cost brokerage, Sarah and David received:
MLS listing
Professional photos and virtual tour
Open house management
Offer handling and legal coordination
Negotiation strategy support
Comparing Traditional vs Reduced Commission Services
| Feature | Traditional 5% Commission | Full-Service Low Commission |
|---|---|---|
| MLS Listing | Yes | Yes |
| Professional Photography | Often Yes | Yes |
| Virtual Tours | Sometimes Extra | Included |
| Staging Advice | Optional | Optional |
| Open House Coordination | Yes | Yes |
| Pricing Strategy | Yes | Yes |
| Negotiation Support | Yes | Yes |
| Legal Paperwork | Yes | Yes |
| Average Cost on $1M Home | ~$50,000 | ~$20,000 or Fixed <$6,000 |
Top Myths About Reduced Commission Agents (Debunked)
Myth #1: You Get What You Pay For
Truth: Many reduced commission agents are experienced professionals who choose leaner business models and digital platforms to cut overhead not service.
Myth #2: You Won’t Get on MLS
Truth: Full-service low commission brokerages in Ontario must list your property on MLS by law if they represent you as the seller.
Myth #3: Other Agents Won’t Show Your Property
Truth: As long as a competitive co-op commission (e.g., 2.5%) is offered to the buyer’s agent, your listing will receive equal attention.
Myth #4: You Have to Do All the Work Yourself
Truth: Unlike FSBO (For Sale By Owner) models, full-service low commission agents handle everything—pricing, showings, paperwork, and negotiations.
Myth #5: It’s Only for Lower-Priced Homes
Truth: In fact, the savings scale with price. Higher-value homes benefit even more from commission reductions.
Benefits & Limitations of Using a Full-Service Low Commission Agent
| Benefits | Limitations |
| Save $10,000–$30,000+ in commission | Not all agents offer the same quality |
| Keep full-service representation | May lack brand recognition |
| Access to MLS and national reach | Local expertise may vary |
| No compromise on negotiation or support | Fewer personalized extras (e.g., staging packages) |
| Transparent, fixed pricing options | Not ideal for ultra-luxury listings |
Questions to Ask Any Reduced Commission Real Estate Agent
Before signing a listing agreement, ask the following to ensure you’re getting value:
What services are included in your fee?
Is professional photography and a virtual tour part of the package?
Will my home be listed on MLS, Realtor.ca, and other syndication platforms?
What buyer agent commission do you recommend offering?
Do you have experience in my neighbourhood or price bracket?
How many homes have you sold in the past 12 months?
What’s your communication and marketing plan?
Do you provide assistance with reviewing offers and legal paperwork?
Current Market Trends Influencing Commission Decisions (2024–2025)
NAR Settlement Ripple Effects
The 2024 National Association of Realtors (NAR) commission settlement in the U.S. has begun to influence Canadian consumer expectations. Many sellers are questioning whether paying 5% is still justified when credible alternatives exist.
Bank of Canada Interest Rates
Current Policy Rate (June 2025): 4.25%
Higher rates are slowing buyer demand in many urban centres, leading sellers to maximize net proceeds by minimizing closing costs—including commissions.
Digital Brokerages Expanding
Tech-enabled firms offering flat-fee, full-service models have grown their presence in major cities like Toronto, Brampton, and Vancouver. Their streamlined processes help reduce unnecessary costs while maintaining seller support.
Increased Seller Education
Sellers today are more informed. Platforms, online calculators, and commission comparison tools have empowered homeowners to seek competitive agent options.
Best Practices to Save Money Selling Your Home
Research Local Agent Models – Look beyond brand name; focus on value.
Use Online Comparison Tools – Sites now let you compare agent fees and success rates in your city.
Negotiate Buyer-Side Commissions – You can choose to offer 2%, 2.25%, or 2.5% depending on local norms and market strength.
Stage Smart, Not Expensive – Use DIY decluttering and virtual staging before paying for full home staging.
Get a Pre-Sale Home Inspection – Avoid surprises that weaken your negotiation position.
Use a Flat-Fee Lawyer – Many Ontario real estate lawyers now offer bundled services at predictable prices.
Real Estate in Toronto vs Other Ontario Cities – Local Snapshot (2025)
| City | Avg Sale Price | Avg DOM (Days on Market) | Standard Commission | Common Flat Fee Offer |
| Toronto | $1,098,000 | 21 days | 5% = $54,900 | $5,900 – $9,500 |
| Mississauga | $1,020,000 | 26 days | 5% = $51,000 | $5,500 – $8,000 |
| Vaughan | $1,280,000 | 23 days | 5% = $64,000 | $6,900 – $10,000 |
| Hamilton | $745,000 | 30 days | 5% = $37,250 | $4,900 – $7,500 |
| Ottawa | $678,000 | 35 days | 5% = $33,900 | $4,500 – $6,900 |
Final Thoughts: Maximize Value Without Overpaying
If you’re preparing to sell your home in 2025, the traditional high-commission model is no longer the only path to success. With the right low commission full-service agent, you can save thousands while maintaining full exposure and professional-grade support.
This is your opportunity to take control of your sale—without compromise.
