How Much Are Real Estate Fees?

About this video

Kirby Chan, Broker, of Kirby Chan & Co. Real Estate Team explains how real estate commission actually works for sellers in Markham and Richmond Hill and what the fee pays for.

Many sellers focus on saving commission, but Kirby argues the real question is the net result after the sale. He looks at how pricing strategy, marketing, negotiation and buyer psychology shape that outcome.

The fees that are fixed and the one that is not

Some costs of a move are set by statute and some are agreed between people. It helps to know which is which.

Land transfer tax is fixed. Ontario charges it on the home you buy, in brackets and Markham sits in York Region so there is no municipal land transfer tax on top. A buyer inside the City of Toronto pays a second tax of comparable size. On a $1,095,000 purchase the Ontario tax is $18,375. Our post on land transfer tax in Markham works through the brackets.

Closing costs are largely fixed. The Financial Consumer Agency of Canada suggests being prepared to spend between 1.5 and 4 per cent of the purchase price on them. That covers legal fees, title insurance, adjustments and the provincial sales tax on any mortgage default insurance premium. Our closing costs guide itemises them.

Commission is agreed, not set. It is written into the listing agreement between a seller and a brokerage, so it is a conversation rather than a rate card. What matters more than the number is understanding exactly what it buys and what happens if the home does not sell.

If you want the real figures on a specific Markham or Richmond Hill property before you commit to anything, our sellers page explains how we work through them with you.