Real Estate Commission Markham Seller: What You Pay and Get
Commission is the largest single cost of selling, and it is negotiable in Ontario. Understanding what it covers and what 4% versus 5% means for your net proceeds is essential.
What is the real estate commission for a Markham seller?
The combined commission in Ontario typically ranges from 3.5% to 5% of the purchase price plus 13% HST, split between the listing and buyer brokerages. On a $1.3M home, the difference between 4% and 5% is about $14,690 in your net proceeds. Commission is negotiable.
Understanding commission structure and what the difference between rates actually means for your net proceeds is essential knowledge for every Markham seller.
How Markham Real Estate Commission Is Structured
In Ontario, the seller pays a combined commission covering both the listing brokerage and the buyer brokerage. It typically ranges between 3.5% and 5% of the purchase price. This is a single amount, agreed in the listing agreement, split between the two brokerages at closing. Your lawyer deducts it from the sale proceeds before remitting your net amount.
On a $1.3M Sale | At 4% | At 5% |
|---|---|---|
Commission | $52,000 | $65,000 |
HST (13%) | $6,760 | $8,450 |
Total cost | $58,760 (4.5%) | $73,450 (5.6%) |
The difference between a 4% and 5% commission on a $1,300,000 sale is approximately $14,690 in your net proceeds.
What Commission Covers
A full-service listing commission covers the CMA and pricing strategy, professional photography and virtual tour, the full MLS listing and digital marketing program, open houses and showing coordination, offer review and negotiation, condition period management, and closing coordination. In a well-run listing, the agent's work span is 8 to 16 weeks from consultation to closing.
Neeraj Moolchandani on value over rate
Commission deserves an honest conversation, but the goal is never simply the lowest number. It is the highest amount that lands in your pocket after the sale.
A strong marketing program that brings more qualified buyers and sharper negotiation routinely returns far more than it costs. We are transparent about the structure and what it delivers.
Discount Agents and FSBO — The Real Cost
Discount brokerages and FSBO options offer commission savings but typically deliver materially lower sale prices. Research consistently shows FSBO properties sell for 5% to 11% below comparable agent-listed properties. On a $1,200,000 home, a 5% underperformance is $60,000 in lost proceeds, far exceeding any commission saving. The commission you pay is an investment in a higher net proceeds outcome, not a cost to be minimized at the expense of the result.
Frequently Asked Questions
Is real estate commission negotiable in Markham?
Yes. The combined commission in Ontario typically ranges from 3.5% to 5% and is negotiable. Discuss the structure with your listing agent before signing the listing agreement.
What does the difference between 4% and 5% commission mean?
On a $1.3M Markham home, it is about $14,690 in your net proceeds. The right comparison is always net proceeds after costs, not the headline rate alone.
Do FSBO homes sell for less in Markham?
Yes. Research consistently shows FSBO homes sell for 5% to 11% below comparable agent-listed properties, which on a $1.2M home is roughly $60,000, exceeding any commission saving.
Your Markham Home Deserves a Precise Valuation
Michael John Lau and the Kaizen Real Estate Team deliver a professional, data-driven Comparative Market Analysis built from the actual sold data moving today's Markham market. No automated estimate. No obligation. Just the honest number you deserve.