Understanding real estate commissions
Percentages look small until they are attached to a house price. Here is how to read the number.
Commission is usually quoted as a percentage of the sale price, sometimes with a marketing contribution on top. GST treatment and what “inclusive” means should be in writing.
A useful exercise: convert the percentage to dollars at your expected price, then list the services. If the list is mostly things you can buy by the hour, you have a negotiation — or a reason to look at another model.
This is not legal advice and it is not a claim that any particular agency overcharges. It is a consumer method for reading a fee that the industry prefers to leave bundled.
