Understanding Real Estate Commissions in Ottawa

When you're buying or selling a home in Ottawa, one of the most common questions is: How do real estate commissions work? Whether you're a first-time homebuyer, an experienced investor, or getting ready to sell your family home, understanding how commissions are structured can help you make informed financial decisions.

Here’s a clear breakdown of how real estate commissions typically work in Ottawa.

What Is a Real Estate Commission?

A real estate commission is the fee paid to real estate agents for their services in facilitating a property transaction. This fee is usually a percentage of the home’s final sale price and is paid by the seller upon closing.

How Much Is the Commission in Ottawa?

In Ottawa—and throughout Ontario—there is no fixed or mandated commission rate, but a common industry standard is:

5% of the final sale price, typically split this way:

• 2.5% to the listing agent (representing the seller)

• 2.5% to the buyer's agent (representing the buyer)

However, these rates are negotiable. Some agents may offer lower commission rates, especially for higher-priced homes, or provide flexible packages based on the level of service offered.

How Is the Commission Split?

Let’s say you sell your home for $700,000 at a 5% commission:

• Total commission = $35,000

• $17,500 goes to the listing brokerage

• $17,500 goes to the buyer’s brokerage

Each agent then receives a portion of their brokerage’s share after the brokerage takes its cut (which varies by agency).

Who Pays the Commission?

In most cases, the seller pays the full commission out of the proceeds of the sale. Buyers typically don’t pay commission directly to their agent—though it's technically factored into the purchase price.

Can You Negotiate the Commission?

Absolutely. Real estate commissions in Ottawa are negotiable. Sellers can discuss fees and services with their agent before signing a listing agreement. Here are some factors that might influence commission rates:

• Price of the home

• Market conditions

• Marketing strategies

• Whether the agent is representing both buyer and seller (dual agency)

• The level of service included (e.g., staging, professional photography, etc.)

Some agents offer discounted commissions or flat fee services, especially in competitive markets or for high-value properties.

What About FSBO (For Sale by Owner)?

Some sellers choose to go the For Sale by Owner (FSBO) route to avoid paying commission. However, even in FSBO transactions, sellers often agree to pay a cooperating commission (usually 2–2.5%) to the buyer’s agent to encourage showings.

Key Takeaways

• Real estate commissions in Ottawa are typically around 5% of the sale price, split between the buyer’s and seller’s agents.

• The seller usually pays the commission, which is deducted from the sale proceeds at closing.

• Commission rates are negotiable—you’re not locked into a set fee.

• It’s important to ask your agent what’s included in their fee and how they plan to market your property.

How is Equity One different?

We are a full-service brokerage that charges less. You can learn about our selling services here.