A real estate agent’s commission is a hot topic, but oh so important. If you’re thinking of buying or selling a property in Quebec, you’re probably asking yourself all sorts of questions: “How much will I have to pay in commission?” “Is it worth going through an agent? Can I negotiate the commission?
While many see commission as an expense that eats into profit, others see it as a strategic investment that not only accelerates the sale, but also maximizes the property’s ultimate value.
It all depends on how you use your real estate agent’s expertise!
- To take the mystery out of real estate commission, this comprehensive guide provides clear answers to all your questions about real estate agent commission in Quebec.
How much does a real estate agent earn in Québec?
A real estate agent’s commission is the remuneration he receives for his brokerage services. For the purchase or sale of a property, the commission is calculated as a percentage of the final sale price.
For example:
- A sale in Joliette sold for $437,400.
- If the commission rate is set at 5%.
- The commission amounts to $21,870.
Before you panic, you need to understand what this really means. In reality, this commission covers much more than just a fee.
It includes all the behind-the-scenes work, from promoting your home to managing viewings, via the often complex negotiations, to ultimately obtaining the best price. A good real estate agent puts his or her network, market expertise and ability to attract serious buyers at your disposal.
Is a real estate agent's commission on an upward or downward trend?
You’d think the trend would be upward, but surprisingly, it’s not. In recent years, agent commissions have tended to fall.
Why?
- The emergence of online platforms
- Intensifying competition
- Dynamic real estate market
And that’s not all! As sellers become increasingly informed, they no longer hesitate to compare offers and try to negotiate rates.
For their part, agents are adapting as best they can to this new reality. Some are offering à la carte services or reduced commissions to attract a more budget-conscious clientele.
However, this comes at a cost. We mustn’t forget that these reductions are necessarily accompanied by a reduction in the services offered, which can potentially slow down the sale or affect the final price of the transaction.
How do you calculate a real estate agent's commission in Québec?
Calculated at the notary’s office when the official deed of sale is signed, the formula is very simple. Simply multiply the commission rate agreed between the seller and the real estate agent in the brokerage contract by the final sale price of the property.
Formula :
Commission = Final sales price x Commission rate
To illustrate this formula, here are a few examples:
Example of commission #1:
Property: $275,000
Commission rate: 5.5
275 000 $ x 5,5 % = 15 125 $
Sample commission #2:
Property: $690,000
Commission rate: 4.75
690 000 $ x 4,75 % = 32 775 $
Sample commission #3:
Property: $930,000
Commission rate: 5%.
930 000 $ x 5 % = 46 500 $
What is the average real estate commission rate in Quebec in 2025?
To give you a quick answer, the average rate is set at 5%. However, this average hides a more nuanced reality.
- In Quebec, rates ranging from 4% to 6% are common.
- Some agencies even offer lower rates, around 3%, to attract customers, while others, offering a more complete and personalized service or sophisticated marketing tools, charge up to 7%.
Commission rates are not fixed! However, the commission rate must be assessed in relation to the services provided. In any case, keep in mind that a rate of 5% is totally realistic and an excellent starting point.
What factors influence commission rates?
To better understand the price of commission and what you’re paying for, it’s a good idea to take a look at the factors that influence commission rates.
What are they?
- Property type
- Location
- Sales complexity
- Additional services included
Since every transaction is unique and shaped by a variety of elements, from location to agent experience, you’ll be better prepared if you stay informed.
How much does a real estate agent's commission cost in Québec?
Setting an agent’s commission starts with a percentage. However, to better understand this commission in monetary terms, let’s look at a few concrete examples based on different sales prices.
Here is an illustrative table of commissions at different selling prices:
|
Price list |
Commission rates Quebec |
|||
|
4 % |
5 % |
6 % |
7 % |
|
|
250 000 $ |
10 000 $ |
12 500 $ |
15 000 $ |
17 500 $ |
|
300 000 $ |
12 000 $ |
15 000$ |
18 000 $ |
21 000 $ |
|
350 000 $ |
14 000 $ |
17 500 $ |
21 000 $ |
24 500 $ |
|
400 000 $ |
16 000 $ |
20 000 $ |
24 000 $ |
28 000 $ |
|
450 000 $ |
18 000 $ |
22 500 $ |
27 000 $ |
31 500 $ |
|
500 000 $ |
20 000 $ |
25 000 $ |
30 000 $ |
35 000 $ |
|
550 000 $ |
22 000 $ |
27 500 $ |
33 000 $ |
38 500 $ |
|
600 000 $ |
24 000 $ |
30 000 $ |
36 000 $ |
42 000 $ |
|
650 000 $ |
26 000 $ |
32 500 $ |
39 000 $ |
45 500 $ |
|
700 000 $ |
28 000 $ |
35 000 $ |
42 000 $ |
49 000 $ |
|
750 000 $ |
30 000 $ |
37 500 $ |
45 000 $ |
52 500 $ |
|
800 000 $ |
32 000 $ |
40 000 $ |
48 000 $ |
56 000 $ |
|
850 000 $ |
34 000 $ |
42 500 $ |
51 000 $ |
59 500 $ |
|
900 000 $ |
36 000 $ |
45 000 $ |
54 000 $ |
63 000 $ |
|
950 000 $ |
38 000 $ |
47 500 $ |
57 000 $ |
66 500 $ |
|
1 000 000 $ |
40 000 $ |
50 000 $ |
60 000 $ |
70 000 $ |
When considering selling your property with a real estate agent, it is strongly recommended that you take the time to compare several reputable real estate agents in your area and compare their commission rates.
This will not only enable you to find the best value for money, but also to choose an agent whose experience and services match your expectations.
By doing your due diligence, you ensure that you maximize your return on investment and facilitate the transaction process.
Examples of real estate commissions in Québec
You can never have too many examples! That said, here are 4 examples of recent transactions in the province of Quebec:
Laurentian Chalet
Selling price: $649,500
Commission rate: 5%.
Commission: $32,475
Condo Brossard
Selling price: $410,100
Commission rate: 4.75
Commission: $19,479
House Blainville
Selling price: $1,390,000
Commission rate: 5.25
Commission: $72,975
Quebec House
Selling price: $539,900
Commission rate: 5%.
Commission: $26,995
Why do I have to pay a commission to an agent to sell a property?
Paying a commission to a real estate agent for the sale of a property isn’t just another expense, no. It’s a strategic investment. It’s actually a strategic investment.
Beyond simply putting your property up for sale, a real estate agent brings unrivalled expertise to the table.
- Accurate property valuation
- Innovative marketing strategies
- Defending the customer's interests
- Professional negotiation
- Insurance and compliance
An agent has a network of potential buyers and contacts in the field. He or she takes care of visits, paperwork and administrative formalities, freeing you from these tasks.
Yes, the commission you pay may translate into a higher sales price, but the service and benefits you receive more than justify this cost.
How can you justify paying a commission when you can sell without an agent?
Just as you can decide to cut your own hair, floss every day or try to fix your leaky toilet, you’ll never replace a hairdresser, dentist or plumber.
Do you see what we’re getting at? Even if several platforms are available to help you sell your property without hiring an agent, the work will never be done with the same rigor and quality.
The time, knowledge and expertise a real estate agent puts at your disposal cannot be replaced.
So, if you’re wondering what justifies the commission, think of your neighbor who wanted to sell on her own, and had to resign herself and call in an agent after 3 months to finally get things moving.
Who pays the real estate agent's commission between buyer and seller?
In Quebec, unless otherwise specified, the seller pays the commission. Why the seller? Well, it’s the principle of the pendulum swinging back. Here are a few explanations:
- When you buy a property, you don't have to pay any commission fees.
- When you sell, you benefit from most of the brokerage services: appraisal, advertising, visits, and so on.
- It's also the seller who makes the profit.
- Once the sale is closed, the agent representing the seller shares his commission with the agent representing the buyer.
Even if it’s the seller who pays the commission, the benefits are passed on to the entire transaction, making the process advantageous for both parties.
What’s more, this cost is factored into the property’s sale price!
Is the commission rate negotiable?
In Quebec, real estate agent commission rates are negotiable, but not without consequences.
So if you decide to ask for a reduction in commission, don’t be surprised if the agent hesitates, lowers his level of service or refuses to negotiate.
A good real estate agent knows his value and the services he offers in return for this commission. Reducing his fees could mean investing less in marketing your property, organizing fewer visits or providing less comprehensive support in the sales process.
The commission remunerates not only the agent’s time and effort, but also his or her expertise, network and ability to maximize the value of your property. If you want to work with a quality agent, it’s often best to accept a fair rate, as you may get a better return on your investment.
What services are included in the real estate brokerage service?
The services included in a real estate brokerage contract are numerous. Here is a non-exhaustive list:
- Property valuation
- Development of a customized marketing strategy
- Communications management
- Tour organization
- Negotiating bids
- Administrative and legal management
- Support through to closing the sale
While maximizing your property’s potential on the local market, these services aim to simplify and secure the sale of your property.
What fees does the real estate agent pay?
When you sign the brokerage contract, it’s easy to focus solely on the commission he earns.
However, it’s important to remember that this commission covers a series of costs that the agent himself must bear to ensure a successful sale. Here’s an overview of these costs:
- Advertising
- Professional photo shooting
- Creation of a promotional video
- Professional liability insurance
- Assistant's fees
- Agency fees
- Transport costs
- Office rent
- And much more
The commission is not only a remuneration, but also a guarantee of quality and services offered to simplify your life.
Is the real estate agent's commission taxable?
Absolutely! In Quebec, real estate commissions are subject to sales taxes.
When you sell a property and pay a commission to your agent, you will also have to pay the GST (5%) and the QST (9.975%) on the commission amount.
- For example, if you agree on a commission of $15,000, you'll need to add $2,246.25 in taxes, bringing the total to approximately $17,246.25.
As with all other professional services in Quebec, the agent’s commission is taxable. The real estate agent is required to collect these taxes and remit them to the government.
How much commission does a real estate agent earn?
To better understand the cost of real estate commissions, it’s useful to look at some concrete examples of how these amounts translate into real figures.
Without further ado, let’s take a look at two typical sales scenarios in Quebec to better understand how a real estate agent’s commission varies.
Real estate agent : Maxime
Final sale price: $438,000
Commission rate: 5%.
Commission with taxes: $25,179.52
Commission (50%) = $12,589.76
Deductions :
Sales taxes: $1,639.76
Agency fee: $500
Marketing fee: $500
Tax provision (40%): $4,380
Actual commission: $5,570
Real estate agent : Alexandrine
Final sale price: $743,000
Commission rate: 4.75
Commission with taxes: $35,292.50
Commission (50%) = $17,646.25
Deductions :
Sales taxes: $2,298.35
Agency fee: $500
Marketing costs: $600
Provision for income taxes (40%): $6,139
Actual commission: $8,109
Surprised by the results? While the commission may seem high to some, it’s important to remember that an agent is self-employed.
What does this mean? In addition to having to divide the commission, generally equally, between the seller’s agent and the buyer’s agent, several expenses are deducted from the initial commission received.
Why working with a real estate agent isn't just about commission?
Working with a real estate agent is more than just paying a commission: it’s an investment in expertise and support throughout the sales process.
A good agent does more than post your ad online and wait for phone calls. He’s proactive and guides you every step of the way, from the precise evaluation of your property to the final signature at the notary’s office.
If you make the mistake of relying solely on the commission rate, you’ll get the level of service that goes with it. And you’re likely to be disappointed.
Unfortunately, you can’t have it both ways. What you pay goes far beyond the commission!
Sell or Buy - Compare 3 of the best real estate agents in your area
Whether you’re looking to buy or sell, comparing the services of several real estate agents is a winning approach.
- Fill in the Clic Agents form to be put in touch with 3 of the most reputable real estate agents in your area.
This is your opportunity to evaluate their approach, commission rates and proposals, free of charge and with no obligation.
