How Our 1% Commission Works — Real Estate Commission Explained
Understand exactly how real estate commissions work and how Modern Solution Realty saves you thousands. We charge just 1% listing commission compared to the traditional 2.5%, while providing the same full-service experience.
How Real Estate Commission Is Split
When you sell a home, two agents are involved: the listing agent (who represents you, the seller) and the buying agent (who represents the buyer). Each agent receives a commission.
- Modern Solution Listing Fee: 1% — compared to the traditional 2.5%
- Buying Agent Fee: Typically 1-2.5%, offered by the seller to attract buyers
Commission Savings Example
On an $800,000 home: Traditional commission (2.5%) = $20,000 listing fee. With Modern Solution (1%) = $8,000 listing fee. You save $12,000.
Commission FAQ
What is the typical real estate commission in Ontario?
Traditional real estate brokerages typically charge 2.5% listing commission plus 2.5% buyer agent commission, totaling 5% of the sale price. On a $1,000,000 home, that's $50,000 in total commission. Modern Solution charges just 1% listing commission.
How does 1% commission compare to traditional fees?
On a $1,000,000 home sale, traditional 2.5% listing commission costs $25,000. With Modern Solution's 1% commission, you pay just $10,000 — saving $15,000. Over the years, we've saved our clients $20,150,000+ in commission fees.
Do I still get full service with 1% commission?
Yes. Modern Solution provides full MLS listing, professional photography, virtual tours, marketing on Realtor.ca and all major platforms, open houses, showing management, expert negotiation, and complete support through closing — all for just 1% commission.
Why is Modern Solution able to charge only 1%?
We use technology and efficient processes to reduce overhead while maintaining high-quality service. Our high volume of transactions allows us to pass savings directly to our clients.
Are there any hidden fees?
No. Our 1% listing commission is transparent and all-inclusive. There are no hidden administrative fees, marketing surcharges, or surprise costs. What you see is what you pay.
How have real estate commissions changed over time?
Real estate commissions in Canada have grown 440% over 33 years, while median household income has not kept pace. The traditional 5-6% commission structure is increasingly seen as outdated, which is why Modern Solution offers a fair 1% alternative.