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Nov 29, 2018reading time icon7 min

How much does it cost to work with a real estate agent in quebec?

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How much does it cost to work with a real estate agent in quebec?
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Real estate brokers do much more than just helping you find a new home; they act as crucial advisors and adept negotiators, assisting you through each stage of buying or selling. It's only fair to compensate these professionals for their expertise and support. 

Real estate agents, often referred to as real estate brokers, commonly receive their income in the form of commissions, which are a percentage of the property's final sale price. This article will delve into the reasons behind the variability of commission percentages and examine the potential for negotiation in this aspect. 

Working with a broker: beyond mere price considerations!

Encountering the total commission amount might prompt some to consider alternatives like selling or buying without an agent. However, basing such a decision solely on cost overlooks the significant value a real estate broker brings beyond just their commission

Certainly, when it comes to partnering with a real estate agent in Quebec, their experience, market expertise, and the added protection they offer throughout the process stand out as the most compelling benefits. Naturally, compensating the agent for their efforts is essential to access these advantages! 


How does a real estate agent's salary work?

In Quebec, a real estate broker's income predominantly comes from commissions, which are determined by market competition rather than regulated by law or the Real Estate Brokerage Act.  

These commissions usually reflect a percentage of the property's sale price and are negotiated between the broker and their client. This setup offers flexibility and enables adjustment to market conditions and individual circumstances. 

What percentage of a commission does a real estate broker earn in Quebec?

In Canada, particularly in Quebec, the standard commission percentage for a real estate broker typically falls within the range of 4% to 7% of the sale price. For instance, for a house valued at $250,000, this would equate to approximately $10,000 to $17,500 in commission fees. 

Here is a comparison table with examples of commissions ranging from 4% to 7% per transaction: 

Value of the property4%5%6%7%

Bear in mind that while the typical commission percentage in Quebec ranges from 4% to 7%, some brokers may charge higher or lower amounts based on the services provided. Additionally, factors like signing an exclusive mandate, an option offered by some real estate brands, can also influence the commission percentage charged. 

Taxes to pay

Remember, taxes like GST and QST are applicable to the amount transferred to the broker. Be sure to factor them into your calculations to accurately determine the total real estate commission you'll owe. 

What fees are paid by the real estate broker?

It's crucial to clarify that the entire commission amount paid doesn't go directly to the broker. It covers various expenses, including a portion allocated to the brand they represent. Additionally, brokers bear costs such as: 

  • Advertising ; 

  • Photos ; 

  • Insurance; 

  • Employees; 

  • Office rental fees. 

House for sale

What kind of commission does a commercial real estate broker earn?

If your real estate transaction leans towards a commercial nature, it's entirely reasonable to also inquire about this aspect.  

Despite their distinctions, a commercial real estate agent's commission resembles that of a residential broker. You might encounter a similar percentage expectation. Additionally, negotiating compensation before signing the brokerage contract is a viable option. 

Who pays the real estate broker's commission?

In a real estate transaction, the seller typically bears the responsibility of paying the commission for both brokers involved. Therefore, the buyer’s broker and the seller’s broker each receive an equal share of the agreed-upon percentage. Neither party receives the full amount independently. 

While the commission rate you agree upon with the broker is usually negotiable, it's wise not to negotiate excessively, as you want to establish a positive rapport with the broker from the outset. Finding a balance ensures a mutually beneficial relationship. 

Consider all the fees the broker must cover and the extent of the work required to sell your property. If you believe there's room for negotiation, you can present the broker with an offer. However, it's crucial to remain flexible, open, and understanding throughout the negotiation process. 

Ultimately, rather than negotiating with a single broker, it might be advantageous to compare offers from multiple brokers. This approach allows you to gain insight into various services, fees, and commission rates, empowering you to make a well-informed decision. 

Does working with a real estate agent from a major real esate company more expensive?

To join one of the major real estate companies, which may have global networks or be exclusive to Quebec and Canada, agents must pay a franchise fee. This fee varies depending on the packages offered, which could include percentages or monthly fees, and typically includes access to services and a level of supervision from the company. 

In the past, franchise fees could be quite steep, but due to increased competition, rates have generally been reduced. As a result, there's often little price discrepancy for a real estate agent affiliated with a franchising company

However, if you notice significant price differences between agents, it's important to ensure that each is offering comparable services. Some agencies may advertise very low rates, around 2 or 3%. Yet, it's crucial to verify whether these lower rates include the same level of service and support as those charging 4 or 5%. 

Dollar sign in notebook

Are brokers' commission rates going up or down?

In recent years, commission rates have been on a downward trend, influenced by factors such as increased competition and the ever-changing dynamics of the market. 

Approximately 35% of Quebec residents opt to sell their properties without the assistance of a broker, prompting agents to offer competitive rates to dissuade individuals from going the DIY route. 

So, is it advisable to enlist the services of a real estate broker when buying or selling your home? Ultimately, the decision rests with you! To make a well-informed choice, it's essential to thoroughly assess all available options. 

Are you looking for a real estate broker?

XpertSource.com can help you in your efforts to find a real estate broker. By telling us about your project, we will refer you to top-rated experts, free of charge! Simply fill out the form (it only takes 2 minutes) and you will be put in contact with the right experts.

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