Introduction: Why It’s Important to Understand Realtor Roles & Commissions
What Real Estate Agents Really Do & How They Get Paid. When buying or selling a home in the Greater Toronto Area (GTA)—particularly in cities such as Brampton, Mississauga, or Oakville—collaborating with a licensed real estate agent can simplify the process. However, do you truly understand their role and how they are compensated?
Whether you’re searching for the best realtor in Brampton or a top real estate agent in Mississauga, this guide provides a comprehensive breakdown of:
- What Real Estate Agents Actually Do
- How Realtors Earn Their Income
- How Realtor Commissions Work in Canada
What Does a Real Estate Agent Do?
A real estate agent in Canada serves as your advocate during property transactions. They manage much more than just showings and paperwork. Their primary objective is to assist you in buying or selling a property to achieve the best possible outcome.
Key Responsibilities of a Realtor
- Market Analysis: Evaluate Home Values Based on Recent Sales and Trends
- Property Marketing: List homes on the MLS, manage open houses, and utilize digital tools.
- Buyer Representation: Schedule viewings, draft offers, and provide local insights.
- Contract Management: Manage all legal documentation and ensure compliance with regulations.
- Negotiation: Secure the best deal for clients, whether they are buying or selling.
- Trusted Referrals: Connect Clients with Mortgage Brokers, Home Inspectors, and Lawyers
If you’re looking for a list of real estate agents in Brampton, be sure to consider their expertise in these areas.
How Do Realtors Get Paid?
Unlike salaried employees, real estate agents do not receive a fixed wage. Instead, they operate on a commission-based system, which means they are compensated only when a real estate transaction is successfully completed.
In Canada, realtors typically operate under the supervision of a real estate broker, who oversees transactions and ensures compliance with legal regulations. The commission earned is generally divided between the buying and selling agents, as well as their respective brokerages.
How Realtor Fees and Commissions Work (Ontario-Specific)
1. What is the Average Realtor Commission?
In Ontario, commission typically ranges from 4% to 5% of the final sale price. This total is shared between:
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Seller’s Agent (Listing Agent)
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Buyer’s Agent
For example, on a $1,000,000 home with a 5% commission, the fee would be $50,000—split equally at 2.5% per agent.
2. Who Pays the Commission?
- Sellers Pay: The seller usually pays the full commission.
- Buyers Benefit: The buyer’s agent gets paid from the seller’s side—so it’s typically free for buyers.
3. How Is Commission Split?
A typical commission split looks like this:
- Seller’s Agent (Listing Agent): 2.5%
- Buyer’s Agent: 2.5%
Each agent then shares their commission with their brokerage. For example, if an agent earns $25,000 from a sale, they may need to give a portion (e.g., 30-50%) to their brokerage, depending on their agreement.
Realtor vs. Real Estate Agent vs. Broker: Know the Difference
Many people use the terms realtor and real estate agent interchangeably, which is fair. They can be used to address the same person because the different between the titles is inconsequential. But for the sake of knowledge, the difference is as follows:
- Real Estate Agent: Someone who has obtained a real estate license and is legally allowed to buy, sell, and lease properties.
- Realtor: A real estate agent who is a member of the Canadian Real Estate Association (CREA) and adheres to a strict Code of Ethics. Every agent is now required to be part of a Regional Real Estate Board, like the Toronto Regional Real Estate Board (TRREB), to help with transactions, inadvertently joining CREA. Thus, any agent can be addressed as a Realtor.
- Real Estate Broker: A licensed professional with additional qualifications who can own or manage a brokerage and oversee other agents.
If you’re searching for RE/MAX Brampton agents or the best realtor in Mississauga for rentals, understanding these distinctions can help you choose the right professional.
How to Choose the Best Real Estate Agent in Brampton, Mississauga, or the GTA
Key Qualities to Look For:
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Proven track record of sales
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Strong local knowledge of GTA neighborhoods
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Excellent communication & responsiveness
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Solid online presence and reviews
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Skilled in negotiation & marketing
If you’re looking for top real estate agents in Brampton, Mississauga, Vaughan, or Oakville, do your research and schedule consultations before making a decision. Check out our full guide on how to choose the right realtor in the Toronto
Must-Have Real Estate Tools for Buyers & Sellers
Here are trusted apps and websites to make your real estate journey easier:
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Realtor.ca: Canada’s official listing portal
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Zillow & Redfin: Great for property comparisons
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Remax.ca: To connect with local RE/MAX experts
Frequently Asked Questions (FAQs)
1. Do Buyers Pay Realtor Fees in Ontario?
No. In most transactions, the seller pays the total commission, which is split between both agents.
2. Is It Worth Hiring a Real Estate Agent?
Yes. A professional agent saves you time, money, and stress—especially when it comes to negotiation, paperwork, and legal compliance.
3. How Much Do Real Estate Agents Make in Ontario?
It depends on sales volume and commission split with their brokerage. Top-performing agents can earn six figures or more annually.
4. What Should I Look for in a Brampton Real Estate Agent?
Local experience, positive client reviews, and strong negotiation skills are key. Look for someone who knows Brampton neighborhoods like Heart Lake, Fletcher’s Meadow, and Credit Valley.
Final Thoughts About What Real Estate Agents Really Do & How They Get Paid
Real estate agents play a vital role in buying and selling homes, offering expertise, marketing strategies, and negotiation skills to ensure successful transactions. Understanding how realtor commissions work, the difference between a real estate agent and a realtor, and how realtor fees are structured can help you navigate the process with confidence.
If you’re looking for the best realtor in Brampton, Mississauga, or the GTA, reach out to Savith Geevarghese Mankidy for expert guidance on your real estate journey!
