Offering a 2% Buyer-Agent Commission in a Slow Market: Smart or Risky?

Commission is fully negotiable — never set by law

In Ontario, real estate commission has never been set by law or regulation; the traditional ~5% is just convention, and each side’s commission is negotiable. So setting the buyer-agent commission at 2%, 2.5%, or anything else is your right and choice — there’s no “required” amount.

Post-TRESA, the seller decides the co-operating commission

Per RECO, since TRESA (December 1, 2023), the seller decides whether and how much co-operating commission to offer. If the buyer’s representation agreement (BRA) specifies a higher rate than you’re offering, the buyer may have to make up the shortfall themselves — which can directly dampen their interest in your home.

The risk: buyer agents may show it less

In practice, some buyer agents prioritize homes offering a normal co-operating commission. When your home’s commission is clearly below comparable listings nearby, it can fall down the showing order, reducing exposure and traffic. A slow market is already short on buyers — cutting your own exposure may not pay.

Run the total math: 0.5% saved vs. price possibly lost

Say the home is $1M: cutting the buyer side from 2.5% to 2% saves $5,000 (plus 13% HST). But if that means fewer showings and weaker competition, and the sale price ends up 1% lower ($10,000), you’ve lost. Compare the commission saved against the sale price you might forfeit — not just the rate.

The steadier play: normal commission + strong marketing

In a slow market, rather than shaving the buyer commission to save a little, keep a competitive rate and spend on staging and marketing to widen the buyer pool and create competition. A slow market’s core problem is “too few buyers” — the fix is attracting more, not giving agents fewer reasons to bring their clients.

Is the buyer-agent commission set by law? Can I decide the amount?

No. Ontario real estate commission has never been set by law or regulation; the traditional ~5% (2.5% each side) is just convention and is fully negotiable. You have the right to decide the co-operating commission you offer — 2%, 2.5%, or otherwise.

What changed for buyer commission after TRESA?

Per RECO, since TRESA (December 2023), the seller decides whether and how much co-operating commission to offer. If the buyer’s representation agreement specifies a higher rate than you offer, the buyer may cover the shortfall — which can affect their interest in your home.

Does cutting the buyer commission to 2% really save money?

On the surface yes (about $5,000 on a $1M home, plus 13% HST). But run the total math: if it means fewer showings and weaker competition, even a 1% lower sale price ($10,000) wipes out the saving. Compare the commission saved against the sale price you might lose.

In a slow market, how should I set the commission?

The steadier play is to keep a competitive buyer commission and spend on staging and marketing to widen the buyer pool. A slow market’s core problem is too few buyers — the fix is attracting more, not giving agents fewer reasons to bring clients. If you do cut, assess with local data first.