The 1% Listing Fee: You Still Pay the Buyer Agent. So Where Are the Savings?
Understand listing-side vs. buyer-agent commission before judging whether a low fee actually nets you more
What does a 1% listing actually mean? Is it really only 1% in total commission?
No. The 1% usually refers only to the listing side; the buyer-agent commission is a separate bill. In Ontario, a seller typically still offers a separate cooperating commission (buyer-agent fee, commonly 2%-2.5% + HST) to attract buyer agents. So a 1% listing saves you on the listing brokerage’s side, not on total commission. Whether it’s worth it depends on which services get cut and how much you net at the end.
Source: One Percent Realty Ontario published fees (2025); commission structure and cooperating-commission rules per TRREB / RECO (2025); US rules per the NAR Settlement (2024)
List for 1% and save half your commission – ads like this are everywhere in the GTA, and they sound great. But whenever a seller brings me one of these plans, my first question is always the same: are you sure that 1% includes the buyer agent’s commission? Nine times out of ten, they can’t answer. The real issue isn’t whether 1% is cheap; it’s whether you understand that commission actually comes in two separate bills: the listing side and the buyer side. Let me pull those two apart, then explain why the 2024 US NAR settlement didn’t change how things work in Ontario.
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Step One: Commission Has Two Sides
A traditional listing commission actually contains two separate payments. Confuse this and everything downstream is wrong.
The listing side
This is what you pay your own listing agent. It covers pricing analysis (a CMA), professional photography, getting onto MLS, marketing, running showings, negotiation, and coordinating the close. In a traditional market this is commonly around 2%-2.5%. A 1% listing is cutting precisely this side, squeezing it down to 1% (One Percent Realty’s model is 1% plus a fixed $950).
The cooperating (buyer-agent) commission
This is the amount the seller chooses to offer the agent who brings the buyer, known in the trade as the cooperating commission. In Ontario this is typically still 2%-2.5% + HST, paid by the seller. Its job is to motivate the whole city’s buyer agents to bring their clients to your home. A discount plan compresses the listing side; this side usually stays the same, and that’s exactly where the ads mislead sellers.
⚠️Before signing a discount plan, get it in writing whether that 1% includes the buyer-agent commission. In the vast majority of cases it does not; you’ll still separately offer roughly 2%-2.5% + HST to the buyer agent, or many buyer agents won’t bring clients.
💡 Example: on an $800,000 home, a 1% listing plan pays the listing agent roughly $8,000 (1%), while the seller typically still offers about 2.5%, or $20,000, to the buyer agent. The half off is the 1%-1.5% saved on the listing side, not the elimination of the buyer-agent commission.
Step Two: What a Discount Model Actually Cuts
Cheaper always has a cost. The question is where the cost lands and whether you can cover it.
Services that often get trimmed
Different discount models cut different things. Commonly simplified or dropped: professional photography/video, home-staging advice, paid marketing exposure, open houses, deep pricing strategy, and most importantly, the negotiation effort and full coordination through closing. Some models are list it and you’re mostly on your own; others keep a basic service and charge extra for add-ons. Ask line by line before you sign.
How to judge whether a low fee actually saves money
Don’t just compare commission percentages; calculate what you net. A poor price or weak negotiation can shrink your sale price by several percent, far more than the 1%-1.5% you saved. The correct math is: (estimated sale price – all commissions – other costs) under each plan. If the discount plan makes the home sell slower and lower, the saved commission can be more than eaten up by the lost sale price.
💡 Evaluation checklist: (1) Does the 1% include the buyer-agent commission? (2) Which services are cut, and which cost extra? (3) Who handles pricing and negotiation, and how experienced are they? (4) In your price band and neighbourhood, what’s their track record on speed and price achieved? Settle these four before debating percentages.
Step Three: Does the 2024 US NAR Settlement Apply in Ontario?
Many people map US headlines straight onto Canada. Here’s where to draw the line.
ℹ️Don’t misread the US buyer commissions eliminated headlines. The 2024 NAR settlement directly governs US MLSs; Ontario/TRREB currently still requires a cooperating commission to be offered on the MLS, and has not made the same systemic change.
The US changed: buyer commission no longer shown on MLS
The NAR settlement (about US$418 million), effective August 17, 2024, brought two core changes: (1) listing agents can no longer advertise the buyer-agent commission on the MLS; and (2) buyers must sign a written representation agreement with their agent before touring a home. Sellers can still pay the buyer-agent commission, but it must be negotiated off the MLS. Note: these rules directly govern US MLSs.
Ontario/TRREB differs: buyer commission is still offered on MLS
In Canada, the rule requiring a seller to offer a (non-zero) cooperating compensation to buyer agents on the MLS currently remains in effect, a key difference from the US. Canada has its own similar class actions; in February 2025, RE/MAX Canada became the first to settle, for about C$7.8 million while denying wrongdoing. But as of now, TRREB and the broader Canadian MLS rules have not made the same systemic change of removing buyer-agent compensation from MLS displays. So you can’t map the US headlines straight onto your GTA home.
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Frequently Asked Questions
Is a 1% listing really only 1% in total commission?
No. The 1% usually refers only to the listing side (what you pay your own listing agent). In Ontario, a seller typically still offers a separate cooperating commission to the buyer agent (commonly 2%-2.5% + HST) to attract clients. On an $800,000 home, the 1% listing is about $8,000, but the buyer-agent commission at 2.5% (about $20,000) is usually still paid.
What’s the difference between the listing-side and buyer-agent commission?
The listing-side commission goes to your own listing agent and covers pricing, marketing, MLS, showings, and negotiation. The buyer-agent (cooperating) commission is offered by the seller to the agent who brings the buyer, to motivate buyer agents across the market to show your home. Discount models usually compress the listing side, while the buyer side is commonly still paid in full.
What services does a low-fee plan cut?
It varies by plan. Commonly simplified or dropped: professional photography, staging advice, paid marketing, open houses, deep pricing strategy, and negotiation/closing coordination. To judge whether it truly saves money, calculate net proceeds (sale price – all commissions – other costs), because losses from mispricing or weak negotiation can far exceed the 1%-1.5% saved.
Does the 2024 US NAR settlement affect selling my home in the GTA?
Not directly. The NAR settlement (effective August 17, 2024) bars US listing agents from advertising buyer-agent commission on the MLS and requires buyers to sign a representation agreement before touring, but it governs US MLSs. Ontario/TRREB currently still requires sellers to offer a cooperating commission on the MLS; Canada has similar litigation (RE/MAX Canada settled for about C$7.8M in February 2025) but has not made the same systemic change.
Arthur Zhao
Real Estate Broker · FRI · ABR · SRS · PSA · MCNE · E-PRO · GUILD Elite
VP & Branch Manager, Bay Street Group Inc.
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