Worked Examples and Checklists
Full-service realtor, flat-fee MLS or private sale: which costs less in Canada?
A worked cost comparison of a full-service listing, a flat-fee MLS listing and a private sale in Canada, with the break-even price difference and a decision checklist.
A private sale or a flat-fee MLS listing saves most or all of the listing-side commission, but not necessarily the buyer-side commission, and it shifts pricing, marketing, showings and negotiation onto you. Whether it is cheaper overall depends on one number: how much lower your sale price would have to be to wipe out the saving. On an $800,000 sale in Ontario, moving from a 4% full-service listing to a flat-fee listing that still offers 2% to the buyer side saves roughly $14,000 to $16,000; if handling the sale yourself costs you more than about 2% on price, the saving disappears.
This comparison is part of Worked Examples and Checklists. For a side-by-side table of all options, see the compare page. Figures are illustrative.
The three models
| Full-service listing | Flat-fee MLS listing | Private sale (FSBO) | |
|---|---|---|---|
| Who prices the home | Agent, with your approval | You (some offer a price opinion for extra) | You, or a paid appraiser |
| MLS exposure | Yes | Yes | No (private sites and signs only) |
| Showings and open houses | Agent | You | You |
| Offer negotiation | Agent | You, or extra fee | You |
| Paperwork | Agent's forms, then your lawyer or notary | Your lawyer or notary, sometimes the brokerage's forms | Your lawyer or notary |
| Buyer-side commission | Usually offered from your commission | Usually offered by you | You may be asked to pay it by a buyer agent |
| Cost | Percentage or tiered rate plus tax | Fixed fee plus buyer-side offer plus tax | Advertising, legal, possibly buyer-side fee |
Flat-fee MLS listings became possible after the Competition Bureau's 2010 agreement with CREA, which confirmed that the services a realtor provides are for the realtor and client to agree.
Worked comparison on an $800,000 Ontario sale
| Item | Full service (4%) | Flat fee + 2% buyer side | Private sale, buyer has an agent at 2% | Private sale, unrepresented buyer |
|---|---|---|---|---|
| Listing side | $16,000 | $1,500 flat fee | $0 | $0 |
| Buyer side | $16,000 | $16,000 | $16,000 | $0 |
| HST 13% | $4,160 | $2,275 | $2,080 | $0 |
| Photos, signs, advertising | Included | $800 | $1,200 | $1,200 |
| Lawyer review of offer | Usually not needed | $500 | $800 | $800 |
| Total | $36,160 | $21,075 | $20,080 | $2,000 |
| Saving vs full service | — | $15,085 | $16,080 | $34,160 |
The break-even question
Divide the saving by the price to see how much lower the sale price could be before the option costs you more:
- Flat fee: $15,085 / $800,000 = 1.9%, about $15,000 lower price
- Private sale, buyer represented: $16,080 / $800,000 = 2.0%
- Private sale, buyer unrepresented: $34,160 / $800,000 = 4.3%
If you are confident you can price, market and negotiate within those margins, the cheaper route makes sense. If not, a full-service agent may pay for themselves through a higher price or better terms. There is no reliable public data on whether private sales sell for less, so be wary of anyone who quotes a figure.
Hidden costs and risks of selling yourself
- Pricing. Underpricing loses money; overpricing makes the home sit and invites lower offers. Consider a paid appraisal.
- Contract terms. Conditions, deposit size, closing date, what is included, and what happens if the buyer's financing fails. Have a lawyer or notary review before you sign anything.
- Disclosure. Misrepresenting the property can lead to a claim after closing. In Quebec, the legal warranty of quality applies unless excluded, and sellers using a broker complete a declarations form.
- Safety and time. You arrange showings and answer calls.
- Buyer-side fee. Many buyers have agents who will ask you to pay their fee. Decide in advance what you will offer.
Decision checklist
- Is your local market active, with comparable sales you can study?
- Do you have time for showings and calls for several weeks?
- Are you comfortable negotiating price and conditions face to face?
- Do you have a lawyer or notary ready to review offers quickly?
- Have you decided what to offer a buyer's agent?
- Can you price the home within about 2% of market value?
- Is the saving still worth it after the break-even calculation above?
If you answered no to two or more, a full-service or reduced-commission listing is likely the safer option. If you choose a full-service agent, use the negotiation checklist.
Frequently asked questions
Can I list on REALTOR.ca without an agent?
Only through a licensed brokerage. Flat-fee listings use a brokerage to post the listing; the level of service is set in the agreement.
Do I have to pay a buyer's agent if I sell privately?
No law requires it, but buyer agents may ask you to pay their fee, or their client may make the offer conditional on it. Decide case by case.
Is a private sale riskier in Quebec?
The rules are the same for everyone, but without a broker you have no seller's declarations form prepared with professional help. Bring in a notary early to draft the promise to purchase or review the buyer's.
Can I switch from a private sale to an agent later?
Yes. Buyers you introduced yourself can be excluded from the listing agreement if you name them in writing.
Sources
- Competition Bureau Canada — 2010 agreement with CREA and current investigation
- Real Estate Council of Ontario — what licensed brokerages must do
- OACIQ — buying or selling without a broker in Quebec
- Chambre des notaires du Québec — notaries in private sales
