That little symbol is doing a lot of work.
What the 1% Usually Refers To
In most cases, the 1% does not mean the total cost of selling a home. It usually applies only to the listing side of the transaction, not the full commission structure.
In Canada, most real estate transactions involve two sides:
- A listing brokerage commission
- A buyer brokerage commission
As a result, the buyer side may not appear in the headline number. However, the seller may still pay it as part of the listing structure.
So that “1%*” can quickly become:
- 1% for the listing side
- Plus a buyer brokerage commission
- Plus HST
- Plus any extra fees, marketing charges, or service limits in the fine print
None of this is automatically wrong. However, it changes the math.
Common Conditions Behind the Asterisk
The asterisk usually signals requirements. Some relate to fees. Others relate to service, timing, or how the brokerage runs its model.
1) Limited Marketing and Reduced Services
One common reality behind “1%*” programs is that the brokerage may limit the marketing or service included in the base fee.
Depending on the brokerage and program, that can include:
- Reduced or basic photography
- Minimal staging guidance, or no staging included
- Limited advertising spend
- Fewer open houses or showing support options
- Less hands-on pricing strategy and negotiation time
- Shorter listing timelines or stricter listing terms
- Menu pricing for upgrades that many sellers assume come standard
This is not a judgment. It is simply how some models work. Therefore, sellers need to understand what comes included, what does not, and what costs extra.
2) A Future Buying Requirement
Another condition can involve a future purchase. In some models, the seller must also use the same brokerage as their buyer brokerage later.
This structure is not universal. Not every discounted model uses it. It is also not how we operate.
I mention it because I worked within a discounted brokerage model earlier in my career. That brokerage is no longer in business, but this type of condition formed part of certain programs at the time.
This is not a criticism. It is context. For some consumers, that condition may work. For others, it may limit their plans, timing, or flexibility. Either way, they should know it before they sign.
3) Other Fine Print Items to Watch For
Depending on the brokerage and program, sellers may also see:
- Minimum price thresholds
- Mandatory add-on fees
- Reduced exposure beyond a standard MLS posting
- Restricted negotiation support
- Penalties if the seller exits early or sells privately
- Administrative, transaction, or compliance fees added on top
Again, these are not value judgments. They are structural details. Sellers should understand them before making a decision.
Are You Actually Saving Money?
Sometimes yes. Sometimes no.
The real question is not, “What is the commission rate?” A better question is, “What is the net outcome after pricing strategy, exposure, negotiation, and timing?”
A lower upfront percentage can cost more if:
- The price aims for speed instead of strategy
- The listing does not create enough buyer demand
- The structure limits negotiation support
- The seller reacts to the market instead of managing it
Saving on commission while losing value elsewhere is not a saving.
Transparency Matters
We do not advertise commission percentages. We also do not use headline numbers or asterisks as hooks.
Commission is always negotiable. It should be discussed directly based on:
- Property type
- Market conditions
- Scope of work
- Risk and complexity
- Client goals and timelines
That means no templates. No blanket programs. No fine print surprises.
The right structure depends on the situation, not a slogan.
The Gas Station Lesson and Why It Applies to Housing
When I was 18, I worked at a Shell gas station in Aurora. Part of my job was driving the Yonge Street corridor, south toward Oak Ridges and north toward Newmarket, to check competitor gas prices.
We tracked prices constantly. At one point, the station owner even kept binoculars on site so staff could watch price changes across the street without leaving the property.
When a competitor dropped their price, we responded. Sometimes we undercut by a cent. Sometimes we waited. Other times, we held firm.
It was never random.
What This Has to Do With Real Estate
Gas pricing taught me early that timing matters, information matters, and panic costs money. When people feel forced to buy, they usually overpay.
To this day, my kids and I text each other when we see cheaper gas. We also try to keep our tanks at least half full. Not because we are obsessive. Because urgency is expensive.
Housing works the same way. People lose leverage when they wait until pressure sets in. They also lose leverage when they rush decisions, react to headlines, or miss the full structure until it is too late.
Better financial outcomes usually come from preparation, not urgency.
The Real Takeaway
- Understand the full structure, not just the headline
- Know what the asterisk represents
- Ask questions before urgency enters the picture
- Make decisions when you have leverage, not when you feel cornered
And always read the fine print.
Important note: Commission structures, services, and requirements vary by brokerage, market, and transaction. This content is for general information only and is not legal, tax, or financial advice. Commission is always negotiable and should be discussed directly with your representative based on your specific situation.
More resources: Barrie Real Estate Agents and What Local Buyers and Sellers Should Know.
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