What the 1% Usually Refers To

In most cases, the 1% does not represent the total cost of selling a home. It typically applies only to the listing side of the transaction, not the full commission structure.

In Canada, most transactions involve:

• A listing brokerage commission
• A buyer brokerage commission

The buyer side is often excluded from the headline number, but it is still payable by the seller. So that “1%*” can quickly become:

• 1% for the listing side
• Plus a buyer brokerage commission
• Plus HST
• Plus any additional fees, marketing charges, or service limitations outlined in the fine print

None of this is inherently wrong. But it changes the math.

Common Conditions Behind the Asterisk

The asterisk typically signals requirements. Some are financial. Some are service-related. Some are tied to how the brokerage runs their model.

1) Limited Marketing and Reduced Services

One common reality behind “1%*” programs is that the scope of marketing and services may be limited compared to a full-service structure. Depending on the brokerage and the program, this can include:

• Reduced or basic photography
• Minimal staging guidance, or staging not included
• Limited advertising spend
• Fewer open houses or showing support options
• Less hands-on pricing strategy and negotiation time
• Shortened listing timelines or stricter listing terms
• More “menu pricing” for upgrades (pay extra for what many assume is standard)

This is not a judgment. It is simply how some models are built. The key is making sure you understand what is included, what is not, and what costs extra.

2) A Future Buying Requirement

Another condition that can appear, shared strictly from firsthand experience, is a requirement that the seller also designate that same brokerage as their buyer brokerage for a future purchase.

This structure is not universal, and it is not something every discounted model uses. It is also not how we operate.

I mention it because I have worked within a discounted brokerage model earlier in my career, one that is no longer in business, and this was part of how certain programs were structured at the time.

This is not a criticism. It is context. That condition may be perfectly acceptable for some consumers. For others, it may not align with their plans, timing, or flexibility. The key is knowing it upfront.

3) Other Fine Print Items to Watch For

Depending on the brokerage and program, additional conditions may include:

• Minimum price thresholds
• Mandatory add-on fees
• Reduced exposure or distribution beyond 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 realities that should be clearly understood before decisions are made.

Are You Actually Saving Money

Sometimes yes. Sometimes no.

The real question is not “What is the commission rate?” It is “What is the net outcome after pricing strategy, exposure, negotiation, and timing?”

A lower upfront percentage can cost more if:

• The property is priced to move quickly rather than strategically
• Buyer demand is not properly created
• Negotiation is constrained by structure or volume
• Market conditions are not actively managed

Saving on commission while losing value elsewhere is not a saving.

Transparency Matters

We do not advertise commission percentages. We do not use headline numbers or asterisks as hooks. Commission is always negotiable and always discussed directly, based on:

• Property type
• Market conditions
• Scope of work
• Risk and complexity
• Client goals and timelines

No templates. No blanket programs. No fine print surprises. Because 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, checking competitor gas prices.

We tracked them constantly. At one point, the station owner even had binoculars on site so staff could monitor price changes across the street without leaving the property.

If a competitor dropped their price, we responded. Sometimes we undercut by a cent. Sometimes we waited. Sometimes 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. Being forced to buy usually means overpaying.

To this day, my kids and I text each other when we see cheaper gas. We try to keep our tanks at least half full, not because we are obsessive, but because urgency is expensive.

Housing works the same way. People lose leverage when they wait until pressure sets in, rush decisions without options, react to headlines instead of data, or don’t understand the full structure until it is too late.

The best 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 are cornered

And always read the fine print.

Important Note: Commission structures, services, and requirements vary by brokerage, market, and transaction. This content is informational only and not intended as legal 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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