By Simon Royer, REALTOR® at RE/MAX Icon Realty

I have not been paid since March.

Let that sit for a second.

I am a full-time REALTOR® running a business, publishing content, showing homes, writing offers, driving across Kitchener-Waterloo, Cambridge, and Brantford, attending open houses, taking calls on evenings and weekends, and building relationships with clients I genuinely care about.

And I have not received a paycheque since March.

That is real estate. And most people have absolutely no idea.

So let me pull back the curtain on how this actually works because I think it matters. Not to make you feel sorry for me. But because understanding how your agent gets paid helps you understand why the relationship works the way it does and why a good agent is worth far more than most people realize.

First, what is commission and who pays it?

When a home sells, the seller typically agrees to pay a commission to their listing agent. That commission is a percentage of the sale price and it is negotiable. A common rate is around 4 to 5 percent of the purchase price plus HST.

That sounds like a lot of money. And on paper it looks like it. But let me show you what actually happens to that number.

The real math on a $500,000 sale

Let's say your home sells for $500,000 and the total commission is 4 percent. That is $20,000 plus HST, so $22,600 collected in total.

Here is where that money actually goes:

The buyer's agent gets half.
A standard commission split means 2 percent goes to the agent who brought the buyer. That is $11,300 gone immediately. Your listing agent never sees that money.

Your listing agent is now left with $11,300 gross.

Now the deductions begin.

Marketing comes out of pocket.
Professional photography, floor plans, video walkthrough, social media promotion. A proper marketing package costs a minimum of $1,000 and often more. That comes out of the listing agent's share before anything else.

The brokerage takes its cut.
Most agents work under a brokerage and pay a commission split. At 20 percent that is another $2,060 off the top.

Monthly fees keep coming regardless of closings.
This is the part nobody talks about. Every month, whether I close a deal or not, I am paying:

• Local Board Fees: To access MLS listings in Kitchener-Waterloo, Cambridge, and Brantford
• TRREB Dual Membership: Because Ontario does not have one unified MLS system so agents who need to access the Toronto market pay to belong to two boards
• RECO, CREA, and Errors and Omissions Insurance: Annual mandatory licensing, insurance, and national and provincial dues
• Brokerage Desk Fees: Keeping the lights on at the brokerage regardless of production

Combined these run $400 to $500 or more every single month. Paid whether I close or not.

Then CRA wants approximately 35 percent of whatever is left.

As a self-employed agent I pay my own taxes, my own CPP contributions, and I have no employer benefits, no pension, and no paid sick days.

After everything, on a $500,000 sale, I might take home around $5,000.

That is not a typo.

The unpaid hours nobody sees

Here is what commission does not cover.

Every showing I take a buyer to. Every offer I write that does not get accepted. Every phone call I take on a Sunday evening. Every hour I spend researching comparable sales, writing market updates, driving across the region, and sitting in traffic between appointments.

None of that gets billed. None of it gets paid. It is just part of the job.

And honestly? Those times you feel like you might be wasting your agent's time by asking for one more showing or one more question or one more piece of information?

You probably are. And your agent showed up anyway.

What happens when a deal falls through?

This one hurts.

If a deal dies before closing, whether because of a failed inspection, a financing condition that does not get met, or a buyer who gets cold feet, the agent gets nothing. Zero. For weeks or months of work.

I have heard stories from colleagues about deals collapsing the day before closing. You do the math on what that feels like.

Real estate is the only job where you pay to go to work

I mean that literally.

Before I earn a single dollar I am paying:

• Monthly board and licensing fees
• Annual TRREB membership as a dual board member
• Annual RECO licensing fees
• Annual CREA national membership
• Errors and omissions insurance
• Brokerage fees
• Website and technology costs
• CRM software
• Marketing materials, business cards, signage
• Gas and mileage for every showing, every listing visit, every client meeting

All of that before a deal closes. All of it whether deals are closing or not.

I have not been paid since March. My monthly fees did not stop in March.

And then there is the competition

It is not just the fees and the unpaid hours. It is the market you are operating in.

There are thousands of licensed agents in Ontario. In Waterloo Region and Brantford alone the competition is significant. And on top of that you are competing against:

Cash back agents who advertise rebates to attract buyers and undercut traditional commission structures.

Flat rate listing services that charge a few hundred dollars to put your home on MLS and leave you to handle everything else yourself.

Discount brokerages offering reduced commission rates to win listings.

Agents who bend or ignore the rules on everything from representation agreements to multiple offer situations.

None of that is necessarily wrong. People have choices and the market reflects that. But when a seller chooses a flat rate listing or a cash back agent and the deal goes sideways, they usually end up calling someone like me to fix it.

You get what you pay for. Sometimes you get less.

If you are trying to figure out how to balance these fees with the timing of your sale, take a look at my full strategy guide: Should I Sell My Home Now or Wait Until Spring?

And after all of that, after the fees, the unpaid hours, the competition, the deals that fall through, and the months without a paycheque, when you finally find a client who wants to work with you?

They will probably ask you to reduce your commission.

Or you spend months with someone. Answering every question. Showing them fifteen homes. Explaining the market, the process, the pitfalls. Building real trust.

And then they call you to say they bought with the listing agent because they thought they would get a better deal.

What they did not know is that the listing agent represents the seller. Not them. But by the time they figure that out the deal is already done.

What about buyer's agent fees? Do buyers pay anything?

As of recent changes under the Trust in Real Estate Services Act in Ontario, buyers are now required to sign a written representation agreement before an agent can show them homes. This can be as simple as a one-day or single-property agreement, but the law requires compensation terms to be clear before the first door is unlocked.

In most cases the seller still covers the buyer agent commission as part of the overall deal. But the landscape is evolving and it is worth having an honest conversation with your agent about how compensation works before you start the process.

I am always happy to walk through exactly how I get paid before we work together. No surprises.

Book a free call with Simon

Frequently Asked Questions

How does a real estate agent get paid in Ontario?
Real estate agents in Ontario are typically paid through commission on a completed sale. The commission is a percentage of the sale price, usually split between the listing agent and the buyer's agent. Agents only get paid when a deal successfully closes. If a deal falls through before closing the agent receives nothing.

How much commission does a REALTOR® make on a $500,000 sale in Ontario?
On a $500,000 sale at 4 percent commission, the total commission is $20,000 plus HST. After splitting with the buyer's agent, paying brokerage fees, marketing costs, and taxes, the listing agent may take home approximately $5,000 or less.

Do buyers pay their REALTOR® in Ontario?
In most cases the seller covers both the listing agent and buyer agent commission as part of the transaction. However under the Trust in Real Estate Services Act buyers are now required to sign a written representation agreement before being shown homes, which outlines how the agent will be compensated. The specifics vary by situation.

What fees do real estate agents pay in Ontario?
Real estate agents pay a range of ongoing fees including local board membership, TRREB fees for Toronto board access, RECO provincial licensing fees, CREA national membership, errors and omissions insurance, brokerage fees, and monthly desk fees. These costs continue regardless of whether the agent closes any deals.

Why do real estate agents seem expensive if they take home so little?
The commission percentage looks large but by the time it is split with the buyer's agent, the brokerage takes its cut, marketing costs are covered, monthly fees are paid, and taxes are remitted to CRA, the amount an agent actually takes home is a fraction of the original number. Most people are surprised by how little agents actually net on a transaction.

What happens if my deal falls through? Does my agent still get paid?
No. If a deal does not close, the agent receives nothing regardless of how much time and effort they invested. Failed deals are an occupational reality for real estate agents and represent weeks or months of unpaid work.

What is a written representation agreement in Ontario?
Under the Trust in Real Estate Services Act, agents in Ontario are required to have a signed written representation agreement before showing homes to buyers. This can be a one-day or single-property agreement and must clearly outline how the agent will be compensated before the first showing takes place.

Do not get me wrong

Real estate can be very lucrative. The agents who build strong pipelines, close consistently, and serve their clients well can do extremely well over time.

But it is not because you sold a couple of houses that you are suddenly driving a luxury car and flying to Malibu like they show on Selling Sunset. That is television. The reality for most agents, especially in the early years, looks a lot more like a bowl of Kraft Dinner than a rooftop listing presentation in Beverly Hills.

Simon's Final Word

Real estate is probably the hardest job I have ever had.

It is early mornings, late nights, weekends, unpaid hours, monthly fees that do not stop, deals that fall through, and months sometimes going by without a paycheque.

I have eaten Kraft Dinner way too many times to count.

And I am still here five years later because I genuinely love this job and the people I get to help along the way. Every closing, every set of keys handed over, every client who texts me months later to say they love their home. That is why I keep going.

If you are thinking about buying or selling and you want to work with someone who is going to show up for you the way I just described, reach out. Let's talk.

Simon Royer, REALTOR® at RE/MAX Icon Realty
226-218-6875 | simonsayzsold.ca
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This blog post reflects the personal opinions and professional experience of Simon Royer, REALTOR® at RE/MAX Icon Realty. Not intended to solicit buyers or sellers currently under contract. RE/MAX Icon Realty Brokerage, 33-620 Davenport Rd, Waterloo ON N2V 2C2