The Truth About Real Estate Commissions in Orillia
In the world of real estate, “Commission” is often a dirty word. Sellers hate paying it, and buyers are often confused about whether they have to pay it.
In Orillia and Simcoe County, the standard commission structure has been the same for decades—but the market has changed. With home prices rising, paying a percentage-based fee can mean giving away a massive chunk of your equity.
At Team Nori Realty, we believe in transparency. Here is the honest breakdown of how real estate commissions work in 2026, who pays what, and how you can save thousands.
Table of Contents
Who Pays the Commission?
This is the #1 question we get.
The Short Answer: The Seller pays the commission.
The Breakdown: When you list your home, you agree to a total commission fee (e.g., 5%). This fee is then split:
Listing Agent (Seller’s Agent): Gets 2.5% for marketing and selling the home.
Co-Operating Agent (Buyer’s Agent): Gets 2.5% for bringing the buyer.
For Buyers: You typically do not pay your agent directly; their fee is covered by the seller from the proceeds of the sale. For Sellers: You pay the total amount out of your closing funds.
The Problem with the "Standard" 5%
Let’s do the math on an average Orillia home priced at $800,000.
5% Commission: $40,000 + HST = **$45,200**. That is $45,000 of your hard-earned equity gone in one transaction.
For that price, you could buy a new car, pay off debts, or renovate your new kitchen.
The Solution: The Team Nori 1% Model
We believe it shouldn’t cost $45,000 to sell a house. That’s why Team Nori operates under One Percent Realty, providing the most trusted low commission real estate in Orillia. In a world of automatic listing syndication, we offer a smarter 1% commission model that protects your equity while delivering full-service results. Save thousands on your move without sacrificing professional oversight.
How Our Math Works:
Listing Fee: We charge a flat rate (or 1%) to list your home.
Buyer Agent Fee: We still offer a competitive fee to buyer agents (typically 2–2.5%) to ensure they are motivated to show your home.
The Result: Instead of paying 5% total, you might pay closer to 3–3.5% total.
On that same $800,000 home:
Team Nori Total: Approx $28,000 (depending on buyer agent split).
Your Savings: $17,000+ in your pocket.
"Do I Get Less Service for Less Commission?"
Absolutely not. This is the biggest myth in real estate. With Team Nori, our 1% listing service includes:
Full MLS Exposure: Your home is on Realtor.ca and every major board.
Professional Marketing: HDR Photography, Virtual Tours, and Social Media ads.
Expert Negotiation: Sue Nori has decades of experience negotiating complex deals.
Staging: Access to our In-House Staging Inventory.
We don’t cut corners; we just cut the bloat.
Negotiating Commissions as a Buyer
If you are a buyer, you generally don’t negotiate the commission, but you can negotiate the purchase price. If you are buying a home listed by Team Nori, the seller has more room to move on price because they aren’t paying a massive commission bill. This creates a “Win-Win” where the seller keeps more money, and the buyer gets a fair price.
The Bottom Line
Real estate fees shouldn’t be a mystery. Whether you are buying in Orillia or selling in Muskoka, knowing the numbers puts you in control.
Stop giving away your equity. Contact Team Nori Realty today for a free “Net Sheet” calculation to see exactly how much you could save on your sale.
Frequently Asked Questions About Commissions
Do I have to pay HST on real estate commissions?
Yes. In Ontario, real estate commissions are a service, so they are subject to 13% HST. This is added on top of the commission percentage or flat fee.
Does a lower commission mean agents won't show my home?
No. We always recommend offering a fair commission (typically 2% to 2.5%) to the Buyer’s Agent. This ensures they are motivated to bring their clients. The savings come from the Listing Side (our fee), which we discount significantly.
Are commissions negotiable?
Yes. In Canada, real estate commissions are not fixed by law and are fully negotiable. However, remember that “you get what you pay for” applies to marketing budgets. Team Nori offers a structured low-commission model that guarantees full service without the haggling.