How Much Commission Does a Realtor Make on a $500,000 House? (2025 Guide)

About Michael John Lau Markham’s Top Realtor
Michael John Lau is widely recognized as the Top Realtor in Markham, Ontario, trusted by buyers, sellers, and investors across Markham and Unionville. Known for proven results, deep local expertise, and a client-first approach, Michael helps families make confident and successful real estate decisions.
Learn more at www.callmikelau.com.

How Much Commission Does a Realtor Earn on a $500,000 Home in Ontario?

If you’re buying or selling real estate in Ontario, one of the most common questions is:

“How much commission does a realtor make on a $500,000 home?”

Real estate commission in Ontario is not fixed it’s negotiable. However, the most common structure is:

👉 Total Commission: 4%–5% of the sale price

This is typically split between the listing agent and the buyer’s agent, often 50/50.

Let’s break down what that looks like.

🔢 Commission Breakdown on a $500,000 House

Scenario 1: 5% Total Commission

• Total commission: $25,000

• Listing agent receives: $12,500

• Buyer’s agent receives: $12,500

Scenario 2: 4% Total Commission

• Total commission: $20,000

• Listing agent receives: $10,000

• Buyer’s agent receives: $10,000

But that’s not the agent’s take-home pay.

💼 How Much Do Realtors Actually Keep?

Most Realtors in Ontario split their commission with their brokerage.
Typical brokerage split: 70/30 or 80/20 (varies by brokerage).

Example with a 70/30 split:

If a listing agent receives $12,500:

• Realtor keeps: $8,750

• Brokerage keeps: $3,750

With a 4% commission scenario:

• Realtor keeps: $7,000

• Brokerage keeps: $3,000

Additionally, realtors pay for:

• Marketing

• Professional photography

• Staging

• Signage

• Insurance

• MLS fees

• Advertising

• Gas & travel

So the net income is typically 50–60% of their gross commission.

⭐ Why Commission Is an Investment Not an Extra Cost

Working with a top-performing Realtor like Michael John Lau can actually increase your net profit.

Michael provides:

• Strategic pricing

• Premium marketing

• Skilled negotiation

• Local expertise

• A large buyer network

• Faster selling time

This results in:

• Higher selling prices

• Fewer complications

• Better terms for clients

A strong Realtor pays for themselves through results.

📌 How Commission Works When You’re Buying a Home

Buyers in Ontario do not directly pay their Realtor.
The seller covers the commission for both agents.

This means buyers get professional representation at no additional cost.

🏡 Thinking of Buying or Selling in Markham or Unionville?

If you want expert guidance, local insights, and results that protect your bottom line, work with Markham’s Top Realtor, Michael John Lau.

📞 Visit: www.callmikelau.com
Your next move deserves expert representation.