Seller Costs & Real Estate Fees
What Does It Cost to Sell a Home in London, Ontario?
Commission is negotiable. Net proceeds are not — and the two get confused more often than sellers realize.
01
The Question Every Seller Asks First
Before a For Sale sign goes in the ground, almost every London, Ontario homeowner asks some version of the same question: what is this actually going to cost me? It's a fair question — and it's usually answered incompletely.
Most sellers walk into the process comparing one number: the commission percentage. But commission is only one line on the closing statement. The real number that matters — the one that determines whether the sale was a win — is what lands in your bank account after every fee, adjustment, and closing cost is accounted for. That's net proceeds, and it's shaped by far more than the fee you negotiated up front.
02
Commissions Are Negotiable — Not Fixed by Law
There is no set commission rate in Ontario. It isn't set by the government, by TRESA, or by any brokerage association. Every commission is a private negotiation between a seller and their agent, and it's supposed to reflect the scope of work, marketing investment, and negotiation skill being provided in return.
Myth
"Commission is fixed at a standard rate — every agent charges roughly the same."
Fact
Commission is fully negotiable under Ontario law. What you're actually buying — marketing budget, negotiation strategy, and market reach — varies enormously between agents charging the exact same rate.
The cheapest commission and the highest net proceeds are rarely the same offer.
03
The Discount Trap
A lower commission feels like an immediate win. But commission is a front-end cost, and it's the only number sellers can see before the sale happens — which is exactly why it gets over-weighted in the decision.
A discounted fee is often paired with a discounted service level: fewer marketing dollars, a narrower buyer pool, weaker negotiation on multiple offers, and a listing that sits longer and eventually gets chased down in price. A 1% saving on commission means very little if the listing sells for tens of thousands less than it should have because the marketing and negotiation behind it were built to match the discount.
The real comparison isn't "what does this agent charge." It's "what does this agent's strategy put in my pocket at closing, after their fee is paid."
04
How to Properly Audit an Agent
Before signing a listing agreement, sellers should be evaluating agents on more than their fee. Here's what actually predicts outcome:
Active Digital Strategy
Is there a real marketing plan behind the listing, or does it stop at an MLS entry and a lockbox?
Communication Standards
How often will you actually hear from your agent, and how are showings, feedback, and offers reported back to you?
Local Track Record
Recent, comparable results in your specific London neighbourhood — not just years in the business.
05
The Net Proceeds Mindset
Every decision in a listing strategy should be filtered through one question: does this maximize what I walk away with at closing? Not the lowest up-front fee. Not the fastest possible sale. The final number, after commission, after closing costs, after every adjustment.
An elite marketing strategy — professional photography, targeted digital reach, a competitive offer process — costs more to execute than a bare-bones listing. But when it's done right, it typically returns far more than it costs, because it puts the property in front of more qualified buyers and creates genuine competition for it.
06
The Full Closing Cost Checklist
Commission is the largest line item for most sellers, but it isn't the only one. Here's what else to budget for before you list:
Costs to Plan For
- Real estate commission — negotiated between you and your agent, plus HST.
- Lawyer fees — for reviewing the agreement, handling the closing, and registering the transfer, typically a flat fee plus disbursements.
- Title insurance — usually a modest, one-time cost arranged through your lawyer at closing.
- Mortgage discharge fees and penalties — a fee to release your existing mortgage, plus a potential prepayment penalty if you're breaking your term early. With the Bank of Canada holding its policy rate at 2.25% through its sixth consecutive decision in July 2026, sellers breaking a fixed-rate mortgage should confirm their exact interest rate differential (IRD) with their lender before listing — this number moves with the rate environment.
- Moving costs — movers, storage, and incidental costs tied to the transition, which are easy to underestimate.
- Adjustments at closing — property tax, utility, and condo fee adjustments prorated between buyer and seller.
Where This Fits Into the London Market Right Now
The Bigger Picture for London Sellers
Nationally, CREA's July 15, 2026 forecast update points to a modest pullback in home sales for the year, with the recovery weighted toward the second half — and Ontario has been leading that rebound since May. Locally, that means buyer activity in London is improving, but it hasn't fully caught up to the pace many sellers remember from prior years. In that environment, the gap between a listing that's priced, marketed, and negotiated correctly and one that isn't matters more than ever.
Understanding your real costs up front — commission, closing costs, and the strategy behind your marketing — isn't just about avoiding surprises. It's how you protect your net proceeds in a market where every advantage counts.
Let's Build Your Real Estate Plan
Visit Us Online at www.ryanandsandra.caRyan Hodge and Sandra Tavares | London, Ontario Real Estate Brokers
Awards & Reviews
