On a $500k home sale, you could save serious money going solo—if you're prepared for the work.
Real estate commissions typically run 5-7% of your home's sale price in Canada. On a $500,000 house, that's $25,000-$35,000 walking out the door to pay two realtors. Selling privately means keeping that money, but you're trading cash for labour—and taking on risks most people don't see coming until they're neck-deep in paperwork.
The math looks obvious until you hit the hidden costs. You'll still pay for professional photography ($300-800), legal fees ($1,500-2,500), and marketing if you want serious buyers. Plus, pricing wrong costs more than commissions ever could—underprice by 5% and you've lost more money than you saved. Overprice and you sit on the market for months.
Private sales work best in hot markets where homes sell themselves, or when you have real estate experience. If you're selling because you need to move quickly, or this is your first rodeo, the commission might be worth avoiding costly mistakes that eat your savings anyway.
What You Can Actually Do Today
- Get a comparative market analysis from a realtor—many do this for free even if you're selling privately
- Research recent sales in your neighbourhood on HouseSigma or Realtor.ca to understand true market prices
- Connect with a real estate lawyer before listing to understand contract requirements and legal obligations
Private sales involve legal complexities. Consider getting professional advice before proceeding with any real estate transaction.
