Home Prices Skyrocketed, But Real Estate Commissions Stayed the Same — Here’s Why That Doesn’t Add Up
📈 Home Prices Have Soared
Over the past few decades, home prices have reached new heights, largely driven by factors like low interest rates, limited housing supply, and booming demand.
In fact, the average home price in Canada reached an all-time high of $816,720 in 2022.
That’s a huge increase, and for sellers, it means a bigger paycheck when their home sells.
💸 Commission Rates Have Stayed the Same
Despite the rise in home prices, the commission rates that real estate agents charge have largely stayed the same.
While commission fees usually range between 3% and 7%, that percentage now applies to a much higher sale price — meaning agents are taking home more money for doing essentially the same work.
🧾 The Reality of Selling a Home Today
The work involved in selling a home isn’t necessarily more challenging than it was decades ago.
In the past, agents would:
- Rely on bulletin boards and printed listings
- Manually schedule and host showings
- Handle all paperwork by hand
Today:
- You can list your home with a few clicks
- Instantly reach a global audience online
- Manage paperwork digitally
The process has been streamlined, and much of the hard work has been automated.
💡 A Disconnection Between Price and Effort
So why are agents still charging the same percentage, even though the tools they use have evolved and the work has arguably become easier?
It comes down to an outdated system that doesn’t reflect the current reality of the industry.
As home prices climb, so do agent commissions — even though the work required has decreased thanks to technology.
🏠 The Smart Way to Sell
With technology making home selling simpler, it’s time to rethink the cost of hiring a real estate agent.
Platforms like Swim Homes provide a smarter way to sell, helping you:
- Keep more of your hard-earned money
- Access modern tools that streamline the process
Sell smarter. Keep more. Swim Homes.