The Future of REALTOR® Compensation in Canada: Trends and Predictions for 2025

A Market on the Brink of Change

The real estate industry is undergoing one of the most significant shifts in decades. Between regulatory updates, technological innovation, and changing consumer expectations, many Canadians are asking the same question:

“What will REALTOR® compensation look like in the next few years?”

As 2025 approaches, it’s clear that the traditional commission structures — while still widely used — are evolving. Not disappearing, but transforming.
This shift is especially important in markets like Penticton and the South Okanagan, where lifestyle-driven buyers, investors, and retirees all place unique demands on real estate professionals.

This article breaks down what’s changing, why it’s happening, and what sellers and buyers can expect from REALTOR® compensation in the near future.

Why REALTOR® Compensation Is Changing

There are several forces at play that are reshaping how real estate agents charge for their services and how value is delivered in return.

1. Increased Consumer Transparency

Consumers are more educated and more data-driven than ever.
With public access to sales data, online valuation tools, and agent reviews, clients expect clarity on:

• where commission dollars go

• what services are included

• how agents differentiate themselves

• what results can be measured

This transparency isn’t reducing compensation but it is forcing higher accountability and clearer value propositions.

2. Technology Is Streamlining Some Tasks — and Expanding Others

AI tools, CRMs, automated marketing, and digital transaction systems have reduced time spent on administrative tasks.
But they’ve also raised the bar for what clients expect, including:

• high-quality video tours

• lifestyle-driven marketing

• targeted paid advertising

• digital lead funnels

• real-time communication

Agents who embrace technology are creating more value, not less and compensation models are evolving to reflect these expanded capabilities.

3. Buyers and Sellers Want Customized Options

One-size-fits-all commission structures are becoming less common.
Clients increasingly want choices, including:

• traditional full-service packages

• tiered commission models

• performance-based incentives

• flat-fee elements

• marketing add-ons

• luxury-tier service plans

The future is about offering flexibility without compromising results.

Emerging Compensation Models

Here’s what we’re already seeing across Canada and what’s gaining traction for 2025.

1. Tiered Commission Structures

Instead of a single rate, REALTORS® are offering packages at different price points.
For example:

• Standard marketing package

• Enhanced digital strategy package

• Ultra-luxury showcasing package

Each tier has defined deliverables and marketing budgets.

2. Performance-Based Bonuses

This model rewards results, aligning incentives even more strongly between agent and client.
Examples:

• bonus for above-asking sale

• bonus for selling within a target number of days

• bonus for securing multiple offers

These models appeal to motivated sellers who value speed and premium pricing.

3. Hybrid Flat Fee + Percentage

A smaller upfront fee covers media and marketing costs, while the remainder is percentage-based.
This creates transparency while still rewarding strong outcomes.

4. Shared Savings or Value-Added Billing

Some REALTORS® charge based on the measurable value they create, such as:

• reduction in staging costs

• negotiation savings after inspection

• premium achieved beyond CMA expectations

These models are not common yet — but they’re gaining traction in hot markets.

What Will Not Change

Even with emerging structures, some fundamentals remain consistent in Canadian real estate:

Buyers Will Still Not Pay Out-of-Pocket Commission

Buyer’s agents will continue to be compensated through the listing brokerage unless regulatory policy changes drastically.
This helps maintain strong buyer representation across all price brackets.

Full-Service Agents Will Continue to Earn More

Discount brokerages cannot replicate:

• negotiation skill

• local hyper-market intelligence

• pricing precision

• custom marketing

• deep professional networks

As long as these factors impact sale prices (and they do), full-service representation will remain the dominant model.

How This Affects Sellers in Penticton & the Okanagan

The Okanagan market thrives on lifestyle demand lake views, recreation, walkability, vineyards, and investment potential.
That means the local real estate environment rewards:

• exceptional marketing

• emotional storytelling

• digital exposure beyond BC

• cross-provincial and international attention

As a result, sellers in Penticton benefit from agents who provide a high-touch, high-return service model, not bare-minimum listing plans.

Future compensation models will emphasize:

• more transparency

• more deliverables

• more marketing sophistication

• more negotiation strategy

• more measurable results

In other words: more value per dollar spent.

What Buyers Can Expect Going Forward

Buyers will see improved representation driven by:

• better data on home values

• stronger negotiation support

• clearer cost breakdowns

• more structured communication systems

• access to wider networks and off-market opportunities

Compensation changes won’t negatively impact buyers — they will enhance total service quality.

The Role of eXp Realty and Modern Brokerage Models

Cloud-based brokerages like eXp Realty are accelerating these trends.
By reducing overhead and reinvesting savings into technology, education, and global reach, they help agents deliver:

• more marketing value

• more international exposure

• more time for client strategy

• more resources without inflating costs

This is one of the biggest drivers behind the evolution of REALTOR® compensation in Canada efficiency without sacrificing service.

The Bottom Line

The future of REALTOR® compensation in Canada is not about lowering commissions it’s about increasing value, transparency, and performance.

Clients want options, agents want clarity, and modern systems are making both possible.

In 2025 and beyond, sellers in Penticton can expect more flexible structures, clearer deliverables, and stronger data-driven results especially when working with a professional aligned with modern brokerage standards and global reach.

As a local REALTOR® with My Property Central Real Estate Group | eXp Realty, I remain committed to offering forward-thinking compensation models that prioritize fairness, strategy, and exceptional outcomes for every client.

Ready to Connect?

If you’re thinking about buying, selling, or joining a forward-thinking real estate team, I’d love to connect.
I’m Riccardo (Rico) Manazza, REALTOR® with eXp Realty | South Okanagan, and part of the My Property Central Real Estate Group helping clients and agents succeed across Penticton, Oliver, Osoyoos, and beyond.

💬 Reach out anytime:
📞 Call or text: 236-457-4230
📧 Email: rico@mypropertycentral.ca
🌐 Website: www.riccardomanazza.realtor
🏡 Explore more lifestyle stories: livingintheokanagan.ca
🤝 Team & listings: mypropertycentral.ca
📅 Book a meeting: Book A Call with Rico

Let’s Stay Connected

If you enjoyed this article or want to stay in touch with what’s happening in the South Okanagan real estate market, let’s connect online:

📸 Instagram: @riccardo_manazza_exp-realty
📘 Facebook: @riccardo.manazza.exp
💼 LinkedIn: Riccardo (Rico) Manazza

Follow for weekly market updates, behind-the-scenes insights, and tips from one of the Most dedicated REALTORS® in the Okanagan with eXp Realty and the My Property Central Real Estate Group.

 For immediate assistance or to schedule a showing, contact my assistant (available 24/7) at 236-500-6778.

Disclaimer

This article is for informational purposes only and should not be considered financial or legal advice. Eligibility criteria and program details are subject to change. Always consult with a qualified mortgage professional and licensed REALTOR® for the most current information