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Realtor fees - what is typical in BC?

151K views 23 replies 12 participants last post by  Mechanic 
#1 ·
So, if I'm buying & selling through the same realtor, what kind of rates are typical and to be expected? Apparently Ontario/east coast tends to use a fixed % rate ie. 5% of purchase price, but BC/west coast tends to use a % of first $ (ie. $100k) and a different % on the rest of the purchase price. Also, apparently the realtor will also have a portion of those rates go to the other agent involved as an incentive which I didn't realize. When it comes down to it, I want to know what a competitive rate is basically.
 
#3 ·
It's what you negotiate with your realtor. They will tell you it's 7&3.5, but some will settle for less. You can also negotiate different rates for the listing agent and the buying agent. So, you may offer 3.5&1.75 for the buying agent but less for the listing agent. Some buying agents won't tell their clients about places with lower commissions for them...or so they say.

It probably depends on the price of the property, and it's situation as well as how well you negotiate.
 
#5 ·
The seller is the one who pays the fees (though usually that's reflected in the sales price anyway) and it is split between the two agents. Sometimes it's 50/50 split, other times it's not. Depends where you live. In my area it's usually 6% on the first 100K and 3% on the rest. Rates are usually a bit less for houses over a million. On occasion, a realtor will charge a buyer's fee as well. They're usually a few hundred dollars, if they exist at all.
 
#6 ·
Hi Guys,

We Realtors can't say there is a standard real estate commission because the federal gov't doesn't want to us to create the perception of one set rate. The feds also want consumers to know that real estate commissions in Canada are negotiable.

What we can do is talk about what we individually charge.

I for example charge 7% on the 1st $100K & 2.5% on the Balance.

Here is a link to a commission calculator on my site for reference.

Hope this helps!
 
#8 ·
You don't need buying agent, how difficult it is to look up mls and than call the listing yourself, then when you are ready to make an offer start at a lower price since the seller is accounting for the buyer commission they would normally pay.

In Ontario you can get full listing broker for 1% or flat fee, then you need to pay the buyers agent (usually 2.5%), you can also list for flat fee without any services provided by broker like property guys or comfree.
Not sure why anyone would still pay the 5% or 7% fees for virtually nothing, I imagine in BC there are also more reasonable options than paying so much money for very little in return.
 
#11 ·
I meet people all the time who purchased properties without the aid of a qualified and experienced buyers agent.

In most cases these people over paid for the properties they bought and this could have been avoided had they used the services of a qualified and experienced buyers agent, which in BC involves no cost to the buyer.
 
#13 ·
In most cases these people over paid for the properties they bought and this could have been avoided had they used the services of a qualified and experienced buyers agent, which in BC involves no cost to the buyer.
Sorry but you are not magicians, with an additional cost that buyer agents are charging it most likely means the actual sale price is higher not lower. Sellers care about net to them, the more is eaten by the fees the more they will demand as a selling price, and it is then built into the mortgage so there is a cost to the buyer.

It would be much easier if no agents were involved at all, with 5% commissions saved on $500K house there is additional 25K room to negotiate the price, which otherwise is wasted on very little service received in return, and quite frankly most often the goal of the service is to close the deal and not to represent the client's best interest.
 
#22 ·
No need for high commissions


I was a builder and developer in Vancouver for years and was always sickened by the 6 months to a year of back breaking work only to sell the place and hand a check for $50K to a realtor. But now I've gone over to the dark side and become one myself! A lot easier to sell the darned things than buy them :) Fortunately though I found One Percent Realty for a brokerage. Flat 1% fee (min. $6,000) plus $900 admin charge. On a typical million dollar home my commission is $10K and not the almost $40K a normal realtor would charge. That's fair and represents good money for my time. Plus I get to offer clients all benefits such as MLS and listing on Realtor.ca. Other agents don't like it when their buyers want my listings but, today, they have little choice and they get half my commission. Almost 80% of our listings are sold by cooperating brokerages
 
#24 ·
I was a builder and developer in Vancouver for years and was always sickened by the 6 months to a year of back breaking work only to sell the place and hand a check for $50K to a realtor. But now I've gone over to the dark side and become one myself! A lot easier to sell the darned things than buy them :) Fortunately though I found One Percent Realty for a brokerage. Flat 1% fee (min. $6,000) plus $900 admin charge. On a typical million dollar home my commission is $10K and not the almost $40K a normal realtor would charge. That's fair and represents good money for my time. Plus I get to offer clients all benefits such as MLS and listing on Realtor.ca. Other agents don't like it when their buyers want my listings but, today, they have little choice and they get half my commission. Almost 80% of our listings are sold by cooperating brokerages
I'd be dealing with this guy or a similar operation in the area I am in, if I were looking to sell. The typical 7 & 3 deals I hear all the time are ridiculous but it surprises me how many people are still paying them. The house we bought we put in an offer on the first day on the market and the seller paid close to $40k in commission. We would have still made an offer no matter who's sign was on the pole as we liked the area and the house. Also, never sign an exclusive representation deal if you are a buyer, not all agents make you sign them and it limits your options as a lot of the pricey agents will steer you away from deals paying a lower commission to them.
 
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