Sellers
How Much is a Realtor Commission in Vancouver?
Decoding Realtor Commission Structures
The realtor commission in Vancouver has proven to be a confusing topic to many home sellers.
You might be asking yourself how the realtor commission in Vancouver is calculated and how it translates into the final sale price of your home.
We explain the realtor commission structure in the following sections in the hopes of providing you with more insight into the process of setting a realtor commission in Vancouver.
There is no set commission in b.C. every real estate group determine their own fee structure.
- Jacob and Jacky
How does the fee distribute?
The commission fee is typically split 50/50 between the listing realtor and the buyer’s realtor.
However, the actual split for a realtor commission in Vancouver tends to be more like 54%/46% to reflect the marketing expenses the listing agent tends to incur when listing a home.
Buyer’s Agent Fee
More than just a payout, this portion of the commission incentivizes buyer agents to bring potential buyers to the listing.
Seller’s Agent Fee
Although a seller’s agent fee can be a hefty initial cost, the seller only receives the commission upon a successful sale and takes on the full risk of expenses if the home is not sold.
What Expenses are paid by the listing agent?
If a realtor is licensed with a brokerage, they may have an agreement where the realtor pays the brokerage a percentage of the gross commission, which ranges from 5%-20%.
Marketing Materials
Media production such as professional photography, video production, drone footage & print media like property brochures and graphic design.
Legal Documentation
Legal documents relevant to the listings, such as title searches and strata-related documents.
Listing Expenses
Listing expenses such as MLS fees, real estate board fees, and brokerage admin fees for every listing that gets posted on MLS.
Is there a set Realtor Commission in B.C.?
There is no set commission or governing body that regulates commissions in B.C. The individual realtor or the realtor team sets the commission. The brokerage does not dictate what the commission should be, although they may have guidelines.
A realtor’s commission is negotiable between the realtor and the home seller.
As Vancouver realtors, we are very transparent and calculate the potential commission, including taxes, ahead of time so our sellers know what their bottom line will be.
Is the commission rate negotiable?
Yes, rates for a realtor commission in Vancouver are usually negotiable. However, it is crucial to remember that although you negotiate with your realtor (i.e. the listing agent) the gross commission is split.
It is important to pay attention to how the discount is structured. Is it from the buyer’s agent side, the listing agent side, or both?
Sellers must ensure they understand how the funds get distributed and make an informed decision about the risk/reward benefit before negotiating the rate.
One thing to note is that a portion of the commission fee is meant to be spent on marketing, and a realtor lacking a marketing budget can negatively impact the final sale.
What is a Discount brokerage?
There are few brokerage business models of discounted commission rates. Common ones are as follows.
1% Realty
A traditional real estate brokerage with a set rate of 1% commission to the seller. The seller will still be responsible for paying the buyer’s broker.
Posting brokerages
This model provides an MLS posting service but the seller is in charge of taking care of all marketing, showings, negotiations, and all other items related to the sale. The benefits are a lower commission and savings though there are many pitfalls that can impact the net proceeds.
Are there any other ‘hidden’ fees with realtor commissions?
The commission rate is EXCLUSIVE of GST. It is important to note in B.C., the commission rate is subject to 5% GST.
Realtors in B.C. have a disclosure obligation when they present you with a potential offer. Before presenting you with the offer, whether you accepted it or not, your realtor will provide you with a detailed breakdown highlighting the following:
- Total commission fees
- Fee offered to the buyer’s representative
- Fees retain by the listing agent
- Any other monetary incentives your realtor might be getting from the sale
We Have the Talent and Team to Sell Your Home
As Vancouver Realtors, we believe a realtor commission in Vancouver should be transparent to you before you ever list your home.
With 20+ years of experience as Vancouver Realtors, we have a wealth of information about real estate in the Vancouver area, and we are eager to share it with you!
Our dedication, support, and expertise all come together to achieve one thing: successfully helping you achieve your real estate goals.
We know the Vancouver real estate market, and we know what you need to sell your home. From helping you learn more about how a realtor commission in Vancouver is set through the closing process, we are the only experts you need to sell your home!
Contact us today to schedule a time for us to discuss your real estate needs and answer your home-selling questions.
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Jacob and Jacky have over 20 year of experience as selling agent, marketing Vancouver real estate
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What our clients have to say!
I have worked with Jacob and Jacky over the span of 5 years, buying and selling 2 properties. I have always found them to be incredibly respectful and professional.
Most recently, I sold a property in Vancouver while living in another province. They handled everything for me: negotiating with my tenant, staging, liaising with strata, recommending a lawyer, and marketing and advertising my property to show it off beautifully. They dealt with every detail, allowing me to trust them implicitly.
They are truly unflappable. Their expertise and years in the business has given them the edge they need to show and sell a property to its highest potential. I would never use anyone else!
Most recently, I sold a property in Vancouver while living in another province. They handled everything for me: negotiating with my tenant, staging, liaising with strata, recommending a lawyer, and marketing and advertising my property to show it off beautifully. They dealt with every detail, allowing me to trust them implicitly.
They are truly unflappable. Their expertise and years in the business has given them the edge they need to show and sell a property to its highest potential. I would never use anyone else!
Jacob really made us feel like we were his only client. He was always available to answer our questions and accommodate our schedule. We bought our duplex and sold our condo back to back. This situation can be very stressful but Jacob was there to reassure us and quickly find us a buyer with a great offer.
He really went above and beyond even after we bought our duplex, even helping us deal with the developer to fix any deficiencies left.
I would not hesitate to recommend them to anyone that is looking to buy or sell real estate in Vancouver!
He really went above and beyond even after we bought our duplex, even helping us deal with the developer to fix any deficiencies left.
I would not hesitate to recommend them to anyone that is looking to buy or sell real estate in Vancouver!
Jacky and Jacob made the selling and buying process as stress free as possible.
They were professional and thorough as they walked me through every step of the process including providing valuable insight on getting my house ready for sale.
They were available and easily accessible to answer all my questions and concerns. I would highly recommend this team for buying or selling your home.
They were available and easily accessible to answer all my questions and concerns. I would highly recommend this team for buying or selling your home.
We worked with Jacob and Jacky over the last couple of months on our house purchase, and we have nothing but positive things to say about the whole experience. They were responsive and professional, and guided us well through the whole process.
We really appreciated their expertise and will definitely work with them again in the future.
We really appreciated their expertise and will definitely work with them again in the future.
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