Real estate agent commissions are the fees paid to realtors who help in facilitating a real estate transaction between two parties.
In British Columbia, real estate agents often charge graduated commissions. So, on average, the combined realtor fees of the first $100,000 of the transaction value range from 6% to 7%, while the remaining amount is typically charged 2% to 3% for the realtor commission.
This article discusses the realtor commissions you can expect to pay in BC in-depth.
Key Takeaways
- Realtor commissions in British Columbia are generally lower than the Canadian average.
- In most cities in BC, the commission is equally split by the buyer and seller agents. But in some areas, including the Greater Vancouver Area, the selling realtor receives slightly more than the buyer’s agent.
How Realtor Commissions Work
Realtor commissions are the compensation paid to the real estate agents who assist Canadians in buying and selling real estate properties. These fees cover every range of services offered by realtors to guide buyers and sellers through the complex procedures of real estate transactions.
Often, the property seller pays the realtor commission for both the listing and the buyer agent. Hence, buyers don’t need to worry about this fee increasing their expenses when buying new homes or other properties.
It’s important to note that realtor commissions throughout Canada are not bound by specific “standard rates,” whether they are charged as a percentage of the transaction value or as a flat fee.
Despite the existence of typical realtor commission ranges, The Canadian Real Estate Association (CREA) clearly states that the commission rates and fees charged by realtors are “solely the choice of those providing the services.”
Hence, realtor commissions can vary even within one city or province, depending on your chosen real estate agent.
How Much Commission Does A Realtor Make In BC?
Realtors in British Columbia typically charge “graduated” commissions. Altogether, the buyer and seller agents charge 6% to 7% on the first $100,000 of the property’s value and 2% to 3% on the remaining amount.
In most cities of British Columbia, realtor commissions are usually split 50/50 between the seller and buyer agents. However, in certain areas, selling realtors take a bigger cut than buying realtors, which results in a 52:48 to 55:45 ratio.
How Much Commission Does A Realtor Make In Canada?
In Canada, realtor commissions typically range from 3% to 7% of the final selling price of a property, which is often higher than the average real estate fees in British Columbia.
Let me use an example to help you compare the real estate fees of both British Columbia and the entire country.
Let’s imagine that you’re selling a property priced at $716,000, the national average home price in Canada at the time of writing, and compare the realtor commissions you’ll have to pay if you use the average realtor fees in BC or Canada.
Realtor Commission Calculator In BC
Lowest Estimate
| 6% multiplied by $100,000 | 2% multiplied by $616,000 | Total Commission | ||
| $6,000 | + | $12,320 | = | $18,320 |
Highest Estimate
| 7% multiplied by $100,000 | 3% multiplied by $616,000 | Total Commission | ||
| $7,000 | + | $18,480 | = | $25,480 |
Realtor Commission Calculator In Canada
Lowest Estimate
| Percentage | Final Selling Price | Total Commission | ||
| 3% | x | $716,000 | = | $21,480 |
Highest Estimate
| Percentage | Final Selling Price | Total Commission | ||
| 7% | x | $716,000 | = | $50,120 |
As you can see, for an averagely-priced property, your commission fees in BC may be significantly lower compared to how they would be if you’re paying the average realtor commission for Canada.
Realtor Fees In Vancouver
In Vancouver, the average combined realtor fee is 7% on the first $100,000 of the property’s value and 2.5% on the remaining balance. Typically, 52% to 55% of this commission goes to the seller agent, while the rest is given to the buyer agent.
Realtor Fees In Victoria, BC
In Victoria, the buying and selling realtors equally split the total commission paid by the property seller. On average, their combined real estate fees would be 6% of the first $100,000 and 3% of the remaining balance.
Realtor Fees in Kelowna
Kelowna realtors typically charge a 7% commission on the first $100,000 of the property price and 1.75% on the remaining amount. This fee is equally split by the buying and selling agent.
Can You Negotiate Realtor Fees In BC?
As there are no standard guidelines for realtor fees in British Columbia, most realtors have negotiable commission rates.
Some may adjust their prices upfront, while others may offer to modify the scope of their services so you won’t have to pay as much.
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FAQs
In BC, most realtors charge a total of 6% to 7% for the first $100,000 of the property’s value and 2% to 3% of the remaining amount. These values already include the fees for both the buying and selling agents.
Realtor fees are calculated as “graduated commissions” in British Columbia. This means the percentage charged on the first $100,000 of the property’s sale price differs from the commission percentage applied to the remaining amount.
Yes, the property seller usually pays for the realtor fees in Canada. This commission is paid out after the transaction is completed, so sellers won’t need to pay upfront fees.
Yes, realtor fees are tax deductible in Canada. Ensure you keep the documentation that shows how much you’ve paid your realtors so you can claim them as expenses to deduct your taxes.
A fair commission to a real estate agent is at least 2.5% of the property’s final selling price. However, know that each realtor is different, so not everyone will feel compensated enough with this rate. Some real estate agents charge a lot more and require commissions of up to 7% of the property’s value.
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Nice summary!