skip to Main Content

Are Real Estate Commission Fees in Vancouver BC Negotiable?

Updated May 8, 2019 by Mike Stewart PREC

Yes! – This is the answer that all Realtors in Canada are required to give according to the Federal Governments Competition Act.

We Realtors are also required to say that there is no standard rate of real estate commissions for Sellers in Canada.

The Federal Government wants to make sure prospective sellers know that there is not one standard real estate commission rate in Canada and that real estate commissions are negotiable.

That said, how much a Realtor is willing to negotiate on their commission is completely up to an individual Realtor. Also, Realtors are allowed to set their commission rates at any amount they choose.

Want to know How Much I Charge to Sell a Property?

Check out this cool Real Estate Commission Calculator!

Consider the example of a Realtor with a lot of business who consistently and regularly sells the properties that they list for sale on behalf of their seller clients. A Realtor (Like me) like this does not need to negotiate on commission or will negotiate very little because their services are in demand with sellers.

Realtors like this can turn away prospective sellers with unrealistic commission expectations or negotiating demands.

Remember we Realtors are required to say real estate commissions are always negotiable, but that does not require a Realtor to negotiate on commission as the Realtor can refuse the listing.

Tips when Negotiating Commissions with a Realtor in Vancouver

  1. Use negotiations on the commission to see how good of a negotiator the Realtor you want to hire actually is.  When preparing to negotiate the commission with a Realtor, keep in mind that the more competent and skilled real estate agents will be very competent professional level negotiators who have LOTS of practice (like me for example).
  2. If the Realtor you’re negotiating with is a pushover or is not very good at negotiating, are you sure you want this person to represent you and give you negotiating advice in the sale of your property? If you’re a better negotiator than the person you have hired to assist you in getting and negotiating offers, I would suggest finding a better candidate.
  3. You should bring your “A Game” if you expect to get anywhere in the negotiations with a Realtor on commission.  An example; I negotiate offers and give clients negotiating advice pretty much every day of every week of the year and have been doing this since 2005. Its pretty much all I do and with all that practice, I’ve gotten pretty good at it. So take a shot. 🙂

Points to Remember about Real Estate Commissions in Canada

 Buying a Property and want to know the commission your Realtor is Earning?

Check out this informative video on Buyers Agents Commission Disclosures!

This Post Has 2 Comments
  1. Hello Mike,
    Hope this note finds you well.

    While reading through your blog post on “https://www.mikestewart.ca/realtor-fees-commissions-in-vancouver-are-they-negotiable/” I noted there is a mention that in Canada Sellers pay commissions on RE sales. ” Sellers pay commissions on real estate sales in Canada in most sales and NOT Buyer”

    You have to understand that this narrative and or statement in not the case. It depends who you are talking to. If you are selling a property the owner will always factor in the cost of selling which as your calculator indicates is on average 7%. The seller is going to add that cost plus GST to the selling price. It is a FACT. The above statement is NOT TRUE. The BUYER pays the selling fees 100%.

    And to make matters worse, this 7% fee is amortized over 25-30years. This is what the folks at CMHC, the banks, RE boards, Economists and Valuers have been using and this is what has led to the housing market bubble and house price illusion!! Each time the property changes hands, it gets inflated by 7% artificially.

    Hope you take a closer look at the above and understand what exactly is going on with the RE Industry in Canada and sooner or later it is going to affect the lives of the hard working Canadians.

    1. Hi Mark,

      Good to hear from you.

      Thank you for your input.

      We can safely say we disagree.

      Hope the calculator was helpful to you.

      Just a heads up, I charge only 7% on the first $100K and then 2.5% on the balance of the sale price and NOT 7% on the whole sale price.

      And to clarify, half (50%) of the 7% on the 1st $100K & 2.5% on the balance of the commission goes to the buyers agent who represents the buyer who brings us an offer that completes.

      Hopefully that helps!

      Thanks again!

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top