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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
- 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).
- 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.
- 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
- There is no standard or average Realtor commission for Sellers in Canada.
- Real estate fees are always negotiable
- Sellers pay commissions on real estate sales in Canada in most sales and NOT Buyer.
Buying a Property and want to know the commission your Realtor is Earning?
Check out this informative video on Buyers Agents Commission Disclosures!