Realtor Fees & Commissions in Vancouver – Are they Negotiable?
Are Real Estate Commission Fees in Vancouver BC Negotiable?
Yes! is the answer that all Realtors in Canada are required to give according to the Federal Government's Competition Act. The Federal Government wants to make sure that prospective Sellers know that there is not a standard real estate commission rate in Canada and that real estate commissions are negotiable. When asked, we Realtors are required to say, " there is no standard rate of real estate commission for Sellers in Canada".
That said, how much a Realtor is willing to negotiate on his/her commission rate is completely up to the individual Realtor. Also, Realtors are allowed to set their commission 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 a Realtor , with a lot of business, who consistently, regularly and successfully sell properties that he/she lists for sale. A Realtor like this does not need to negotiate on commission (or will negotiate very little) because his/her services are in demand with Sellers.
If a Seller's commission expectations are unreasonable, a Realtor may turn the Seller away.
Remember, 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.
It is the Seller who pays the commissions in Real Estate sales, NOT the Buyer. Sellers should put some thought into negotiating commision with a prospective Realtor: Keep in mind, good Realtors are good negotiators. I negotiate offers and give clients negotiating advice virtually every single day of the year. Its pretty much all I do and with all that practice, I'm a really good negotiator.
Tips when Negotiating Commissions with a Realtor in Vancouver:
- Take the opportunity to test the negotiating skills of the Realtor you want to hire...negotiate the commission rate before you hire your Realtor. The more competent and skilled Real Estate Agents will be more competent, skilled and professional negotiators.
- If the Realtor you're negotiating with is easily persuaded at lowering his/her commission rate, does this make him/her a good negotiator? Are you sure you want this person to represent you and/or give you negotiating advice? I would suggest finding a better candidate. At least find a Realtor who is better at negotiating that you are: One that will impress you with his/her negotiating skills.
- Bring your “A Game”. If you seriously want to negotiate a prospective Realtor's commission rate and you seriously want to test a prospective Realtor's negotiating competence, then be prepared. Your demands should be justifyable and reasonable.
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 the commission 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!