Realtors Commission in Canada
How much is the realtor commissions in Canada?
A lot of questions has been asked about how much commission, or a fee, realtors charge in Vancouver compares to elsewhere in Canada. As per Canadian Competition Act, realtors commission aren’t set in stones which means they are negotiable. How much fees to charge are up to the each real estate agent business practices. Most realtors in Metro Vancouver charge the lowest realtors fees in Canada, 7% on the first $100,000 and 2.5% on balance. The average total fees on a $1 million dollars property is 2.95% in Vancouver. The same property in Toronto, you’ll pay 5%. Half this goes to the buyer’s agent for bringing a qualified buyer. Also, don’t forget, it’s commission fee plus GST. GST is collected on behalf of Canada Revenue Agency on commissions paid, as of today, this is 5%.
Most home buyers don’t pay any fees to agents as the seller’s agent is splitting the fees with them. Same goes for mortgage brokers; they get paid by the lender for helping a client with a suitable mortgage.
Canadian real estate commission fee in percentage (on a $1 million):
Breakdown of all the real estate commission by Provinces
What do you get for the realtor fee you pay?
When you are selling your home, ask the realtor what he will be doing to market your home. What you’re looking for is a list of things he will be doing to market your home for the amount of remuneration he’s getting and have the agent be accountable to what’s on the list. There are a lot of expenses a selling agent has to cover before going live on MLS. These are expenses that are mandatory to sell your home fast for more money.
What happens if an offer comes from the selling agent?
In a dual agency relationship, where the listing agent represents the buyer and seller. Your agent, first and foremost, must disclose to you this new information. Some realtors may give back the sum of the funds meant for buyer’s agent, or a certain amount. It would be wise to talk to your agent when signing your MLS listing agreement and set this expectation.