Realtor’s 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.
Own your first home sooner than you think.
First time home buyers fail to purchase their ideal home due to lack of understanding of how home buying works. It’s a very simple process to obtain your home. We will be helping you understand the steps necessary in owning your home fast and cut the competition. You will learn everything from financing to negotiation strategies. We will explore the new financial program for BC First Time Home Buyers through the provincial government. Bring along your family and friends. The is a FREE seminar for the First time home buyers, and the seats are limited.
Click the image below to obtain your tickets or Eventbrite
Topics we will be discussing are:
- Mistakes first-time buyers make
- A Clear understanding of professional services and how they help you.
- How to get the financing needed to buy a home
- First Time Home Buyer’s program for BC residence
- Why do I need a REALTOR?
- What Happens after my offer gets accepted?
- What role does a Lawyer/Notary Public play? (more…)
Most expensive property in Vancouver
Vancouver has seen high price tagged properties in the past. After all, this city leads the country for most expensive residence in the country. But the latest listing tops them all and could be the most expensive home to come on the market. This property comes from one of the affluent neighbourhoods in Vancouver, Shaughnessy.
Courtesy of Macdonald Realty
This mansion is sold along with two other lots together for a combined amount of $46,800,000. The properties are located at 1238, 1242 & 1248 Tecumseh Ave. All three properties make up to 49,314 sqft (1.13 Acre) in lot size. The house has five bedrooms and four baths. The size of the master bedroom (21 x 20 ft) is that of a starter condo in Vancouver. All in all, this mansion is magnificent and has a lot of the original character.
Another point to consider, and important one, is that fact the City of Vancouver has imposed a bylaw preventing anyone from demolishing homes in this neighbourhood, which First Shaughnessy, that have heritage value. After seeing many of these beautiful mansions being demolished for larger and newer mansions in the past, the City Hall finally stepped in to ban such practices. You’re allowed to renovate inside and out. However, it would be prudent to consult the City of Vancouver and obtain proper documentation and permits before taking on any renovations.
Here is the Fist Shaughnessy Policies and Guideline.
Photo curtesy of Macdonald Realty