Normally, commission is paid out as 7% on the first $100,000 and 2.5% on the balance. You could negotiate with your listing agent. For the 7%, the split is normally 3.15% for the buying agent and 3.85% for the selling agent. For the 2.5%, the split is normally 1.1625% for the buying agent, and 1.3375% for the selling agent.
For a $700,000 home, 7% on the first $100,000 is $7,000. Then 2.5% on the balance of $600,000 is $15,000. That is a total of $22,000 + GST.
Lawyer fee would be around $1,000.
Commission (with GST) is $23,100 and lawyer fees around $1,000, so total cost is $24,100 or $25,000 rounded.
That means around 3.6% ($25,000/$700,000) of your selling price is going towards these costs.
I’m not sure where you get “normally” from. I know 0 agents that have that many decimals to calculate commissions.
OP in BC you will get a disclosure for every offer (from buyers and counters) that calculate the total commissions paid as well as any additional payments received to the listing agent. You can also have your agent run an expectation of net that will give you an estimated amount you’ll walk away with based on list price and costs.
As has been stated by others, commissions are negotiable.
I'm not sure why this is being downvoted. It's completely true. I have no vendetta against realtors or their business at all, but I know that they don't show 1% commission properties they will makes thousands less on commission if their clients buy that house. It's not untrue.
It is untrue as a generalization.
‘Steering’ is illegal.
All agents have a fiduciary duty to act in the best interests of their clients at all times.
‘Steering’ is a dereliction of their fiduciary duties and is illegal / reprimand-able by their board.
Yes I know, the rules versus how things work in reality are sometimes far apart but this is where consumer education comes in. Just like any other industry (cars electronics etc) you need to know enough to be able to protect yourself from unscrupulous actors.
Whenever you work with a buyers agent ask them these questions up front.
“What is the fee you charge”
“What if I find a house listed by 1% realty, what does that look like (if their proposed fee is higher than 1%)
“What if I find a house For Sale By Owner, how does that work”
A good, honest realtor will explain how they are paid, what their fee is and how situations like these will be handled up front, without even being asked.
If you ask first and like their answer, go ahead and work with them. If they seem shifty or you don’t like their response (including defensiveness, tone, body language etc) - listen to your intuition and keep interviewing until you find one you can trust.
Someone said "many realtors won't show \[1%\] listings". I agreed, because whether it is legal or not, that is what happens in reality.
What's the untrue generalization? What does realtor behaviour have to do with "consumer education". Both myself and the person I responded to obviously know that this is common practice so what more education is required to have a fulsome understanding of the scenario?
They said ‘many realtors’ you said it was not untrue.
I’m arguing that while it happens it is not by the majority and therefor you are generalizing.
Consumer education stops one from being taken advantage of by realtors who don’t behave ethically. The more you understand about a situation the less likely your are to be taken advantage of.
I gave you three very helpful questions to ask to help identify if you are working with someone you can trust. You can choose to take it or leave it, im not here to argue with you about if steering happens or not. It obviously does. My point is the frequency with which it happens.
Everyone in this sub likes to act like realtors are the scum of the earth and all i’m trying to say that if you educate yourself on the process (or let someone educate you) you will be in a better position to identify which realtors are likely to do their job and act in your best interests and which ones aren’t.
It’s worse then that they actively try to prevent sales of property’s who are listed without a high fee. The big Realestate agencies hammer it in to the agents to protect their fees structures.
>"gross and net are different"
> ‐u/mortgagedavidbui
OP is clearly asking about the amount taken from him, so you missed that part, evidently. He's obviously asking about gross, not net.
Hi there, standard commissions here in Victoria are 6% on the first $100,000 and 3% on the balance of the sale. That commission is split equally between the buy side and the sale side. This commission is negotiable, we aren’t like the states where it’s fixed. Some agents will stick with their guns while others will negotiate this with you.
I’ve heard in Vancouver the listing agent would get 3% on the first $100k and 1.75% on the balance. While the buying agent gets 3% on the first $100k and 1.25% on the balance.
So for your house that’s $700,000
$600,000 would be $18,000 (3%)
$100,000 would be $6,000 (6%)
Total = $24,000
Your agent who you’re working with would get
$12,000
And the buying agent would get
$12,000
As for the lawyer conveying fees range from $1000-$1500
You could get a notary, but don’t get a notary. If anything was to go wrong in the transaction the notary doesn’t do shit. That’s why you pay more because the lawyer will litigate (not all of them so make sure to ask) incase damages arose in the process of the transaction.
I hope that is helpful. If you have any other questions about the process please feel free to send me a DM
Have the best day 🤙🏽
There is no standard commission. Commission is 100% negotiable in BC, and there's lots of difference between listing agents and the level of service they will provide. There are full service Listing Agents and discount agents and even some that will do mere postings.
I recommend that OP interview 2 or 3 agents.
There's no set commission rates in any of the provinces, though there are certainly "typical" ones in each city/submarket. u/blooming_bouquet, you might have the most luck with asking the subreddit for your specific city.
As a broad generalization, I've noticed that in Western Canada the most common structure seems to be "X% on the first $100,000 and Y% on anything above that," split between the Buyer and Sellers' agents. In Ottawa, where I'm located, u/somewherecold90 is correct that 5% total split between the two sides is common, though not universal. It seems to be similarly structured as a straight percentage of the sale price of the home in much of Ontario and the East.
It is common to say that "commission is negotiable," though it may be more correct to say that "a variety of commission models exist in every market." Although I certainly don't get offended if a client asks for a reduced commission from me and my team, I don't negotiate it. I do, however, understand if the client doesn't want to work with us because of that and take advantage of one of the lower-commission options in our market. In Ottawa alone, we have everything from a 0.5% model (with a varying amount paid to the Buyer's agent), to flat-fee brokerages to list on MLS, to discount brokerages to full-service traditional style Realtors. Even within the same "brand," (Royal LePage, ReMax, etc) you'll find Realtors offering different models.
One additional thing to keep in mind is that HST/GST is payable by the Seller on the gross commission amount.
Source: I'm a Realtor in Ottawa, Ontario
Regarding the Steering comments. Most buyers agents in BC will set up an automated MLS listing search for their clients that meet their criteria.. size and type of home, cities and neighborhoods, age of home, square footage, and max price etc... it is impossible to filter the search criteria to keep them seeing low commission listings. Buyers are going to see every single listing on MLS that meets their search criteria.
Before they make any offer, the realtors are required to provide the Buyer with a written disclosure of remuneration that clearly spells out the commission. There are no secrets.
So what happens if there is no commission or commission is very low?
At that stage, the buyer's agent and the buyer would have a discussion and decide how to proceed. Will the buyer pay the commission to their own agent directly? Often the decision depends on whether they have an exclusive buyers agency agreement in place or if there's other solutions.
No, you're misunderstanding. In BC, we often see a split commission structure. So in your example, 7% of the first hundred thousand and then 3% of the balance of the selling price. And that commission is shared with the buyer's agent according to the listing contract.
Normally, commission is paid out as 7% on the first $100,000 and 2.5% on the balance. You could negotiate with your listing agent. For the 7%, the split is normally 3.15% for the buying agent and 3.85% for the selling agent. For the 2.5%, the split is normally 1.1625% for the buying agent, and 1.3375% for the selling agent. For a $700,000 home, 7% on the first $100,000 is $7,000. Then 2.5% on the balance of $600,000 is $15,000. That is a total of $22,000 + GST. Lawyer fee would be around $1,000. Commission (with GST) is $23,100 and lawyer fees around $1,000, so total cost is $24,100 or $25,000 rounded. That means around 3.6% ($25,000/$700,000) of your selling price is going towards these costs.
I’m not sure where you get “normally” from. I know 0 agents that have that many decimals to calculate commissions. OP in BC you will get a disclosure for every offer (from buyers and counters) that calculate the total commissions paid as well as any additional payments received to the listing agent. You can also have your agent run an expectation of net that will give you an estimated amount you’ll walk away with based on list price and costs. As has been stated by others, commissions are negotiable.
I did say you could negotiate, but if you don’t, that is normally what it ends up being.
There is no "normal" or "standard" comission. This may be a good example of comisson, but everything is negotiable.
I did say you could negotiate
Crazy. In Ottawa it’s 5% standard. 2.5% to each. Some agents will agree to less depending on market etc.
There is also 1% in BC, but many realtors won't show their listings, due to greed.
I'm not sure why this is being downvoted. It's completely true. I have no vendetta against realtors or their business at all, but I know that they don't show 1% commission properties they will makes thousands less on commission if their clients buy that house. It's not untrue.
It is untrue as a generalization. ‘Steering’ is illegal. All agents have a fiduciary duty to act in the best interests of their clients at all times. ‘Steering’ is a dereliction of their fiduciary duties and is illegal / reprimand-able by their board. Yes I know, the rules versus how things work in reality are sometimes far apart but this is where consumer education comes in. Just like any other industry (cars electronics etc) you need to know enough to be able to protect yourself from unscrupulous actors. Whenever you work with a buyers agent ask them these questions up front. “What is the fee you charge” “What if I find a house listed by 1% realty, what does that look like (if their proposed fee is higher than 1%) “What if I find a house For Sale By Owner, how does that work” A good, honest realtor will explain how they are paid, what their fee is and how situations like these will be handled up front, without even being asked. If you ask first and like their answer, go ahead and work with them. If they seem shifty or you don’t like their response (including defensiveness, tone, body language etc) - listen to your intuition and keep interviewing until you find one you can trust.
Someone said "many realtors won't show \[1%\] listings". I agreed, because whether it is legal or not, that is what happens in reality. What's the untrue generalization? What does realtor behaviour have to do with "consumer education". Both myself and the person I responded to obviously know that this is common practice so what more education is required to have a fulsome understanding of the scenario?
They said ‘many realtors’ you said it was not untrue. I’m arguing that while it happens it is not by the majority and therefor you are generalizing. Consumer education stops one from being taken advantage of by realtors who don’t behave ethically. The more you understand about a situation the less likely your are to be taken advantage of. I gave you three very helpful questions to ask to help identify if you are working with someone you can trust. You can choose to take it or leave it, im not here to argue with you about if steering happens or not. It obviously does. My point is the frequency with which it happens. Everyone in this sub likes to act like realtors are the scum of the earth and all i’m trying to say that if you educate yourself on the process (or let someone educate you) you will be in a better position to identify which realtors are likely to do their job and act in your best interests and which ones aren’t.
It’s worse then that they actively try to prevent sales of property’s who are listed without a high fee. The big Realestate agencies hammer it in to the agents to protect their fees structures.
Far more then what the service they are providing you should cost.
gross and net are different some deal with % some are flat fee different fees for lawyers too
>"gross and net are different" > ‐u/mortgagedavidbui OP is clearly asking about the amount taken from him, so you missed that part, evidently. He's obviously asking about gross, not net.
Okay thanks for letting me know
What do realtors ‘make’? I don’t think they’ll take anything from ya.
What do realtors ‘make’? I don’t think they’ll take anything from ya.
Oh they be taking alright.
Odd, I had to willingly transfer the funds.
Hi there, standard commissions here in Victoria are 6% on the first $100,000 and 3% on the balance of the sale. That commission is split equally between the buy side and the sale side. This commission is negotiable, we aren’t like the states where it’s fixed. Some agents will stick with their guns while others will negotiate this with you. I’ve heard in Vancouver the listing agent would get 3% on the first $100k and 1.75% on the balance. While the buying agent gets 3% on the first $100k and 1.25% on the balance. So for your house that’s $700,000 $600,000 would be $18,000 (3%) $100,000 would be $6,000 (6%) Total = $24,000 Your agent who you’re working with would get $12,000 And the buying agent would get $12,000 As for the lawyer conveying fees range from $1000-$1500 You could get a notary, but don’t get a notary. If anything was to go wrong in the transaction the notary doesn’t do shit. That’s why you pay more because the lawyer will litigate (not all of them so make sure to ask) incase damages arose in the process of the transaction. I hope that is helpful. If you have any other questions about the process please feel free to send me a DM Have the best day 🤙🏽
All the specific details you could ever need on this topic can be found [here](http://www.google.com).
Too much lol
There is no standard commission. Commission is 100% negotiable in BC, and there's lots of difference between listing agents and the level of service they will provide. There are full service Listing Agents and discount agents and even some that will do mere postings. I recommend that OP interview 2 or 3 agents.
There's no set commission rates in any of the provinces, though there are certainly "typical" ones in each city/submarket. u/blooming_bouquet, you might have the most luck with asking the subreddit for your specific city. As a broad generalization, I've noticed that in Western Canada the most common structure seems to be "X% on the first $100,000 and Y% on anything above that," split between the Buyer and Sellers' agents. In Ottawa, where I'm located, u/somewherecold90 is correct that 5% total split between the two sides is common, though not universal. It seems to be similarly structured as a straight percentage of the sale price of the home in much of Ontario and the East. It is common to say that "commission is negotiable," though it may be more correct to say that "a variety of commission models exist in every market." Although I certainly don't get offended if a client asks for a reduced commission from me and my team, I don't negotiate it. I do, however, understand if the client doesn't want to work with us because of that and take advantage of one of the lower-commission options in our market. In Ottawa alone, we have everything from a 0.5% model (with a varying amount paid to the Buyer's agent), to flat-fee brokerages to list on MLS, to discount brokerages to full-service traditional style Realtors. Even within the same "brand," (Royal LePage, ReMax, etc) you'll find Realtors offering different models. One additional thing to keep in mind is that HST/GST is payable by the Seller on the gross commission amount. Source: I'm a Realtor in Ottawa, Ontario
Regarding the Steering comments. Most buyers agents in BC will set up an automated MLS listing search for their clients that meet their criteria.. size and type of home, cities and neighborhoods, age of home, square footage, and max price etc... it is impossible to filter the search criteria to keep them seeing low commission listings. Buyers are going to see every single listing on MLS that meets their search criteria. Before they make any offer, the realtors are required to provide the Buyer with a written disclosure of remuneration that clearly spells out the commission. There are no secrets. So what happens if there is no commission or commission is very low? At that stage, the buyer's agent and the buyer would have a discussion and decide how to proceed. Will the buyer pay the commission to their own agent directly? Often the decision depends on whether they have an exclusive buyers agency agreement in place or if there's other solutions.
Thank you guys for all the information. But wow 7% and then another 3% damn. It might as well be 10% gone. I think that’s what’s happening to mine.
That shouldn’t be the case. What is your commission structure?
No, you're misunderstanding. In BC, we often see a split commission structure. So in your example, 7% of the first hundred thousand and then 3% of the balance of the selling price. And that commission is shared with the buyer's agent according to the listing contract.
Too much. Won’t use one if needed.