When a home owner decides to sell their home, they often agree to pay their chosen salesperson / real estate company a commission based on a percentage of the selling price of their home. The sale commission is specified in the Listing Agreement when a home is listed for sale by a home owner. In British Columbia, the commonly used commission structure is based on 7% on the first $100,000 and 2.5% on the balance of the selling price. Other real estate companies may used 6% for the first $100,000 and 3% for the balance of the sale price.
| Home Price | Commission Cost |
As % Home Price |
| $500,000 | $17,000 | 3.4% |
| $1,000,000 | $29,500 | 2.95% |
| $2,000,000 | $54,500 | 2.725% |
| $3,000,000 | $77,500 | 2.583% |
Sale commission is negotiable
While majority of the home sellers accept paying the above commission fee structures when selling their homes, some may choose to negotiate on listing and paying their homes at lower commission rates. There are discount or flat-fee brokers willing to provide full MLS and real estate marketing services comparable to the traditional real estate companies. As in any business transaction, a home seller should firmly establish the level of service they will be receiving and the fees they will be required to pay.
How much should a home seller pay?
If you are looking for a good Realtor who is prepared to negotiate with you for a fair commission to sell your home, you should check with your local network of Realtors. Find a Realtor who is willing to work as a "discount broker" and negotiate with you on the sale commission. Make sure you are satisfied with the terms of the service, and you are getting the full service at a discount.
You can use the links here to research homes for sale in Richmond and Vancouver.
