Excellence in Vancouver Real Estate Marketing for over 15 years

How a REALTOR® is paid

There seems to be some confusion about real estate commissions and how REALTORS® are paid, so the purpose of this page it to clarify how I am paid.

Unless otherwise agreed to in writing, real estate commission is only payable upon of the Completion of the Sale of the Sellers property at the BC Land Titles Office.

What the commission covers:

The commission covers all of the costs associated with listing and marketing the property, complete offer negotiation, support and guidance for the Sellers, as well as full support through to the Completion of the Sale (and beyond). It also covers a portion of my annual licensing with the Real Estate Council, my monthly membership fees to Sutton Group Westcoast Realty, Errors and Omissions insurance, my continuing education requirements, MLS® technology costs, vehicle costs, website maintenance, office expenses, and telephone and internet costs, which totals approximately $2500/month.  The commission also covers my time.  When your sale complete, my service doesn’t end.

I cooperate with ALL Buyers Agents and Offer approximately 1/2 of the total commission to Buyers Agents! This means that your home is exposed to all of my buyers and connections IN ADDITION to all licenced agents and their connections too.

Buyers Agents must disclose in writing to their Buyer the commissions that they earn in any transaction.

My Real Estate Commission is not a “Vancouver Real Estate Standard” and is Negotiable.

The real estate commissions I charge a Seller are negotiable. In fact, the Federal Competition Act prohibits agents stating that there is any “fixed” or industry standard commission, or even creating the perception that there is a standard commission.  Be extremely cautious if anyone tells you anything other than this. The Act takes this VERY seriously.

What I charge for commission, which covers all of my costs including the payment to the Buyer’s agent is 7% on the 1st $100,000 and 2.5-5% on the balance of the sale price, depending on what has been agreed to, the area, the complexity, market conditions and what the mutual expectations are.  See below for examples of what these costs look like at a glance:

$300,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $12,000 x GST (5%) = $12,600

$400,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $14,500 x GST (5%) = $15,225

$500,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $17,000 x GST (5%) = $17,850

$600,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $19,500 x GST (5%) = $20,475

$700,000 Sale Price x 7% on the 1st $100K & 2.5% of the Bal = $22,000 x GST (5%) = $23,100

$800,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $24,500 x GST (5%) = $25,725

$900,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $27,000 x GST (5%) = $28,350

$1,000,000 Sale Price x 7% on the 1st $100K & 2.5% of the Bal = $29,500 x GST (5%) = $30,975

$1,250,000 Sale Price x 7% on the 1st $100K & 2.5% of the Bal = $35,750 x GST (5%) = $37,537

$1,500,000 Sale Price x 7% on the 1st $100K & 2.5% of the Bal = $42,000 x GST (5%) = $44,100

$1,750,000 Sale Price x 7% on the 1st $100K & 2.5% of the Bal = $48,250 x GST (5%) = $50,662

$2,000,000 Sale Price x 7% on the 1st $100K & 2.5% of the Bal = $54500 x GST (5%) = $57,225

$2,500,000 Sale Price x 7% on the 1st $100K & 2.5% of the Bal = $67,000 x GST (5%) = $70,350

$3,000,000 Sale Price x 7% on the 1st $100K & 2.5% of the Bal = $79,500 x GST (5%) = $83,475