Can you negotiate realtor commission in BC?
There is no legal rate for real estate commission in BC. What you see on most listings, 7% on the first $100,000 and 2.5% on the balance, is a convention, not a rule.
Where the money goes
On that structure, the buyer's brokerage typically receives 3.22% and 1.15%, and the listing brokerage keeps 3.78% and 1.35%. On a $1,200,000 sale that is about $15,870 to the buyer's side and $18,630 to the listing side, plus GST on both.
What you can negotiate
Everything, in theory. In practice:
- The listing side is where agents have room, because that is their own fee.
- The buyer's side is risky to cut. Buyer agents can see what a listing pays, and a low number can mean fewer showings.
- Terms such as the length of the listing and what happens if you cancel are also negotiable.
What a reduction looks like
Our partner agents cut the listing side in half. On the $1,200,000 example, that is about $9,315 before GST, written into the listing agreement as a lower rate.
Watch for
Agents who agree to a low rate and then cut corners: no professional photos, slow responses, no open houses. Ask what is included before you sign. See how the seller discount works.