2025 REAL ESTATE AGENTS & REALTOR® FEES, BC

BC Real Estate Commission & Transaction Fees Q&A

1. How much are REALTOR® fees in BC?

REALTOR® fees in BC typically cost 3 to 5% of the final sale amount, which typically gets split between the buyers' agent and the sellers' agent.

Real estate agent commissions can vary from brokerage to brokerage, team to team, and agent to agent, so it’s important to ask and understand how much your agent will charge you.

Some will charge a percentage such as: 7% on the 1st $100,000 and 3.5% on the remaining balance. On a $500,000 home, this would equate to $21,000 ($7,000 on the first $100,000 and $14,000 on the remaining $400,000). Goods and services tax (GST) is typically included in the total amount of realtor fees charged by real estate agents in BC.

Note that different agents charge different amounts for their services. Some BC real estate agents will charge a flat fee, while others charge a percentage of what the property sells for.

Legal fees typically for each side of the transaction typically cost $1,000 to $1,500, paid by both the buyer and seller.

• Related content: Cost of Selling a House in BC

• Becoming a REALTOR in BC

2. Who do Real Estate Agents work for?

When signed under “Designated Agency”, real estate agents have a fiduciary duty to their clients. In simple terms, your agent works for you and must work solely in your best interest.

The Real Estate board recommends that the relationship between an agent and a client be in writing so that there is no grey area.

3. Are real estate agents needed?

Real estate agents aren't legally required for buying or selling a home in Canada, but due to the complexity and sums involved with real estate transactions, having the expertise, resources and services of a skilled REALTOR® can prove invaluable and well worth the commission fees.

• Related video: How To Sell Your Home Yourself and Save the Commission – 11 Insider Secrets From a 20 Year Agent
  
  

4. Do I need a REALTOR® when buying a home?

Legally speaking, no, you don't need a REALTOR® to buy a home in BC. Since there are so many moving parts involved in a real estate transaction, most people seek the professional advice and experience a qualified real estate professional.

A good REALTOR® can help you find a home that suits your needs wants and needs perfectly, and negotiate diligently to get you the best possible price.

5. Do I need a REALTOR® when selling a home?

While not legally required, a REALTOR®s expertise, local market knowledge, and negotiation skills can should provide you with a more efficient and successful home selling process.

Be sure you work with a REALTOR® who understands your specific needs and has a track record of success in your local market.

6. Can I buy a home without a buyer agent?

Absolutely, you can buy a home without a real estate agent, but it's not typically recommended. Here's why:

Real estate agents are deeply plugged into the market, often having access to properties before they even hit the market. They may know about off-market listings that you wouldn't find on your own, potentially causing you to miss out on your dream home.

Given that buying a home is often the largest investment people make, it's risky to go it alone. With the complex web of details in a real estate transaction and legal contract, mistakes can be costly – both financially and emotionally.

Think of it this way: entering a real estate negotiation without an agent is like facing a lawyer in court without legal representation. It can be done, but the outcome might not be in your favor.

Paying the real estate agent fees can be well worth the investment, help you save money, optimize your transaction price, and avoid a ton of stress.

7. Can I sell a home without a seller agent?

Indeed, you can sell a home without a Real Estate Agent, but it's generally not advisable.

Selling a home involves numerous factors crucial to fetching the best price in a short time span, such as determining the right price, preparing the property for sale, and effectively marketing it to potential buyers.

For many, their home represents their largest investment, making it risky to navigate the sale alone. Without the expertise of a real estate professional, there's a significant chance of making errors in the transaction or legal contract, leading to potential financial and emotional losses.

8. When I buy a home, what’s the benefit to having my own “Buyers Agent” vs. working with a “Listing Agent”?

Some people believe that when purchasing a property, it is best to deal directly with the listing agent in order to attempt a reduced real estate commission that could result in a savings for the buyer. What many people fail to realize is that:

• The listing agent works for the seller.

• By only focusing on the seller's agent commission, you may actually overpay for the property unless you're also negotiating on the principal price. You could also forget important details like deposit dates, inclusions, and contingencies. For example, one might forget to write the provision for a hot tub, pool table or radon gas inspection into the contract. In the end, these mistakes could all cost you more than the real estate fees “saved” on the purchase price.
  
  

9. Does it cost me anything to have a “Buyer's Agent”?

In a typical real estate transaction, the real estate agent commission is paid by the seller, then split between the buyer's and seller's agent, so the short answer is no.

If you work with a great real estate brokerage, you won't have to worry about overpaying for the buyer agent commission because they can often negotiate a deal that saves you money at the end of the day.

10. Does it cost me anything to have a “Seller's Agent”?

Yes, hiring a listing agent to sell your home will typically cost between 3 to 5% of the sale price. In almost every residential real estate transaction, the BC real estate commission fees are paid by the home seller.

11. How should I select my Real Estate Agent?

Whether buying or selling a property, it is important to have the right agent or team for the job.

We recommend interviewing at least three agents or teams. Ask them what sets them apart, how they intend to get the job done, and see how much more each has to offer over the competition.

You're about to make a decision that has a lasting long-term impact, so pick an agent with a proven track record, great reviews, and a personality that's congruent with yours.

12. Are all buyer and seller agents the same?

Are all lawyers, doctors, chefs, or financial advisors the same?

No. Not all agents and teams are the same. Many people don’t realize the true skill and professionalism that goes into being a great real estate agent so they choose to work with their aunt, uncle, or friend as their realtor simply because they know them. Buying or selling real estate is the largest investment one will make so we can’t stress enough the importance of selecting the agent that is right for the job instead of working with friends or family members out of a sense of obligation.

13. Who pays the real estate commissions, the buyer or seller?

In a typical real estate transaction, the fees or commissions are paid for by the seller. Upon closing, both the buyer's agent commission and seller's agent commission is paid for with the cash that's transferred from the buyer's bank account to the seller's bank account.

If you're buying a brand new home or a substantially renovated home, you'll also pay GST to the builder or developer, which is often included into the commission.

14. How do real estate teams work? Are real estate agents becoming obsolete?

In today’s day and age, you have a breadth of options for real estate agent services: from ‘for sale’ by owner and flat fee discount brokers to full service agencies. Depending on your own level of expertise in the laws, the amount of time you have to dedicate to your move and your negotiating skills, your networking reach and your ability to market and promote your property.

Done properly, there are tremendous amounts of little details that go into a successful and profitable move. Any of these steps missed can cost thousands of dollars.

Some people say that moving is the third most stressful thing a person goes through – behind child rearing and divorce. Experience shows that having a neutral third party professional to facilitate the sale, to solve problem, and to stay objective will go a long way to eliminate this stress. It has also been shown that the average private sale price is 10% below the homes sold through the broker channel, which means going alone can cost you more than the real estate commission fees.

15. Which real estate agency is the best?

With so many options to select from, it can be difficult to decide which agency to select. Many people often think that “bigger is better” but you have to stop and think.

At some large brokerages, upwards of 200 agents are all fighting for the same piece of the pie and time with their managing brokers.

It’s important to understand that with a typical real estate brokerage service, you have an array of different agents with different business models and skill levels. Since not all agents are the same, it's important to do your research before signing an agreement for real estate services.

Some small boutique brokerages, however, are different. There are some companies who only hire very specific agents who all meet the same level of world class skill and service. So again, do your research and be sure to hire the agent and/ or team that is best suited for the job.

16. Should I use a discount brokerage or agent?

We are often asked about discount brokerages and agents. Yes, some agents do cut their compensation and based on the level of skill and service they bring to the table, some agents should!

Our best advice is this: do your research, understand what services are being included (or not included), hire the agent that is best suited for the job, and remember that it’s NOT about the amount of commission you pay (or don’t pay) but about how much money you NET IN YOUR POCKET at the end of the day.

Regardless of the real estate agent's commission, a great agent will not only pay for their own fees but will make you more money on the sale, save you more money when you buy, and help eliminate stress throughout the process.

MEET KELOWNA'S TOP REAL ESTATE TEAM

With 1,000+ reviews and a 4.9 star rating, Vantage West Realty is Kelowna's top-rated independent agency. Whether you're buying or selling Okanagan real estate, we're here to guide you every step of the way.

With a 20+ year track record of success — including the most expensive single-family home sale in the Central Okanagan — we're committed to leveraging our expertise, resources, and raw grit to help you achieve your financial goals.

Whether you're buying, selling, or investing, you can count on our agents for a seamless and rewarding Okanagan real estate experience.

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