When it comes to buying a home in Vancouver BC, using a real estate agent gives you greater peace of mind because they keep you on the right track by showing you the ropes. You are assured that you will be able to find the right home for your preference, budget and proper legal protection. As a general rule, buyers are not paying real estate professionals directly because these agents get compensated from sellers in the form of a commission. 

These commissions are taken from the transactions they close taking the final sale price into consideration. Commissions from both the seller's and the buyer's agents are deducted from the proceeds of the sales. This often creates an impression that the seller pays for the services while buyers get them for free, but this is not the case. 

So, how can a buyer determine the amount that they should be paying to a real estate agent? Is there also a way they can pay less? Here's everything you need to know about real estate commissions in Vancouver when purchasing a home.

What are the commission rates for real estate agents in Vancouver?

The commission ranges between 1.5% to 3% of the final sale price, depending on the region and the real estate agent used. British Columbia has some of the lowest commissions paid by sellers in North America.  Typically the range is between 5% to 6% in other states and provinces. There is no standard fee and commissions are negotiable.

So, for instance, commissions on a home sold at a purchase price of $500,000 would have a total of $15,000 to $17,000. This amount will be split between the seller's and the buyer's agents.

If the property is located in a much pricier location such as Vancouver, then the total commission fees for a home with a sale price of $1 million will be between $20,000 to $30,000. 

View this handy real estate commission calculator we have created Click here.

Can you use a real estate agent's service for free when buying a home?

While this is a common misconception, the answer is no. This is because the fee is already built-in to the transaction. It is the buyer that pays for all the commission fees both for their seller's and buyer's agent. These fees are worked into the property's total purchase price. It is also the buyer who will pay off those extra dollars including the interest over a period of 25 years.  However, having a good Realtor when buying a home in Vancouver BC, would be able to negotiate downwards on the price so having an agent is important when buying.