The majority of Canadians use real estate agents, including those in Vancouver. Real estate agents are important for finding the right home and securing it at the right price. A good agent can walk a homebuyer through the process from start to finish. Homebuyers usually do not directly pay their real estate agents. Instead, agents receive their income from commissions made on property sales. This can sometimes give the impression that sellers are paying for real estate services, but buyers are just as responsible.
As a homebuyer, you are also paying for real estate agents’ services during closing. This makes it important to know how much you can expect to pay. Calculating real estate agent fees in Vancouver is an important part of the homebuying process. In this article, we will give you an introduction to real estate agent fees in Vancouver, so you can know what to expect before finalizing your home purchase.
Rates for Vancouver Real Estate Agent Fees
Real estate agent fees in Vancouver usually range from 3 to 7 percent of the final purchase price. Any real estate agent you consider should be upfront about their rates and fees from the beginning. In Vancouver, buyers are not usually responsible for paying agents. If you are purchasing residential property, find out before signing whether you are expected to pay fees.
The average selling price of a residence in Canada is $500,000. In this case, the real estate agent fees would be between $15,000 and $35,000. The exact rate depends on the agents’ own rates and what area you are in. Homes located in more expensive areas have real estate agent fees that are usually higher, often between $30,000 and $70,000. These amounts are split between both the buyer’s and seller’s real estate agents.
When Buyers Pay Real Estate Agent Fees
A common mistake that people make is thinking that real estate agent fees are built-in to the purchase price, making them essentially a free service. This is not true, however. While these fees are indeed part of the final purchase price, this means that the buyer ends up paying the entire cost of using both agents. It is the homebuyer who has to pay these fees, and their interest, over the life of their home loan.
The seller wants to make as much money on a property sale as possible. That means sellers often want to reduce or even eliminate how much they need to pay to buyers’ agents. Often, sellers negotiate lower sale prices on their properties for this reason. Make sure you check who will be responsible for fees in your transaction, so you know what you are really paying.