By ebizniz on October 6, 2007 - 8:02pm
A posting by James Wong at RE/MAX Westcoast.
In Greater Vancouver and Fraser Valley, home sellers pay 7% for the first $100,000 and 2.5% on the balance selling price of the homes. Using the above commission structure, the sale commission for a $600,000 home is $19,500 or 3.25% of the selling price. Real estate commission is not fixed and can be as low as $5,000 available from discount Brokers.
The real estate industry argument that the seller is paying the commission is a myth. The fact is that real estate commission is already included into the sale price. So the truth is that it is the market pricing mechanism that provide for the payment of commission in a real estate transaction.
As a buyer, you aren’t really getting the service for free!
BC Real Estate Agency Law
Legally speaking, the real estate agency law in BC specifies that all realtors work on behalf of the seller of a home and not the buyer? But in practice, a buyer’s agent represents the buyer.
When a home buyer has a realtor representing him in the negotiation of an agreement of purchase and sale, he has the full fudiciary and legal duty of the realtor. The buyer’s realtor is looking out for the best interests of the buyer, and he is not legally obligated to the seller in any way.
Homes for sale are listed on the Multiple Listing Service (MLS) under the local real estate boards. Virtually all of those homes are listed by realtors of a real estate board. And buyers mostly have their realtors driving them around looking at different homes listed on the MLS. When a home is sold, the agents split the commission.
If you are planning to buy or sell your home and like to find out more information on the process involved, you should check with your local Realtor.